Bring to an end the Moving Target: Modular Homes and the True Cost of Construction

I love watching those half hour reality shows where an amateur house flipper purchases a house and expects to flip it in a week. Practically 99% of the time, their budget and timeline shift. In part it's because of their inexperience, but partly that's the nature of home construction. There is the projected cost and the true cost. The anticipated cost is derived in an average-case scenario and the true cost is frequently much higher because of delays and interest rates.
Building a home from scratch onsite is an exercise in costing a moving target! If the home builder takes out a construction loan, the interest is ticking by with every day… whether the schedule is on time or not. (And the schedule is rarely on schedule!). Delays cost money in interest, but they also cost money in wasted people-hours (for instance, if you employ a team of people but they can't do the job because of the conditions, you likely have to pay them anyhow).
Modular homes decrease the risks related with the moving target of cost. When someone purchases a modular home, they select a floorplan with a price. That price is carefully calculated and agreed to, with no surprises.
Subsequently, the home is built in a controlled environment where rainy weather doesn't holdup construction.
Then, the home is delivered and erected in just a couple of days, which eliminates the costs connected with renting equipment (and having it sit unused during downtime).
Because of these reasons, and added reasons too (which you can read about on my blog and throughout the site), modular homes are a good deal more
effective to buy than stick-built homes.

Article Source: http://www.matrixsearches.com/

Michael Zenga, the Modular Building Specialist, founded ZN Custom Building www.zncustombuilding.com, in 2002 which specializes in building modular homes in the Boston, MA area. He holds a Bachelor's Degree in Business Administration from Boston University and Master's Degrees from Boston University, Harvard University, and Bentley College.

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