Are Modular Homes as Valuable as Stick-Built Homes? 3 Big Reasons Why They Are

Are Modular Homes as Valuable as Stick-Built Homes blog

Your home is much more than the place you hang your hat. It’s a financial investment. In the current housing market, you’re probably wondering what kinds of homes you can build that will both fit your lifestyle and increase in value. 

Many variables determine your home’s resale value, including size, location, and curb appeal. However, one of the most important considerations is the quality of its construction. Well-built high-quality modular homes retain their value well but are modular homes as valuable as stick-built homes?

Many modular homeowners find that their modular home values appreciate significantly over the first few years after they build. To understand why, let’s examine the differences between modular, stick-built, and manufactured homes and why modular homes appreciate over time.

Modular vs. Stick-Built: What's the Difference?

A stick-built house is a home that’s built entirely on location. The builder brings all materials and supplies to the building site and constructs the home from scratch. 

A Modular Home Is Faster To Build

Modular homes are built differently. The majority of the house is built off-site in a factory. The house is still built to high standards and with high-quality materials, but the builder doesn’t need to transport everything to the site. Once the home is made, it is transported in individual “modules” to the lot. The builder then places and secures  snaps these modules together to complete the process.

The difference in construction methods means that modular homes are faster to build and cost less. There’s no risk of weather delays preventing the construction team from getting work done. Furthermore, centralizing the building process reduces wasted supplies and keeps costs down. 

A Modular Home Is Not the Same as a Manufactured Home

If you’re considering a modular home, it’s important to note that they are not the same as manufactured houses. A manufactured house will have a significantly lessdifferent resale value compared to a stick-built home. In the past, modular homes and manufactured homes faced similar stigmas based on the public perception that they were poorly constructed. 

That’s not the case anymore. While manufactured homes still face low resale values, modular home values have risen. The process of constructing modular homes has improved significantly, as have the requirements for these houses. As a result, modular homes are much more likely to see high resale values than manufactured houses.

3 Reasons Modular Homes Are as Valuable as Stick-Built Homes

Today, modular homes are equivalent to stick-built homes regarding resale value. Here’s why these homes can be as or more valuable than stick-built homes when it’s time to sell. 

Modular Homes Are Made of Quality Materials

Since stick-built homes are built on-site by local builders, there’s a risk that the houses may not be up to code. Builders may not be aware of current building code requirements or ignore guidelines since no one visits lots weekly to enforce them. As a result, some stick-built homes can suffer from quality issues such as lower-grade materials, energy inefficiencies, and reduced resale value. 

In contrast, since modular homes are built in a factory, they’re subject to thorough inspections and third-party certifications before ever reaching a your building site lot. These inspections ensure that the house is built to the code standards of the state and municipality where it will be placed. This ensures that modular homes are always made with quality materials and prevents code violations entirely. As a result, modular homes can have even greater resale values than certain stick-built homes.

Modular Houses Use the Same HVAC, Plumbing, Electrical, and Roofing Materials

A modular home isn’t intended to move once it’s been put in place on a lot. That means that modular home builders use all the same materials as a stick-built structure. As modular and stick-built homes are held to identical building codes, both types of construction should last for decades.

Furthermore, the mechanical elements of a modular home must be inspected before the module can be delivered. The inspectors will certify that the house is built with genuine energy-efficient plumbing, HVAC, and electrical systems. They also verify that the homes are built tightly, with quality insulation. A modular house will have all the quality amenities of a traditionally built home without the risk of hidden cost-cutting measures.

Modular and Traditional Construction Receive Identical Insurance

Insurance companies are incredibly thorough when determining risk. Most insurance companies insure traditional and modular homes at precisely the same rates. This demonstrates that most underwriters consider the two construction methods equally valuable.

It also means that your modular home will not increase your insurance rates. Since the materials and methods used are the same, the cost to make any repairs after a disaster is equivalent to that of traditional construction. You’ll be able to repair everything if the worst happens without unexpected expenses.

Benefits of Modular Homes

If stick-built and modular homes are equally valuable, why choose modular? This construction method has several benefits compared to traditional building methods, including:

  • Better quality guarantees: The thorough inspections and certifications involved in modular homes make it more likely that they will be up to code and problem-free.
  • Improved flexibility: A modular house is easy to customize. You only have to work with one contractor, and they’ll handle the personalization for you.
  • Less risk of going over budget: Without the risk of delays or waste, a modular home has much less chance of forcing your project to go over budget, making your wallet happier.
  • More environmentally friendly: Building homes in a factory reduces wasted materials since the builder doesn’t need to transport extra to the site just in case of problems. Furthermore, modular homes are built to high energy efficiency standards and have better insulation than other construction, making them better for the environment in the long run.
  • Shorter construction times: Since modular homes are built inside a factory, they aren’t at the mercy of the weather or travel time. A modular home can be constructed in just weeks, compared to months or more for traditional builds.

Build a Home That Will Appreciate Over Time

Both stick-built and modular homes increase in value over time. Of course, every area is different, and the market is constantly changing. It’s essential to understand the appreciation rates for your specific neighborhood to understand what you should expect from your modular home values. 

If you have more questions about modular homes, contact the experts at Century Home Builders today. We can answer all your questions and help you make an informed decision about how to build your new house.