The common question of asking how much a home cost per square foot is not an informative value and is often misunderstood. An example is asking how much floor covering cost per square foot. You may receive a price quote for inexpensive linoleum tiles, however your expectations are for ceramic tiles. This is one example of the of variables that will affect the price of your project. Likely you will receive a quote for the cheapest flooring material just to get the sale. The same misconceptions are true in home construction. Floor plan costs vary greatly due to the differences that are unique to each home and the result of the quality of construction. A lower cost per square foot home is due to a lower quality construction and material used in the home and the reason why the cost per square footage cost can be a very misleading number.
Perform a risk assessment before you act as your own general contractor. An assessment will help you understand the risks involved if you choose to act as your own general contractor. Compare the savings versus the risks involved if something goes wrong. Understand that a subcontractor is only responsible for their specific part, not the entire project.
Be an educated buyer and confirm everything that is included in the price. If you are unsure, do not be afraid to ask what is included in the price. If the price only includes the house, then you must price out the home site preparation work. The entire home cost should also include the excavation, septic system, foundation, electrical, mechanical, permits, well, and other necessary prerequisites before you take delivery of your home. Obtain a complete detailed list of the items included from your home retailer. Review everything on the list so that your home will be built to the quality level you expect and includes all the necessary items to complete your project.
Financing for a conventional or modular home is typically accomplished through a construction loan. Many lenders offer programs that convert a construction loan to a mortgage at the end of the construction process without additional fees.
Understand the difference between a modular home and a manufactured home (after 1976) or mobile home (pre 1976) build specifications. The differences can affect the price of the home and its resale value, as well as the finance costs.