The Pros And Cons Of Site-Built Homes: Everything You Need To Know

If you’re looking for a new place to live, you’ve likely heard about the debate over site-built homes versus manufactured homes. Both of these options have their benefits and drawbacks, leading into important decision-making discussions among potential home buyers.

But if you’re trying to make the best decision for your lifestyle, it’s important to know what site-built homes are in order to see if it’s the best option for you.

What Is A Site-Built Home?

Site-built homes, sometimes referred to as stick-built homes, are constructed piece by piece right at the home's final location.

These homes are conceptualized, designed and crafted right on the property after the foundation is laid giving the homeowner maximum control over the process – and a personalized living space.

The time it takes to build can vary, averaging around 6 months to 2 years to complete. Determining an exact timeline for your finished home can be difficult, since obtaining some construction materials and unfavorable weather conditions could cause delays.

Pros And Cons Of Site-Built Homes

Though no one type of house is necessarily better than the other, deciding between a site-built home or a manufactured home will likely come down to personal preferences, priorities and budget. Let's take a look at the advantages and disadvantages.

Pros Of Site-Built Homes

The biggest draw for many home buyers is the freedom to create a one-of-a-kind living space. From the layout to the finishing touches, every aspect can be tailored to your exact specifications, reflecting your personal style and functional needs.

A site-built home is typically accompanied by higher initial costs but may retain and gain value more consistently over time. However, this depends on the quality of building materials used in constructing the house. That said, you'll have more control over this variable with a site-built house than you will with a manufactured one.

Cons Of Site-Built Homes

As mentioned earlier, one of the biggest drawbacks to choosing a site-built home is the time required for construction. It can take several months to years to complete one of these homes. If you're on a tight schedule, that can be a significant drawback.

The cost of a site-built home is often higher than that of a manufactured or modular home, too. That's due to the custom nature of the build as well as other fees. If the home building timeline gets dragged out, you may find yourself paying more in the long run.

The weather can also increase your costs if it’s unfavorable, too. A blizzard or torrential rain could lead to delays in construction at best. At worst, they could damage elements of your home that will require additional time and money to fix.

Site-Built Homes Vs. Modular Or Manufactured Homes: Key Differences

To understand site-built homes, it's helpful to compare them to prefab homes: modular homes and manufactured homes. Let’s look at these alternatives to see how they differ from site-built homes.

Construction Process

Manufactured homes and modular homes are both constructed off-site in a factory. Typically, manufactured homes are transported in one or more sections then placed on top of a permanent foundation.

Again, site-built homes are built on-site and tend to offer a bit more customization in their floor plans. That said, many modular companies now offer a comparable level of personalization in their builds as well.

Cost And Appreciation

Although site-built homes often carry a lower price point and offer a quicker construction timeline, the materials used can vary widely. This means that the depreciation of those materials can vary, too. While many modular homes are considered to be equal or better quality than site-built homes, the quality will vary between builders.

Manufactured homes such as single-wides, double-wides and mobile homes tend to cost less than modular homes. This is partially because these homes aren’t constructed on permanent foundations and are made to be moved to different locations.

Since manufactured homes aren’t permanently connected to the land, they have no land to appreciate with. This means that they won’t appreciate at the same rate as site-built or even modular homes, making them more difficult to finance or sell.

Building Codes

Site-built homes, modular homes and manufactured homes all must comply with strict building codes. For manufactured homes, the U.S. Department of Housing and Urban Development (HUD) Code is the letter of the law. For modular and site-built homes, builders must typically comply with International Residential Code (IRC) and National Electrical Code (NEC) standards as well as any local regulations.

Average Cost Of A Site-Built Home

The average cost to build a house is roughly $329,000, or around $150 per square foot. This cost doesn’t include the cost of the land. Because lot sizes vary so widely, there's a huge variance in price.

A manufactured home costs an average of $83,000, but that also doesn’t include the cost of the land.

How To Finance A Site-Built Home

Financing a site-built home tends to be relatively straightforward. There are a few options you can consider:

• Conventional mortgages: A conventional mortgage is a loan from a bank or financial institution that helps you purchase a home. It’s a substantial commitment, typically spanning decades, but it opens the doors to homeownership without the need for a lump sum of cash.
• Construction loans: For those building their home from the ground up, construction loans are a specialized financial product that caters to the unique payment structure required by a building schedule. They usually convert to a standard mortgage once the construction process is complete.
• Home equity line of credit (HELOC): If you’re already a homeowner, a HELOC allows you to borrow against the equity you’ve built up in your existing home. This can be a valuable way to fund a site-built home project.

FAQs On Site-Built Homes

Learn more about site-build homes with these commonly asked questions.

What is the difference between a modular and a site-built home?

For site-built homes, all construction is completed on-site, whereas modular homes consist of off-site systems that are assembled on-site. Modular homes are faster to build and may offer cost savings, but this can sometimes come at the expense of design flexibility and customization.

What does the term site-built home mean?

A site-built home refers to one that is constructed entirely on the site where it will stand, as opposed to being transported in sections from a factory, like modular or manufactured homes.

Is a barndominium considered a site-built home?

A barndominium is a type of home that resembles a barn on the outside but is designed for residential living inside. When a barndominium is constructed from the ground up on its permanent location, it’s considered a site-built home.

What is a non-site-built home?

A non-site-built home is simply a home that is not constructed on its permanent site. This includes various types of prefabricated homes, such as mobile homes, manufactured homes and modular homes.

The Bottom Line: Site-Built Homes Offer Many Benefits

Deciding on the type of home that best suits your needs is a significant step toward realizing your ultimate vision of homeownership. Site-built homes offer a time-tested approach balancing price, quality and customization, but there are variables that could impact the final cost of the build. By understanding their unique benefits and potential disadvantages, you can make an informed choice that aligns with your goals.

Interested in learning more about your home buying options? Start the mortgage application process today with Rocket Mortgage^®.