Hi Ken,
We see you live in 90046, where we live and work. We have looked into pre-fab extensively and the biggest issue in 90046 is finding a suitable lot. Most buildable lots have homes on them, and the ones that do not have existing homes are almost always very hard to bring in pre-fab. In the hills you often find that the companies that do pre-fab cannot bring in the large trucks and cranes you need to bring in pre-fab units. Also power lines are a big issue- if a crane cannot safely bring in pre-fab units it can be very hard to do even on a buildable lot. In the flats almost every lot has a home on it. So ultimately you end up possibly having to find a lot that has an inexpensive or tear-down home on it, buying it, tearing it down, and building a new home on the lot. This can often wipe out the savings you may find building a pre-fab home. It's not impossible to do but you really need to find the right lot. Hope that helps.

Ken:

The first substantial difference in building versus buying an existing dwelling is the additional time and cost of planning, design, and permits costs. You are also likely to face more scrutiny from neighbors and the local government building/zoning department if you build new versus a remodel or addition. Many of my contractor friends tell me that remodeling and adding to an existing house with good bones is a great alternative to building new. Another benefit to a remodel is you will have a better selection of fixer properties to choose from versus finding developable raw land.

Second, the cost per square foot to build a home varies based on several factors. One, building materials are available in varying grades and prices. Two, the type of home you build is a major factor. A two story home will have a smaller footing, thus it will cost less per square foot. The cost per square foot can range between $150 to over $200 or more to build new.

If you wish to speak with a contractor and get more specific answers, send me an e-mail and I will gladly forward it to some contractors for more detailed answers. Jeero@GlencrestTeam.com.