ᐅ $250,000 – Implementation of the building plan including all additional costs?
Created on: 15 Sep 2013 00:29
C
Campino
Hello Housebuilding Forum,
I hope I’m not starting this thread too early and that I’ll be taken somewhat seriously, even though I don’t have much experience with housebuilding yet.
My partner and I are planning to move out of a rental soon and get our own home. Until now, the plan was mainly to buy a relatively new house. However, I didn’t want to completely rule out the possibility of building a new one and wanted to at least get some information.
So today we visited a show home and had a very pleasant conversation with an employee of a fairly well-known prefab house manufacturer (I’m not sure if I’m allowed or should post the name here).
We shared what we were looking for in an existing house, which also reflected our basic requirements for a prefab home. I also mentioned to the employee that on property websites like immowelt or my-next-home, new construction projects with land are often offered, since we don’t have a plot ourselves.
The employee took notes on our wishes.
Between 130 and 150 sqm (1,400 and 1,615 sq ft)
Plot between 400 and 600 sqm (4,300 and 6,450 sq ft)
Basement
Underfloor heating
Painter/turnkey delivery
We didn’t express any specific wishes regarding balconies, bay windows, or similar features; it was mainly an initial conversation for information. We don’t want a townhouse but rather a fairly “normal” one-and-a-half-story house with a pitched roof.
Our total budget was stated as 250,000 euros (about $270,000). The employee said that “you can do something with that” regarding what we imagined and that he could provide a non-binding offer.
After reading around a bit here, though: is this even realistic? Can we seriously plan to get a house with a plot in this size range within that budget?
According to the employee, all costs would be covered in this offer, including property taxes, additional construction costs, and site costs.
I would really appreciate your opinions...
Best regards
I hope I’m not starting this thread too early and that I’ll be taken somewhat seriously, even though I don’t have much experience with housebuilding yet.
My partner and I are planning to move out of a rental soon and get our own home. Until now, the plan was mainly to buy a relatively new house. However, I didn’t want to completely rule out the possibility of building a new one and wanted to at least get some information.
So today we visited a show home and had a very pleasant conversation with an employee of a fairly well-known prefab house manufacturer (I’m not sure if I’m allowed or should post the name here).
We shared what we were looking for in an existing house, which also reflected our basic requirements for a prefab home. I also mentioned to the employee that on property websites like immowelt or my-next-home, new construction projects with land are often offered, since we don’t have a plot ourselves.
The employee took notes on our wishes.
Between 130 and 150 sqm (1,400 and 1,615 sq ft)
Plot between 400 and 600 sqm (4,300 and 6,450 sq ft)
Basement
Underfloor heating
Painter/turnkey delivery
We didn’t express any specific wishes regarding balconies, bay windows, or similar features; it was mainly an initial conversation for information. We don’t want a townhouse but rather a fairly “normal” one-and-a-half-story house with a pitched roof.
Our total budget was stated as 250,000 euros (about $270,000). The employee said that “you can do something with that” regarding what we imagined and that he could provide a non-binding offer.
After reading around a bit here, though: is this even realistic? Can we seriously plan to get a house with a plot in this size range within that budget?
According to the employee, all costs would be covered in this offer, including property taxes, additional construction costs, and site costs.
I would really appreciate your opinions...
Best regards
So, after receiving such good advice here, I naturally want to update you on the final offer I received yesterday.
As was suspected several times, the offer ultimately involved compromises.
We were given several recommended plots for calculation, each around 50,000 Euro.
The house without a basement would cost 182,000 Euro, ready for painting, and have 136 m² (1,463 ft²).
In addition, 20,000 Euro was estimated for additional construction costs, which in my opinion is quite tight (authorities such as notary, property taxes, etc. 3,500 Euro; utility connections 6,000 Euro; civil engineering costs 8,000 Euro—this included a basement, without basement excavation 5,000 Euro; buffer 2,500 Euro).
With a basement, the house would be 20,000 Euro more expensive and outside the budget, as some here had already assumed. There is also uncertainty whether the additional costs will be sufficient, because some of the expenses on the construction site are the responsibility of the builder. It’s all a rather uncertain calculation.
We will now request offers from two other regional providers in the Saarland (solid construction), then decide whether that makes sense or whether we will continue searching for existing properties.
As was suspected several times, the offer ultimately involved compromises.
We were given several recommended plots for calculation, each around 50,000 Euro.
The house without a basement would cost 182,000 Euro, ready for painting, and have 136 m² (1,463 ft²).
In addition, 20,000 Euro was estimated for additional construction costs, which in my opinion is quite tight (authorities such as notary, property taxes, etc. 3,500 Euro; utility connections 6,000 Euro; civil engineering costs 8,000 Euro—this included a basement, without basement excavation 5,000 Euro; buffer 2,500 Euro).
With a basement, the house would be 20,000 Euro more expensive and outside the budget, as some here had already assumed. There is also uncertainty whether the additional costs will be sufficient, because some of the expenses on the construction site are the responsibility of the builder. It’s all a rather uncertain calculation.
