What does a modular cost?

It is widely accepted that building a modular home will result in significant time savings versus using traditional building methods. Saving time obviously results in cost savings as interest and taxes during construction are reduced, but the question we repeatedly get asked is how much can I save per square foot building a modular home versus a traditionally built home. We also know It is very difficult to find specific pricing information on the internet. Unfortunately, the answer depends on many variables, and is not quite that simple. How much the modular saves you is dependent more than anything else on local building costs. There are two very broad categories of costs incurred with modular homes. There is the cost for the home itself from the manufacturer and then there is the cost for all the work to be performed on site (excavation, foundation, finish work, utilities, etc). The cost for the actual modular home from the factory will generally constitute about half of your total costs.  With the exception of transportation costs, this cost will be the same whether you are building next to the factory (generally a low cost area) or an exclusive community.

For example, one could order an extremely high-end home from a modular manufacturer and have it delivered and set on a foundation for approximately $115.00 per square foot.  This would be a home that, when completed on site, could compete with a custom stick built luxury home with all amenities. Assuming the home is 4,000 square feet it would cost $460,000 for the modular portion and, in general, another $460,000 for all of the onsite work for a total cost of $920,000.   In many areas of the northeast, the cost to stick build such a house may be upwards of $350.00 per square foot bringing this 4,000 sq. ft house to cost $1,400,000. In this case you would save $480,000 or about 35% by building modular.  If you are building in such a location building a modular home will save you a ton of money. In some other locations building the same 4,000 square foot home may not cost any more than building modular. (Of course, there are other benefits to building modular aside from just price)

Another example would be for a starter home. A basic two-story 2,000 square foot home will cost about $85.00 per square foot for the modular portion and approximately another $85.00 per square foot to finish.   In some locations a stick builder can get very close to this number and even beat it.  However, in many areas in the northeast you’re not going to be able to get a price under $150.00 per square foot.

As one can see the answer is dependent more than anything else on local market costs. Of course, each home and each site is different but the above guidelines are a good guide. If you are interested in more detailed pricing give us a call or an email and we will be happy to work up some numbers for you.

Cost Certainty

 One of the many benefits to purchasing a modular home is cost certainty.  Once you finalize your design and specifications and agree on a price you can live without fear of extras and change orders that are so prevalent in the building process.  You will never hear from the builder that he forgot to factor in this or that or that he deserves an increase because materials have increased in price since he quoted you.  

This certainty even allows you to decrease the contingency line in your budget because you know that upwards of 50% of your project cost is set in stone and isn’t going to change. You are probably thinking well I have a guaranteed price contract from my builder so I don’t need to worry about increases.  That maybe true but unless each and every item of the house down to the door knobs are specified in the contract somewhere along the line there is going be a change or extra and in the eyes of most builders that means extra money for them.

If you add a prefabricated foundation (such as Superior Walls) to the project the fixed cost is even greater.  No more do you have to hear that winter chemicals are extra or that concrete blankets were necessary. The bottom line is that the more of the project costs that are not subject to change, the more comfortable you are going to be throughout the building process.