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Buying a Modular Home vs. Hiring a General Contractor

Building a new home is a huge event in your life, as anyone with experience would testify.

And knowing the options available to you during this time?

Extremely important.

Usually when people think of building a new home, they think of the traditional on-site building experience that lasts 6-12 months and involves many subcontractors in and out of your property day in and day out.

What if we told you that building technology has come a long way and that this is no longer the only way to build a house?

What if we told you that you could skip the headaches of a traditional home building experience but still get the home of your dreams?

If this appeals to you, Trailhead Cabins has created the perfect resource for you!

In this blog we’re going to introduce you to the Modular Home buying experience, compare hiring a General Contractor to buying a Modular Home, and finally discuss why modular homes are an attractive alternative to the traditional home building process.

Ready to go?

Let’s dive in!

First Some Definitions

  1. What is a Modular Home?
    A modular home is a prefabricated home that is partially constructed in a factory and is shipped to the homeowner’s lot where it is completed on a permanent foundation. A modular home must comply with the local building codes and standards of its final destination.
  2. What is a General Contractor?
    According to Construction Coverage “A general contractor, or GC, in a construction project, is the party responsible for scheduling and overseeing the day-to-day activities of a construction project. General contractors are hired to manage the project from ground break to completion, providing the materials, labor, and equipment.”

The Pros and Cons of a General Contractor

A few people actually choose to be their own General Contractor. However, since few people have the building expertise to do this, in this blog we are assuming that you need to hire a General Contractor (GC).

Hiring a GC means that you will not need to take responsibility for all aspects of your project. You will have delegated this responsibility to the General Contractor after outlining and explaining to him exactly what you want done. Although you will still need to be available for questions, you will not need to set up a work station at the job site as you would almost certainly need to do if you were acting as your own GC.

So if hiring a GC to build your home takes much of the responsibility off of your shoulders, why should you still consider a modular home?

Here are 7 reasons to explore alternatives to a GC-built home:

  1. The entire home building process will probably take 5-6 months.
  2. The process will always be subject to weather delays.
  3. Your home materials will be exposed to the elements throughout most of the building process.
  4. You will have all the various crews (framing, plumbing, electrician, HVAC, and insulation) coming onto your private property.
  5. Trash, loud music, and a less-than ideal overall atmosphere are common conditions among building crews.
  6. In the end, the house will be of no higher quality than a modular home would have been.
  7. You will usually end up paying a higher price for a traditionally built home.

And that’s not even all.

General Contractors and home building sub-contractors much prefer larger homes and projects. They really don’t want the hassle of smaller jobs, and many will outright refuse to work on them.

People considering a smaller house (say, less than 2,000 square feet or $200K) may, in some areas, almost be forced to consider a modular home.

Lies About Modular Homes

There is a lot of market confusion about modular homes. Since modular homes are built in a factory, people tend to assume that modular homes and manufactured homes are the same thing, when this is simply not the case. 

The difference lies in the code to which each of them is built. Manufactured homes are built to the HUD (Housing and Urban Development) code, while modular homes are usually built to the IRC (International Residential Code).

Read our blog: Modular Homes vs. Manufactured Homes

The truth is actually very simple: Modular homes are stick-built homes that happen to be built in a factory.

Here are the most commonly believed lies about modular homes.

  1. Modular homes and manufactured homes are the same thing.  As we said, modular homes are stick-built homes; they are built to the same specifications (usually the IRC code) and wind ratings as a traditional onsite home. Manufactured homes are built to the HUD code.
  2. Modular homes are built cheaply. Modular homes are built to the same code as on-site homes and are usually constructed with the same or even better-quality materials as an onsite home.
  3. Modular homes depreciate in value. Modular homes appreciate in value in almost the identical manner that a stick-built home does.
  4. Modular Homes do not qualify for traditional financing. Although some banks require a few additional steps, financing a modular home is usually identical to financing a traditional build.

We repeat: Modular homes are stick-built homes that happen to be built in a factory.

Period.

The Pros and Cons of Modular Homes

Although we believe that modular homes are, in many ways, superior to hiring a GC, they have pros and cons like everything else, of course.

Let’s take a look.

