Hello!
We are currently very interested in a terraced house being built by a developer. Unfortunately, our main contact person is on vacation at the moment, and I don’t want to bother the backup contact too much (even though I already have a few times, oops). So for some more general questions, I thought I’d ask the forum 🙂
We currently have, among other things, a construction specification, but no contract draft yet. We are trying to review ourselves where there might potentially be additional costs beyond the fixed price (“custom requests”), but in one or two areas we are still struggling to estimate this.
Generally: There is a lot of discussion here in the forum about incidental building costs and so on. But with a developer, they are the client, not us. Am I correct to assume that, because of this, we don’t really need to consider any “owner-supplied” costs? The documents do include a few general details about infrastructure (for example, electricity, water, telecommunications are included). When I think of things like construction site power, there’s nothing mentioned in the documents I have so far, but basically I assume that is the developer’s responsibility since they are the client?
There are quite often terms in the construction specification like “according to structural engineering” or similar (excerpt: “The exterior walls above ground level will be built from calcium silicate bricks, or reinforced concrete if structurally required. All other load-bearing walls according to structural engineering.”) or “according to the architect’s specifications” (“In some areas, brick slips will be used, with color and design as specified by the architect.”). We understand that with a terraced house via a developer there isn’t much choice here, and that is perfectly fine with us. But if I imagine we are in the construction phase and I send an inspector with the construction specification, such wording seems rather vague to easily check anything. (I mean, they can still say if something is done completely poorly in execution.) Are such formulations normal, or should these be specified more clearly?
What is the usual process regarding “custom requests”? I read that these can already be part of the notarized contract. What is typically decided before signing the contract, and what comes afterward? Can I expect to select tiles and decide on power outlets shortly before contract signing, or is it initially more fundamental things (like relocating a wall or similar)? We will certainly ask the developer about this again, but it doesn’t hurt to know how it usually works 😉 I imagine the more I define beforehand, the more secure I am about the price. Or is that assumption wrong?
Speaking of price: We are currently contacting banks, but are unsure how to handle the topic of “custom requests.” Our initial impression is that we are quite satisfied with the standard in the construction specification we have. There are one or two things we are a bit uncertain about (flooring is included, depending on the area tiles or parquet up to 30cm (12 inches) per square meter ... is that sufficient, or should we allow a buffer?), and beyond that a few things we might want to add (maybe 2-3 more LAN connections for access points, possibly empty conduits for photovoltaics, possibly empty conduits in the garage for a charging station or, depending on the price, have the charging station installed directly). We would be happy without them, but it just seems sensible to have these included now. Our original idea was to pay for these out of pocket, separate from the financing, but if they end up in the notarized contract and come with an additional cost, and we haven’t told the bank about it, the price would then be higher than what we communicated to the bank. Does the bank not care because these are our own funds, or could it even be unwise not to inform the bank, as it might improve the loan-to-value ratio? (The house might be worth more without the bank needing to provide additional funds.) I mean, these will probably just be minor things that won’t make much difference, but I am still a bit confused about how this is typically handled.
We are currently very interested in a terraced house being built by a developer. Unfortunately, our main contact person is on vacation at the moment, and I don’t want to bother the backup contact too much (even though I already have a few times, oops). So for some more general questions, I thought I’d ask the forum 🙂
We currently have, among other things, a construction specification, but no contract draft yet. We are trying to review ourselves where there might potentially be additional costs beyond the fixed price (“custom requests”), but in one or two areas we are still struggling to estimate this.
Generally: There is a lot of discussion here in the forum about incidental building costs and so on. But with a developer, they are the client, not us. Am I correct to assume that, because of this, we don’t really need to consider any “owner-supplied” costs? The documents do include a few general details about infrastructure (for example, electricity, water, telecommunications are included). When I think of things like construction site power, there’s nothing mentioned in the documents I have so far, but basically I assume that is the developer’s responsibility since they are the client?
