ᐅ Construction of an approximately 190 sqm urban villa in Hesse (Wetterau district)

Dear Homebuilding Community,

First of all, thank you very much for the countless tips and suggestions from all of you. I have been visiting this forum for many years and have always greatly benefited from it.

Accordingly, I would like to give something back by sharing our building project here. However, this is not entirely selfless—I welcome advice and recommendations.

For about 10 years, I have been searching for a house and have viewed many existing properties. Building was initially not an option, as plots were either unavailable or far too expensive. So far, I haven’t found the ideal house, but nearly 10 years ago I bought my first condominium and then a second one two years ago. Both apartments are now rented out, currently almost breaking even, and in about a year they will start generating income.

Fortunately, we have now purchased a plot in a new development area and, despite the challenging situation, want to fulfill the dream of owning our own house.

A few details about us:

• 2 adults (40 years / 38 years), two children (elementary school age)
• Net income including child benefits about 8000 euros
• Rental income of approximately 1800 euros (currently nearly cost-neutral, from next year about 400 euros monthly profit, significantly more in the medium term as loans are gradually paid off)
• Budget 850,000 euros (financing for the house construction is secured)
• Land purchase costs including additional fees about 280,000 euros, already acquired
• The apartments only make sense tax-wise when owned together and are not intended for sale. The budget could probably be increased slightly if necessary.

About the house:

• KfW55 standard is sufficient for us and is also being offered
• Urban villa on a slab foundation with porch, heat pump, photovoltaic system
• Possibly with a small bay window at the front door and on the garden side
• Ground floor with living room, open kitchen, utility room, study, guest toilet/shower
• Upper floor with 2 children’s rooms, master bedroom, 2 bathrooms, guest room
• Ceiling height 2.80 m (9 ft 2 in), electric roller shutters
• Detached double garage

Regarding the budget for the house:
About 570,000 euros remain, we are estimating around 60,000 euros for additional construction-related costs.
Outdoor work will be done gradually by ourselves, a garage could also be postponed.
We therefore need a builder who can construct a house for about 470,000 euros. This is quite ambitious for the desired size. We have had many discussions at model homes, and most providers come in at a minimum of 500,000 euros.

Offer 1:
We have chosen a small regional builder who would construct a shell house in solid construction with Liapor (lightweight concrete). The price is fair for the quality offered and would be sufficient for us. However, we would only have a fixed price for the shell house. The remaining trades would be supervised by this builder but carried out by partner companies, and I believe fixed price guarantees here are unrealistic. Ideally, we would stay within budget, but the buffer would be very tight, and the outdoor areas and garage might initially be at risk or very minimal.
Here is my first question for you: The builder basically suits us, but we are unsure whether it is wise to forgo fixed prices due to war, inflation, and material shortages. While I see some chances for stable or even slightly lower prices due to a slowdown in construction orders, the inflation risk from the energy crisis might still dominate for now. Would you currently take such a risk?
A house potentially costing 1 million euros due to cost increases is really out of budget and, combined with rising interest rates, could become a long-term burden. It wouldn’t ruin us, but we would likely have to sell the (really nice) condominiums then.

Offer 2:
The alternative: A very large provider from a parent company that almost everyone here probably knows. Premium within the group, but overall very much focused on good value for money. Timber frame construction—not our favorite since we prefer solid construction—but based on information from this forum, I would probably be satisfied with this construction method in the end.
We received a good price offer there, close to 400,000 euros. After selecting many extras and special requests, I still ended up at about 450,000 euros. Not all line items are comparable with the first offer, but some things are included here that are not yet priced in the first offer.
With additional construction costs, outdoor work, and a double garage, we are still within the budget and could even spend around 20,000 euros more on selections.
There are positive reviews of this provider but also some very critical comments. Given the large number of houses they build annually, the number of critics may be appropriate in absolute terms, but you could certainly be one of them.
My further questions for you: How do you assess the risk of being let down by such a large provider? Would you choose a builder with a large budget who does not necessarily have a reputation for delivering houses to the highest standard? I do not intend to sell the house again, but future property valuation plays a role in refinancing at follow-up financing. If the house ever needs or should be sold, some buyers might be put off by the construction method or the original general contractor. Has anyone built with this provider or lives in one of their houses?

Floor plan designs are quite advanced and have been optimized multiple times. The development area is ready, and as financing is secured, construction should start soon. The second offer will expire soon, so the main decision now is basically for or against the second offer. With the first offer, it would still be possible to request new comparison offers. If we choose the second provider, we need to decide soon.

Thank you very much for any tips and recommendations. I am happy to provide further information.

190 sqm (2,050 sq ft) for 400k?
There must be a catch, or you have found the only general contractor who still builds at such prices.

Have you had the scope of work reviewed to see what might be missing?
Could you share a floor plan?

SoL schrieb:

190 sqm (2,045 sq ft) for 400k?
There must be a catch, or you have found the only general contractor still building at those prices.

Have you had the scope of work checked to see if anything is missing?
Show a floor plan if you can.

I’m unsure what I’m allowed to share here according to the forum rules or what the provider would permit uploading due to copyright.

Net living area of 186.54 sqm (2,009 sq ft). House price 380,900 euros. There was also a promotion that further lowered the price. The heat pump and photovoltaic system were not included in the price yet; those costs were additional. The house comes turnkey with floors and walls. That was apparently a price from last year that, for some reason, wasn’t updated. The other houses from this provider are all at least 50k more expensive.
I have read the scope of work description but haven’t had it professionally reviewed. It’s the provider’s standard 80+ page document that applies to all their houses. There are a few points I still want to clarify, but nothing major.

Honestly? I don’t think your budget matches the house size anymore. Therefore, I believe there are still some hidden costs, or every change leads to a significant additional charge. I can’t imagine that the second general contractor is still voluntarily offering prices from last year. Something doesn’t add up.

Ysop*** schrieb:

To be honest? I don’t think your budget matches the size of the house. Not anymore.
That’s why I suspect there are some hidden costs, or every change ends up with a significant additional charge. I can’t believe the second general contractor is still voluntarily offering last year’s prices. Something doesn’t add up there.

Yes, we originally planned about 160 sqm (1,722 sq ft), but without a guest room and with a smaller living room.

Can I ask in the relevant section of the forum about current user experiences with this provider regarding this type of townhouse? Then I can also provide the name so you can look up the price and the construction service description online.

And yes, I was skeptical too and had the quote prepared and then signed it. Now I’m trying to find a way out within the cancellation period. The provider is priced among the cheaper ones, currently advertising on their website, for example, a house with 154 sqm (1,658 sq ft) for $350,000.
I assumed the quality might not quite match that of other providers. But maybe prices are simply starting to adjust? After all, not many people really want to build anymore with the increased interest rates.

Where is the price for the shell house? And would you need to tender and hire the companies for the interior finishing yourself?