A homeowner makes citations on build plans atop a table with a model home off to the side

Modular homes are becoming increasingly popular as more homeowners look for a faster and easier way to live out their dreams of affordable homeownership.

Yet, there are some essential things to consider before jumping into the world of prefabricated homes.

While there are undoubtedly many advantages, there are also some disadvantages to note before making your decision.

If you’re looking for the pros and cons of modular homes, you’re in the right place.

Read on for a rundown of the reasons to buy these homes and general tips for buying your dream home.

Should You Buy a Modular Home?

You should buy a modular home if you’re concerned about cost or the environment. They are affordable, energy-efficient, easy to maintain and take a short time to build.

The drawbacks are they require land ownership, are harder to finance, and may need utility hookups.

The Pros of Modular Homes

When it comes to modular homes, there are a lot of misconceptions.

For example, some people think they’re not as nice as traditional homes or not made to last. Yet the reality is that modular or prefab homes have a lot of benefits over conventional construction methods.

Here are just a few advantages of modular homes:


Prefab homes are an excellent option for those looking to save money on their purchase.

Compared to traditional construction methods, these homes are much more affordable, often costing about 50% less.

There are several reasons why modular homes are so much cheaper than traditionally built homes, including:

  • The prefabricated materials can be obtained at a lower cost and reused.
  • The assembly and installation process is faster and more efficient than traditional construction methods, requiring less labor and minimizing delays and costs associated with worker downtime or mistakes.
  • Modular builders have access to specialized tools and equipment to create structures with higher quality standards at a lower cost than conventional contractors can achieve.

Ultimately, these factors make prefab homes an attractive choice for anyone looking to save money on their home purchase without sacrificing quality or value.

Shorter Build Time

Building a home from scratch can be a long and drawn-out process, with numerous delays.

However, modular homes offer a much faster way to get into your new home.

Because most of the work is done in a factory setting, manufacturers can assemble prefab homes much more quickly than traditional homes. 

As a result, you can move in sooner and start enjoying your new home faster.

A modular home being fabricated in a factory

In addition, a shorter construction process means less chance for things to go wrong. This can save you time and money in the long run, as you won’t have to deal with unexpected delays or repairs.


One of the great things about prefab homes is that you can customize them to your specific needs and preferences.

Since they are built in a factory setting, you can choose everything from the layout to the materials used.

Ultimately, you can create a truly unique space tailored to your tastes and needs.

Whether you prefer an open floor plan, a more traditional layout, or even a customized style specific to your family’s preferences, you can find what you’re looking for with a prefab home.


Modular homes are also great options if you’re looking for an eco-friendly choice.

Since these homes are built with prefabricated materials, they generate less waste than traditional construction methods.

In addition, modular homes are often constructed with sustainable and recycled materials, such as bamboo and steel.

Modern modular homes also come with energy-efficient windows, insulation, and siding. These features translate into a better home that requires less energy to operate. 

As a result, you can feel good knowing that your new house is beautiful and eco-friendly.

Easy To Maintain

Once your modular home is complete, you’ll find it easy to maintain. These homes are built with high-quality materials designed to last for many years.

In addition, the assembly process creates a tight seal that helps protect your home from pests, moisture, and other elements.

Overall, you’ll spend less time and money on repairs and maintenance. So whether you have an active family or simply prefer to spend your free time relaxing at home, prefab homes are an excellent choice for easy and low-maintenance living.

Modular Homes Are Healthy

Modular homes are also a healthier choice for you and your family.

By building with green materials, modular homes can help improve air quality in your home and reduce the risk of potentially harmful toxins or chemicals.

In addition, modular homes are also designed to be energy-efficient and eco-friendly, so they can help you save money on your monthly energy bills.

Excellent Quality Control

Top-notch quality control is one of the main advantages of modular homes.

During the construction process, modular homes goes through rigorous quality control to ensure quality. Consequently, buying a modular home guarantees that you’ll get a high-quality option—you don’t have to worry about your home being superficial.

Since modular homes are well-made, there are fewer zoning issues when shipping. This is the main reason you don’t hear many complaints when it comes to their resale value.

The Cons of Modular Homes

Despite the many benefits of modular homes, there are still some downsides you should consider.

It’s crucial to look at these drawbacks before making your final decision to ensure prefab is the right choice.

Here are the main disadvantages of prefab homes:

Financing Can Be Difficult

One potential issue for those considering a modular home is financing.

Because they are not built on-site and require specialized equipment, lenders may be reluctant to offer loans for prefab construction.

A couple of homeowners hold a piggybank and research on a laptop to determine the money needed for their modular home financing

Due to this, it’s essential to do your research and find a lender willing to finance your house before you begin the construction process.

Homeowners Must Know the Building Codes

Another thing to keep in mind if you’re considering modular construction is that you must be familiar with local building codes and regulations.

Since these homes are built in a factory, they often require special permits or approval from the municipality where you live before construction begins.

