If you’re thinking of saving money on a new home, prefab and modular houses are a great way to save some cash while building the house of your dreams.
Before you dig deeper into building prefab homes, it’s important to understand the financial implications of this option.
Check out these five financial tips that can help you select the perfect prefab on a budget.
1. Factor in the Land
If you decide you’d prefer to live in a prefab home, you’ll need to put it somewhere. Unless you find a builder who is creating a prefab development or offering a land and home package, the price of the land will be part of your total costs.
When you look for land, find out about water and septic while you’re hunting. Drilling a new well and installing a septic system on “raw land” will cost you an additional several thousand dollars or even more.
If you get lucky and find some land with these utilities already in place, make sure you ask about things like electricity and other items you’ll need to have set up before placing the home there. Ask your lender if they offer land and home packages in one transaction to make financing easier.
Before you make an offer on land, check to find out if there are any restrictions on prefab homes. You’ll also want to make sure there is easy access to the home site so you and the builder can get in and out without any problems.
2. Consider the Options for Prefab Homes
When you buy a custom home, you’re presented with a wide variety of options. Everything from granite countertops to gas fireplaces and fancy finishes is typical stick-built fodder.
For prefab homes, you will still have some options, but they may be limited. Ask your preferred builder about the options available, and be sure to get an itemized list with pricing.
Determine which items on the upgrades list are most important to you and decide if they will fit into your total budget. You can always change or remove things later if you decide certain upgrades may stretch your wallet a bit too thin.
Another tip? You can always add your own touches like solid-surface countertops later if you want to upgrade a few things yourself.
3. Don’t Forget Permits
Any form of construction requires a wide range of permits to be approved before any work can even begin. While prefab homes are made in a factory, you’ll still need a few permits to get started.
Talk to your local county or city and ask them what types of permits are required for your particular project. In some cases, the builder will be able to obtain most of the permits, but you need to double-check to be sure.
Permitting can range from plumbing and electrical installation to clearing out the land and building the foundation. It’s always best to have everything in order before the work begins so you won’t have to deal with headaches or fines later.
4. Prefab Has Its Perks
In terms of cost per square foot, a prefab home is almost always less expensive. Do a comparison against a few prefabs or modular homes you’re interested in against a few similar stick-built homes.
When you compare the costs, you’ll be pleasantly surprised at just how much less a prefab home can cost you. A quality builder can create the home you want at the same level of quality as a site-built home.
There are several reasons that a prefab home is less expensive including:
- The cost of labor is lower since workers are all employed by the prefab home company and there are no outside contractors.
- The timeline to build a prefab home is much faster, which in turn makes the cost lower.
- There’s much less waste in a prefab home since the scope of materials needed is already pre-determined.
- Most builders of prefab homes buy in bulk and pass the savings on to you.
5. Quality Is Paramount
When you purchase a modular or prefab home, it must pass a serious of rigorous inspections. The parameters of these inspections are made by state and federal law, which can be pretty stringent.
Thanks to these inspection guidelines, you’ll know that your new home is being built to the highest standards. And, since your home is created inside a factory, there’s no need to worry about exposure to the elements.
A well-built prefab home should appraise in value just like a stick-built home. This means you’re going to get a fantastic return on your investment if you ever decide to sell.
And because affordable housing is becoming a widespread problem, prefab homes are a great option for many first-time homebuyers. You can find out more about how people feel at this link that explains what many neighbors are saying in regard to prefab houses.
Making Your Move
There are plenty of reasons prefab homes are a smart financial decision for today’s home buyer. Take some of these into consideration before you sign on the dotted line so you can be prepared for what’s next.
From less waste to affordable upgrades and quality building, a prefab home provides you with a modern alternative to traditional housing. Weigh all of your options and make sure you have everything in place before you build.
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