Get a Complete and Accurate Modular Home Price

Why “Price Per Square Foot” Is Always a Misleading Approach

A modular home price has two main components:

1. The cost of the home built by the manufacturer and sold through a dealer.
2. The cost of the on-site contracting work needed to turn the modules into a finished home.

The cost of the modules is determined by the plan you choose and the features and specifications you select. The cost of the construction tasks needed to complete your modular home is governed by the amount and type of site work, “button-up” work, and site-built structures.

Unfortunately, calculating the cost of a modular home completely and accurately is much harder than you might realize. It also takes competent a modular dealer many hours to accomplish. And this is only after they have convinced you to spend a few meetings and many hours learning the options and making decisions. Since these estimating steps are required for all types of construction, it’s no coincidence that the construction industry is plagued by cost overruns and busted budgets. Many modular dealers attempt to get around this problem by providing a square foot price for their homes. You may even be tempted yourself to ask for this type of ballpark estimate, since you understandably want a quick way to winnow down your list of potential dealers. But, using price per square foot as a modular home price is as misleading as using price per pound

A “modular home price per square foot” is always misleading in part because the cost to build a home varies considerably depending on the design. For example, one-story homes are usually more expensive per square foot than two-story homes, if you keep everything else the same. This is mostly because a one-story home of any size requires twice the foundation and twice the roof as a two-story home with the same square footage. In addition, modular designs that require more on-site construction will usually cost more per square foot than designs that are almost completely built at the modular factory. The additional on-site construction will cost more per square foot than the part built at the factory.

You might ask for a modular home price per square foot for a given style of house. But there are many types of each style of home. Compare a typical one-story ranch with a straight roof line to a large contemporary one-story with multiple rooflines and attic storage. The second type of design is significantly more expensive to build. Also, larger homes for any given style cost less per square foot than smaller homes of the same style, since there are many costs that do not go up appreciably when you make the house bigger. For example, almost all homes have only one kitchen and heating system, both of which get spread out over more square feet in a larger home. You might try to avoid this problem when asking for a modular home price per square foot by being even more specific about the floor plan you prefer. But this will only work if the modular dealer has an idea what type of specifications you expect.

You can add $10-$100 per square foot to a home by upgrading the fewest and least expensive features to a large number of expensive ones. For example, stained cedar siding costs much more than vinyl siding. Some imported tile floors are substantially more expensive than carpet. And granite countertops come at a much higher modular home price than laminate countertops. Yet none of these options affect the square footage of the house itself. In addition, a home with a masonry fireplace, whirlpool tub, and central air conditioning is more costly per square foot than one without these amenities, as is a home with a garage, porch, and deck. If you go through the entire house and upgrade every product and add amenities in this way, the price of the home and therefore the price per square foot will rise substantially.

Site conditions can also significantly impact the square foot cost of a home. Installing a well and septic system, for example, usually costs substantially more than connecting to municipal water and sewer. So does building on a heavily wooded hilly lot with a winding 200-foot driveway compared to a flat lot with no trees and a 50-foot driveway.

For these and other reasons, you can take most any floor plan and come up with a modular home price per square foot that will be meaningless unless you know exactly what you are getting. When a modular dealer gives you a price per square foot, you will not necessarily know what the home will ultimately cost you. Some dealers assume ideal circumstances when they generate a price per square foot. They are not lying about the price, even though you will likely pay more once they flush out the details with you. You can avoid this problem by learning the dealer’s assumptions and providing him with a specific floor plan, preferred building specifications, level of amenities, and the site conditions on your lot. Once you do this, however, you are no longer pricing your home per square foot. There is just no good reason to ask a dealer or any builder for this price.

Pre-Approval and Pre-Qualification

As you prepare to finance a new home, chances are you’ve come across mortgage pre-approval, mortgage pre-qualification, or possibly even both. So what does it mean to get pre-approved vs. get pre-qualified for a mortgage, and what’s the difference between the two? Let’s take a look.

