Modular homes continue growing in popularity because they are built to last just like regular homes. Investing in real estate is a very huge undertaking because you first need a piece of land before you consider building a home. Regular homes are built on-site from the ground up while modular homes are built in a factory before they are transported to the site and assembled on a solid foundation. Of the two major housing options, modular homes seem to be sensible in today’s economy if you are looking to get started on a budget. In this article, we will be discussing the factors that determine the overall cost of building a home and why modular homes might be cheaper than regular homes.
What determines the cost of building a home?
The cost of building a home may vary depending on several factors such as land, materials, labor, and permits. When choosing a plot of land, the cost will be determined by your desired square footage. Another factor that affects the cost of purchasing land is the location. For instance, buying land in rural areas might be cheaper than buying land in a developed urban area. If you are considering high-end materials when building your home, the cost will definitely be higher than using standard materials. When choosing between modular and regular homes, you need to factor in the cost of labor as it might cost less when the building process is done in a controlled environment.
Modular homes are cost-effective and on a budget
Lastly, the overall cost of building a home will be determined by the cost of permits which vary depending on your municipality. With careful planning, you can easily build your dream home without spending a fortune.
Why modular homes might be cheaper than regular homes
- Large discounts on bulk purchasing
Modular home manufacturers build several homes every month which allows them to market their materials in bulk, therefore reducing the overall cost per item. Some home construction companies might work out a deal by getting a set discount on certain items. When this happens, you may get a more premium brand of material at reduced prices. However, if you specify a material that your modular home manufacturer doesn’t have, then what you pay will be closer to the retail prices.
- Availability of ready materials
You have to order more than enough if you are building a regular house using stone, brick, lumber, or other building material. Because you are uncertain about the number of materials you need, you might purchase more materials should some get ruined during the building process. Since modular homes are built in a factory, any excess materials are stored for future use. Also, every building material is always available at the factory and doesn’t have to be transported over long distances when it is time to build. Therefore, you save more on the cost of materials when you invest in a modular home because there is less waste involved during the building process.
- Building time frame
Since modular homes are built in a factory, it makes it easier for manufacturers to control factors that might slow down the building process. The workers don’t have to worry about extreme weather changes because everything is done under a roof. Regular homes can take a longer time to build because they are affected by weather delays. The longer workers stay on site, the more they will spend on labor. Since regular homes are built outside, they are subject to natural elements that can cause damage, thus increasing the cost of both materials and labor.
- Streamlined building process
Modular homes go through four stages of construction. The design is first approved by the homeowner and any regulating authorities before the module components can be constructed in a controlled environment. Next, the modules are transported to the site where the units are assembled to come up with a finished building. This contributes to a shorter construction period and earlier building occupancy which reduces both financing and supervision costs. The lack of weather delays ensures everything can start and finish when it’s supposed to allowing you to move into your dream home sooner. Stick-built homes can sometimes be complicated to build depending on the structural design and materials used.
Modular homes are cheaper than regular homes because they are built in a controlled environment where manufacturers can save on materials, labor, and the total cost of production. Before you purchase a modular home, you need to check the building codes in the area you intend to live in to ensure it is compliant. Once you have the land and all the necessary permits, you should be ready to get into your new home in a short period.