ᐅ Stopping or pausing a home construction project? Costs too high
Created on: 23 Nov 2021 12:06
C
Coffee82
Good morning,
My husband and I want to build a house.
We already have the plot of land. We are now facing an unpleasant situation.
We planned the house roughly with an architect, which went very quickly.
No building permit / planning permission has been applied for yet, and no detailed execution plan has been made.
The architect provided a cost estimate that surprised us a lot.
Of course, we had previously asked acquaintances, friends, and family members about the costs of their construction projects.
Obviously, we only considered recent projects.
The architect’s estimate is more than double what we initially expected—around 4500-5000€/sqm (420-465 USD/sqft).
After this, we consulted a few others locally and two from a bit further away. Everyone seems to agree on the construction costs.
I’m not allowed to share the documents here, but there is really nothing unusual. It’s a KW40+ house with 198 sqm (2132 sqft) of living and usable space, plus a double garage attached to the left side of the house. Of course, no basement.
The specifications given to the architect were average and typical. No marble floors, no smart home features. A simple house like my uncle’s, just new.
It looks like the house will cost around 1 million euros. On top of that, of course, there are additional costs such as fees for the architect, landscaping, etc. Together with the land, the total is so high that we neither can finance it nor afford to pay it.
Unfortunately, the architect had to do quite some work before he could estimate the costs.
Now we are worried that if we cancel the project, the architect will want 15,000 to 20,000 euros for the work he has already done.
What would you do in our place?
Best regards,
Coffee82
My husband and I want to build a house.
We already have the plot of land. We are now facing an unpleasant situation.
We planned the house roughly with an architect, which went very quickly.
No building permit / planning permission has been applied for yet, and no detailed execution plan has been made.
The architect provided a cost estimate that surprised us a lot.
Of course, we had previously asked acquaintances, friends, and family members about the costs of their construction projects.
Obviously, we only considered recent projects.
The architect’s estimate is more than double what we initially expected—around 4500-5000€/sqm (420-465 USD/sqft).
After this, we consulted a few others locally and two from a bit further away. Everyone seems to agree on the construction costs.
I’m not allowed to share the documents here, but there is really nothing unusual. It’s a KW40+ house with 198 sqm (2132 sqft) of living and usable space, plus a double garage attached to the left side of the house. Of course, no basement.
The specifications given to the architect were average and typical. No marble floors, no smart home features. A simple house like my uncle’s, just new.
It looks like the house will cost around 1 million euros. On top of that, of course, there are additional costs such as fees for the architect, landscaping, etc. Together with the land, the total is so high that we neither can finance it nor afford to pay it.
Unfortunately, the architect had to do quite some work before he could estimate the costs.
Now we are worried that if we cancel the project, the architect will want 15,000 to 20,000 euros for the work he has already done.
What would you do in our place?
Best regards,
Coffee82
W
WilderSueden23 Nov 2021 15:05Coffee82 schrieb:
We chose KfW40+ because the future is completely uncertain.
Currently, electricity and gas prices have risen sharply, and this won’t stop. That confirms that KfW40+ is the right direction. Building envelopes are now so well insulated that you won’t recover the extra costs if the price difference is significant. Realistic savings from the building envelope might be around €50 per winter, which covers the interest. Much more important is how the occupants use the house. Those who stay inside all winter at a cozy 25°C (77°F) in a T-shirt or like to keep the window tilted open will still generate high heating costs even in a KfW40 house—and vice versa.
Believe me, I’ve been through all these thought processes myself. Find some companies and ask for quotes for both options. Then you can see whether it makes sense. But I can guarantee heating costs won’t rise enough to ruin you in a KfW55 house. That’s more likely if you try to insulate a basement to that standard.
Coffee82 schrieb:
Amazing. Thank you, we weren’t aware of that. Yes, unfortunately. We have been waiting for the building permit / planning permission since May. We called several times, and a few things went wrong which caused delays.
We contacted renovation contractors with our plan. There aren’t many options, and only one quote has come through, and that only partially. I’ve been following up with another provider for weeks, and finally, we have an initial appointment scheduled for December. Since we are also planning an extension, we would prefer a single source for everything, but we are now preparing for separate contracts. It’s probably not going to get any easier...
The confirmation for KfW funding took 4 months, but at least we have it now. So the situation is serious, but not hopeless ;-)
Now, back to you: The consensus seems to be that the architect’s estimate is too expensive. He should break down where the costs come from. Still, no one here can really judge whether your project is really as modest as you think. Please share a bit more. Are you planning a plain rectangle with a pitched roof, or does the design include many projections and recesses? Will grandma get a separate apartment or just a room? Fireplace? How is the electrical system planned? What does your room layout include?