The Similarities of Pre-Approval and Pre-Qualification

Mortgage pre-approval and mortgage pre-qualification have the same great benefits for anyone considering purchasing a home with a mortgage:

  • Both can help estimate the loan amount that you will likely qualify for. This can help you save time by starting your home search by looking only at homes that you know will fit in your budget. And it will also prevent the frustration of finding out that the house you wanted to buy is actually out of your budget.
  • Regardless of whether you have a pre-approval letter or a pre-qualification letter, both can help show sellers that you’re a serious contender when submitting your offer. For a seller to confidently accept your offer, they’ll want to know that you’ll be approved for a mortgage and the home sale will close. A pre-approval letter or a pre-qualification letter can help demonstrate that you have a good chance of being approved for a mortgage for the amount that you’ve offered on the home.
  • Many sellers will require a pre-approval or pre-qualification letter if you’re planning to get a mortgage. If it’s not required, a pre-approval letter or pre-qualification letter may help your offer stand out. This can be especially helpful in competitive real estate markets.

In addition to the benefits mentioned above, it’s important to remember that neither pre-approval nor pre-qualification is a guarantee that you’ll receive a loan from the lender. You are also not obligated to get a mortgage form the lender who pre-approved or pre-qualified you. While many home shoppers opt to apply for a mortgage with the lender who pre-qualified or pre-approved them, you should always shop around before applying for a mortgage.



Get pre-approved and see how much you can affordArrow


The Differences between Pre-Approval and Pre-Qualification

According to the Consumer Finance Protection Bureau, there is often not a lot of difference between pre-approval and pre-qualification. Sometimes, lenders use the terms “pre-qualification” and “pre-approval” interchangeably. And different lenders might have different definitions for each. But generally, here’s how the two may differ.

Pre-qualification is often seen as the first step in the mortgage process, and pre-approval is the next step. With pre-qualification, you’ll supply an overview of your financial history to the lender, including income, assets, debts, and credit score. The lender will review this information to give you an estimate of what you would qualify for. Mortgage pre-qualification doesn’t always require documentation of your financial history; it can often be self-reported. Mortgage pre-approval is very similar, but it usually requires documentation and verification of your income, assets, and debts. And it will often require a credit check, which will result in a hard inquiry on your credit report.

Which One Should You Get?

Since the terms “mortgage pre-approval” and “mortgage pre-qualification” are often used interchangeably, it can be hard to know which one you need. It really depends on how your lender defines the service, if you want a credit check or not, and what real estate market you are in. Be sure to ask your lender exactly how he or she defines “pre-approval” or “pre-qualification” (and if it requires a credit check). Then find out from your real estate agent which version has more credibility in your market. That way, when it comes time to make an offer, you’ll have what you need to give sellers confidence that you’ll be approved for a loan.

New Model Home Coming In Spring 2019

Advantage Modular Homes is happy to announce that site work has begun in Vineland, New Jersey. The new 3 bedroom, 2 bath model home is set on track to be finished in Spring 2019. We are super excited to begin construction and cant wait to begin showing these beautiful homes to perspective customers. Building a new home is such an exciting journey.

If you are considering a new home in 2019, give us a call at 856-305-1796 or email us at  info@advantagemodularhomes.com

Be sure to like our facebook page to keep up with the progress of our new model homes

Where To Begin

Before getting started on your new modular home, you will need to know where to begin. At Advantage Modular Homes, we are here to work you every step of the way.  Below are a couple steps to help you get started on the journey of building a new modular home:

  • Getting pre-qualified for a loan
  • Meet with Advantage Modular Homes

Mortgage Pre-Qualification

Getting pre-qualified for a mortgage is an informal process where you are interviewed by a mortgage professional about your assets, income, and expenses. This process gives you a general idea of the price range you can afford. Pre-qualification really doesn’t bring you any closer to securing a mortgage, but it does give you insights you may not have had otherwise.

Meet with Advantage Modular Homes

Getting together with AMH will acquaint you with our company, our process, and will help us better understand your new home wants and needs. We will be able to discuss different building options for your new modular home, find out where you would like to live, and many of the other considerations that are important. Give Advantage Modular Homes a call today at 856-305-1796 to take the first steps towards building your new modular home in New Jersey.

Welcome to Advantage Modular Homes

Advantage Modular Homes is a full service turnkey NJ Modular Home Builder In Vineland NJ. We have 30 plus years of home building experience and love to help our customers build the home of their dreams. Our goal is to assist our customers through out every phase of the home building process. We offer many home styles and floor plans, all of which can be fully customized to meet all of your needs and wants. We are always available to answer any questions you may have so feel free to give us a call if you would like more information. Let The Dreams Begin!