ᐅ Searching for a Plot in Bonn. Questions About Purchasing Land.
Created on: 19 Jun 2013 12:26
G
GHeymann
Hello forum members,
After searching for a suitable construction method and project management for some time and having spoken with several companies, I find myself more uncertain than at the beginning!
I want to build a house near Bonn for my son. To do this, I have been looking for suitable plots through various real estate portals. Usually, the attractive plots are offered by developers. Here is my first question: some providers said that the advertised plot could only be purchased together with building a house from their company and requested that I sign a contract first. Others want at least an initial consultation before sharing detailed information about the plot. Is this approach even legally permissible? And if I sign such a contract, can I withdraw from it free of charge if I decide I don’t want the offered plots? (I am asking from a legal perspective, not from the companies’ point of view, where it is probably not possible or only with restrictions.)
The next topic that puzzled me a lot is the pricing structure. When I look at the offers I have, the price per square meter of living space varies from €1340.00 to nearly €1700.00 per m² (approximately $145 to $185 per sq ft). Depending on the provider, slightly more or fewer services are included, but not significantly. For example, with one provider, a foundation survey is included, and they use supposedly better materials. I read somewhere online that building a house in solid construction (standard pitched roof without basement, with mid-range fittings, 120–140 m² (1300–1500 sq ft) living space) should not cost a company more than €980.00 per m² (about $105 per sq ft) excluding VAT from equity capital. Accordingly, the “gross margin” for the companies would be between approximately €150.00 and €500.00 per m² (about $14 to $46 per sq ft). How can this be explained?
One provider explained to us that the basic house itself is not expensive, but most clients’ customization of fittings leads to considerable additional costs. That’s why they do not prescribe specific features but rather work with budgets. This way, as a customer, I can decide myself how expensive my tiles or bathrooms will be. If you deduct these packages, the actual house is not really expensive. I found this idea very interesting, and indeed the basic house is not “that expensive.” Unfortunately, this provider is rather in the upper mid-range, even with the option for package-based fittings.
Ultimately, I am now wondering whether it would even make sense to develop "our" house together with an architect and then carry out the tender process myself with project management support. That would be similar to the fittings package concept from one provider, but covering all parts of the house construction.
What do you think is a sensible approach? A developer who also takes responsibility for warranties, or project management where I might have to chase my requirements across various companies myself?
One more thing about security (which I also found interesting). Almost all companies offer various homebuyer protection packages. In my opinion, some of these are not worth the paper they are printed on. Only three companies work with well-known providers in this area. Some of these packages are additionally charged. However, one company includes homebuyer insurance (liability, etc.) and a warranty insurance with TÜV or DEKRA supervision in the basic house price. But a completion guarantee is also charged separately. Another company included a builder’s guarantee from R+V. If you use a developer, should you definitely opt for such a package?
Right now, I feel overwhelmed and can’t see the forest for the trees.
Any ideas, suggestions, help???
Many thanks and sunny days.
GHeymann
After searching for a suitable construction method and project management for some time and having spoken with several companies, I find myself more uncertain than at the beginning!
I want to build a house near Bonn for my son. To do this, I have been looking for suitable plots through various real estate portals. Usually, the attractive plots are offered by developers. Here is my first question: some providers said that the advertised plot could only be purchased together with building a house from their company and requested that I sign a contract first. Others want at least an initial consultation before sharing detailed information about the plot. Is this approach even legally permissible? And if I sign such a contract, can I withdraw from it free of charge if I decide I don’t want the offered plots? (I am asking from a legal perspective, not from the companies’ point of view, where it is probably not possible or only with restrictions.)
The next topic that puzzled me a lot is the pricing structure. When I look at the offers I have, the price per square meter of living space varies from €1340.00 to nearly €1700.00 per m² (approximately $145 to $185 per sq ft). Depending on the provider, slightly more or fewer services are included, but not significantly. For example, with one provider, a foundation survey is included, and they use supposedly better materials. I read somewhere online that building a house in solid construction (standard pitched roof without basement, with mid-range fittings, 120–140 m² (1300–1500 sq ft) living space) should not cost a company more than €980.00 per m² (about $105 per sq ft) excluding VAT from equity capital. Accordingly, the “gross margin” for the companies would be between approximately €150.00 and €500.00 per m² (about $14 to $46 per sq ft). How can this be explained?
One provider explained to us that the basic house itself is not expensive, but most clients’ customization of fittings leads to considerable additional costs. That’s why they do not prescribe specific features but rather work with budgets. This way, as a customer, I can decide myself how expensive my tiles or bathrooms will be. If you deduct these packages, the actual house is not really expensive. I found this idea very interesting, and indeed the basic house is not “that expensive.” Unfortunately, this provider is rather in the upper mid-range, even with the option for package-based fittings.
Ultimately, I am now wondering whether it would even make sense to develop "our" house together with an architect and then carry out the tender process myself with project management support. That would be similar to the fittings package concept from one provider, but covering all parts of the house construction.
What do you think is a sensible approach? A developer who also takes responsibility for warranties, or project management where I might have to chase my requirements across various companies myself?
One more thing about security (which I also found interesting). Almost all companies offer various homebuyer protection packages. In my opinion, some of these are not worth the paper they are printed on. Only three companies work with well-known providers in this area. Some of these packages are additionally charged. However, one company includes homebuyer insurance (liability, etc.) and a warranty insurance with TÜV or DEKRA supervision in the basic house price. But a completion guarantee is also charged separately. Another company included a builder’s guarantee from R+V. If you use a developer, should you definitely opt for such a package?
Right now, I feel overwhelmed and can’t see the forest for the trees.
Any ideas, suggestions, help???
Many thanks and sunny days.
GHeymann
Hello forum members,
After a stressful three weeks, I am back in the country. Despite everything, I was able to use the time to carefully review all the information I have. Thanks to your suggestions and advice, I have made some progress. Two providers are emerging as options, with one being my favorite because it includes—at least partially—the recommendations I have received.
@Bauexperte: I want to return to what I said before my time abroad. Since apparently companies should not be discussed here, I will send you the rest in a private message (or email).
Many thanks to everyone at this point. I will definitely continue to recommend this forum. And if I come across any interesting developments during the implementation of the project, I will be happy to share them here.
Wishing you all sunny days
GHeymann
After a stressful three weeks, I am back in the country. Despite everything, I was able to use the time to carefully review all the information I have. Thanks to your suggestions and advice, I have made some progress. Two providers are emerging as options, with one being my favorite because it includes—at least partially—the recommendations I have received.
@Bauexperte: I want to return to what I said before my time abroad. Since apparently companies should not be discussed here, I will send you the rest in a private message (or email).
Many thanks to everyone at this point. I will definitely continue to recommend this forum. And if I come across any interesting developments during the implementation of the project, I will be happy to share them here.
Wishing you all sunny days
GHeymann