Creating a budget for a new house build is a hard task as it is especially during early stages where much is clear, nevertheless if your budget is 100k (USD) or less. However, there are many options to choose from these days such as the prefab house option.
Is building a house for 100k USD or less possible? The short answer is yes! Especially if building a prefab house. But understanding what’s included inside this 100k budget might change the answer and of course the price. With that said there are many houses that have been built for far less than 100k.
Choosing to build a prefab house could be a viable option for achieving the 100k or less budget. In this post, we are going to talk about some of the issues you might encounter while planning your new home build budget, and which of them you might be able to save. Check out my post if you are still on the fence about whether or not a prefabricated home is cheaper than a stick-built home.
Additionally, I have gathered some options for your convenience feel free to skip and explore them down under (these links are all gathered from my research and I have no relations with any of those companies).
Lastly, a factor that is not mentioned in this post is the financing options for prefab homes which I have written about in a different post, so feel free to venture further and learn more about your options to build a prefab house for less than 100K USD.
Let us start and understand how we achieve our goal – a house to live in for 100k or less.
Land ownership – is it part of the 100k?
The first and by far the most important issue that needs to be addressed is where your house will be built. Do you already own the land, are you still looking for a lot, and what is the size of your plot?
If you are going to include the price of the land into the 100k budget you might not be left with enough to build your house with. As a result, we will not be including the price of the land as part of the 100k budget.
However, if buying the land is part of this budget then either you find a really cheap land or a very small plot with a low price tag. Either way, it needs to be cheap enough so that you are left with a sufficient budget to actually build your house on it.
If the price of the land will be high then you will have fewer house options. Some cheap houses are container homes and A-frame houses which we will discuss later. And if you are into the tiny homes trend check out this step-by-step guide I wrote on building a Tiny A-Frame cabin.
How big is your house going to be
Houses come in different sizes and shapes so every owner can have their needs fulfilled. Prefab house can be a tiny house of around 120sf (11m^2), or a big 2 floors house of 2500sf (230m^2), just decide what your needs are and order accordingly.
After determining the family’s needs, asking for quotes from local prefab home suppliers is the next stage. Prefabs can be built and delivered to your land for less than 100k greatly depending on the size of the house. This post I wrote about prefab home manufacturers can help you determine which supplier is best for your needs.
There are more factors regarding prefab houses costs such as the level of finishing you require and changes you might want to make in the basic spec, however, if your order would be the normal house specs offered by the prefab company you will be able to build a house for 100k or less.
This is, of course, depending on your personal preferences and how much time you are willing to put into the house built as well.
To prove my point I have collected the best backyard prefab home manufacturers on this post so you could see the options for a small yet smart house on your property on this post
Are utilities close by the house or non-existent?
As most prefab houses come fully equipped with plumbing and electricity systems all that will be left to do once the house arrives at your property is connecting it to utilities – water, septic (sewage), and electricity.
In some cases, it will be close by and easy to connect, yet a professional will have to do the connection in most cases which must be accounted for on your budget.
In other cases, mostly in rural areas, some or even all utilities will not exist which will force you as the owner to connect electricity, find water, and install septic tanks.
All those will have to be taken into consideration and accounted for while planning your budget. Sure those are not the highest expenses, but are surely noticeable, for example, a septic tank will cost anywhere between 2500$ to 12,000$ depending on size, brand, and if you have the means to do it yourself of using an expert for installation.
Lastly, if you are considering living off-grid installation of solar panels, generators, batteries, septic tank, and some water system, will be crucial for life and will have their costs.
Overall, utilities are an important part of modern life and as such must be dealt with from the get-go.
How much work will you be doing
DIY house build is a growing trend where many people for the sake of saving money and enjoying the process build their house with some to non-help from start to finish.
However, many of those adventures can either become a very long process or cost more than expected. Both are a result of a poor planning phase and mistakes done during building. there are plenty of videos on Youtube that show long building processes which sometimes take years.
But make no mistake this is a very viable way of saving money on a house build if done properly.
On the other hand, many prefab houses come as complete parts only to be simply attached to each other on site. A great example is modular homes that are produced in a factory and shipped as prepared rooms or sections that stack on one another on site.
Some other type of prefab house is the kit house, which is a different type of prefabrication. The factory will precut all of the house materials according to the customer’s order and will ship them marked and ready for installation on site alongside a very detailed assembly plan.
