Modular Home Prices: What To Expect When Buying

Modular home prices vary considerably with the location and features of a particular modular house. However, because a modular home is a type of prefab home that’s built in a factory in multiple pieces before being transported to a construction site for assembly, the cost is typically lower than that of a traditional home.

This reduced baseline cost makes it easier to afford the floor plan and features you want in a home.

The factors that will typically have the biggest impact on the total cost of a modular home are its square footage and the type of building materials you use.

How Much Are Modular Homes?

The question of how much a modular home costs will depend largely on the home’s location, size and design, although $80 to $160 per square foot is the standard range. The average price to construct a modular home is $270,000. For customization and additional features, you can likely plan to pay $10 – $150 per square foot.

The price also varies based on the accessibility of the area where the home is to be delivered and put together. Other factors that affect pricing can include:

• Customization
• Land preparation
• Utility connections
• Driveway and walkway needs
• Landscaping

If you assemble a modular home on land that’s not prepared for it, you’ll pay extra to level and prepare the ground. You may also pay fees for permits to clear the land and build the house there.

If you’re on a budget, consider keeping any special features or upgrades to a minimum. You can always add to the home in the future. You’ll still have a house to live in and call your own even if you need to pad your bank account a bit before enhancing the home’s features.

Average Cost Of A Modular Home By Square Foot

Angi differentiates a modular home’s base price from its total cost, which includes installation. The typical cost per square foot without installation falls in the $50 to $100 range – a significant discount.

To illustrate the costs per square foot, we’ve used the median cost from the typical ranges: $75 per square foot without installation, and $120 per square foot with installation.

Keep in mind that including add-ons or opting for a customized modular home will increase these costs.

Average Total Cost Of A Modular Home By Type

Modular homes are available in various types and styles, creating a difference in costs depending on their features.

However, don’t assume that one type of home will cost less than another type of home in every case. A home’s features ultimately play a huge role in its total cost. For example, a fully decked-out tiny home with lots of features might cost as much or more than a basic townhouse despite being significantly smaller.

Factors That Influence Modular Home Cost

Permits And Fees

Most areas require permits to make any land alterations necessary to assemble a modular home, which, again, will arrive at the land in numerous pieces. Additional permits may be necessary for the utility connections, soil testing and home additions such as a deck, garage or shed.

The cost of permits and fees varies by location, but you can typically expect to pay somewhere in the $500 – $5,000 range. Obviously, the larger the home and the more features and upgrades it comes with, the more it will cost.

Land Clearing and Preparation

Construction sites aren’t always prepared for a home. For example, if the land needs clearing of trees and debris or leveling, you’ll face land preparation costs that will vary in amount based on the amount of work required to clear the area. The average price for the preparation and clearing of land is around $2,750.

Foundation

A modular home needs a base or foundation to secure it to the land. The type of foundation determines the foundation’s cost, as does the location. For example, if you want a basement on the home, the foundation will cost more than a slab foundation – just as a larger foundation costs more than a smaller one.

Foundation installation costs usually range from $7 – $30 per square foot, with more complex foundations on the higher end.

Installation

The cost to install a modular home is an extra expense to consider, with installation typically ranging from $5 to $35 per square foot. Installers complete the process in stages. These stages include connecting the pieces, finishing any woodwork inside the home, installing stairs and adding finishing touches.

If any unusual concerns arise, installers may charge more to account for the more complex work involved.

Utility Connections

All homes need utility connections to pass code and be livable. However, the cost to hook up each utility differs based on the location, complexity of installation and number of lines needed.

Modular Home Additions

Modular homes don’t have to be basic. If you want a basement, spiral staircase, shed or any other additions or features, you can add them – at a cost.

Common modular home features and additions include a garage, basement, deck and/or shed. Here’s the average cost of each:

• Two-car garage: $28,000
• Deck: $7,700
• Basement: $18,00 – $30,000
• Shed: $2,500

Sales Tax

If your state charges a sales tax, you’ll likely pay it on your modular home. The cost of this tax will vary by location within the state and the state’s tax rate.

How To Cover The Cost Of A Modular Home

If you don’t have the cash to pay for the full cost of a modular home, you might consider a mortgage. Many traditional mortgage lenders offer loans for modular homes, which is typically not the case with manufactured homes. Since manufactured homes aren’t always permanently affixed to the ground, they can present financing challenges.

As for modular homes, if you don’t own the land that your home will sit on, you may need a land loan – which is separate from and in addition to the loan you’ll use for the financing of the house.

The Bottom Line: Some But Not All Modular Homes Cost Less

Modular home prices are often lower than traditional home prices because modular homes involve less labor. However, you’ll need to factor in installation and land preparation costs, along with other charges, when pricing out your options.

If you’re considering a modular home, start your mortgage application online to see how much you can afford before designing your modular home build.