Therefore, homeowners may need additional time and effort to ensure their new home meets the required standards for safety and livability.

May Require Utility Connections

Another potential downside of prefab homes is that they may require additional utility connections.

As they are built off-site, they’ll need to be connected to water, sewer, and electricity before being occupied.

While this isn’t a complex process, it can increase the cost of constructing your new home.

The Manufacturer May Not Always Be Local

Another potential issue with prefab homes is that the company you choose to build your home may not be local.

Because of the factory construction, you must be sure to choose a reputable and experienced manufacturer.

However, if you’re considering a prefab home from a company that’s not in your area, you may need to pay shipping and handling charges to have it delivered.

May Need Additional Landscaping Work

Another potential downside of modular homes is that they may require additional landscaping work.

Unfortunately, these factory-built homes aren’t always designed to consider the needs of your existing landscape.

As a result, you may need additional modifications or landscaping work once your home is delivered and set up on your property.

Some Prefab Designs Are Expensive

When it comes to prefab homes, there’s a lot of variation in terms of price.

While some prefab designs are pretty affordable, others can be expensive.

For instance, if you’re looking for a luxurious or high-end prefab home, you may need to spend more money than you would for a traditional home.

A modular home's backyard with a pool in the foreground

However, even the most expensive prefab homes are often cheaper than building a custom home from scratch.

So if you have your heart set on a particular design, it may be worth the extra cost.

At the end of the day, the important thing is finding a prefab home that fits your budget and needs.

Prefabs Aren’t Relocatable

It’s important to note that modular homes are permanent fixtures.

While most people confuse them with movable structures, they are built to suit the property’s landscape on which they’ll be assembled.

Due to this, if you ever decide to move, you’ll likely need to modify or completely rebuild your house to suit its new location.

You Must Own the Land Where You’re Building

Another crucial thing to remember when considering a prefab home is that you must own the land you plan to build on.

Because these homes aren’t built on-site, they require a level and stable foundation on which to be assembled. As a result, you’ll need to purchase the land before construction can begin.

For more details on the pros and cons of modular homes, check out this video displaying one build from shipping containers:

General Tips for Buying a Modular Home

When considering a modular dwelling, it’s important not to rush the process, as you may end up with a home that doesn’t meet your needs or expectations.

To avoid disappointment, here are a few guidelines to follow:

A screenshot from a YouTube video displaying a shipping container modular home
Courtesy of Global News

Do Your Research

Not all modular homes are created equal.

Make sure you take the time to compare different manufacturers and find the one that best suits your needs.

Some of the things you should look for include:

  • The company’s experience – what kind of work have they done in the past?
  • The design options available – do you like the look and feel of their homes, and would they fit into your desired neighborhood?
  • Quality control guidelines – how are their homes constructed to ensure quality?
  • Price and payment structure – can you afford the home you want, and what payment options are available?

Get a Quote

Once you’ve found a prefab manufacturer you like, the next step is to get a quote. This process will give you an idea of how much it’ll cost to build your dream home.

When getting a quote, be sure to ask about:

  • The cost of the home itself
  • The cost of shipping and handling
  • The cost of any additional modifications or landscaping work that you may require

Look for Friendly Financing Options

As mentioned, financing is one of the most challenging parts of buying a prefab home.

However, you can address the challenge by finding a lender willing to work with you and your chosen manufacturer regarding your loan.

Here are a few tips to keep in mind when looking for financing options:

  • Ensure you have a good credit score
  • Consider applying for a loan with the manufacturer of your prefab home, as they may be more willing to work with you than other lenders
  • Look into government programs that offer low-interest loans or subsidies for energy-efficient homes—these may include the EPA’s Energy Star Mortgage Program or the Federal Housing Administration’s 203k Rehabilitation Loan Program

Work With an Experienced Realtor

If you’re unfamiliar with the buying process for a prefab home, it’s a good idea to work with an experienced realtor.

A realtor can guide you through it, help you find a reputable manufacturer, and negotiate on your behalf to ensure you get the best possible price.

Besides, a realtor can also help you find land for your build and navigate any zoning regulations that may apply.

Be Patient and Flexible

Keep in mind that buying a home is a significant investment and can take time to complete. So make sure to stay patient and be prepared to be flexible throughout the process.

With some research, planning, and patience, you can find the perfect home to suit all of your needs and budget!

For more home buying tips, read The Brilliant Home Buyer: 101 Tips For Buying a Home in the New Economy.

The book explains everything you need to know about the process, from researching your options to finding financing and closing on your home, making it an essential read for anyone looking to buy a home.

The Bottom Line

So, should you buy a modular home?

Whether you’re looking to save time and money or want an eco-friendly and customizable home that’s easy to maintain, prefabs offer a variety of benefits that make them an excellent choice for many homebuyers.

However, there are also a few things to consider, like the potential difficulty in financing and the need to follow building codes. 

Nonetheless, when you weigh the pros and cons, modular homes offer a unique and appealing option for anyone looking for an alternative to traditional construction methods.

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