As odd as it may seem with the housing market in such a depressed state, the demand for prefab, or prefabricated, homes is on the rise. The fact that you can purchase a prefab home for 10-25% less than a conventional home may have something to do with the sudden interest in this type of real estate. Not only is this housing option environmentally friendly, it is possible to save money with prefab homes.
Prefab homes are preassembled in a factory and then transported to the land site chosen by the homeowner. Since the house is constructed in a factory with thousands of other buildings, the manufacturer is able to negotiate bulk rates on their materials. Additionally, manufacturers run their factories as efficiently as possible so as to use resources responsibly and create very little waste. This helps them keep costs low and the savings is passed onto the consumer. Another place where homeowners save money is in the installation of their prefab home. Since the majority of the building structure is assembled at the factory, when it is transported to the land site there isn’t a whole lot left to do except attach it to the foundation. The contractor is able to complete the remaining construction quickly thus saving the homeowner time and money.
A frequently asked question about prefab homes is whether the average layperson can assemble the house themselves which will allow them to forgo the expense of hiring a contractor. Yes you can. However, unless you have experience in construction, it is probably not a good idea to do it yourself. Putting the home together is only part of the process. There is an assortment of permits and other governmental bureaucracy that must be attended to. Unless you have the time to deal with all of that, it is best to have a professional contractor erect your house for you. The biggest expense you will incur with the purchase of your prefab home is the land. A good way to keep costs low is to work with a knowledgeable real estate agent. With the market in its current state you will surely find a good piece of property at a very reasonable price.
Homebuyers can also save money on the cost of the prefab home itself. Like conventional homes, prefab homes do not have a set price which allows you to wrangle a deal out of the designer. Prefab homes come in a variety of style choices and range in price, from the very cheap to the exorbitantly expensive, depending on the options you choose to have built into the home. It is easy to get caught up in what you want but try to focus on what you need and stick with homes that fall within your budget.
Lastly, your mortgage provides some wiggle room when it comes to the final cost. With mortgage rates at an all time low you can get a great deal on a loan. Take your time to shop the banks and only sign a loan with the company that has the best offer. Prefab homes make wonderful starter, second or vacation homes. They save homeowners time and money. In this day and age, you can never have too much of either.