Hello,
Due to the lack of suitable "used" houses, I am now slowly starting to cautiously consider the alternative of having a (shell) house built.
However, some of the experiences I have read about prefabricated houses surprised me. Buyers seem to struggle continuously with unresponsive architects, careless tradespeople, unjustified invoices, and required DIY work during the construction process...
In my naive view, I had imagined that I would simply discuss the services with the prefab house company, sign the contract, then receive a call five months later saying “Your house is ready.” I would then inspect (or have it inspected), pay the agreed total amount in one payment, and that would be it.
Even with a custom-designed house from an architect, I expected that I would only have to pay the subcontractors’ invoices occasionaly, and the architect would take care of everything else.
Is what I imagine actually what you get from a general contractor?
Do I just pick one out of the phone book and tell them: Build me XYZ prefab house No. 123 on my plot at SoundsoStreet 42, 12345 here and there?
Or is that completely unrealistic and only achievable by buying an already built house?
(By the way: In which category do the various “planned houses” you find on real estate platforms actually fall?)
Thanks for any insights,
Andreas
Due to the lack of suitable "used" houses, I am now slowly starting to cautiously consider the alternative of having a (shell) house built.
However, some of the experiences I have read about prefabricated houses surprised me. Buyers seem to struggle continuously with unresponsive architects, careless tradespeople, unjustified invoices, and required DIY work during the construction process...
In my naive view, I had imagined that I would simply discuss the services with the prefab house company, sign the contract, then receive a call five months later saying “Your house is ready.” I would then inspect (or have it inspected), pay the agreed total amount in one payment, and that would be it.
Even with a custom-designed house from an architect, I expected that I would only have to pay the subcontractors’ invoices occasionaly, and the architect would take care of everything else.
Is what I imagine actually what you get from a general contractor?
Do I just pick one out of the phone book and tell them: Build me XYZ prefab house No. 123 on my plot at SoundsoStreet 42, 12345 here and there?
Or is that completely unrealistic and only achievable by buying an already built house?
(By the way: In which category do the various “planned houses” you find on real estate platforms actually fall?)
Thanks for any insights,
Andreas
There are many prefabricated house companies out there. You just need to find the right one. Some deliver very good work, but unfortunately, many are just out to make a quick profit. How do you recognize a good company?
Well, first of all, look at customer reviews. Advertising is just empty talk.
Then, you need to carefully compare the construction management descriptions.
Payment should always be arranged so that you pay only after a construction phase is completed. Anything else is pure recklessness.
A 5-month construction period is unrealistic. I know two reputable prefabricated house companies that both have nearly 12 months of waiting time because their order books are full. But if you know this, you can plan accordingly.
And finally, you need a gut feeling to decide if you trust the people or not.
The problem with the internet is that mostly only people with complaints get heard. You have to read carefully whether it was just a minor defect that can happen with any company, no matter how good they are, or if it was serious negligence.
The company we chose is a family business that has been building prefabricated houses for 60 years and currently assembles 17 houses per week.
We are currently in the building permit / planning permission phase, and so far, everything has gone very smoothly. The only issues were with the authorities and a soil survey... but that’s not the company's fault.
However, price transparency, consultation, and architectural planning were all efficient and perfect.
It was important for us to find a company that handles everything from a single source... with a shell house (basic structural shell), this is less critical. The walls come, the roof goes on, and that’s it.
Project houses from large developers are mostly sold on pre-purchased plots, which they then market together with a house. Especially in areas where land is very scarce, this is common. Unfortunately, here you often see companies advertising with slogans like "House construction without equity... IMMEDIATELY" or "Rent-to-own ... buy instead of rent." When you google these companies, you find unpleasant stories about how they treat their customers. People have often paid 80% in advance and have been waiting for 15 months for the shell construction to be completed. This means a double financial burden for buyers due to rent plus loan repayment and interest. That’s why payment after completion is essential.
With these project houses, you can usually still make minor changes to the floor plan or adjust room layouts. But the general framework is already set. Construction usually starts only once a buyer is found.
