Kit Home
Definition and meaning of Kit Home in real estate.
Kit home is a prefabricated house sold as a package containing pre-cut lumber and all necessary building materials, which are delivered to a building site for assembly.
In more detail
Popularized in the early twentieth century, kit homes offer a standardized, affordable alternative to traditional custom construction. The manufacturer manufactures and cuts the pieces in a factory, labeling each part to simplify on-site construction. Modern kit homes range from simple cabins to large multi-story residences, and they can incorporate energy-efficient designs.
Buyers must typically purchase their own land, prepare the foundation, and handle utility hookups, which are not included in the standard kit package.
Key facts
| Category | Property Types & Construction |
|---|---|
| Also known as | Mail-order home or catalog home |
| Watch out for | Land purchase, permits, utility connections, and foundations are sold separately |
| Key benefit | Lower material waste and simplified on-site assembly |
A land owner buys a cabin kit home from a manufacturer, receives a delivery of pre-cut materials and instructions on a flatbed truck, and hires a local contractor to assemble the cabin on a pre-poured foundation.
Frequently asked questions
Is a kit home the same as a manufactured home?
No, manufactured homes are built completely in a factory and transported on a chassis. Kit homes are delivered as individual pre-cut parts and assembled on-site on a permanent foundation.
Can I get a mortgage for a kit home?
Yes, but it is more difficult than a standard mortgage. Buyers typically need a construction loan first, which converts to a permanent mortgage once the home is assembled and inspected.