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

Created on: 9 Jul 2021 23:19
M
mk_2021
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
H
hampshire
13 Jul 2021 21:28
The architect already has a tough job 😉 . If he underestimates costs at the start and the price goes up during the tender, everyone blames him. If he gives a realistic estimate based on the client’s identified needs, he’s seen as too expensive. A general contractor (GC) or prefab house supplier provides a price and—unlike the client—knows what is missing in the description, often quoting significantly lower.

The architect’s estimate offers the possibility to plan and stick to the budget—you can always build smaller, which reduces costs. I see the estimate from the prefab house supplier/GC more as a "bait offer."
driver55 schrieb:

If an architect budgets €40,000 (about $43,000) for a kitchen… I would look for someone else as soon as possible.

It always depends on how the consultation went and which wishes the clients explicitly stated or which quality expectations they implicitly conveyed. The €40,000 (about $43,000) is just a placeholder—just like the €30,000 (about $32,000) from the GC/prefab house supplier. I wouldn’t weigh such differences heavily.

The main reason we chose the architect: he truly understood and took an interest in what mattered to us. We also had an appointment with an architect from a prefab house manufacturer on our site. We wanted to integrate the house into the slope; he insisted it had to stand out with a huge glass facade and claimed we were “wrong” to think otherwise. I can only recommend keeping this aspect in mind: Does my counterpart genuinely care about our wishes and about us?
K
k-man2021
13 Jul 2021 22:08
hampshire schrieb:

I can only recommend keeping this aspect in mind as well: Is the person really interested in our wishes and in us?

This is one of THE key points... if the architect is good, they have an idea of what your wishes and needs will be in 10 or 20 years, or they can discuss these topics with you. After all, you should still feel comfortable in your house then. I no longer try to save money on the architect (which doesn’t mean that more expensive automatically means better).
11ant4 Jan 2022 00:24
mk_2021 schrieb:

We are now just looking for THE right architect. Recommendations are welcome.

Now that you mentioned your found plot in another thread: how far along is your search?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
M
mk_2021
4 Jan 2022 12:32
11ant schrieb:

Now that you mentioned your found plot in another thread: how is the search progressing?

Good question. We took the advice here to heart and visited another architect. We felt much more comfortable with him, and he was much more responsive to our needs. After the initial discussions, he also created a rough sketch and guided us through his ideas in detail. Overall, it became a very personalized concept, exactly as you would expect from a custom architect-designed house. Interestingly, the preliminary cost estimate showed significant differences in the categories of the basement and additional construction costs compared to before.

We have also obtained offers from prefabricated or solid house builders, but so far without a detailed selection of materials and finishes. Otherwise, we have not yet contacted general contractors. Unlike with the architect, we requested a relatively traditional one- or one-and-a-half-story house with a pitched roof and basement, based on a floor plan we developed ourselves. Roughly calculated, these options come to about 65–70% of the cost of the architect-designed house. Although comparing specifications is difficult, giving up custom architectural design would significantly reduce costs.

The next step is to talk with the architect again to consider whether working with him on a “standard design” could also lower the costs accordingly, or if he would be open to that at all.
11ant4 Jan 2022 13:25
mk_2021 schrieb:

Overall, it turned out to be quite a unique project, as one might expect from an architect-designed house. [...] Unlike the architect, however, we requested a fairly traditional one-story or one-and-a-half-story house with a pitched roof and a basement, using a self-developed floor plan. In the end, the costs settled at about 65-70% of the architect’s house price.

Then you probably made a mistake on the architect route (for example – the often-used reason – "if you go with an architect, it has to be a stylish designer one-of-a-kind"). Just search for "why is an architect so expensive?" and you’ll also find more suggestions related to my advice.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
M
mk_2021
4 Jan 2022 19:23
11ant schrieb:

Then you probably made a mistake on the architect route (for example – a classic one – "if you go with an architect, it has to be a stylish designer one-of-a-kind"). ...

By mistake, do you mean that he proposed something so unique at all? If so, the situation was that we presented him with our desired room layout concept, what we like and what we don’t, and so on. However, we never discussed the house or roof shape, for example. He had offered on his own initiative to start with a proposal. Basically, we liked that approach. We had already cautiously asked whether a specific form would have (cost) advantages. The answer was that it wouldn’t be that significant since, for example, the wall volume wouldn’t differ much. If this really is the case and the cost with the "standard variant" from the architect is similar (high), then I do wonder where the cost difference to the general contractor comes from?
11ant schrieb:

Try googling "why is an architect so expensive?" – you’ll also find other ways to my advice, by the way.

I guess I’m just too dumb. All I find is that it can also be affordable with an architect. Or what do you mean by that? We would love to work with an architect. It’s not about the last dollar. But the mentioned difference is just too much. Or are we missing something here? Where is the mistake in our approach?