May 25, 2024


Mad about real estate

The Cost of Panelized Homes

One of the most frequent questions of the home buyers is a question about the price of panelized homeS. This article tries to explain why this simple question does not usually have a simple answer.

The first factor is that not all homes panelized are using the same methods of panelization. The differences in sizes of the panels (transportation issues) and the differences in fabrication methods cause the prices to differ substantially. Each fabrication methods require different amount of labor. The result is a different fabrications cost.

The other cost-influencing factor are the features requested by the purchaser. Panelized homeS are custom-made homes. In order to decrease the cost, the customization is based on minor modifications of pre-engineered designs.
The more changes from pre-engineered plan the customer requires, the more it costs to assure the structural integrity of the home, and to modify the process of panelization.

There are other factors, like season and local economics (supply and demand), local building codes, zoning law and related restrictions and covenants might also affect the price to a significant degree. There are 5 diffrent building codes across the USA, 16 different climate zones and estimated 3000 different local zoning laws. What you can built in one jurisdiction for $100,000 might cost in another jurisdiction 3 times more as a result of different requirements.
Therefore it is advisable to receive price estimates from several panelized home manufacturers for the variations of the design in order to be able to see what features affect the price the most. You need to consider all potential scenarios which can come into effect when building homes panelized and all these scenarios should also be presented for bidding to the contractors in order to determine associated labor costs. Once you determine the most suitable and price effective design, you can start shopping for the best price for this particular design. You need to locate local representatives of manufacturers who serve your building area, to specify all requirements and presented to them in well organized manner in order to receive correct estimate of your project.
You might also use a reverse scenario. If you are aware of how much money you have and how much you can borrow, you can set your price for the finished home, and work backwards to find out what features you can receive; you have to start by determining the amount of money that you can afford to pay and spend for homes panelized. A very sensible approach should be undertaken; you need to be realistic in respect of the size of your future house, and need to be aware of the major factors which affect the price.
You can visit various model homes to examine what features are available but you should remember that not all the things which affect the price cannot be seen. You can also check online sources or visit local mortgage broker to find how much money you can borrow towards proposed features of panelized homeS. If you considering to act as your own general contractor, please remember that construction companies are able to average profits over several projects; but the typical owner-builder cannot do so.
The process of finding suitable homes panelized, the best supplier, and the most qualified contractor are tedious and time consuming, but well worth of the effort.