Modular homes rarely depreciate over time because they are permanently established like site-built homes. A modular home can be a good investment. They often offer energy efficiency, which is a selling point. However, the value of a modular home will depend on the real estate market in your area, just as you would with any other type of home. Like traditionally built properties, prefab homes increase in value the longer you stay as a homeowner.
Understanding the local real estate market over the past 5 to 10 years will tell you if prices are rising and how much potential there is for good returns from a sale. The construction of a prefab house is based on the use of many of the same materials associated with a traditional house. Prefab houses are based on the idea of manufacturing the key structural elements before building them in the factory and transporting them to the final location, or delivering the separate pieces to the site before putting them together. The mass production of prefabricated materials that are built in a factory allows the manufacturer to have tighter control in terms of cost management.
First, prefab homes must be built in a way that meets the strict standards of building codes, supported by regular on-site inspections at every stage. Prefabricated (or prefabricated to give it the formal name) construction is essentially the construction of a house (or building) with materials that have been manufactured in panels or sections. There is a perception that prefab homes are not as safe as traditional properties due to the alternative construction methods they involve.
