ᐅ Building a house is more complicated than expected – prices keep changing constantly!
Created on: 15 Apr 2022 18:05
H
HolzWurm1988
Greetings everyone!
The house construction is actually supposed to start soon. After finding a plot of land here in our rural area, I inquired locally about all the costs related to the land (surveying, water/electricity/telephone connections, notary fees, etc.). I also have the exact notary costs, including the mortgage registration and so on. Some of the costs were significantly higher than I expected, while others were much lower. Overall, the total amount balances out in the end.
Since I basically want to build a log house, I have realized that the contractors are not flexible enough in their scheduling. Of course, I’m glad that all the contractors are busy. However, I also need to ensure that the respective companies can start on my construction site on time. It’s no good if weeks pass between the different phases. Unfortunately, with a log house, I have to manage all the contractors myself. There aren’t many, but they all need to be available at the required time. For this reason, I started looking into prefab houses. Specifically, I’m considering the following models:
Town & Country "Raumwunder 100" and Heinz von Heiden "Bungalow, der Unverbesserliche B760"
When searching online about both companies, you find a mix of positive and negative reviews. I personally believe that most people tend to share negative experiences on the internet, so I don’t include that heavily in my assessment! For both providers, I am increasingly confronted with new prices every few days, which makes me feel like they are trying to pressure me as a customer. So far, I have not signed any purchase contract. However, both houses are viable options for me.
So far, my costs are as follows:
Plot (750 sqm (8,073 sq ft)): 24,500€
Notary fees (including mortgage registration, etc.): 1,945€
Connections/lines/surveying: 6,300€
The Raumwunder 100 costs 210,000€ turnkey, including electric shutters, heat pump but NO underfloor heating.
The Heinz von Heiden bungalow costs 205,000€, including electric shutters, heat pump, and underfloor heating.
Ideally, I would have to commit immediately to Heinz von Heiden. However, my final bank meeting is not until the week after next, and I don’t want to sign any contract before that. I just don’t know if I would still have the option to back out if something goes wrong with the bank. Although, the bank told me in advance that I should have no problem obtaining the credit amount I need. In that case, the price would at least be “safe” for now...
What bothers me most, however, is that the Heinz von Heiden salesperson told me that if I signed the contract this May, I might not be able to build the house until October to December of next year. Building earlier is not possible due to material shortages and the high demand from many people currently wanting to build a house.
As an alternative, I have considered buying an older house again. However, I would have to completely renovate it. Still, I would never reach the current energy standards and would be left with the old water pipes in the house.
What would you do? Do you have any advice for my situation? Are there any alternatives?
I often read that despite a nearly agreed price, sudden price increases occur. Then there’s the fact that materials for continued construction are often missing. This makes me wonder whether it makes sense to take an older house and renovate it step by step, working with the materials currently available.
The house construction is actually supposed to start soon. After finding a plot of land here in our rural area, I inquired locally about all the costs related to the land (surveying, water/electricity/telephone connections, notary fees, etc.). I also have the exact notary costs, including the mortgage registration and so on. Some of the costs were significantly higher than I expected, while others were much lower. Overall, the total amount balances out in the end.
Since I basically want to build a log house, I have realized that the contractors are not flexible enough in their scheduling. Of course, I’m glad that all the contractors are busy. However, I also need to ensure that the respective companies can start on my construction site on time. It’s no good if weeks pass between the different phases. Unfortunately, with a log house, I have to manage all the contractors myself. There aren’t many, but they all need to be available at the required time. For this reason, I started looking into prefab houses. Specifically, I’m considering the following models:
Town & Country "Raumwunder 100" and Heinz von Heiden "Bungalow, der Unverbesserliche B760"
When searching online about both companies, you find a mix of positive and negative reviews. I personally believe that most people tend to share negative experiences on the internet, so I don’t include that heavily in my assessment! For both providers, I am increasingly confronted with new prices every few days, which makes me feel like they are trying to pressure me as a customer. So far, I have not signed any purchase contract. However, both houses are viable options for me.
So far, my costs are as follows:
Plot (750 sqm (8,073 sq ft)): 24,500€
Notary fees (including mortgage registration, etc.): 1,945€
Connections/lines/surveying: 6,300€
The Raumwunder 100 costs 210,000€ turnkey, including electric shutters, heat pump but NO underfloor heating.
The Heinz von Heiden bungalow costs 205,000€, including electric shutters, heat pump, and underfloor heating.
Ideally, I would have to commit immediately to Heinz von Heiden. However, my final bank meeting is not until the week after next, and I don’t want to sign any contract before that. I just don’t know if I would still have the option to back out if something goes wrong with the bank. Although, the bank told me in advance that I should have no problem obtaining the credit amount I need. In that case, the price would at least be “safe” for now...
What bothers me most, however, is that the Heinz von Heiden salesperson told me that if I signed the contract this May, I might not be able to build the house until October to December of next year. Building earlier is not possible due to material shortages and the high demand from many people currently wanting to build a house.
