ᐅ How realistic are the advertised prices from the providers, and what additional costs should be expected?

Created on: 8 Jun 2024 05:55
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Bertram
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Bertram
8 Jun 2024 05:55
Hello.
We are new to this field and are undecided between buying an existing property or a prefabricated house (solid construction).
Currently, the houses from different providers are listed on various real estate platforms, advertised as including the plot and turnkey delivery. It is clear that the prices stated are not realistic. The question is where the actual costs end up. Is it around 100,000 more? We need a 4-room house with at least 160 square meters (1722 square feet) plus a garage, and our budget is 570,000. In your opinion, is this feasible, even with somewhat higher-end finishes and more than 2 electrical outlets per room? ;-)
Good luck
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markusla
8 Jun 2024 08:04
It clearly depends on the location and the land prices.
570 (thousand) might be enough just for the house with the desired specifications, but the land cost would be additional.

I would avoid services related to land acquisition, etc. There are already plenty of tricks discussed here.
Never sign anything without having a specific piece of land!
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Buchsbaum066
8 Jun 2024 09:03
So, a flush-mounted box costs 19 cents and a Busch and Jäger outlet is 3.29€.
The meter of copper cable 3 x 1.5 at the Bauhaus DIY store costs 67 cents per meter.

Now you can calculate how much 50 additional outlets in a newly built single-family house would cost.

I wouldn’t even begin to think about that.
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hanse987
8 Jun 2024 09:46
When you purchase a package that includes both the land and building services, you pay property transfer tax not only on the land but also on the combined value of the land and the house.

If you commit to a contract immediately, you are bound to it until the very end. If you buy the land first, you have some time to get to know the specific plot, decide what you want, and start the planning process. During this time, you can calmly search for the right builder or construction partner.

One of the most important documents is the scope of work specification. It details what you will receive, and just as important is what is not included, as these items will come with additional costs on top.
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ypg
8 Jun 2024 10:22
Bertram schrieb:

Now the houses from providers are listed on all real estate websites, advertising with land included and turnkey.
Bertram schrieb:

Prefabricated house (solid construction).

I’m not sure what you mean by “prefabricated house solid construction,”
but if you mean listings where homebuilders present a house and refer to a specific plot of land, then companies often focus on a new development area and reserve plots. For example, Heinz von Heiden, Viebrockhaus, Town & Country, and others may all refer to the same plots sold by the municipality (no linked transaction). However, there are also offers where the builder acts as an agent and/or possibly as the developer. Then it’s either a linked transaction, even though you are the buyer and you have to pay property transfer tax on everything. Or you purchase the house and land from one source, also paying property transfer tax on the entire package. Buying from a developer means the developer is the builder and you are only the buyer.

Homebuilding companies can and do both, so it depends entirely on the offer.

One is of higher quality, the other cheaper, referring to the house itself (construction method and fittings, which are detailed in the service specification).

The cheaper one has more basic fittings and construction. You then pay extra to upgrade to a better standard, while better providers need fewer upgrades.
Almost always, when you build as the buyer yourself:
For instance, earthworks from a depth of 30cm (12 inches), incidental construction costs, utility connections, extra electrical outlets, and quality floor tiles.
And: painting and flooring in living and sleeping areas.
Later, landscaping and carport/garage follow.
The difference is that a low-cost builder might install tiles for €20 (per tile) and a 200-liter (50-gallon) domestic hot water tank, whereas the more expensive and better builder installs tiles for €40 (per tile) and a 300-liter (80-gallon) hot water tank.

Example: We built with a local company comparable to Heinz von Heiden.
Our friends built with Viebrockhaus. Their house was about €30,000 more expensive in the basic package, but included the Nibe heat pump and KfW55 standard, though only decentralized ventilation. We used gas heating. We had to upgrade to KfW70 standard with controlled residential ventilation at an additional five-digit euro cost.
For flooring and extras like a level-access shower or electrical work, we paid the contractor roughly the same.

So: In 2024, catalog price plus necessary updates plus good average fittings
→ €3000 per square meter (roughly €280 per square foot) of living space.
Incidental construction costs extra (site-related €35,000–70,000)
Landscaping €20,000–50,000 (rough estimate)
Kitchen and so on.

Generally, you get the best value with regional builders and by finding your own plot first. But there are regional situations where this is hardly possible anymore.
Tolentino8 Jun 2024 13:48
ypg schrieb:

I’m not sure what you mean by a prefabricated solid house,

Maybe you really mean the construction method. Something like Lechner or Hebel?