In my view, good plots are used here as bait to attract house buyers, or these are municipal building projects... then it’s naturally a different situation.
Well, first of all, look at customer reviews. Advertising is just empty talk.
Then, you need to carefully compare the construction management descriptions.
Payment should always be arranged so that you pay only after a construction phase is completed. Anything else is pure recklessness.
A 5-month construction period is unrealistic. I know two reputable prefabricated house companies that both have nearly 12 months of waiting time because their order books are full. But if you know this, you can plan accordingly.
And finally, you need a gut feeling to decide if you trust the people or not.
The problem with the internet is that mostly only people with complaints get heard. You have to read carefully whether it was just a minor defect that can happen with any company, no matter how good they are, or if it was serious negligence.
The company we chose is a family business that has been building prefabricated houses for 60 years and currently assembles 17 houses per week.
We are currently in the building permit / planning permission phase, and so far, everything has gone very smoothly. The only issues were with the authorities and a soil survey... but that’s not the company's fault.
However, price transparency, consultation, and architectural planning were all efficient and perfect.
It was important for us to find a company that handles everything from a single source... with a shell house (basic structural shell), this is less critical. The walls come, the roof goes on, and that’s it.
Project houses from large developers are mostly sold on pre-purchased plots, which they then market together with a house. Especially in areas where land is very scarce, this is common. Unfortunately, here you often see companies advertising with slogans like "House construction without equity... IMMEDIATELY" or "Rent-to-own ... buy instead of rent." When you google these companies, you find unpleasant stories about how they treat their customers. People have often paid 80% in advance and have been waiting for 15 months for the shell construction to be completed. This means a double financial burden for buyers due to rent plus loan repayment and interest. That’s why payment after completion is essential.
With these project houses, you can usually still make minor changes to the floor plan or adjust room layouts. But the general framework is already set. Construction usually starts only once a buyer is found.
In my view, good plots are used here as bait to attract house buyers, or these are municipal building projects... then it’s naturally a different situation.
Hello,
That can’t work like that. Who would pay the full price upfront for a whole house?
That’s not an issue if you give them full freedom. Any architect would be happy about that
Regards
AndyRM schrieb:
In my childhood naivety, I had imagined that I would discuss the services with the prefab house company, sign the contract, get a call five months later saying "Your house is ready," inspect the house (or have it inspected), pay the agreed total amount in one lump sum, and that would be it.
That can’t work like that. Who would pay the full price upfront for a whole house?
AndyRM schrieb:
Even with a custom-designed house from an architect, I would have expected to only have to pay the contractors’ invoices along the way, and for the architect to take care of everything else.
That’s not an issue if you give them full freedom. Any architect would be happy about that
Regards
E.Curb schrieb:
That just can’t work. Who would put the entire house up front as an advance payment? Well… maybe a modular home company that sells dozens of houses per week? If the buyer backs out, they still have a like-new house and land, which they can sell in the medium term without a problem and in the short term with only a small price reduction… so it’s a relatively low risk.
The poor individual homeowner faces very different risks if the company goes bankrupt or just does a poor job—that means losing years or even decades of hard-earned savings with no compensation…
E.Curb schrieb:
That’s not an issue if you give them complete freedom. Any architect would be happy about that Ah, good to know. So it’s doable with a trusted architect…
AndyRM schrieb:
Well... a prefab house company that sells dozens of homes per week, maybe? If the buyer backs out, they still have a like-new house and a plot of land that they can sell in the medium term without much difficulty, and quickly with a small price reduction... so the risk is fairly low.I think you’re oversimplifying that a bit. The prefab company also has to pay the contractors building the house. They don’t just front the costs for a few days. How long do you think it takes to get a prefab house (I don’t like that term) ready to move into? A week? And if the buyer really does back out, do you expect them to just finish the house and quickly sell it elsewhere? It’s not that easy...
AndyRM schrieb:
Ah, good to know. So it’s doable with a trusted architect... Yeah, no problem
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