Costs for construction vary depending on design, complexity, geographical area and site conditions. Construction costs are TYPICALLY between:

- $250/sf and $275/sf for MKD pre-designed homes, and
- $400/sf and up Custom Projects

(all known costs included after permits are let). This does not include the cost of land. For more complex sites and for sites in high-cost areas such as the greater San Francisco area and Los Angeles, the total construction costs will most likely be higher. Your actual project cost will depend on many factors unique to your MKD Home and your building site.

Our home designs, process, and building methods result in many cost benefits. We use only the most efficient, environmentally friendly materials and systems, resulting in a home that is quite competitive with other equivalent high-end, high-performance, architecturally designed homes.

* Predesign- Having your home pre-designed results in lower architectural + engineering fees.

* Prefabrication- While your site is being prepared, your home is also being built in our mkConstructs factory. Construction time savings = cost savings.

* Resource efficiencies- Materials and systems used result in greater resources efficiencies, dramatically reducing the costs to heat, cool, and maintain the home.

If you are buying a predesigned MKD home, we will provide you with a preliminary project budget before the end of your very first design meeting (only applies to unmodified MKD home designs).

This preliminary pricing package will outline: your estimated total factory costs, transportation and installation costs, and professional services fees (architectural + engineering).

This package will not include: site costs (to be provided by your local site contractor) and permitting costs (please consult your local jurisdiction).

Professional Services Fees

Each project is carefully considered. Whether you are building an MKD Pre-designed Home or Custom Home, we work closely with each client to find the best solution for their site.

Before we begin to work with you to design your new MKD home, we require a signed agreement and retainer of $5,000 for Pre-designed Homes, or $10,000 for Custom Home Designs. Professional Services Fees for Steps 3, 4 and 5 will be billed on an hourly basis and will vary based on the amount of interface between MKD, our clients, and the consultants.

Factory Costs

Factory costs for MKD homes vary according to home design, number of bedrooms, square footage, and finishes. Below is a list of costs/sf for our current home designs. MKD Factory costs include: exterior materials, roofing, windows + doors, interior finishes and plumbing fixtures for your bedrooms, bathrooms, living areas, and kitchen as well as high-performance, energy-efficient insulation and mechanical systems.

Glidehouse $140/sf

G.1 (2BR, 2BA) 1347 sf $ 188,580
G.2 (2BR, 2BA) 1347 sf $ 188,580
G.3 (3BR, 2BA) 1571 sf $ 219,940
G.4 (4BR, 3BA) 2112 sf $ 295,680

mkLotus $130/sf

L.11 (the shell) $125,000
L.12 (classic) $175,000
L.13 (upgrade) $225,000

mkSolaire $155/sf

S.1 (3BR, 2BA) 1830 sf $ 283,650

SideBreeze $155/sf

SB.1 (3BR, 2BA) 2380 sf $ 368,900

Sunset Breezehouse $150/sf

B.1 (2BR, 2BA) 1800 sf $ 270,000
B.2 (3BR, 2BA) 1997 sf $ 299,550
B.3 (3BR, 2BA) 2024 sf $ 303,600
B.4 (4BR, 2BA) 3221 sf $ 483,150

Site Costs

While we can offer predictable cost estimates for the modular portions, site costs vary greatly depending on the slope of your site, site conditions and location. In some cases, site work can account for as much as 40% of the overall project budget. During Step 3, we will work with you and your local contractor to discuss and finalize schematic plans, finishes, and site configurations to find a solution that is best for you and your site. Before building an MKD home, we recommend that you consult with your local contractor, as well as your local building department, to determine what site work will be required to build a home on your property. Below are just a few examples of site work that may be needed:

Driveway

Do you need to build a driveway?

Fire truck turnaround

Some rural, high risk areas require this.

Garage / Carport

Although we cannot prefabricate garages, we can design a garage/carport that blends with your home design and context. This will need to be built on-site by your local contractor.

Powerlines

Septic System

Slope

How sloped is your land? If your land is sloped, you will need additional site + foundation work as compared to a flat site.

Trees

Do any trees need to be removed/relocated?

Additional Costs

Appliances- Although we do not provide appliances, we will design your home to accommodate them.

(Optional) Solar system, Geothermal system or Wind Generators- These costs vary per supplier/installer. We will work with you during Step 3 to find the best solution.

Permitting fees- Please consult your local jurisdiction for estimated permitting fees.

Sales Tax- Some states charge Sales Tax on 40% of the Factory Cost (not the total Factory Cost). In California, this ranges from 7.25% (the state tax, with no local add-ons) to 8.75% with local add-ons. In Washington, this varies depending on area. Seattle charges 8.8%.

