Do Cheap Pre Fab Homes Really Pencil Out?

Chapter 06: Do Cheap Pre Fab Homes Really Pencil Out?

We have yet to find a pre-fab or modular solution that is cheaper to build than our regular stick frame construction costs. Yes, they can save time if you order a cheap pre fab home early enough. We tried to order pre-fab lumber on several occasions and were told we had to wait 3 months before the lumber would arrive. In addition, the pricing for the pre fab home was actually more expensive than what my contractors could frame the building for with regular stick frame.

It makes sense the prefab or modular construction can be higher quality as the framing is performed under climate controlled conditions. Once you factor in all the advantages vs. disadvantages below, my conclusion is that it’s easier to go with conventional stick frame construction.

Disadvantages of Pre-Fab or Modular:

You might have to overcome negative perceptions in the marketplace
Not all homes can be built with modular or prefab companies
- If power lines are in front of your home
- If streets are too small making access difficult for cranes and large semi trucks
Financing - not as many lenders, more up front capital required to get started with the factories requiring large up-front deposits. Typically modular factories require 50% down payments.
Limited Flexibility - Factories in general will build what they want and in certain dimensions
Limited selection of finishes
After everything is said and done, it is debatable that there are any real savings

Advantages:

Saves Time (if there isn’t a long queue in front of you)
No weather delays during winter months as everything is built indoors
Not as much wear and tear on the materials during construction

In theory, pre fab is supposed to be cheaper. It all depends on what type of contractor you are using and how much sweat equity you are committing to your project. When compared to building with a high-priced retail “$90,000 F-350” stick framed contractor, it is definitely going to save you money.

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