You have the quote for that modular house plan that you like so much. But how do you analyze it? What does that price include? You may be in for a surprise!
The actual cost of building a modular home includes much more than just the price of the home itself. Now this may seem logical to you, but over the years I have noticed that many people are simply not aware of all that is involved. You want to be a smart shopper, so let’s clear up some of the confusion.
The costs behind the price tag
Here’s a quick look at some of the things you’ll need to add to the price of a modular home. Every company has their own way of doing things, but this will give you some guidelines to keep in mind as you do your research:
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Updates on finishing articles: Typically, you’ll want to update things like trim, cabinets, floor coverings, countertops, and light fixtures, to name a few.
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Building permits and fees: This is the same as what is required to build a site-built home from scratch.
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Preparation of the ground and foundations: You need to be picky to make the prefab house a perfect fit.
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Wells and septic systems: Of course, if you’re in town with these services already in place, you’ll still have to pay connection charges.
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Shipping to your construction site: This may or may not be included in the initial quotes. It’s often not included because there’s no way to know shipping costs until they know where your lead is building.
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Assembly of the main modular sections: Again, this is generally not included in the basic price. Heavy equipment is needed and trained contractors will be hired.
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Commercial subcontractors: Required to complete plumbing, heating and air, and electrical systems once sections are assembled
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Finishing Subcontractors: Finishing carpenters, flooring contractors, tile installers and many other finishing contractors will be needed to complete the home before it can be delivered.
Naturally, all of these items are costs that need to be added to the modular home price tag to represent the true cost of building it. As you can imagine, it can add up.
Building modular homes may be the easiest to afford
In general, however, building a modular home might be the easiest home construction project to cost. Certainly easier than building from scratch and even easier than building most kit or packaged homes, log homes, cedar homes, or panel homes. This is because with a modular system, a lot more labor and a bit more finishing materials are put into the house before it arrives on your site.
In addition to these advantages, modular home manufacturers often have excellent methods for estimating on-site labor costs and material requirements. As an educated shopper, you will demand this kind of help.
Preparation steps to complete your calculations
What you are looking for before making your purchase decision is a very accurate estimate of all the costs involved. With this article, you now know what to ask. These are the steps I recommend:
- Get the price of the basic housing package you want
- Have the company provide you with the list and costs of upgrades
- Go to your building authority and ask for a list of required permits and their fees.
- Grab plans and get foundation estimates from contractors and/or use estimates from other manufacturer’s customers in your area
- Use the modular manufacturer’s estimates to calculate the costs for on-site assembly for the home, as well as for finishing work.
These are the main areas you will need prices for when calculating the costs to complete your home. There may be more depending on your situation, but this gives you a good start. At least now you won’t be caught off guard by a salesperson who is overly zealous in trying to make a sale.
As always, even with modular homes, I recommend the use of a home building trainer. This small investment can save you thousands. Keep researching and learning.