There are quite often terms in the construction specification like “according to structural engineering” or similar (excerpt: “The exterior walls above ground level will be built from calcium silicate bricks, or reinforced concrete if structurally required. All other load-bearing walls according to structural engineering.”) or “according to the architect’s specifications” (“In some areas, brick slips will be used, with color and design as specified by the architect.”). We understand that with a terraced house via a developer there isn’t much choice here, and that is perfectly fine with us. But if I imagine we are in the construction phase and I send an inspector with the construction specification, such wording seems rather vague to easily check anything. (I mean, they can still say if something is done completely poorly in execution.) Are such formulations normal, or should these be specified more clearly?
What is the usual process regarding “custom requests”? I read that these can already be part of the notarized contract. What is typically decided before signing the contract, and what comes afterward? Can I expect to select tiles and decide on power outlets shortly before contract signing, or is it initially more fundamental things (like relocating a wall or similar)? We will certainly ask the developer about this again, but it doesn’t hurt to know how it usually works 😉 I imagine the more I define beforehand, the more secure I am about the price. Or is that assumption wrong?
Speaking of price: We are currently contacting banks, but are unsure how to handle the topic of “custom requests.” Our initial impression is that we are quite satisfied with the standard in the construction specification we have. There are one or two things we are a bit uncertain about (flooring is included, depending on the area tiles or parquet up to 30cm (12 inches) per square meter ... is that sufficient, or should we allow a buffer?), and beyond that a few things we might want to add (maybe 2-3 more LAN connections for access points, possibly empty conduits for photovoltaics, possibly empty conduits in the garage for a charging station or, depending on the price, have the charging station installed directly). We would be happy without them, but it just seems sensible to have these included now. Our original idea was to pay for these out of pocket, separate from the financing, but if they end up in the notarized contract and come with an additional cost, and we haven’t told the bank about it, the price would then be higher than what we communicated to the bank. Does the bank not care because these are our own funds, or could it even be unwise not to inform the bank, as it might improve the loan-to-value ratio? (The house might be worth more without the bank needing to provide additional funds.) I mean, these will probably just be minor things that won’t make much difference, but I am still a bit confused about how this is typically handled.
jrth2151 schrieb:
Wait for the authorities first.That is not something we are directly involved with; it’s the developer’s responsibility. I suspect that this is indeed an important factor at the moment.mayglow schrieb:
That is initially not something we deal with, but the property developer. I suspect this indeed plays a role at the moment. The property developer also has to wait for the authorities. Whether you are waiting because the developer tells you they are waiting for permits / planning permission or you are waiting directly doesn’t make a difference in terms of waiting time.
mayglow schrieb:
There are some general details about utilities (e.g., electricity, water, telecommunications are included). When I think about things like construction power supply, there is nothing mentioned in the documents I have so far, but am I correct in assuming that this is handled by the builder since they are the client?Exactly. The client/builder is responsible for construction; you are the buyer of a piece of house on land, which is why you also take on the special features* mayglow schrieb:
All other load-bearing walls according to the structural engineer. ") or "as specified by the architect" ("In some areas, facing brick slips will be installed, color and design according to the architect's specifications.").mayglow schrieb:
Are these types of phrases standard, or should they be defined more precisely?This is normal. You probably only have the general “sales documents” from the builder. They likely build several houses and keep these documents general since they apply to all house types, whether a two-story, duplex, or pitched-roof terraced house. They are not required to present the structural engineering details to you as the buyer, but they must build according to those structural plans. The design may also change from time to time, so the sales documents remain valid for all houses. You don’t have to worry that the house will suddenly be painted in bright orange. mayglow schrieb:
What is the usual process regarding “special requests”? I have read that these can already be part of the notarized contract. What is typically decided before the contract is signed, and what afterwards?I think this varies from builder to builder, just like general contractors vary. The contract should include the floor plan, special features such as selected windows and doors, and technical upgrades. mayglow schrieb:
