Prefab homes have been around since the turn of the 19th century. Back then they were called House Kits. Homeowners were sent all the pieces of their home including tools, nails and a book which showed them how to assemble it. During that time period, however, most people possessed a good set of carpentry skills and had no trouble assembling their home. Today almost all prefab homes are put together by a contractor.

Because they are created in a factory, prefab homes tend to be cheaper than traditionally built homes. Factories are able to order materials in bulk whereas higher costs prevent home builders from doing the same with individual homes. Since the materials are cut and made according to a template, no skilled labor is needed in the factory which further drives the cost down. On average, homeowners pay 10-25% less on their prefab homes than people who purchase traditional homes.

But the savings don’t stop there. Almost all prefab homes are energy efficient which means you’ll save money on your utility bills. The bulk of the home is assembled in the factory. Therefore, when they get to the site, the home can be erected quickly and easily which translates into lower construction costs.

Like site built homes, prefab homes don’t have fixed prices which leave plenty of room for negotiation. The majority of your costs will center on acquiring the land for your home. It pays to work with a knowledgeable real estate agent who can help you find the best deal on property. The second major cost will be your mortgage but, again, do your research and compare mortgage rates. Take your loan out with the bank that offers you the best interest rate.

Since their inception, prefab homes have acquired a bad reputation for being low quality homes. Part of this is because there are actually two kinds of prefab homes, manufactured and modular. Manufactured homes are houses that are built on a steel chassis which is then used to transport the entire house to its final destination. These homes are on the lower end of the quality scale.

Modular homes are houses that are built in parts, or modules, at the factory and then assembled on site. These are at the higher end of the quality scale. Whereas manufactured homes come in a limited number of styles modular homes come in thousands of designs including multiple stories. These homes are of such high quality that even wealthy people are purchasing prefab homes second and vacation homes.

Prefab homes make great starter or vacation homes. They are easy to set up, cost less and are of the same quality as a traditional home. If you are in the market for a house, then a prefab home should be on your list of considerations.

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