Comparing the Costs of Buying an Already Built Home vs. a Manufactured Home
When considering the purchase of a new home, two primary options come to mind: buying an already built home and purchasing a manufactured home. This article explores the cost considerations, advantages, and disadvantages of each option, helping you make an informed decision based on your specific needs and budget.
Understanding Manufactured Housing
Manufactured housing, also known as modular or prefab homes, is built in sections in a large factory. These sections are then transported to a location, hoisted into place, and assembled on-site. This construction process typically results in a more solidly built home, designed to withstand the rigors of shipping. My friend has a manufactured home, and it fits him perfectly, though the manufacturing process does impose design limitations.
The pre-fabricated construction of a manufactured home also means it is built in a weatherproof factory, leading to fewer construction site issues and faster completion times. A crew can usually assemble the home in a day or two, and the structure should be weathertight within 48 hours, making it a time-efficient choice. However, the cost and material usage can vary depending on your location and labor costs.
Cost Considerations
One significant factor in the cost comparison is the price of land. Tract homes, built by developers, are often cheaper because developers can purchase land in bulk and negotiate lower prices. Additionally, developers often build in economically viable areas, utilizing the cost-saving benefits of bulk purchases and established building standards.
Manufactured homes, while costing less overall, require higher shipping costs and may use slightly more material. The labor cost for assembly is generally lower since everything is pre-fabricated, reducing the need for skilled trades. This can make manufactured homes a more attractive option in areas with high labor costs.
Advantages and Disadvantages
Advantages of Manufactured Housing
1. Reduced Initial Investment in Trades: Once the assembly is complete, you do not need to hire additional tradespeople for finishing or modification. The manufacturers handle everything, making the purchase headache-free.
2. Faster Construction Time: Due to the factory construction, considerable time savings can be realized, with the house potentially ready for living in less than a week.
3. Economical in High Labor Cost Areas: In regions where labor costs are high, manufactured homes offer a cost-effective solution, especially when combined with cheaper shipping from areas with lower labor costs.
Disadvantages of Manufactured Housing
1. Design Limitations: The design of a manufactured home is less flexible due to the modular construction process. Certain design elements may require additional fittings or adjustments.
2. Longer Transport Times: Shipping from the factory to the installation site can take longer, potentially leading to delays in the overall timeline.
Advantages of Tract Homes
1. Better Land Value: Tract homes sit on land that developers have purchased in bulk, often at a lower cost per square foot. This can significantly reduce the overall cost of the home.
2. Professional Construction: Hired by reputable contractors, the homes are built to higher standards, reducing the risk of safety issues and structural defects.
3. Financial Incentives: Banks, insurance companies, and municipalities tend to offer better rates when it comes to mortgaging, insuring, and approving projects by established reputable contractors.
4. Lower Risk of Disputes: Due to professional oversight and contract fulfillment, the risk of disputes arising from construction issues is significantly lower.
Conclusion
Whether it is cheaper to buy an already built home or a manufactured home depends on various factors such as location, labor costs, and individual needs. Manufactured homes offer faster construction and reduced initial investment in trades, making them a viable option in certain scenarios. However, tract homes provide better land value, professional construction, and lower risk of disputes, making them a safer and more predictable choice in terms of long-term investment.
Based on your specific circumstances and priorities, you can choose the option that best suits your needs. Whether you opt for a manufactured home or a tract home, both options offer their own set of advantages, and the decision can greatly impact your homebuying experience.