ᐅ Planning a Single-Family Home with a General Contractor, Architect, or Similar Professional
Created on: 14 Mar 2015 09:33
P
Payday
Hello,
after deciding against the half-finished house (shell construction with roof and windows – some will know what I mean), we have now reached the goal of having a new single-family home built.
We have already obtained some more concrete offers and know that we will manage with our budget.
The budget looks as follows (provisional bank approval, no contract yet, etc.):
€50,000 (approximately $54,000) own equity from €70,000 (approximately $76,000) available
€50,000 (approximately $54,000) KfW loan
€150,000 (approximately $162,000) mortgage
The plot costs €52,000 (approximately $56,000) for 580 sqm (about 6,240 sq ft) plus €4,500 (approximately $4,860) incidental costs (notary + property transfer tax) = own equity.
This leaves €200,000 (approximately $216,000) for the entire house including all incidental costs (including kitchen and carport) and €5,000 (approximately $5,400) special reserve (+€15,000 (approximately $16,200) additional own equity).
The plan is for a “turnkey” house priced at €155,000 (approximately $168,000) plus €4,500 (approximately $4,860) incidental costs (Note: property transfer and notary fees are not included here).
When I flip through catalogues, I hardly find any providers offering something at this price. The materials are not even the problem; it seems more about the enormous profit margins?!
We have also driven through the new development areas nearby and looked at the houses/signs. We have some smaller general contractors here (as in other places apparently). Some have been around for a long time, about 15–20 years. The management usually consists of two people (one practical, one theoretical), plus a bunch of craftsmen.
What do you think of such companies? The direct contact with the customer is probably much closer than with a large company, but what about price and reliability (completion guarantee/bond)?
after deciding against the half-finished house (shell construction with roof and windows – some will know what I mean), we have now reached the goal of having a new single-family home built.
We have already obtained some more concrete offers and know that we will manage with our budget.
The budget looks as follows (provisional bank approval, no contract yet, etc.):
€50,000 (approximately $54,000) own equity from €70,000 (approximately $76,000) available
€50,000 (approximately $54,000) KfW loan
€150,000 (approximately $162,000) mortgage
The plot costs €52,000 (approximately $56,000) for 580 sqm (about 6,240 sq ft) plus €4,500 (approximately $4,860) incidental costs (notary + property transfer tax) = own equity.
This leaves €200,000 (approximately $216,000) for the entire house including all incidental costs (including kitchen and carport) and €5,000 (approximately $5,400) special reserve (+€15,000 (approximately $16,200) additional own equity).
The plan is for a “turnkey” house priced at €155,000 (approximately $168,000) plus €4,500 (approximately $4,860) incidental costs (Note: property transfer and notary fees are not included here).
When I flip through catalogues, I hardly find any providers offering something at this price. The materials are not even the problem; it seems more about the enormous profit margins?!
We have also driven through the new development areas nearby and looked at the houses/signs. We have some smaller general contractors here (as in other places apparently). Some have been around for a long time, about 15–20 years. The management usually consists of two people (one practical, one theoretical), plus a bunch of craftsmen.
What do you think of such companies? The direct contact with the customer is probably much closer than with a large company, but what about price and reliability (completion guarantee/bond)?
Seen at the trade fair yesterday: 149m² (1605 sq ft) of living/usable space, turnkey, for 119,000.
Yes, something like this is possible in northern Germany, but only because there are people here who actually believe they can get a decent house for that price. The price differences are basically just about profit margins... There are quite a few companies that explain this exactly to their customers.
I regularly meet people here who care more about the next smartphone than their house. After all, it’s just four walls and a roof—what major differences could there be?
Even in the north, at the end of the day (meaning after factoring in fittings and other additional costs), you won’t get anything reasonable for less than 1,500 per m² (140 sq ft) of living/usable space (not according to the living space regulation), and don’t even think about a proper energy-efficient house there yet.
PS: I have personally met with about 80% of the usual suspects and asked for their bargain offers. Even I, as a house salesperson, often still don’t know what exactly is included after reading the specifications, because it simply isn’t stated! Interestingly, tile prices per m² have recently been set quite high, as many serious interested buyers think: high-quality tiles = high-quality house. With about 35m² (377 sq ft) of tiles included, that’s quite a clever idea...