We will now request offers from two other regional providers in the Saarland (solid construction), then decide whether that makes sense or whether we will continue searching for existing properties.
Bauexperte schrieb:
Including wall and interior finishes Yes, the house is then completely finished for that price. However, it does not include special requests such as additional windows, bay windows, balconies, or anything else. But we don’t want those anyway.
Bauexperte schrieb:
I also consider that a myth!I also believe it was kept very low to fit into our budget.
Bauexperte schrieb:
Only 20,000 euros for the basement? Surely that doesn’t include plumbing, basement light shafts, or doors; not to mention necessary excavation work. It’s no more reliable than those annoying ads offering basements for €9,999...That’s probably true. Excavation work was included under "civil engineering" in the additional construction costs. 3,000-5,000 euros for the foundation slab, 5,000-8,000 euros for extra excavation for the basement.
Bauexperte schrieb:
Then you will probably get the first decent offer
Regards, BauexperteHopefully. Do you personally trust regional providers more than the big "market leaders"? At the moment, I’m considering S****m and L**x.
B
Bauexperte27 Sep 2013 15:28Hello,
Larger suppliers have framework agreements for large quantities with various brand manufacturers that are necessary for building a house. They rarely do the construction themselves – if they don’t, they deliver “finished” contracts to their construction companies (builders). This means the builder has no advertising costs; this expense is therefore excluded from their balance sheet, and they receive ongoing orders delivered to their doorstep. Because of this setup, they accept lower profit margins. In this structure, the outcome of a building project often depends on the contractual arrangements and frequently on the salesperson.
Smaller, regional suppliers (up to about 25 houses per year) can hardly compete on price within this framework for the reasons mentioned above. On the other hand, they often deliver better quality, are approachable, and changes – even during an ongoing building project – are usually easier to implement.
My personal experience leans toward commissioning a larger or even nationwide supplier for simple architectural designs; here the price/performance ratio is best. For complex building envelopes and anticipated difficulties – for example, neighbor disputes, challenging plots, etc. – hiring an architect is advisable.
Both approaches share the principle that you should never base your decision solely on the prices quoted in the bottom right corner; the probably low price should never be the ultimate criterion. There is always a catch, as you have just learned. It is better to build a smaller house, but one that is sound, holds its value, and offers a good price/performance ratio!
Every reputable supplier offers guarantees for their customers and stands behind their quality with their good name, whether large or supposedly small. Ultimately, it is up to the builder to decide which path to take; they alone shape their own destiny. Proceeding carefully here almost goes without saying, especially considering the amount of financing required.
Best regards, Bauexperte
Campino schrieb:Unfortunately, this cannot be answered definitively.
Hopefully. Do you personally prefer local suppliers over the large "market leaders"? At the moment, I have S****m and L**x in mind.
Larger suppliers have framework agreements for large quantities with various brand manufacturers that are necessary for building a house. They rarely do the construction themselves – if they don’t, they deliver “finished” contracts to their construction companies (builders). This means the builder has no advertising costs; this expense is therefore excluded from their balance sheet, and they receive ongoing orders delivered to their doorstep. Because of this setup, they accept lower profit margins. In this structure, the outcome of a building project often depends on the contractual arrangements and frequently on the salesperson.
Smaller, regional suppliers (up to about 25 houses per year) can hardly compete on price within this framework for the reasons mentioned above. On the other hand, they often deliver better quality, are approachable, and changes – even during an ongoing building project – are usually easier to implement.
My personal experience leans toward commissioning a larger or even nationwide supplier for simple architectural designs; here the price/performance ratio is best. For complex building envelopes and anticipated difficulties – for example, neighbor disputes, challenging plots, etc. – hiring an architect is advisable.
Both approaches share the principle that you should never base your decision solely on the prices quoted in the bottom right corner; the probably low price should never be the ultimate criterion. There is always a catch, as you have just learned. It is better to build a smaller house, but one that is sound, holds its value, and offers a good price/performance ratio!
Every reputable supplier offers guarantees for their customers and stands behind their quality with their good name, whether large or supposedly small. Ultimately, it is up to the builder to decide which path to take; they alone shape their own destiny. Proceeding carefully here almost goes without saying, especially considering the amount of financing required.
Best regards, Bauexperte
Thank you for your explanation. Actually, we were initially leaning towards the larger regional supplier (simple architecture), but now we have something else.
Now we will listen to what the local providers have to offer, and then we will decide. For one of the two, I like that they heavily promote a comprehensive all-in-one package, including services that with the first supplier were called "builder services," which could help keep the additional construction costs more stable rather than variable.
Let’s see how it goes... I’ll keep you updated, if that’s okay.
Now we will listen to what the local providers have to offer, and then we will decide. For one of the two, I like that they heavily promote a comprehensive all-in-one package, including services that with the first supplier were called "builder services," which could help keep the additional construction costs more stable rather than variable.
Let’s see how it goes... I’ll keep you updated, if that’s okay.
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