Hello everyone,
we are looking for advice on what the typical process of building or buying a house from prefabricated house manufacturers should look like.
Our story: About 12 weeks ago, we decided to invest in a home for our family with two children. Our initial online research showed that something might be possible within our budget, specifically with a prefabricated house provider. Our next step was to visit a smaller model home park nearby. There, we met a very friendly and, from our layman’s perspective, seemingly competent salesperson from prefabricated house provider O (we’ll just call them that). He asked about our budget (which we had roughly calculated with our bank beforehand) and ran some numbers. He finally told us that with our price expectations (based on internet research and our own ideas of a house) and planned personal contributions, it might just work. BUT: there was a 3.5% price increase coming this month (January 18) — he showed us the calculation to emphasize how much money we would lose if we didn’t act quickly. He then presented a document for us to sign. It was a letter guaranteeing the current price according to the official price list but giving us the right to withdraw if we did not secure the chosen plot of land (which was still up for public tender) or if financing fell through. Regarding financing, he also said he had an ace up his sleeve and wanted to lock us in with an on-site appointment with an (of course) independent financial broker who would work for us free of charge. We felt rushed — this was supposed to be the first conversation. We thought it was unbelievable — provider O was off our list.
What can I say — other providers had a similar approach, as we found out during other model home visits. At provider F’s model home in Fellbach, we found exactly the house we had imagined in terms of layout. The salesperson, also very business-minded, made a good impression, but our enthusiasm quickly vanished when he urged us to sign the construction contract because of the current price increase (February 2018). To top it off, he wanted to print the offer he had just calculated at the computer and backdate it by 14 days — his reasoning: legally, the customer must have at least 14 days to review the offer and possibly revoke it. Since the price increase deadline was already past, we could not wait the full 14 days but only until the next day. WHAT??? Is that even allowed? Candidate number two also dropped off our list of serious providers.
Our last visit to a model home nearby was with provider B, which was our second appointment there. During the first contact, the salesperson took a lot of time, and we talked for two hours about possible house options based on our wishes. He calculated what we could afford based on our current income situation but did not give us a concrete price. He promised to clarify this and present initial plans by the next appointment. To build what he called a “mutual basic trust” (after all, we could tell stories about what the bank said we could afford), he insisted we speak beforehand with an independent mortgage broker to establish the actual financing framework. Overall, we had high expectations of company B, as the first meeting was pressure-free and online research was almost exclusively positive. A recent test comparing fair prefabricated house manufacturers reinforced our positive impression — this seemed like a fair and honest partner. However, at the end of today’s appointment, this provider also wanted us to secure the current prices and save 30,000 euros (around $33,000) by signing a construction contract. Of course, we would sign an addendum in case we did not find a plot or financing fell through. We have not yet seen an offer or house plans. He said he would prepare those only at the next meeting, which was supposedly urgent. He did not keep the promises from the first visit.
We are now honestly wondering if it is common to sign a construction contract even though
A) I have not secured a plot yet (which can significantly affect the actual costs)
B) I do not have concrete financing plans (we definitely do not want to exclude the option of the L-Bank loan — all financial advisers actually advise against it!)
C) Or even have seen an offer with the provider’s prices and service details???
To us, this just feels like a scam. I myself work in sales, and my clients would tell me off if I used such methods. Signing first and then seeing what services you actually receive from me...
How do we find a reputable provider who enables a “normal” house-building process? Are we possibly approaching this the wrong way? Who has had similar experiences, and how did it turn out?
I want to make it clear that I do not generally object to being informed about possible price increases — in fact, I see it as a sign of competence when a salesperson informs customers of major changes. But the way they pressure us into signing is very off-putting.
How can we get offers to compare without ending up at the “contract table” facing binding attempts every time?
We would be very grateful for advice, experiences, or guidance from other homebuilders.
Best regards
we are looking for advice on what the typical process of building or buying a house from prefabricated house manufacturers should look like.
