Buying a home is a complex process. There are several options from which to choose. Traditional homes, mobile homes, and modular homes make up just some of the types you can buy.
If you’re considering buying a modular home, then you need to know the benefits and consequences of the decision. Here’s what you need to know about buying a modular home.
What Are the Pros and Cons of a Modular Home?
People still have a negative perception regarding modular homes.
Read on to find out more about modular homes and the benefits and problems they present.
What Are the Benefits of Owning a Modular Home?
Here are some positives of a modular home.
1. Saves You Money to Build
Many homeowners think modular homes are cheaper because they use low-quality materials. This isn’t the case. They’re cheaper because the process of constructing them is efficient.
When you build a standard home on-site, you’re beset with delays. The weather is the biggest problem.
It can increases costs, especially if the materials become damaged because they were exposed to water. Each delay costs you money.
Modular homes are built in a factory. The workers are able to put it together while being protected from the elements of the weather.
There’s no reason for them not to finish the home on schedule.
The main cost is going to be the installation of the foundation. Since you’re required to act as your own general contractor or hire out the position, you need to ensure the foundation is finished before the modular home arrives.
Yet this is a cost that traditional homes have, too. If you’re building a traditional home, then you’ll still need to pay for the construction of the foundation. You’ll just also have additional costs for any delays that occur during the construction process, too.
If you want to save money, then a modular home is your best bet.
2. The Construction Finishes On Schedule
When building a traditional home, delays are inevitable. Materials may not show up on time. Shipments may be lost. Workers may be out sick. There are several reasons why the construction of the home isn’t occurring.
As a result, you may expect to move in on a particular day only to discover you have to wait another month to do so. That could throw a serious wrench in your plans and budget.
A modular home almost always finishes on time. Factories have protocols and the workforce put into place to take care of labor shortages. Because they’re always producing modular homes, they always have the materials on hand.
Manufacturers stick to the schedule. The only aspect that may cause a delay is the construction of the foundation. As a homeowner, your attention should be on finishing the foundation and installing any necessary utilities before the arrival of your modular home.
With a modular home, you don’t have to worry about scheduling problems.
3. You Can Find Financing Options with Manufacturers
It can be difficult to finance the construction of your modular home. The good news is that certain manufacturers can offer financing options. This can be advantageous if your local lenders refuse to offer a loan.
Manufacturers are in the business of producing modular homes. They have a lending ability that you may be able to use. Sometimes their rates can be even better than a local lender.
You may end up saving even more money through a manufacturer than with a bank.
What Are the Disadvantages of Owning a Modular Home?
While there are several benefits of buying and owning a modular home, there are also a few disadvantages. Here are some of them.
1. Modular Homes Aren’t Unique
A few manufacturers may be able to customize a few build options for you. The majority, however, stick to a strict building plan. Their factory and work processes are designed around those plans. Changing them can upset their efficiency.
As a result, modular homes aren’t unique. You can’t customize them as much as you can a home you build on-site. You end up with a home that looks cookie-cutter to other homes.
Some homeowners may not mind this. They may find other ways to decorate or customize their home once it’s been installed.
Others may hate it.
2. The Loan Process is Difficult
Standard homes are easy to finance. You just need good credit and a downpayment. Modular homes are more difficult.
The problem arises with the builder. They prefer to be paid immediately or throughout the building process. You don’t always get the loan until later.
There’s also the problem with lenders in general. They don’t like to finance modular homes. They still cling to the old perception that modular homes are of poorer quality than traditional homes. That isn’t the case.
Manufacturers may be able to help, but an individual may find that they’re out of luck. Be aware, that while modular homes do actually gain equity, it’s currently at a slower pace than traditional homes.
3. Zoning Problems
You can’t place a modular home just anywhere. It needs to be okayed by the local Housing Department. Even the local HOA may need to approve the construction of the modular home.
Several Housing Departments banned the construction of modular homes long ago. They believed they were low-quality and unappealing.
Unfortunately, a lot of those zoning regulations exist today. They haven’t been modified.
That can make finding a location for the modular home difficult. If the homeowner ever wants to sell the home later, then the location of the home matters.
It can also cause a problem with finding a location in the right school district, being close to one’s work, and being close to other activities.
Zoning can be a nightmare for modular homes.
Frequently Asked Questions
Here are a few frequently asked questions over what are the pros and cons of a modular home.
Are modular homes a good investment?
Modular homes can be a good investment if the owner is able to build them in a good location. Like all real estate, location matters. As does excellent curb appeal. Taking care of the home, improving its exterior, and finding a great location can make a modular home extremely lucrative down the line.
How long do modular buildings last?
Modular homes can last as long as traditional homes. They’re made with the same high-quality materials.
Can modular homes withstand hurricane winds?
Yes, modular homes can withstand hurricane winds. They’re built to last through wind speeds of up to 120MPH. They cannot withstand a direct hit from a hurricane.
Owning a modular home can be a great investment if the owner can find an ideal zoning location. It’s cheaper than traditional homes and is usually completed on schedule. The hardest part of building and owning a modular home is overcoming the negative perceptions other homeowners have of it.