ᐅ Architects or Pre-Fabricated House Cost Estimation and Next Steps

Hello everyone,

We have been looking into building a house for quite some time now. The more we learn, the more overwhelmed we feel. We have a plot of land in NRW under consideration. Naturally, we want to build a house on it.

1) Our first step was to consult an architect. Overall, the appointment was very pleasant, and we felt comfortable. However, the harsh reality hit us with the first cost estimate:
Construction costs (185 sqm (1990 sq ft) at €2,600/sqm (approx. $275/sq ft) for reasonable quality): €480,000
Basement (110 sqm (1,184 sq ft) at €1,700/sqm (approx. $180/sq ft)): €190,000
Double garage: €40,000
Fireplace/stove: €15,000
Kitchen: €40,000
Additional construction costs (e.g., architect, structural engineer, soil survey, MEP planner) (25% of construction costs including garage, etc.): €180,000
Garden (e.g., pathways, paving, some hedges, terrace): €50,000
Connection fees (e.g., electricity, gas, telephone): €12,000
= €1,000,000

These figures are rough estimates only. But €1 million (about $1.05 million) excluding the land already feels quite steep. Are these values realistic?

2) After processing that, we approached a prefabricated house manufacturer and also looked into a traditional builder, Viebrockhaus.
The prefab house company showed strong sales skills in our initial meeting. A rough cost estimate was as follows:
Construction costs (185 sqm (1990 sq ft) reasonable quality): €390,000
Basement (€70,000 + €10,000 for excavation disposal; €600–750/sqm (approx. $65–80/sq ft) without finishing, +€15,000 for basic finishing): €100,000 with very basic finishing
Double garage: €30,000
Fireplace/stove: €10,000
Kitchen: €20,000
Additional costs/miscellaneous (e.g., permits, earthworks): €30,000
Garden (e.g., pathways, paving, very basic): €15,000
Connection fees (e.g., electricity, gas, telephone): not specified, so we assume €12,000 again
= €607,000

That sounds more reasonable. Could this be accurate?

The above data is meant as a first orientation. Of course, it’s possible to save money on things like the basement, but this should be comparable.

3) Price-wise, the prefab house clearly looks much better. So we pursued that further. We were advised to get plans and offers from 3–5 prefab house companies to compare. That naturally means multiple sales meetings, plus architectural consultations. Others said it’s better to hire an independent architect first and then get cost estimates from 3–5 prefab house manufacturers. We hadn’t realized that was possible. The architect in point 1) was not enthusiastic about the prefab house idea and it felt like he took it as a personal insult to the architect’s profession.

What do you think is the best way to proceed? Are there any recommendations for prefab or traditional builders in NRW known for good value for money?

Thanks in advance for your help.
Marin

mk_2021 schrieb:

Others have said that it’s better to hire an independent architect first, then get cost estimates from 3 to 5 prefab home builders. We didn’t even realize this was possible. The architect mentioned in point 1) wasn’t enthusiastic about the idea of a prefab home at all, and it felt like we had offended his professional pride as an architect.

What do you think is the best way to proceed? Are there any recommendations for prefab or conventional builders in NRW known for a good price/performance ratio?

And now I come in as a confusing third party and say: a freelance architect is a good idea, but cost estimates are pretty useless. With the architect—whom you should ideally keep involved through construction supervision—you carry out a tender process, in which general contractors are also allowed to participate. (Well) before the tender, you should have decided whether you want to build a masonry (brick or block) or timber house. There are significant differences between these options (aside from the overall quality range, which is similarly broad for both). However, most architects are not equally familiar with both approaches.

NRW is a large region, and the area where a construction company has a reputation typically covers about the size of an administrative district. You can find a forum section called “Experiences with Construction Company XYZ,” where various regions and companies have already been discussed.

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mk_2021 schrieb:

Additional construction costs / Miscellaneous (e.g., permits, earthworks): 30k€

Better estimate around 50k.
In my experience, sellers tend to underestimate additional construction costs, whether knowingly or not.

I estimate that if you have a basement, you will easily spend the 30k just on earthworks alone, if that even covers it.

mk_2021 schrieb:

The numbers are just rough estimates. But 1 million without the land sounds quite high. Are those figures realistic?

Yes, they are. Even if it’s only a rough estimate. You’re also building a large house with a huge basement and surroundings.

mk_2021 schrieb:

Sounds better. Could that really be the case?

Of course it could be. But what additional specifications and/or services to be provided by you still need to be added?

You are comparing two completely different houses. So, apples and oranges.
In the end, both houses have to be built with building materials and craftsmen. Everything costs money – the prefab home builder can neither pay below-market wages nor get materials at completely different prices.

mk_2021 schrieb:

We were advised to get plans and quotes from 3-5 prefab home builders to be able to compare. That obviously means several sales meetings and then meetings with architects.

But only if you receive three absolutely identical offers. That’s unlikely to happen, which makes the comparison almost pointless.

mk_2021 schrieb:

Others have said that it’s better to hire an independent architect first, then get cost estimates from 3-5 prefab home builders. We didn’t even know that was possible.

Of course it is possible. The advantage is that you won’t get a standard house, but one individually tailored to you from the start. This also allows a fair comparison between companies (whether prefab home builders or traditional general contractors).

Otherwise, 11ant has already given good advice.

I'm more inclined to the architect in terms of cost. Nowadays, this probably isn’t enough anymore. Around here, you wouldn’t have been able to get an appointment 1-2 years ago.

Well, I can’t really say which of the two is closer to reality... pricing is a huge mess. Although I suspect that the general contractor’s estimate at the second meeting will sound completely different... that’s a common tactic.

The only advice I can give you is to distance yourself as quickly as possible from this architect, especially before signing any contracts, since they don’t seem open to your questions, wishes, or concerns...

Gerddieter