H
hampshire23 Nov 2021 15:24RotorMotor schrieb:
If not, then just build 2m² (22 sq ft) smaller. Reducing by 2m² (22 sq ft) unfortunately does not correspond to a reduction of the total building cost for 2m². For example, you won’t need less building services.
Ysop*** schrieb:
Yes, that’s how it is at the moment. Begging for an appointment, begging for the building permit / planning permission to be processed, begging for quotes, following up repeatedly. If that’s not your experience, then you’re either lucky or buying an existing property. Those who keep doing the same thing will always get the same results. The medium is less important than the approach. Companies choose which projects to take on during good times. There is a range of criteria beyond financial attractiveness. Consider why it would be especially appealing for a provider to build your house and present that exact story. It’s no different in business when you want to be prioritized in times of scarce offers without paying much more. You will be able to select from the offers and get to know your providers much better in the process in order to make a good decision.
Well, by now it’s unfortunately the case in this area that there are many people wanting to build but not enough construction companies. Most firms are fully booked for a long time and often take their time responding to inquiries. They can afford to do so. Due to the proximity to Wolfsburg, prices do not get cheaper; in fact, the closer you are, the more expensive it becomes. The reason is that everyone in the region seems to know: VW pays well, and construction companies, architects, etc., sometimes assume that everyone works there and earns enough.
The question is also where exactly in GF you want to build—city or district? GF is not very small, and as mentioned, the closer to Wolfsburg, the more expensive it tends to be.
The question is also where exactly in GF you want to build—city or district? GF is not very small, and as mentioned, the closer to Wolfsburg, the more expensive it tends to be.
I would also suggest considering social media as a contact channel.
I have contacted several companies (carpenters, floor installers) and didn’t receive any responses.
What do you think would happen if you commented under a post by the builder something like, “It’s a pity, I wanted to have an initial consultation for our construction project, but nobody has gotten back to me” or something similar 😉
When calling, ask directly who is responsible for the planned construction project—like which salesperson, draftsman, or similar—and arrange an appointment right away. Also, explicitly mention that you already own a plot of land.
Why should they reject inquiries? You might be put on a waiting list, and the projects will be handled in turn. That’s how it works here. It might not happen immediately, but eventually you will be taken care of!
I have contacted several companies (carpenters, floor installers) and didn’t receive any responses.
What do you think would happen if you commented under a post by the builder something like, “It’s a pity, I wanted to have an initial consultation for our construction project, but nobody has gotten back to me” or something similar 😉
When calling, ask directly who is responsible for the planned construction project—like which salesperson, draftsman, or similar—and arrange an appointment right away. Also, explicitly mention that you already own a plot of land.
Why should they reject inquiries? You might be put on a waiting list, and the projects will be handled in turn. That’s how it works here. It might not happen immediately, but eventually you will be taken care of!
Ysop*** schrieb:
So, but back to you: The consensus seems to be that the architect’s estimate is too high. He should break down where the costs are coming from. Still, no one here can really tell if it’s really as unluxurious as you think. Could you share a bit more? Are you planning a simple rectangle with a pitched roof, or does the design have many offsets and recesses? Will grandma have her own apartment or just a room? Fireplace? How is the electrical system planned? What does your floor plan include? I don’t want to reveal too much or mention any names. I can imagine the architect is reading here. He shouldn’t find out about our doubts. That’s obvious why.
The house will indeed be a simple rectangle with a pitched roof. That’s what the surroundings require. Grandma will only get one room; otherwise, I would have already mentioned something about the granny flat. No fireplace is needed, but the architect may not know that. We only discussed what is necessary, not the other way around. I already wrote about the electrical system – no smart home, no 200 outlets.
I don’t really know how to describe the house. Well, it’s a quite “normal” house, just 200sqm (2,150 sq ft). We said simple but nice tiles, no special brand, €40 per 1sqm (about $21 per 11 sq ft).
Maybe we should have just gone for a catalog home after all….
Thanks to everyone for the replies; my husband has something to read tonight.
We will seriously consider KfW 55. If the savings really are only €50 (about $52) for the whole winter, it obviously doesn’t make sense. We based our calculations more on the rotor motor approach. The subsidy is much higher, so the difference to KfW 55 is minimal. Reliable information on this is hard to find online as well.
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