ᐅ Initial Meeting with the Developer – First Figures…

Created on: 5 Aug 2019 21:58
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Newcomer123
Hello dear forum members,

I’m still quite unsure whether it’s better nowadays to build with a developer or with an architect. We are currently gathering house construction offers.

A short introduction about us:

We are currently a household of four. We will purchase the plot from our own funds, including property transfer tax and notary fees (no commission applies). The plot size is about 600 m2 (approximately 6,460 sq ft). The plot is designated as a building site and is fully developed (a building permit / planning permission could be obtained in 3-4 weeks). We only need to arrange the connection to the utility shaft (which is not far away).

Our wishes for the house:
A 1.5-story house (about 120 - 130 m2 (1,290 - 1,400 sq ft)) with a pitched roof, with storage space in the attic.
Upper floor: 3 children’s rooms, bedroom, large bathroom.
Ground floor: open kitchen, dining and living area, guest bathroom, heating/utility room, possibly a storage room behind the kitchen.
Underfloor heating throughout, corner bathtub, anthracite-colored roof as well as anthracite-colored windows, shutters on the windows. We want to build a double garage ourselves step by step, only the foundation slab should be poured professionally. No fireplace, no basement. We want to build solidly and cost-effectively but with good quality—so not the cheapest of the cheap, but no extravagant features like golden faucets either.

We plan to do the exterior landscaping, painting and wallpapering work, as well as floor coverings (except tiles) and the garage (except for the foundation) ourselves later on.

We already visited an architect who couldn’t provide exact figures yet, as he first wants to develop the floor plan with us. We also met with a developer (Town & Country). In the first meeting, they already gave us figures. Now we are skeptical whether these numbers are realistic or just nicely calculated. We are also uncertain whether to build with a developer or an architect. We have heard a lot of stories about poor workmanship by developers, and that contracts often have loopholes. So far, we have not heard any negative feedback about Town & Country regionally, so we had a first consultation with this developer. The salesperson was very friendly and patiently explained many things, but of course, they also want to make a sale. We now believe that the numbers may have been presented too favorably. Therefore, we are asking experienced builders for advice on whether this looks realistic so far...

The following was calculated in the first meeting: (We emphasized that we do not want additional financing later and therefore don’t want the calculation to be too tight.)

Construction and ancillary costs:

Our house with Town & Country (Lichthaus) with the mentioned rooms and special requests (house color: light yellow (possibly another color, just an example), underfloor heating throughout, corner bathtub, anthracite-colored roof, anthracite-colored windows, shutters on the windows)

€199,170

Connection fees and costs (water, wastewater, electricity, gas, sewer connection): €10,000
Cost for foundation reinforcement, foundation height increase: €5,000
Soil excavation removal: €1,000
Construction water and power connection: €1,000
Materials for wallpapering and floor coverings: €5,000
Materials for the exterior landscaping: €5,000
Garage 6x8 m (20x26 ft) foundation slab: €8,000
Site plan, staking out, permit fees, other fees: €3,500
Interest during construction period: €2,500
Contingency for selections, kitchen: €10,000
Additional notary fees: €1,000

Total costs: €251,170

This would be the loan amount we would need to take out. Own work and the plot are already deducted.

Sounds pretty good overall, but we are skeptical whether the numbers are just presented too nicely or if something is still missing.

For example, where exactly are the surveying costs accounted for? All included in the €3,500? Is that realistic?
I’ve often read online that the cost for construction water and power connection is usually around €2,000. What exactly do they mean by connection here? I thought this referred to the consumption during construction. The plot should already be connected with the calculated €10,000, right?
Also, we wanted to plan €10,000 for the kitchen. That means there is €0 contingency for selections included. I think you usually need to budget at least another €10,000 for fittings. He always said they already have nice standards and if we don’t want golden faucets, this should be sufficient. According to my online research, however, these standards are often very basic and not always very attractive. Of course, we don’t want golden faucets or exaggerated features, but it should be a bit nice, so you’d still want to budget some contingency for selections...

Is something missing in the above initial overview, or is the estimate really too low? I appreciate your experience, feedback, and tips. Also regarding the developer Town & Country.

Best regards
Y
Yosan
6 Aug 2019 07:05
We are currently building with Town & Country and already received an initial estimate during our first meeting. It was only slightly adjusted here and there afterward but mostly left as it was, and so far everything is going according to plan. However, I believe the costs were estimated higher than in your case. I can check that again tonight. At least for the construction site electricity, I’m quite sure they assumed 2000 or 2500. And of course, there was also a contingency buffer for selections.

Regarding the selections, I have to say we were positively surprised by many of the additional costs and in some areas, we didn’t add any upgrades at all. So, if you don’t have any special requests, 10,000 should be more than enough. For us, that was sufficient even though we spent 4000 € alone on roof tiles.
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Newcomer123
6 Aug 2019 07:44
Yosan schrieb:

We are currently building with Town & Country and already received a cost estimate during our first meeting. It was only slightly adjusted here and there afterward but mostly stayed the same, and so far everything has worked out. However, I believe the costs were estimated higher than yours. I can gladly check tonight. At least for the construction electricity, I’m sure they assumed 2000 or 2500. And of course, there was also a buffer for selections.
Regarding the selections, I have to say we were positively surprised by many of the additional charges and in some areas didn’t select any extras at all. So if you don’t have specific wishes, 10,000 should be more than enough. For us, even with 4000€ just for the roof tiles, it was sufficient.

You are giving me hope. Just because you want to build in a down-to-earth and sensible way doesn’t mean it has to be a cookie-cutter house. Even a smaller house can turn out beautiful. It would be very kind if you could look for your breakdown tonight. I think there were indeed some items underestimated here and there. We prefer having a bit of a buffer for unforeseen events, which occur in every house construction project.
kaho6746 Aug 2019 08:47
Newcomer123 schrieb:

Just because you want to build in a practical and sensible way doesn’t mean it has to be a standard cookie-cutter house. Even a smaller house can turn out beautifully.

Here, 99% of people want to build something practical and down-to-earth.
Maybe you could simply show us the house you chose from Town & Country? So far, the size you mentioned doesn’t seem to match your requirements. Could it be that you made a typo there?
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HilfeHilfe
6 Aug 2019 09:32
Newcomer123 schrieb:

You’re giving me hope again. Just because you want to build practically and sensibly doesn’t mean it has to be a cookie-cutter house. Even a smaller house can turn out beautiful. It would be very kind if you could look up your breakdown this evening. I think that in some areas the estimates might have been set too low. We prefer having a bit of a buffer for unforeseen events, which happen with every house construction.

Yes, but at the beginning you mentioned an architect… and that definitely costs more.
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Newcomer123
6 Aug 2019 09:53
ypg schrieb:

Are you confident you can handle the planned DIY work?

We have often done painting and wallpapering ourselves and have experience in these areas. We have also installed laminate flooring on our own. Of course, we won’t build the garage ourselves; we will have it constructed later!
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Nordlys
6 Aug 2019 10:03
The costs are realistic.
What will be added: the standard tiles and standard bathroom from T and C won’t satisfy you, so you’ll spend an extra one to two thousand more. Then there will be about another 1,000 for a few sockets and similar. Possibly a satellite system. The kitchen can actually be cheaper. Skip the architect and go with T and C. The architect will be more expensive and in the end won’t get any contractors, because many companies nowadays don’t want to work with architects anymore, out of resentment since they used to be difficult and flooded them with paperwork and annoyed them with a thousand site meetings. K.