Modular Home Prices: What To Expect When Buying (2024)

Permits And Fees

Most areas require permits to alter the land to prepare it for the home, plus installation of the house. Additional permits may be necessary for the utility connections, soil testing and additions to the home, such as a deck, garage or shed.

The cost of permits and fees varies by location, but on average, it costs $500 – $5,000. Obviously, the larger the home or the more features it has, the more it costs.

If you're unsure about the cost in your area, talk to a local real estate agent or your city's permit department to get ballpark figures.

Land Clearing and Preparation

Construction sites aren’t always prepared for a home. For example, if the land needs clearing of trees and debris or leveling, there will be land preparation costs. The cost varies based on the amount of work required to clear the area, but the average price is around $2,750.

Foundation

Modular homes need a base or foundation to secure it to the land. The type of foundation determines its cost, as does the location. For example, if you want a basem*nt on the home, the foundation will cost more than a slab foundation, just as a larger foundation costs more than a smaller one.

On average, foundation installation costs $7 – $30 per square foot, with more complex foundations on the higher end.

Delivery

The base unit of a modular home plus delivery usually costs around $50 to $100 per square foot. Any additions to the home or necessary work to prepare the area will cost more.

The delivery costs don't include installation, so be sure to keep that in mind when budgeting to build a modular home.

Installation

The cost to install the home is additional, usually costing $5 to $35 per square foot. Installers complete the process in stages, including connecting the pieces, finishing any woodwork inside the home, installing stairs and adding finishing touches.

If there are any particular concerns, installers may charge more to account for the more complex work involved.

Utility Connections

All homes need utility connections to pass code and be livable. However, the cost to hook up each utility differs based on the location, complexity of the installation and number of lines needed.

Modular Home Additions

Modular homes don’t have to be basic. If you want a basem*nt, spiral staircase, shed or any other additions or features, you can add them to the plans, but it increases the cost.

Some common features and additions include a garage, basem*nt, deck, shed or pool.

Sales Tax

If your state charges sales tax, you’ll likely pay it on your modular home. The cost varies by location and the state’s tax rate.

Modular Home Prices: What To Expect When Buying (2024)

FAQs

Modular Home Prices: What To Expect When Buying? ›

According to HomeAdvisor, the base price for these types of homes is about $40 – $80 per square foot. Once you add other expenses, including finishes, delivery and installation, the price range is closer to $100 – $200 per square foot.

What I wish I knew before buying a modular home? ›

Before embarking on the modular home buying process it's also best you:
  • Get pre-approved and stick to your budget.
  • Get copies of all contracts and agreements prior to signing.
  • Be clear on additional costs and associated delays for changes or added services.

How much do most modular homes cost? ›

Custom Design Prefabricated Home Prices. Custom modular home prices range from $100 to $250 per square foot. Prices are $200,000 to $500,000 when including all site-work, installation, and finishing. Most modular builders will customize their existing designs to change the finishes, floor plan, or the home's size.

What are the risks of buying a modular home? ›

Of course, modular houses have their downsides. These include less customization capabilities than stick-built homes. The cost of the land and construction of the home may be higher than some people can afford, land restrictions, and perceive quality issues. Modular homes may also have more a complicated loan process.

What are the pros and cons of a modular home? ›

The pros of modular homes include lower costs over traditional construction methods, better quality, improved construction speed, and better resilience while the cons consist of a bit more complicated financing process, lack of customization, and the social stigma that is the consequence of the low-quality of modular ...

Is a modular home on a foundation a good investment? ›

A well-built modular home should appreciate at approximately the same rate as a stick-built home, especially if it is anchored and blocked properly and set up on a concrete pad foundation.

Is it cheaper to build or buy modular? ›

Is it cheaper to buy a modular home or build? In most cases, modular homes are less expensive than building a house, mainly because there's less labor involved.

What is the difference between manufactured and modular homes? ›

Modular homes are assembled on a site and anchored to a foundation, whereas a manufactured home is transported in one piece to a site and can be relocated. Because they can be moved, manufactured homes are considered chattel (personal property) — like a recreational vehicle.

What is the smallest modular home you can buy? ›

Small manufactured homes range in size from tiny homes, less than 500 square feet to single-wide mobile homes that can be up to 900 square feet. These smaller-sized manufactured homes are typically 14 wide and 40' long.

What is the life expectancy of a modular home? ›

The short answer is that modular homes can last just as long as traditional site-built homes, if not longer. In fact, many modular homes come with warranties of up to 50 years. The key to a modular home's longevity lies in its construction process and the materials used.

Are modular homes well insulated? ›

Modular homes are well-insulated, tightly built, and because they are customizable, can be built using energy-efficient options. Heat efficiency is one of the many benefits of going modular, which is exciting news.

Are modular homes safe in a tornado? ›

These structures are made inside factories, so the materials that go into your home reside in a controlled environment with little moisture. Modular homes are built to be safe in case of a tornado or storm, and inspectors check surfaces for structural soundness before shipping.

Can modular homes withstand hurricanes? ›

So, if you're wondering if modular homes are safe in a hurricane, the answer is yes. In fact, they may be safer than site-built homes. When you choose Carolina Custom Homes, you can design a custom modular home tailored to your needs and safety concerns.

Do modular homes depreciate faster? ›

Benefits of a Modular Home

While modular homes and stick-built homes appreciate and depreciate similarly, modular construction has several advantages that may lead to higher long-term value.

Why aren't modular homes more popular? ›

Obstacles for the modular-housing industry

While the timeline for modular construction is consistently compressed, transportation and other costs can mean it isn't cheaper than building on-site. Investors aren't convinced there's sufficient and consistent demand for modular housing in most markets.

What is the difference between modular and manufactured homes? ›

Modular homes are assembled on a site and anchored to a foundation, whereas a manufactured home is transported in one piece to a site and can be relocated. Because they can be moved, manufactured homes are considered chattel (personal property) — like a recreational vehicle.

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