Real Estate

Custom Homes vs Modular Homes: A Quick Guide On What’s Right For You

Congratulations! You are finally ready to own your own home. But the home building industry is more complex than you thought. 

Who knew that you could just have your house built in a factory? Or that choosing the right flooring for your home would be such a fundamental decision for your house. 

Don’t worry, you’re about to get a crash course in Modular vs Custom built homes. 

What’s the difference?

  • Modular homes are typically built indoors in factory-like settings: each part is built and shipped right to your builder
  • Custom-built homes are built on-site by a construction team rather than a factory

So, can you tell the difference between the homes just by looking at them? 

The quick answer: no, not really! But we’ve put together a few pointers that can help…

How To Spot The Difference Between A Modular Home and Custom-Built Home

While there aren’t any major differences between the two at first glance, there are a few subtle ones you’ll notice once your home is built. You may notice that…

The roof of a modular home has hinges that allow for easy transportation.

You’ll see this mostly in the attic. This is where you will have a clear view of the roof trusses (the space between a room and the roof—mainly used for support). These hinges might create a ridge in the roof under the shingles after construction. 

There will be two joining sections in the front and rear of the home. These will be visible as two support structures in the attic floor. They run along the long sides of the building, usually with a small gap between them. These gaps will be filled with insulation or other fire blocking material.

Still not sure which option suits your needs best? Let’s talk about the pros and cons of each.

Modular Homes: The Pros

  • Speed of Construction: Modular Homes are factory built, so say goodbye to the hassle of weather faced by custom-built homes. You’ll also get materials faster because they no longer have to be custom ordered. All Modular Homes keep their materials in a factory where they are all stored for easy location.
  • Budget Friendly: Thanks to faster construction time, there are fewer costs associated with the construction of Modular Homes. No more extra costs to cover weather days, travel expenses, or manual labor.
  • Eco Friendly: If you are concerned with being eco-friendly with your home projects, Modular Homes will definitely appeal to your green side. Modular Homes can be more energy efficient than custom homes. This can reduce your energy costs, and decrease your environmental footprint in the long-run. 

Modular Homes: The Cons

  • Complicated Loan Process: For the most part, builders for Modular Homes expect an all-at-once payment. This might mean you have to get a construction loan first to be able to pay your builder. This process might prompt a change in your mortgage once the home is built and complete.

Pro Tip: One possible option is to get a special construction loan. This loan is valid for one year, and when the work is completed, the dealer pays off the loan and a traditional mortgage will be issued.

  • Extra Costs Outside of Home Construction: In order to be able to build your Modular Home you have to purchase the land first. Other extra costs like electrical, plumbing, ductwork, septic systems, or basements can also add to your bottom line. Your final cost could end up being 20% more than the builder’s original quote. 
  • Not As Easy to Customize: Even though Modular Homes come in all shapes and sizes, they are manufactured in groups. This means some features you really like may be hard or impossible to get. Modifications can lead to complications in the building process, making it difficult to customize.
  • Access: Some sites may not be able to have the modular home delivered or be in an ideal location for the equipment and space needed for modular home building. It’s even possible your municipality has restrictions on modular homes.

Now that you know a few Pros and Cons for Modular Homes, let’s take a look at Custom Homes.

Pros of Building a Custom Home

  • Easily Customizable: Building a Custom Home puts you in control of the customization process, including how and when something is done. This level of customization allows you to make your home truly unique. 
  • Placement: With a custom-built home, you can place the home wherever you want on your land. This is helpful for those who like a view, or for those who would prefer a larger back yard for family, activity, or even gardens. 
  • Quality: One of the biggest benefits of building a custom home is that you can be assured of quality. You have control over every material, look, and feel of the property. Working with a custom home builder provides you with the information you need to make an informed decision. You’ll know the quality of every piece of your home—something many homeowners can’t say.

Cons of Building a Custom Home

  • Higher Prices: Custom Homes do tend to have higher prices. This can lead those who are looking to build their own homes to compromise on size of the house or amenities they wished to have.
  • Longer Construction Time: Thanks to weather delays and normal manual labor delays, Custom Homes might take longer to build. These delays could potentially result in higher prices and fees that you might have not accounted for. Not to mention having to work around construction for longer periods of time. Learn more about the custom home construction process from start to finish.

You can’t avoid every con with custom homes, but you can contact professionals who can help make the process easier. Contacting professionals like those at Eagle Creek Homes who specialize in the construction of Custom Houses can help  

CONCLUSION

Embarking on the task of building your own home can be difficult, and will no doubt require you to make some fast choices. But recent technologies in the home-building industry let you have more options now than ever before.

There are advantages and disadvantages to both modular homes and custom homes. And depending on your lifestyle, one of them is better suited for you than the other. That’s why we recommend speaking to a home manufacturer or custom home builder near you to better help you reach your goal of homeownership.