Do Modular Homes Depreciate?

Modular homes are an amazing alternative to traditional brick-and-mortar homes which are built on-site. They can offer a homeowner several benefits over a traditional home, however, one of the most important questions to ask is – do modular homes lose their value?

What is a modular home?

A modular home is a house that is pre-built off-site in a factory setting and is then transported to the designated location. Once there, it is then assembled and finished on-site. Also referred to as a prefabricated home, these types of buildings have the benefit of a very fast build time, usually being completed in weeks compared to the month-long schedules of traditional homes. With being constructed in a factory setting, modular homes do not need to be constrained by factors such as harsh weather conditions which will often interrupt the construction of homes built on-site.

How much do they cost?

For those with a smaller budget when building or buying a home, a modular home is significantly cheaper than traditional construction methods. The money you can save all comes down to labour and material costs. Since modular homes are easy to assemble, plus have the advantage of being built by the manufacturer, you won’t have to worry about higher costs. Modular homes are usually 15 to 20 percent cheaper than traditional brick-and-mortar-built homes.

Can you get a mortgage on a modular home?

The short answer is yes – you can in fact get a mortgage on a modular home. While there can be some difficulties and ways of increasing your chances of getting a mortgage, modular homes are treated the same as traditional ‘stick-built’ homes.

Do they decrease in value?

This is when modular homes have the upper hand over traditional stick-built homes. Modular homes do not decrease in value and can even increase in value or hold value with reasonable ease. But what are the factors that make modular homes have this unique ability?

Having the right location

Having the best location possible for your modular home is one of the ways that you can actually increase the value of the property. Your chosen land must be suitable and large enough for you to build a modular home on. This is easier said than done as purchasing land will add to your overall budget and some jurisdictions do not allow modular homes to be built. Fortunately, when you have the right location, this can exponentially increase the value of your modular home as people will look to buy your property based on a nice location as well as the design of the modular home.

Environmentally Friendly

Construction firms are adopting more environmentally friendly materials into their construction as a response to global sustainability. Modular homes have a positive impact on the environment because they utilise less expensive building materials and use more recyclable materials, which means you’ll probably stay within your budget, as well as use less energy.

Maintenance is key

One of the best ways to ensure the value of your modular home doesn’t decrease is by maintaining it. Like any valuable property – including traditionally built homes – maintaining and looking after it properly will increase its value. Maintaining every aspect of your modular home from exterior repairs, electrics, heating, and plumbing will increase the chances of selling it on to potential buyers if that is what you wish to do.

Modular homes are very customisable, and you can have a role in how they are designed, however, it is important to understand that design trends change often, so keep in mind that the interior you have set up for your modular home may not have the same appeal a few years down the line.

New parts and additions

Another way to increase the value of your modular home is to make additions such as decking, garages, patios, and garden areas. While these options are another investment, most people will make an 85% return on costs and investments as once again it will be appealing for new buyers looking to move into a modular home.

Find your modular home with ModCon Cabins

Here at ModCon Cabins, we can manufacture bespoke cabins and containers to suit your design and industry needs. We will provide you with everything you need from site facilities for construction companies, to additional spaces and classrooms for schools, and other businesses looking to sell complete modular homes.

Get in touch with us now for any inquiries by calling us on 0333 404 8822.

 

 

FIND A BUILDING...

Modular Buildings

We make modular buildings, including bespoke, flatpack and eco options for a variety of sectors. Visit our modular buildings page to find out more.

Portable Cabins

Whether you’re looking for cabins that provide an additional layer of security or want to prioritise environmental goals – or both – we make a range of different portable building types to meet your each and every need.

Used and Refurbished

Our used and refurbished cabins and modular buildings can be used for literally anything. As part of our service, we ensure that they are fit for purpose, whether you need them for standard storage or specialist use.