Our story: About 12 weeks ago, we decided to invest in a home for our family with two children. Our initial online research showed that something might be possible within our budget, specifically with a prefabricated house provider. Our next step was to visit a smaller model home park nearby. There, we met a very friendly and, from our layman’s perspective, seemingly competent salesperson from prefabricated house provider O (we’ll just call them that). He asked about our budget (which we had roughly calculated with our bank beforehand) and ran some numbers. He finally told us that with our price expectations (based on internet research and our own ideas of a house) and planned personal contributions, it might just work. BUT: there was a 3.5% price increase coming this month (January 18) — he showed us the calculation to emphasize how much money we would lose if we didn’t act quickly. He then presented a document for us to sign. It was a letter guaranteeing the current price according to the official price list but giving us the right to withdraw if we did not secure the chosen plot of land (which was still up for public tender) or if financing fell through. Regarding financing, he also said he had an ace up his sleeve and wanted to lock us in with an on-site appointment with an (of course) independent financial broker who would work for us free of charge. We felt rushed — this was supposed to be the first conversation. We thought it was unbelievable — provider O was off our list.
What can I say — other providers had a similar approach, as we found out during other model home visits. At provider F’s model home in Fellbach, we found exactly the house we had imagined in terms of layout. The salesperson, also very business-minded, made a good impression, but our enthusiasm quickly vanished when he urged us to sign the construction contract because of the current price increase (February 2018). To top it off, he wanted to print the offer he had just calculated at the computer and backdate it by 14 days — his reasoning: legally, the customer must have at least 14 days to review the offer and possibly revoke it. Since the price increase deadline was already past, we could not wait the full 14 days but only until the next day. WHAT??? Is that even allowed? Candidate number two also dropped off our list of serious providers.
Our last visit to a model home nearby was with provider B, which was our second appointment there. During the first contact, the salesperson took a lot of time, and we talked for two hours about possible house options based on our wishes. He calculated what we could afford based on our current income situation but did not give us a concrete price. He promised to clarify this and present initial plans by the next appointment. To build what he called a “mutual basic trust” (after all, we could tell stories about what the bank said we could afford), he insisted we speak beforehand with an independent mortgage broker to establish the actual financing framework. Overall, we had high expectations of company B, as the first meeting was pressure-free and online research was almost exclusively positive. A recent test comparing fair prefabricated house manufacturers reinforced our positive impression — this seemed like a fair and honest partner. However, at the end of today’s appointment, this provider also wanted us to secure the current prices and save 30,000 euros (around $33,000) by signing a construction contract. Of course, we would sign an addendum in case we did not find a plot or financing fell through. We have not yet seen an offer or house plans. He said he would prepare those only at the next meeting, which was supposedly urgent. He did not keep the promises from the first visit.
We are now honestly wondering if it is common to sign a construction contract even though
A) I have not secured a plot yet (which can significantly affect the actual costs)
B) I do not have concrete financing plans (we definitely do not want to exclude the option of the L-Bank loan — all financial advisers actually advise against it!)
C) Or even have seen an offer with the provider’s prices and service details???
To us, this just feels like a scam. I myself work in sales, and my clients would tell me off if I used such methods. Signing first and then seeing what services you actually receive from me...
How do we find a reputable provider who enables a “normal” house-building process? Are we possibly approaching this the wrong way? Who has had similar experiences, and how did it turn out?
I want to make it clear that I do not generally object to being informed about possible price increases — in fact, I see it as a sign of competence when a salesperson informs customers of major changes. But the way they pressure us into signing is very off-putting.
How can we get offers to compare without ending up at the “contract table” facing binding attempts every time?
We would be very grateful for advice, experiences, or guidance from other homebuilders.
Best regards
Every year has four quarter-end dates that can be treated as imaginary deadlines to create urgency. From a home seller’s perspective, there is no reason to be more trustworthy than a used car dealer. But from their point of view, any time pressure is beneficial: if you decide on this provider only after the seller has already committed elsewhere, they probably won’t receive a commission. That small paper connected to the big contract you sign is what matters to them.
For you as home builders, on the other hand, it would be unwise to sign the contract for the house without having the necessary land. In the end, they might even require you to secure a plot of land through them, so that your signature isn’t considered fraudulent. Because that would be a contract concluded with the knowledge that it cannot actually be fulfilled (after all, where should the house be placed without land?).
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
For you as home builders, on the other hand, it would be unwise to sign the contract for the house without having the necessary land. In the end, they might even require you to secure a plot of land through them, so that your signature isn’t considered fraudulent. Because that would be a contract concluded with the knowledge that it cannot actually be fulfilled (after all, where should the house be placed without land?).