Transportation and installation- Transportation costs vary depending on the distance between the factory and site location. Below are a few examples from our factory near Seattle, Washington to:

• Northern California - approx. $ 10,000/module
• Portland, Oregon - approx. $ 7,500/module
• Within Washington - approx. $ 2,500/module

The total cost to install your MKD home will vary depending on which design you choose, and the number of modules your home design requires. Installation costs are approximately $3,800/module.

Project Cost Data

In most areas, MKD construction costs are coming in between $200/sf and $275/sf (all known costs included after permits are let), and $275/sf - $400/sf for Custom Projects. This does NOT include the cost of land.

For more complex sites and for sites in high-cost areas such as the greater San Francisco area and Los Angeles, the total construction costs will most likely be higher. Your actual project cost will depend on many factors unique to your MKD Home and your building site.

Cost information for some of our current projects:

G.2: 3-bedroom Glidehouse

3 modules, 1574 sf
San Francisco Bay Area, Sloped Site

B.3: 4-bedroom Sunset Breezehouse (detached)

5 modules, 2591 sf
San Francisco Bay Area, Flat Site

B.3: 3-bedroom Sunset Breezehouse (detached)

5 modules, 3028 sf
Southern California, Moderately Sloped Site

Custom MKD Home

5 modules, 3999 sf (inc. site-built portion + garage)
San Francisco Bay Area, Sloped Site

Financing

Building a new home can be an expensive endeavor, especially when building a high-quality, architecturally designed home! In an effort to make clean, green living accessible to more people, we have chosen Prefab Construction as our primary means to build our well-designed, high-quality green homes. Why? Simply put: it is a better way to build. Not only is it better for the environment, but it offers a more predictable timeframe and cost.

If you are looking to finance your MKD home project, lenders will classify your project as new construction and will therefore offer a "Construction Loan", which differs substantially from a traditional mortgage. Once construction is complete, your loan will be converted to a traditional home loan (mortgage).

Construction Loans are short term and often structured as interest-only lines of credit. They are distributed in disbursements, or "draws," as work on the project is completed, so it is important that you choose a financial institution that can accommodate the draw schedule associated with factory construction. Typically, most factories require approximately 25% of the cost of the modules to start construction, an additional 50% at the halfway point, and the remaining 25% when the modules leave the factory. The specifics for the remaining draw schedule for site-built portions and button-up will be determined as your project moves forward.

Listed below are a few of MKD’s preferred lenders:

Countrywide Home Loans
www.countrywide.com
Andrew Reid
andrew_w_reid@countrywide.com
1-866-205-9156

IndyMac Bank
www.indymacbank.com
Rich Hildebrand
rich.hildebrand@indymacbank.com
1-877-606-3484 x3765

For More Information

When trying to determine whether an MKD modern modular home is feasible for you, we recommend contacting a lender first. They can usually tell you the same day how much you are qualified to borrow for a land and/or construction loan based on your credit record and credit score. Use this figure (and include your cash down payment amount) or the amount you are self-financing with cash, as your total budget maximum. Then build your expense budget using the guidelines in this document. Your total construction costs will most likely be in the range above. Add your soft costs, those that you will incur before construction ever starts to complete your budget.

For your convenience, we have prepared a budget template (in PDF form as well as a Microsoft Excel worksheet) where you can start budgeting your project (we may ask you to submit your budget before proceeding with the MKD Process). Please also note that a major goal of the Introductory Contract (Step 3 of the MKD Process) is to develop a much more refined budget (verifying numbers that you provide in the MKD Budget Builder Worksheet), including estimates from the factory for building, transporting and installing the modules on your site as well as estimates from your local contractor for all site-specific construction. These estimates are obtained after all design work is finished for your home, including foundation, decks and garage schematic plans, as well as a site plan. The Introductory Contract can usually be completed within 8 to 10 weeks for all standard floor plans, and the budget numbers derived from this effort will be based upon much more information specific to your site conditions and house design. However, as with any design and construction process, until the actual bids are received based upon the approved permit documents, all budgets are subject to change. If you make modifications to any standard floor plans, the Introductory Contract (as with all other steps in the process) will take a bit longer. While exposure to cost increases for the site portions of the project are similar to a traditional stick-built process, the factory-built portion of the project has been relatively predictable to date. This reduces the exposure to cost increases on roughly half the project as compared to a traditional stick-built process. A final budget will be prepared after all civil and structural engineering is completed in Step 4 of the MKD Process, based on actual construction bids and before any construction begins.

To start the process of building your MKD modern modular home, contact Marshall Mayer, marketing and sales representative for Michelle Kaufmann Designs, by providing details about your project.