ᐅ How can you determine if the cost of building a house is too high?
Created on: 21 Jan 2013 13:02
S
SkeeveHello everyone,
we are looking into building a new house for the first time. Currently, we have a supplier who only sells the land and house together. The house can be customized, and the price of the land is known.
Are these house prices negotiable, or do you just have to rely on the seller? The seller says we can discuss about 3,000 euros, but the house with the land costs over 300,000 euros.
We have talked about prices for ceramics and fittings, the price per square meter of tiles and flooring, as well as the volume of the building. How can I tell if the supplier is trying to overcharge me?
Sorry if these questions sound very naive, but we really have no idea.
Thank you
Stefan
we are looking into building a new house for the first time. Currently, we have a supplier who only sells the land and house together. The house can be customized, and the price of the land is known.
Are these house prices negotiable, or do you just have to rely on the seller? The seller says we can discuss about 3,000 euros, but the house with the land costs over 300,000 euros.
We have talked about prices for ceramics and fittings, the price per square meter of tiles and flooring, as well as the volume of the building. How can I tell if the supplier is trying to overcharge me?
Sorry if these questions sound very naive, but we really have no idea.
Thank you
Stefan
B
Bauexperte21 Jan 2013 14:43Hello Stefan,
No and no :-) You should have a fair amount of trust; so you know—based on the building specifications, conversations with homeowners in new developments, or research here on the HBF—what you are getting for your money!
This amount doesn’t sound like much investment at first; where is the plot located, and what exactly is planned to be built? If it’s a reputable seller/provider, this statement is quite accurate, as building volumes are calculated rather than providing rough estimates.
Kind regards
Skeeve schrieb:
Are these house prices negotiable, or do you just rely on the seller?
No and no :-) You should have a fair amount of trust; so you know—based on the building specifications, conversations with homeowners in new developments, or research here on the HBF—what you are getting for your money!
Skeeve schrieb:
The seller says we can discuss about 3,000 euros, but the house with land costs over 300,000 euros.
This amount doesn’t sound like much investment at first; where is the plot located, and what exactly is planned to be built? If it’s a reputable seller/provider, this statement is quite accurate, as building volumes are calculated rather than providing rough estimates.
Kind regards
Hello Building Expert,
Thank you for your reply.
Nice hint 😕, but how do I search here on the HBF (house building forum?) for a price of one euro per square meter of enclosed space? Tile prices are certainly not what I am aiming at. The plot cost can also be calculated separately.
300,000 is already a significant investment for me. The plot is located in Krefeld, city center, and a two-story house in Bauhaus style with about 120 m² (1,292 sq ft) is to be built.
Thank you very much for your comments!
Stefan
Thank you for your reply.
No and no :-) A certain level of trust should be there; so you know—based on the building specifications, conversations with homeowners in new development areas, or searches here on the HBF—what you get for your money!
Nice hint 😕, but how do I search here on the HBF (house building forum?) for a price of one euro per square meter of enclosed space? Tile prices are certainly not what I am aiming at. The plot cost can also be calculated separately.
This figure does not sound like a large investment at first; where is the plot located, and what is going to be built? If it is a reputable seller/provider, this statement is quite accurate since building volumes are calculated rather than giving rough estimates.
300,000 is already a significant investment for me. The plot is located in Krefeld, city center, and a two-story house in Bauhaus style with about 120 m² (1,292 sq ft) is to be built.
Thank you very much for your comments!
Stefan
B
Bauexperte21 Jan 2013 15:31Hello Stefan,
Kind regards
Skeeve schrieb:Via the help section :-)
Nice tip 😕, but how do I search here on the HBF (House Construction Forum?)
Skeeve schrieb:For example, by reading through my posts :-)
looking for a price of one Euro per square meter of enclosed space? The tile prices are certainly not what I’m aiming at. The land can also be calculated separately.
Skeeve schrieb:I believe you, 300,000 EUR is a lot of money for most builders. However, NRW, especially the Rhineland, is my area of expertise, and Krefeld, plus city center location and Bauhaus style – that usually doesn’t work for 300,000 EUR; unless we’re talking about something “more” than a closed shell. There is a major catch somewhere, and in my opinion, it won’t be found in the tile or sanitary fixture prices!
300,000 is already a big investment for me. The plot is located in Krefeld, city center, and the plan is to build a two-story house in Bauhaus style with about 120 m² (1,292 sq ft).
Kind regards
Hello construction expert,
I just visited your profile and noticed the note "Review and evaluation of private homeowners' building documents." Does this mean that, for a fee, you would review and assess the offer I receive from my seller? (So could I avoid the effort of becoming knowledgeable myself and just invest money instead?) What would such a service cost?
In the meantime, I am studying your posts to find something that can help me estimate the construction cost.
Thank you
Stefan
I just visited your profile and noticed the note "Review and evaluation of private homeowners' building documents." Does this mean that, for a fee, you would review and assess the offer I receive from my seller? (So could I avoid the effort of becoming knowledgeable myself and just invest money instead?) What would such a service cost?
In the meantime, I am studying your posts to find something that can help me estimate the construction cost.
Thank you
Stefan
What the building expert already said sounds like a warning.
If you subtract the cost of the land, with land prices around 200€/m² (about $215 per square yard), you have roughly €210,000 (around $225,000) left for the house. I think especially with these restrictive providers, caution is advised, because in many cases they can do whatever they want as long as there are no alternative plots available.
What’s interesting for you is exactly what is NOT included in the builder’s services, and that you have to pay property transfer tax on the total sum (house + land).
You can get good tiles yourself, and if needed, you can also hire a tiler independently. I wouldn’t base my decision on things like that.
The claim that you can only negotiate over €3,000 (about $3,200) is a complete joke... you can negotiate much more.
If you subtract the cost of the land, with land prices around 200€/m² (about $215 per square yard), you have roughly €210,000 (around $225,000) left for the house. I think especially with these restrictive providers, caution is advised, because in many cases they can do whatever they want as long as there are no alternative plots available.
What’s interesting for you is exactly what is NOT included in the builder’s services, and that you have to pay property transfer tax on the total sum (house + land).
You can get good tiles yourself, and if needed, you can also hire a tiler independently. I wouldn’t base my decision on things like that.
The claim that you can only negotiate over €3,000 (about $3,200) is a complete joke... you can negotiate much more.
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