Pros:

  • Lower price tag – As we said, modular homes usually cost less than GC-built homes even when adding in the costs of foundations, hook-ups, etc. This cost savings is a result of assembly-line production and the lower material costs that modular home builders are able to take advantage of due to bulk discounts in their huge factories. 
  • Faster installation – Placing a modular home is a quick and efficient process compared to a traditional build. This allows you to move in much more quickly! See below for Trailhead Cabins installation time frames!
  • Quality – Modular homes are usually identical to stick-built homes for quality. In fact, since the whole construction process is highly controlled with constant quality assurance checks, you can actually be MORE confident that you are getting what you paid for.
  • More Sustainability – A modular home build produces less material waste than standard construction. This means that it’s friendlier for both the environment and your pocketbook. Less material wasted means both less expense and less mess, trash, and cleanup.
  • More Efficiency – Since modular homes are factory-built, they are usually tighter and more energy efficient than a traditional house. This could result in significant energy savings for you down the road.
  • Conventional Financing – Modular homes qualify for traditional financing unlike HUD-code Manufactured Homes. As we said, a few banks may require a few additional steps, but the belief that you cannot get a traditional loan for a modular home is a lie.
  • Added built-in benefit: Modular Homes even have an added built-in advantage. Since they need to be transported down the road for installation, every precaution and added quality step is taken to avoid both minor blow-offs and major catastrophes on the road. How many new traditionally built homes could actually survive a 60-mph trip down the highway?
  • Safer construction – Less disturbance of your neighbors and a much safer construction area are hallmarks of a modular home, especially since the building time period is so much shorter. What if a modular home helped you stay on better terms with your neighbors?

Cons:

  • Lack of Customization – The standardized production does have a downside. Although you can usually choose from several designs of modular homes, you will probably never be able to fully customize your dwelling, unlike a site-built house.
  • Social Stigma – Since manufactured housing used to mean low-quality, a certain social stigma continues to linger about living in anything other than a stick-built home – still typically perceived as the gold standard. The confusion between modular homes and manufactured homes – which are built to the cheaper HUD code - does not help anything here.
  • Transportation and Site Limitations - Transporting the sections of a modular home down the highway and onto a property does come with logistical challenges. If the roads into your property or the terrain of you job site are too problematic, a modular home may be infeasible.

What Is Buying a Modular Home Like?

A clear understanding of the Modular Home buying process is very helpful. It is also good to get an idea of what is included in the Modular Home package and what is not.

One of the main benefits of buying a modular home is the speed of installation, but that does not mean that there is nothing the home buyer needs to do to prepare for the building process.

When buying a modular home, you, as the home buyer, will usually be responsible for providing a foundation, completing utility hookups, attaching gutters and porch steps, and installing all landscaping features.

Some modular home manufacturers include more services in the package than others. Be certain to check and compare.

At Trailhead Cabins, we strive to make the Modular Home buying process as painless and DIY-friendly as possible!

For example, Trailhead Cabins has a service of foundation installation, or you can choose our "Self Help" Foundation service which saves money for the DIYer.

Buying a Modular Home From Trailhead Cabins

At Trailhead Cabins we have many different models of modular homes with prices ranging from $129 per square foot to $180 per square foot.

Since we do like to give our customers an idea of what to expect, here are a few specific points about buying from Trailhead Cabins:

  1. When you buy a modular home from Trailhead Cabins, 80% to 90% of the project will be complete before it comes onto your property, and the project will be even closer to completion when the setup crew is done.
  2.  When you buy a Trailhead Cabins Modular Home, you will need to provide the usual items: foundation, utility hookups (water, sewer, and electric), gutters, and porch steps.

    But here’s the BIG fact about working with us …!

     
  3. Trailhead Cabins Modular Homes can be assembled at your job site in as little as THREE DAYS!

That’s right! We can put together your new home in as little as THREE DAYS!

How’s that for speed of installation?

As we said, modular homes present many opportunities for the DIYer. Many times you can save money by buying a modular home and doing some of the final details yourself, such as the previously mentioned “Self-Help” Foundation Service that Trailhead Cabins offers.

In conclusion, one of the main advantages of modular homes is their speed of assembly and with Trailhead Cabins, you get this in spades!

Read our blog Setting Up a Modular Home to learn more about buying a modular home from Trailhead Cabins.

Wrapping It Up

Although choosing between purchasing a modular home and hiring a GC is a personal decision, Trailhead Cabins wants to dispel the marketing confusion surrounding modular homes.

As we have seen, refusing to give modular homes any consideration is a mistake. Although there are upsides to hiring a GC, the modern high-quality modular home holds many advantages and is worth a serious look.

One of the greatest advantages is the speed with which they can be assembled once they are delivered.

And Trailhead Cabins has the ability to install a Modular Home for you in ONLY THREE DAYS!

Check Out a Trailhead Modular Home Today!

Check Out a Trailhead Modular Home Today!

Ready to explore a modular home for your family’s new house?

Check out Trailhead Cabins for one of the best modular home experiences on the market!