A modular home is a home that is built in a factory and later assembled on site. Once considered as low quality and cheap housing option modular homes have recently made a name. They offer homeowners an alternative to owning a home that has several advantages compared to traditional stick built homes. Often I hear people ask are modular homes a good investment?
According to Pop Up Homes, whether or not buying a modular home is a good and worthy investment, the answer can depend on many factors. A buyer should be informed about basic information and facts about a modular home and weigh the pros and cons to see if a modular home would be a good investment. Below are some info, facts and your guide to investing in a modular home.
So how much does it cost to buy a modular home?
Well, modular homes have varying prices. I know this is not the answer you were expecting, but it is the most accurate answer I can give. However, for a standard finished home will cost you between $90 to $150 per square foot. In other terms for quality demountable homes, you can expect to pay something between $100,000 and $300,000. If you want the highest quality, however, you might pay as high as $1,000,000 for a fully finished modular home. You should also be wary of price quotes from $40-$80 per square foot. These homes might not be the quality standard to build a home. Several factors impact the prices which include square footage, labour, energy efficiency, customisation and home-style among others.
How to buy a modular home and land
Now that you have a general idea of the price range, you now need to find some piece of land. Before buying land and putting a modular home on it, you need to do some due diligence. You can make use of a real estate agent, just drive around the neighbourhood you have identified to see if you will find any sale signs. You can also look for sale ads in the newspapers or local station. Once you have identified your suitable piece of land, familiarise yourself with the building restrictions, type of soil, partial ownership, connecting utilities, exploratory digging among other factors. These factors can affect the value and quality of your modular home. It is, however, advisable that you use a real estate agent; he will have in-depth information regarding the market.
Questions to ask when buying a modular home
Unfortunately, most home buyers often buy modular homes without asking the fundamental questions. These are questions designed to ensure that you buy what you are looking for, you have flexible payment terms, and you will not encounter challenges after the sale. Here are some fundamental questions you should ask yourself before buying.
- What are the terms of payment?
- Are there any hidden charges?
- What are the volumes of discount or rebates?
- Is transportation fee inclusive of the total costs?
- Are the designs customizable?
- What is the refund policy in case of substandard material?
- Is the builder licensed?
Checklist for buying a modular home
Now that you are familiar with some of the questions you should ask, perhaps the question running through your mind is; are there some tips and or a checklist your cross off before you purchase. Well, here are some of the items you should cross off your checklist.
- Take your time to view, analyse and consider all available designs. You need something that befits your family requirements, your lifestyle. Discuss the design layouts with the home builder and seek to find out if you will pay more for the customised design.
- Ensure your contractor has a Class A license. Remember you are building a home to last for ages. You will need to be sure that the contractor has the industry’s highest license.
- Get a general contractor; assuming you do not have any first-hand building management experience. You need to hire someone who understands the industry’s legal issues, regulations, building codes and planning among other building industry management issues.
- Settle on the design before the assembling starts; it will save you a lot of money and time in last minute changes.
- Ensure you have read and understood all the copies regarding contracts and other agreements before signing.
- Ensure your contractor has a BBB rating. You can make such verifications online; it is easy and fast.
- Countercheck the quality of the material building your home. If it is steel ensure it is the best quality. It will give you peace of mind.
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