Latest Discussions : Miscellaneous

kmorneault

12:23PM | 12/21/03
Member Since: 12/20/03
1 lifetime posts
I'm looking at homes and found a very nice 4 br colonial. However, I found out it is a modular home. I know the major differences. My question is with regards to price. Everything I read says that Modular homes should be less. This one is not...it's going for the same amount as others stick-built homes in the area. Does anyone know any rule of thumb with regards to comparing price?

Piffin

01:52PM | 12/27/03
Member Since: 11/06/02
1278 lifetime posts
Labour is the greatest cost savings when using a modular house. but one of the largest costs you pay is in the land developement costs for utilities, streets, permits, etc. Those remain the same for either.

Some modulars use low cost mobile home type trims and cabinets or doors, while others use materials that can rival any site built custom home so you may not be making equal comparisons.

saoltmann

02:14PM | 01/15/04
Member Since: 01/25/03
12 lifetime posts
As Piffin said, the greatest savings in a modular home comes in terms of labor and time. Most modulars are sold to a builder/contractor who in turn sells the home to the retail customer/homeowner. Technically, the builder is buying the raw materials from the factory, but in this case, they happen to be assembled. The builder must then factor in the cost of site work, foundation, permits, septic and utiliy hookup and all finish work above and beyond setting the house on the foundation. Some may also include a garage, driveway and basic landscaping. The biggest cost savings of the modular comes from the factory's ability to purchase materials in bulk from their suppliers. This is why so many plants have a standard bank of floorplans along with standard specifications. While some manufacturer's allow for upgrades and options, this will significantly impact the price of the home. For instance, the standard windows may be substituted for an Andersen upgrade, but since the factory does not frequently use this material, the upcharge to upgrade will be significant.

As for the home itself, a number of todays modular homes would not be ourwardly distinguishable as a modular. They are not all just boxy ranches with low pitched roofs. In fact, many of the homes that leave the plant in which I work are sprawling two stories with walk up attics, 9' ceilings, and 12/12 roof lines. Generally, most people confuse modular homes with manufactured homes. They are two compeltely different structures built under completely different sets of systems approvals. Manufactured homes (trailers, basically) are built under HUD code, while modular manufacturer built houses according to systems approval packages based on each state the home is going to.

So, my long winded answer to your question would be that there really is no rule of thumb when it comes to modular resale. The cost savings came during the construction process.

Hope that helps.



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