Yes, something like this is possible in northern Germany, but only because there are people here who actually believe they can get a decent house for that price. The price differences are basically just about profit margins... There are quite a few companies that explain this exactly to their customers.
I regularly meet people here who care more about the next smartphone than their house. After all, it’s just four walls and a roof—what major differences could there be?
Even in the north, at the end of the day (meaning after factoring in fittings and other additional costs), you won’t get anything reasonable for less than 1,500 per m² (140 sq ft) of living/usable space (not according to the living space regulation), and don’t even think about a proper energy-efficient house there yet.
PS: I have personally met with about 80% of the usual suspects and asked for their bargain offers. Even I, as a house salesperson, often still don’t know what exactly is included after reading the specifications, because it simply isn’t stated! Interestingly, tile prices per m² have recently been set quite high, as many serious interested buyers think: high-quality tiles = high-quality house. With about 35m² (377 sq ft) of tiles included, that’s quite a clever idea...
Lars881 schrieb:
Even in the north, at the end of the day (after considering fittings and other additional costs), you won’t get anything decent for less than 1500 per square meter of living/useable space (not according to the German living space ordinance), and you don’t need to even think about an actual energy-efficient house there yet.
With or without a basement? Such general statements are nonsense.
S
Sebastian7915 Mar 2015 09:45And what specific statements are you expecting now?
Since he is talking about usable floor area, probably including the basement – however, you are counting the usable floor area in that calculation. Of course, that is a rough estimate, but how else would you do it? No one can say what kind of company or craftsmen you will get. If you look at the system house providers (with reasonably good equipment), you will generally end up at around €1400–1600 per m² (around $130–150 per ft²) even in Lower Saxony. (Last year, I simply calculated the price per square meter for all houses from Elma and Viebrockhaus – Elma was slightly cheaper than Viebrockhaus.)
No, that’s not what I mean – I’m just glad if we can get a cheaper deal.
Have “xxx” run the full calculation for you – including underfloor heating, shutters, possibly solar panels, extra sockets, painting work, etc. – I just think it’s wise to be cautious. We worked with Elma and had a base price for the house at €1224 per m² (about $113 per sq ft), but the final offer came to €1514 per m² (about $140 per sq ft). Elma makes about €30,000 (~$32,000) profit per house – of course, they also have marketing and other costs.
By the way, I’d appreciate it if you could share concrete offers here – we are still looking for building insurance and are currently waiting to receive any feedback sometime soon.
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Provider name removed.
Best regards, Bauexperte
Bauexperte
Have “xxx” run the full calculation for you – including underfloor heating, shutters, possibly solar panels, extra sockets, painting work, etc. – I just think it’s wise to be cautious. We worked with Elma and had a base price for the house at €1224 per m² (about $113 per sq ft), but the final offer came to €1514 per m² (about $140 per sq ft). Elma makes about €30,000 (~$32,000) profit per house – of course, they also have marketing and other costs.
By the way, I’d appreciate it if you could share concrete offers here – we are still looking for building insurance and are currently waiting to receive any feedback sometime soon.
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Provider name removed.
Best regards, Bauexperte
Bauexperte
B
Bauexperte15 Mar 2015 11:28Hello,
PS: You say here in this thread that you are a home seller; why is this not reflected in your profile?
Best regards, Bauexperte
Lars881 schrieb:Then you must be new to our line of work, otherwise you wouldn’t write a statement like that.
Even I, as a home seller, still don’t know what you actually get after reading the scope of work, because it simply isn’t included!
Lars881 schrieb:This isn’t new — combining material and installation costs into one total price is common practice.
Interestingly, tile prices per square meter are now set quite high because many potential buyers seriously think: high-quality tile = high-quality house. With about 35m2 (375 ft²) of tiles included, that’s a brilliant idea...
PS: You say here in this thread that you are a home seller; why is this not reflected in your profile?
Best regards, Bauexperte
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