We are currently in the construction phase and I want to send an expert for an inspection.There are good and bad builders: the bad ones don’t even allow the buyer, let alone an expert commissioned by the buyer, onto the site. As a buyer, you depend on the builder’s goodwill. However, you typically do not have legal rights to enter the property during construction. mayglow schrieb:
So should I expect to be selecting tiles and deciding on the placement of electrical outlets before contract signing, or is it usually more fundamental things first (like moving a wall)? We will also ask the builder directly, but it can’t hurt to know what the usual process is. 😉Are you sure all the tiles are included? Or just the ones in wet rooms? Some builders don’t even offer options beyond the basic specifications... it might also be that the builder says: you arrange that directly with the electrician. Then you’re fortunate because electricians usually charge less overall, but you only get a two-year warranty on those specific products. jrth2151 schrieb:
An extra electrical outlet probably costs around 50€,It can also cost 19€ or 89€... @mayglow: definitely ask for those prices. Ask for all possible prices that might apply. You can also have later special request costs included in the notarized contract. Whether 30€/sqm tiles suffice depends on your expectations. There are attractive affordable tiles as well. You should inquire, for example, about the cost of wood-look tiles. The tiler, and therefore the builder, might charge triple for installation on those.
jrth2151 schrieb:
Learned something new. Thanks!
In general, though, everything is probably very similar.That similarity can be tricky. Because a lot is only similar. That means: many things are actually different. mayglow schrieb:
But somehow we managed to discuss financing,Usually you already know your budget limit. Financing proceeds faster if that’s clear, rather than struggling to pin down your limit, going home with worries, and constantly recalculating and renegotiating with the bank. mayglow schrieb:
We currently have, among other things, a construction description,Then show it. You’ve been reading here for a while—you should know that you can only assess the content if it is known. Even the brochure (with ID and platform name, but no link or advertising) would help. How does the offer compare in your region? What kind of provider is it? You can also ask here in the moderated forum. https://www.hausbau-forum.de/forums/erfahrungen-mit-hausbau-firmen.119/
https://www.hausbau-forum.de/categories/hausanbieter-deutschlandweit.293/
K
k-man20216 Jul 2022 23:11The phrase “wall according to structural engineering” reminds me of an experience from several years ago: we were interested in a semi-detached house from a builder. The plans were very nice, and the price was reasonable. However, we really wanted to see an identical house, at least in its shell stage, especially since the builder was hesitant to show one, even though we could have easily traveled several kilometers. So, we did our own research and visited an identical house built by the same builder on our own. And sure enough, while the plans were basically correct, structural requirements meant that a beam was needed in one room, and there was a shaft in another room—none of which were shown on our plans. The conclusion: we did not buy. I would always want to see a house in person before deciding.
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WilderSueden7 Jul 2022 00:01A support beam itself is not really an issue. It will be hidden later under the ceiling plaster. The bigger problem arises when the structural engineer makes walls load-bearing that were originally planned as non-load-bearing. These walls are then thicker, which can cause doors to shift, and so on.
Plans should, of course, be accurate, especially if a builder mainly constructs standard houses.
Plans should, of course, be accurate, especially if a builder mainly constructs standard houses.
k-man2021 schrieb:
but for structural reasons, a beam was necessary in one room, and there was a shaft in another room, neither of which were shown in our plans. Of course, beams are used to allow for larger spans and thus more spacious rooms, which is usually the desired outcome. I don’t understand why this should be seen as negative. A shaft: sure, it’s not very appealing visually. But honestly, there are much worse things. You can live quite well with that; it’s something you get used to seeing or simply ignore. When planning and building yourself, you pay attention to these details, but even in million-dollar projects, visible shafts exist.
What might seem like unshaped walls and ceilings can also be viewed as an opportunity for built-in features, customized storage solutions, and decorative elements. There’s no need to rush back into the real estate market only to end up accepting other “underperforming” aspects for the same price.
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