About 22 million people in the U.S. live in modular homes. According to one survey, 90% of people living in modular homes are satisfied with their houses. Even though it seems to be a relatively favorable option, many homebuyers don’t ever even consider the option.
Modular homes can come in a wide variety of styles and floor plans. They are highly customizable and can range from quite small to quite large.
If you’re starting the search for your new house, you might consider the possibility of going modular.
What are modular home prices, though? How expensive is it to buy a modern modular home? Let’s take a look at what you need to know.
What Is a Modular Home?
Basically, a modular home is built in a factory setting in sections. These are enormous facilities that are climate-controlled. There, they assemble homes that follow the International Residential Code.
Once the different sections of a home have been completely fabricated, then a semi-truck transports the building to the site. A foundation is poured ahead of time and cranes are used to assemble the home.
Next, the construction process looks just like that of a conventional house. The utilities will be hooked up and the interior will be fitted with flooring, cabinetry, appliances, and all the normal things a house has.
It’s important to understand that modular home builders have made a lot of progress in the last several decades. These homes can truly be equal to a home that is built on site.
(Are you intrigued? Follow this link if you’re interested in the prospect of buying modular homes.)
Modular Home Prices: A Cost Breakdown
There are a number of different factors that can impact how much it costs to build a modular home. According to HomeGuide, the average modular home costs between $50 and $100 per square foot. For a base model with delivery only, the average cost is between $60,000 and $200,000.
The number of bedrooms, floor plan, and customizations will impact modular home prices. It usually adds between $30 and $60 per square foot to set up and install a modular home.
A small, 1,000 square foot home typically costs between $80,000 and $160,000. On the other end of the spectrum, a 2,500 square foot home usually costs between $200,000 and $365,000. Note that these are the total finished cost, not just the cost of the base model.
When you are looking at modular home prices, you might see the terms “base” and “finished.” Paying the base costs usually includes delivery and setting the modules in place by a small crew and a crane. Finished setups also usually include the foundation, land preparation, utility construction, installation and buttoning up, optional additions, and permits.
Land
The cost of land can vary immensely. The size of the land, the location, and the quality of the land can impact how much this aspect costs. Rural land is often cheaper than urban land, though this might not always be the case if a rural place is a particularly desirable agricultural or vacation destination, or if, on the other hand, the urban place is particularly run down.
To show the range of costs, let’s discuss the most and least expensive places to buy land in the contiguous U.S. The cheapest average cost per acre in the U.S. goes to the state of Wyoming, where you can buy an acre, on average, for $1,558.
The most expensive state to buy an acre of land, on average, is New Jersey. There the average cost of an acre is a whopping $196,410.
Base Home Price
The base home price is how much the modular house costs on its own without additional costs. The base cost can range from as low as $40,000 for a small 800 square foot modular home to $260,000 for a large 3,000 square foot home.
Customizations
How much you spend on customizations is completely up to you. You might choose to upgrade your kitchen appliances or install hardwood floors. The options available to you will depend on what the manufacturer and the local builder have to offer.
Site Prep
The cost of site prep will depend on the size of the building and the state of the land. If the land is already basically flat and there aren’t many trees, this might cost you a few thousand dollars. However, the more work that needs to be done the more this aspect of things will cost you.
The average cost of site prep for a modular home is between $4,000 and $11,000.
Foundation
How much the foundation costs depends on whether you place the home on a full basement or just a crawl space. The average cost of the foundation is between $7 and $30 per square foot or between $6,000 and $20,000. Building a basement starts at $20,000 while a crawl space starts at $6,000.
Taxes, Freight, and Fees
There are additional hidden costs that can amount to about 5 to 7% of the total home cost. This is, on average, between $5,000 and $15,00.
Finishing Work
Again, the cost of finishing work depends on the size of the home and the model of the home. This includes buttoning up and other parts of the process.
Utilities
Utility costs will depend on how close the home is to the street and other factors. Some people might choose to install a septic system or a well rather than hooking up to the municipal system.
Permits
Where you are building will determine permit costs. On average, the costs are between $500 and $4,000.
Modular Homes: Is It the Right Choice For You?
There are a number of benefits to choosing a modular home. Even though they have been considered low-quality and cheap in the past, they have come a long way in the last several decades.
Did you find this article about modular home prices helpful? If so, be sure to check out the rest of our blog!
Read Also:/The Alaska Housing Market: 3 Things Buyers Need to Know in 2021
