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Determining the Cost of a Modular Home

The cost of a modular home

The modular home’s convenience comes from its prefabricated nature. Constructed away from your building site, sections of a modular home are pre-assembled and then delivered. This kind of construction can be up to 50% faster than that of a traditional home, but it comes with its own set of quirks. One such issue is accurate pricing. Getting an accurate idea of the cost of a modular home can be tricky, but there are things you can keep in mind to arrive at a workable number.

Location, Design, and Square Footage

First, consider where you’re building. You’ll need to factor land prices into the cost of a modular home well before you get the ball rolling. Here in Texas, recent figures put average statewide property costs at just over $2,500 per acre. Obviously, this varies from location to location, with prices being lower in West Texas and higher in places like the Gulf Coast area and the Austin-Waco Hill Country.

As for the modular home itself, costs per square foot vary by design. Studies by the U.S. Census Bureau in 2015 show that the average square footage of an American home is 2,687 – you might consider using this as your constant, multiplying per-square-foot costs by this number to get an idea of a base price. However, there’s a good chance you don’t need that kind of space, especially if you have a smaller family. But by finding a design you like and determining how much space you need, you’re on your way to a base price that will act as a foundation for finding the true cost of a modular home.

Going the Extra Mile

There are more steps to figuring out the real costs, though. Chances are you won’t want your modular home exactly as is, and will instead go for some options and upgrades. Choosing new flooring finishes and adding a garage are common upgrades, and once you’ve picked what you want, you’ll have upgraded from a base price to a “custom price.” Beyond this, there will be several additional costs – delivery, utilities and permits, on-site building and “button-up” work, most notably.

This is why it’s important to look beyond base price. After customization and setup, the cost of a modular home can drastically change. Conservatively, the base price of a home should account for roughly half of the “all-in price,” which is the total cost of the home, property, on-site construction, shipping, taxes, and all other elements. It’s important to diligently research your situation and set a responsible budget. To avoid the common pitfalls of buying a modular home, contact your local Palm Harbor Homes builder. For over 35 years, we’ve been the Texas leader in modular and manufactured homes, and we can’t wait to help you find exactly what you’re looking for!