As an alternative, I have considered buying an older house again. However, I would have to completely renovate it. Still, I would never reach the current energy standards and would be left with the old water pipes in the house.
What would you do? Do you have any advice for my situation? Are there any alternatives?
I often read that despite a nearly agreed price, sudden price increases occur. Then there’s the fact that materials for continued construction are often missing. This makes me wonder whether it makes sense to take an older house and renovate it step by step, working with the materials currently available.
Fuchsbau35 schrieb:
That's right. A tile price of €25 per square meter (approximately $25 per square yard) is hardly sustainable anymore, unless it's the simplest tile available in three color variations.Calculating such price indications found in construction specifications by multiplying your own measurements and quantities with current flyer prices for the respective materials provides a fairly useful preview, firstly of the actual truthfulness of catalog house offers (although leaving out essential services remains the biggest leverage) and secondly of the trends involved in price developments. There are apparently people who, due to excessive Excel sheet comparisons of interior plaster smoothing, faucets, and light switch covers, don’t even notice when the price applies only from the top edge of the foundation slab.https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Pinkiponk schrieb:
If you have the opportunity to purchase an existing house, I would prefer that. My husband and I are only building new because there wasn’t a suitable existing house in our desired area. Even for homebuyers without any current housing situation, a good existing property is currently in most areas actually a bit harder to find than a building plot. In the case of the original poster, who at least has already found a lot (although if I understood correctly it’s not yet finalized), it is comparatively much more difficult. I wouldn’t waste a single cent considering such an unlikely "option."
Pinkiponk schrieb:
Not every existing house needs a complete renovation, In terms of condition and up-to-date standards, I see worry-free options limited to properties no older than fifteen to twenty years — there are good reasons why I recommend consulting divorce lawyers rather than real estate agents.
Pinkiponk schrieb:
Furthermore, I see the advantage that you can move in fairly quickly and take care of the rest once the situation regarding materials, etc., has eased a bit. But let’s not get too optimistic: living in a house under construction with unfinished floors is comparatively more comfortable than having to tear out existing flooring first.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
F
Fuchsbau3516 Apr 2022 14:2111ant schrieb:
Calculating those price listings in construction specifications by multiplying with your own measurements and quantities using current newspaper flyer prices for the relevant materials gives a pretty good first impression of the price trends involved and secondly of the accuracy of catalogue house offers (although omitting essential services remains the biggest leverage). Apparently, some people get so caught up comparing Excel sheets of interior plaster smoothing, faucets, and light switch covers that they don’t even realize the price applies from the top edge of the foundation slab. Actually, we are not building a prefab house but purchased a townhouse-style apartment from a developer. They don’t build standard houses but only specific projects, like the conversion of a barn in our case. Of course, we have input on the interior design, including flooring and sanitary fittings, and can choose what we want. The price only includes a certain level of standard finishes. In our case, additional costs were only for items we wanted ourselves (like river pebble mosaic tiles in the shower and other unnecessary frills).
Joedreck schrieb:
To summarize: you get a functioning house with basic standard quality. Nothing very modern, nothing special. But it works. If that is enough for you without any issues, then everything is fine. Depending on your expectations, it might be unsatisfactory. To expand the summary: there will definitely be additional costs that are unrelated to the basic standard. I already mentioned earthworks, painting services by the builder, and necessary portable toilets/containers, etc.
P.S. I haven’t read the scope of work in detail, but I know this from experience.
O
Osnabruecker17 Apr 2022 08:37Joedreck schrieb:
To sum it up: I get a functional house built to a basic standard. Nothing super modern, nothing special. But it works. It doesn’t work because, for example:
The utility provider requires a multi-utility connection point, realistically adding a maximum of 2,000 (approximately 2,200) to the cost, but the general contractor charges 5,000 (approximately 5,500)?
Drainage has to be installed up to 0.5m (20 inches) outside the building… and then the water flows by itself into the public sewer (drainage solutions with transfer chambers realistically cost between 5,000 and 20,000 (approximately 5,500 to 22,000) depending on the plot and existing ground depth)
….
Allthewayup schrieb:
A reputable company does not use time pressure or price arguments to get a signature – that is also my opinion in the current situation. Pinkiponk schrieb:
I would avoid building with companies that try to pressure you. If possible, they will keep putting pressure on you throughout the construction process as well. This is called an offer validity period and is completely normal. Especially for trades, it is absolutely understandable. Considering today’s price developments, it is also entirely normal and reasonable.
What do you expect? To receive an offer today with a price the builder can still guarantee if you accept it in 4 months?
If I heard that, I would be rather skeptical. That would mean the company has calculated so generously that the price increases expected over the next months are already included.
Do you have to let yourself be pressured into signing quickly? No...
Will the price increase if you wait longer? Almost certainly. At least with Town & Country, there used to be a fixed date each year when prices were raised. As far as I know, they adjusted prices several times last year.
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