What should I check before buying a modular home builder?

A modular builder is part manufacturer and part home builder. The house is made indoors on a schedule, then moved and set on a foundation someone else prepared. You are buying a plant, a production system and a set of relationships. This page is about the builder, not a dealer who resells units. For that, see buying a modular or tiny home dealership.

The plant and its tooling

Walk the factory with someone who has run a production line. Look at the jigs, tables, lifting gear and storage. Ask what is owned, what is leased and what has been neglected. Ask how much of the production depends on a few skilled people, and whether the building itself is owned by the seller or rented from them. A fresh coat of paint tells you little.

Order book against capacity

Compare signed orders to what the plant can produce in the months ahead. Idle capacity and a full order book call for different questions. Ask how deposits are held, how long units wait for delivery, and what happens when a customer cancels. Request the oldest unfinished order and ask why it is still open.

Who buys and who moves the product

Many modular builders sell through a few dealers or developers. Ask how much of the work comes from the largest of them, and whether those relationships are written down or rest on the owner’s handshake. Also ask who transports the modules and who sets them on site. A trucker or crane company that quits can stall every delivery.

Defects, designs and approvals

Ask to see the callback and defect record, and how complaints were settled. Find out who owns the floor plans and engineering drawings, since a designer or former partner may hold them. Certification and licensing are for the regulator and your lawyer to confirm, not something to assume from the seller’s word.