Average Cost to Build a Modular Home
Besides the cost of purchasing the modular home, you should budget an additional $5 to $35 per square foot for delivery and installation. This wide range accounts for differences in your land and the size of your home. Typically, the company providing the structure handles all these tasks, giving you one grand total for your finished home. An estimate from an experienced builder should be highly accurate. Be sure to check your sales contract for procedures regarding delays or damage before completion, as these may differ between companies. Any issues that arise after you take ownership will likely be covered under your warranty.
Some factors and additional fees that may impact your final cost include:
Cost of Prefab Home Customizations or Additions
Depending on the model you select, you may want to opt for some customizations or add-ons. Common options include:
Additional Cost Factors of a Modular House
Several additional cost factors can affect your modular home’s final price, depending on local ordinances and your choices. When planning your budget, consider:
Permits and Fees
Permits and fees range from $500 to $5,000. Preparing the land and installation usually require the most expensive permits. Some municipalities may also require impact fees for parks, roads, or schools. You may need permits for:
Be sure to ask your contractor which permits you’ll need, or consult your city’s building department.
Regional Differences
Although prices per square foot tend to be fairly standard nationwide, you may notice regional differences in the size and design of homes available. If you live in an area with bigger lot sizes, companies may offer modular homes with larger footprints, particularly one-story ranch styles. Home manufacturers that serve urban clientele will most likely have a suite of compact two- and three-story designs that are appropriate for narrow lots.
Sales Tax
You may need to pay sales tax on the modular home components, which average about $5,000 to $10,000. Taxes are usually specific to the state but may also vary by city. The manufacturer of your modular home should be able to answer sales tax questions, or you can contact your local tax office.
Custom-Design Prefabricated Home Prices
“If you find custom changes push you over budget, ask your builder to steer you toward a plan that meets your needs. You shouldn’t be reworking large portions of the floor plan. Use your dollars for details like bumpouts or window placement changes.” Cati O’Keefe, Expert Home Building & Sustainability Contributor.
If you’re planning a custom modular home, expect to pay at least $200,000 to $400,000. Many builders are willing to customize designs beyond finishes like flooring or countertops. Some can adapt an existing design or even create a brand-new one for you. When choosing your modular home builder, ask about the level of design customization they offer. Keep in mind that extensive customizations can increase the average price per square foot.
Modular Home vs. Building a Fully-Custom House
If you’re considering customizing your modular home, consider the price and build time distinctions before committing to it.