
Buying a Prefab Home Guide: 5 Hidden Costs & Pros and Cons of Prefab Houses & Modular Homes
Prefab homes are gaining serious traction as a quicker, more affordable alternative to traditional construction. The idea of a factory-built structure with a low base price is highly appealing. But here’s the catch: that low base price is rarely the full story. While the factory-built structure may start at $90,000 or less, the actual final cost to make it livable can easily double once you account for land, permits, site prep, utility hookups, foundation work, and required upgrades. Many buyers don’t realize this until they’re deep into the process. Hence, we made this guide. This guide will help you understand the true cost of prefab homeownership and five common hidden costs to be careful about. Because buying a prefab home shouldn’t feel like a guessing game; it should feel like a smart investment in building prefab. Defining Prefab: Modular Home vs. Manufactured Home Before diving into the costs, it’s vital to understand the different types of prefabricated homes, as their classifications heavily impact financing, codes, and long-term value. What Counts as a Prefab Home? A prefab home is simply a structure built in a factory and transported to the site, but not all prefab homes are the same. Type Built







