I recently came across a site-built home builder’s blog and saw this interesting topic. After reading it, I take issue with many, if not all, of the points they made about modular home construction.
I’ve been fortunate to have been the GM of a large commercial lumber yard, a GC of my own home-building business and totally immersed in modular construction. That gives me a very unique insight into what is true and what is BS.
As you read through the site builder’s list, I’ll use a BS meter on the topics I disagree with. Enjoy!
Here is the site builder’s blog headline:
MODULAR HOMES HAVE CERTAIN DISADVANTAGES COMPARED TO STICK-BUILT HOMES.
Modular homes are built in an assembly line process in a factory, trucked to the site in sections, set in place with a crane, and then joined together. Modular builders make some seemingly attractive claims such as less expensive, faster construction, and energy efficiency.
However, when you compare modular versus stick built, you’ll find modular homes often fall short of fulfilling their promises.
If you’re considering a modular, you should know the following disadvantages before deciding which building method is right for your new home.
1. LAND ISSUES
Before you can purchase the modular home, first, you must find and buy a suitable plot of land. A real estate agent can help navigate this step but finding the perfect site for a modular home isn’t always easy.
For example, some areas have zoning laws, restrictive covenants, and hookup regulations prohibiting you from building a modular home on a particular piece of land.
This site builder is still living in 1976. It’s true that some small-town code inspectors may have not ever seen a modular home before but that does not mean that it is banned from being built. Yes, there are some NIMBY Home Owner Association’s bylaws that were written decades ago that ban them but that has been successfully challenged in courts across the US.
2. SITE AND FOUNDATION CONCERNS
The site needs to be level and cleared of trees and wires to accommodate a large crane. Also, because the modular house is built off-site, your foundation must be perfect. Modular homes may appear ideal in theory, but they lack a personal touch. By creating modules in a factory, there’s a real disconnect between the homeowner, the house plan, and the land itself.
Modular home builders pay just as much attention to their customers as site builders when it comes to any land issue. In fact, they probably pay more attention to this than site builders. Tractor trailers delivering materials to a site-built home are just about the same size as a crane.
3. YOU’LL PAY MORE THAN JUST A BASE PRICE
The modular home’s price does not include important items such as a foundation, concrete floor, steps to the basement, or utility hookups. Unfortunately, this forces you, the homeowner, to become your own general contractor. Talk about a stressful situation!
In contrast, stick-built homes come as a complete turn-key package. The base price includes items like the basement, heating and cooling system, water heater, major appliances, and much more.
As a former site-built GC, the price advertised did not include foundation, utilities and options. Those came later when the customer got my final quote. Telling a new home customer they would have to become their own general contractor if they buy a modular should actually have two BS Meters instead of just one.
4. DIFFICULT TO FINANCE
The payment process for a modular home is different than a traditional stick-built home.
Modular builders require payment in full before the home is complete. Some lenders are unwilling to finance modular home construction. Therefore, if you don’t have the cash available, you’ll need to find other options to cover the costs.
The BS Meter is about to explode on this one. Modular homes are financed exactly the same way as traditional site-built homes. I actually heard a small-town banker that modular homes required him to collect a minimum 25% down payment. That banker should have his own Meter.
5. POTENTIAL QUALITY ISSUES
Since the majority of the modular home’s components are built quickly, off-site, you must trust that the modular builder will produce what is needed. Unfortunately, one error can put the entire home in danger, and it may be too late when the homeowner discovers the mistake.
OMG! Site builders build perfect houses…Bull Shit. I was also a General Manager for a large commercial lumber yard and the stories site builder’s workers told me about all the shortcuts they take at the job site made me not want to build a new site-built home.
6. LACK OF CUSTOMIZATION
Because they are made in an assembly line process, modular homes are not as easy to customize as a stick-built home. Your custom home builder should be able to design your home around your lifestyle and needs. A reputable builder will customize your home to make your dreams a reality. Can’t do that with a modular home.
I’ve visited modular factories across the country and those that build custom homes almost bend over backwards to build whatever the builder’s customer wants. One small disadvantage is the customer has a lot of choices to make before the factory will put it into production, but I’ll still give the site builder a Meter for this one as well.
7. FAST IS NOT ALWAYS BEST
One of the main advantages modular builders claim is faster construction. But a more rapid building process might be a disadvantage.
I’d bet every site builder in the world would love to have the turnaround time of a modular home from the time the foundation is complete until the key is handed to the customer.
8. TRANSPORTING SECTIONS
The individual modules must be transported from the factory to your building site. Careful handling of the modular components while in transit is required. However, sheetrock stress cracks are common.
In addition, here’s something to consider: Transportation costs may be higher for the modules than for the materials from which they’re made, which can often be packed and shipped more efficiently to the building site.
Yes, transportation costs are higher for modular homes. But factories show that cost to the customer and it’s a one-time charge that goes into the mortgage. But even with those charges, the modular home is still the same price as the site-built home, and the finish time is a lot less.
9. RESELL ISSUES
Many people perceive modular homes as less desirable and lower quality than stick-built homes. And you should never underestimate the power of public opinion. A modular home’s negative image could make it harder to resell someday.
Here is where I should add another BS Meter. Any knowledgeable builder, site or modular, knows that both homes hold their value and appreciate over the years.