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
C
Caspar202025 Mar 2018 06:56There are some who are actually increasing prices in Q1. Even a 3.5% rise is not unusual these days. Business is going well.
And the salespeople are well trained, of course.
Nevertheless, you should take all the time you need.
There are rumors that the legal departments of some providers have become quite substantial (essentially to monetize all the cancellations).
This is because there are sometimes huge differences in the wording of the definitions (sometimes along the lines of: you can only get out if even our financial advisor couldn’t somehow arrange financing for you; and it’s only about making it somehow work on paper).
And the salespeople are well trained, of course.
Nevertheless, you should take all the time you need.
There are rumors that the legal departments of some providers have become quite substantial (essentially to monetize all the cancellations).
This is because there are sometimes huge differences in the wording of the definitions (sometimes along the lines of: you can only get out if even our financial advisor couldn’t somehow arrange financing for you; and it’s only about making it somehow work on paper).
We visited two prefabricated house suppliers and a general contractor. No one pressured us.
However, at the show homes we also experienced some aggressive salespeople, especially at A, B, F, H, O.
Try smaller local companies, whether they build with masonry, solid wood, or timber frame.
Inform yourself here about the additional building costs. Salespeople often underestimate these.
I would have the contract and the construction service specification reviewed. Only sign once you have secured the plot.
However, at the show homes we also experienced some aggressive salespeople, especially at A, B, F, H, O.
Try smaller local companies, whether they build with masonry, solid wood, or timber frame.
Inform yourself here about the additional building costs. Salespeople often underestimate these.
I would have the contract and the construction service specification reviewed. Only sign once you have secured the plot.
We have never had these experiences ourselves, but in hindsight, we spent far too long exploring the prefabricated house sector for our current taste.
We are now building with architects and local craftsmen and feel much more comfortable doing so than we ever would have at any of the prefab show villages or fairs.
Visit the show villages and gather impressions. You will quickly notice what you like and what you don’t. You develop a sense of scale and floor plans.
I always found this a lot of fun. You can dream and then, in the evening at home, sketch your “own” house on your plot (or even just an imaginary one) with pen and paper.
It’s also possible to talk to the manufacturers—and even sign contracts. But never under pressure and certainly not without a confirmed plot of land!
And as has already been mentioned: many people spend much longer considering a car purchase than you might expect, yet building a home is an investment for life!
Take your time!
We are now building with architects and local craftsmen and feel much more comfortable doing so than we ever would have at any of the prefab show villages or fairs.
Visit the show villages and gather impressions. You will quickly notice what you like and what you don’t. You develop a sense of scale and floor plans.
I always found this a lot of fun. You can dream and then, in the evening at home, sketch your “own” house on your plot (or even just an imaginary one) with pen and paper.
It’s also possible to talk to the manufacturers—and even sign contracts. But never under pressure and certainly not without a confirmed plot of land!
And as has already been mentioned: many people spend much longer considering a car purchase than you might expect, yet building a home is an investment for life!
Take your time!
G
Ghostwriter25 Mar 2018 07:53It was the same for us. In the end, we went with the local general contractor, and unlike the cheapest prefab house supplier, the price also included a ventilation system and a garage.
Since all that overhead is eliminated (show home, marketing department, numerous salespeople, selection showroom), the small local companies are usually more affordable!
Since all that overhead is eliminated (show home, marketing department, numerous salespeople, selection showroom), the small local companies are usually more affordable!
Prices have been rising for years, and how you handle this is entirely up to you. Keep in mind that you will likely be paying for it for the rest of your working life.
And the advice about hiring an architect won’t help you much, because it’s not the architect who sets the prices, but the construction companies, which adjust to market demand. It’s no coincidence that building projects often end up more expensive than the architect’s estimates. Recently, there was talk of a 20% increase in costs over the past two years.
What you should do is document your requirements in writing and include them in the contract.
And the advice about hiring an architect won’t help you much, because it’s not the architect who sets the prices, but the construction companies, which adjust to market demand. It’s no coincidence that building projects often end up more expensive than the architect’s estimates. Recently, there was talk of a 20% increase in costs over the past two years.
What you should do is document your requirements in writing and include them in the contract.
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