Learn About Modular Homes

What's a Modular Home?

Modular homes are homes that are prefabricated (aka prefabs), usually manufactured in a factory, and delivered on a truck to your property. Modular homes are different than manufactured homes in that they are permanent structures - set on a foundation instead of mobile on wheels.

If there's something you are interested in learning more about, we have it here.

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Modular home versus manufactured home?

A manufactured home is different than a modular home in one main reason - mobility. Modular homes are permanent structures where manufactured homes are usually on wheels.

Modular, Prefab, ADU

There's a lot of terms here but all modular homes are prefabricated homes - they are made in factories. An ADU (accessory dwelling unit) is a modular home that can be lived in (bathroom, kitchen, as opposed to a recreation center or office space.

Site costs

When you buy a modular home, you have to prepare the site before install. This means trenching for plumbing, electrical, and sometimes building a foundation. Manufacturers of modular homes don't include or provide site work that in their price.

What's flat packed and what's pre assembled?

A modular home that is flat packed is one shipped in pieces that can lay flat on a truck bed. This ability to be flat enables easier and cheaper transportation. Flat packed modular homes come to the site in sections, like walls and roofs, and they are assembled on site within a few days. Pre-assembled modular homes come fully assembled and put into place on a crane. Pre-assembled modular homes require minimal to no installation.

Tiny homes, big price?

You can expect to pay anywhere between $50,000 and $100,000 on average for a modular home. This might sound like a big price point compared to a mobile home, DIY home, or a track home. The reason is that you are not paying for square footage. An ADU home has the core elements of any home (electrical, plumbing, foundation) that makes up the bulk of the price point.

Co-Investing Financing

Many banks are financing modular homes as they would regular home loans. In many cities like California, co-investing has become a desirable option where a third party will pay for the entire home and split the rental profits. Terms are different by lender but this model can help you get a modular home on your property without any upfront costs.

How much is Shipping

Shipping costs are calculator per mile (or km) based on the closest factory to the property that you are placing your modular home. If the closest factory is overseas, you can expect a large shipping cost (~$17,000 USD) due to specialized shipping. If your modular home is flat packed, it is significantly cheaper because it is shipped conventionally.

What unknown costs should I expect?

When shopping for a modular home, the biggest unknown is your site conditions - how difficult it is to get a modular home to your property and how difficult it is to crane it into place. Properties that are on mountain cliffs, or in-between high rise buildings will cost more. It's beneficial to measure the distance of your street to make sure a crane can fit.

Building a modular home community?

If you are an investor and looking to build a community of modular homes, reach out to us about discounted pricing. The costs are discounted when buying 5 or more modular homes at once. Thank you economies of scale.

How Prefab homes work

FAQs

Five Questions we all ask