In the case of buying a kit house, the question of how much of the work will you be doing yourself is highly relevant.
If you plan on doing most of the work on your own then you will be saving money, especially if professional workers are expensive in your area.
However, if ordering a modular house the supplier will probably include installation on-site inside the agreed-upon price.
In both cases, you will be required to prepare the land for the house build, and check with the suppliers if they can help with the process as some suppliers might.
If you do wish to get a realistic idea for the cost of land preparation I have written a separate post about it which you might find interesting – Prepare Land For A Modular Home – How Much Will It Cost?
Laws in your region or country
In many places around the world building codes and rules are being forced upon house builders. Those laws differ from one country to another and sometimes from one city to its neighbors.
The best option is to consult with your local prefab house supplier regarding local laws and regulations.
In addition, some areas will require an approved general contractor (which you could become in some cases), or professional electrician that will be signed for the house connection.
Either way you choose, you must stand in line with local laws. When enquiring with prefab companies ask whether or not they have worked in your area and are certain that their house will be approved by local and state authorities.
If done incorrectly it could cost you much more than expected, pay attention, and do your research.
Those 5 factors will determine most of your costs of building a new house, however, there are other small factors that can impact the build and other small costs that according to your global geographic location will change. For those of you that wonder where could you build and prefab house I have written this post – Can You Build A Prefab Home Anywhere?
Make sure to see what others are doing around you and if needed get a professional to help with planning and achieving the 100k budget.
But as I’m sure you are here to learn what house could be built with 100K$ or less, let’s explore some prefab home types you might find interesting:
Kit house
This could be the cheapest prefab option available, as parts are only precut in the factory the assembly on-site is more or less similar to the traditional stick-built house.
The main difference is that it is a much easier DIY house than buying raw materials at your local suppliers and fitting them on site.
Additionally, most of the kit houses companies are suggesting architect service and some might even add ground preparation on-site and even constructing the house. Do take into consideration that on-site work will have additional costs as the planning of the house is part of the house payment.
This is a great option for those who got time to build a simple house and really wish to do it cheaper than 100k$.
There are many options for kit houses with many different materials and approaches, additionally, if you can’t afford the time to build the house on your own hiring local builders will still be cheaper as the materials arrive ready for assembly which saves a lot of time.
Here are some options for kit house suppliers:
The Back Country Hut Company – https://www.thebackcountryhutcompany.com/
Zip Kit Homes – https://www.zipkithomes.com/
Avrame Kit Homes – https://avrame.com/
Linwood Homes Ltd. – http://www.linwoodhomes.com/
Modular house
This type of prefab house will come in most cases like lego parts that simply assembled on site after being produced in a factory.
Here there are more options available for different house types, however, with a 100k budget, you might be limited to more simple and basic modules.
Just like kit houses, those companies will support the planning phase while some will offer on-site services as well. Again, on-site services will have additional costs.
Here are some options for Modular house suppliers:
KIT Custom Homebuilders – https://www.kitwest.com/
Silvercrest – http://www.silvercrest.com/
CHAMPION HOME BUILDERS – https://www.championhomes.com/
SIA VITHAUS – https://vithaus.eu/
Modscape – https://www.modscape.com.au/
There are modular homes suppliers all over the globe no matter where you wish to build your house you will be able to find a suitable supplier for your needs.
Manufactured home
Though it sounds like a general name for prefabricated homes it is actually a type of house that is also considered a prefab house.
Those houses will come on top of wheels, will be manufactured in a factory, and set on top of permanent sub-structure so it can’t be moved anymore.
Though this type of prefab house is usually recognized as the lowest quality prefab houses type it is possible to find manufacturers that build high-quality houses all across the world.
Here are some options for you to explore and learn more about manufactured homes:
Clayton Homes – https://www.claytonhomes.com/
Fleetwood Homes – https://www.fleetwoodhomes.com/
Adria Mobile Home – https://www.adria-mobilehome.com/
All those prefab homes are available at 100k price range, some might be larger while others incorporate higher quality, yet I’m sure there is an option available for everyone.
Make sure to calculate all the factors above before making any decision regarding your new home. As mentioned there are some issues that must be cleared before ordering a prefab house just as they will for a stick build home. This will be answered in another post in the near future so keep checking our latest posts every now and then.
Either way, building a house for 100K$ or less is achievable when making the right decisions at the appropriate time, this way you won’t have any surprises during the build.
With great respect, and best wishes
My alternative house