ᐅ Experiences with Building a Shell House on a Plot of Land

Created on: 27 Apr 2021 17:34
J
johbis2310
Dear forum members,

I am new here and impressed by the many very helpful posts. My partner and I might have the opportunity to acquire a building plot owned by a construction company. The condition for acquiring the plot is that you build a shell house in solid construction with this company. The shell house is custom-designed and includes the basic structure with foundation slab, windows, insulation, exterior rendering, utility connections for water and electricity, etc. Trades such as heating, interior doors, screed, staircase, flooring, bathroom, and interior finishing are not included. We would need to complete these after the shell house is finished. As an approximate price indication, they mentioned 1,300 - 1,600 per square meter (10.8 - 14.9 per square foot) of living space for the shell house. For the interior finishing, which is not included, they estimate €120,000 - €150,000 on our side for about 180m2 (1,938 sq ft) of living space.

Our questions: Has anyone had experience with such a concept—shell house/shell construction by a company versus organizing the interior finishing yourself? How was your experience? We are somewhat skeptical since it is not a full turnkey solution and the overall cost estimation seems difficult. What are your thoughts?

Additionally, we would need a second designer or architect because we are unable to coordinate the interior finishing professionally or time-wise ourselves. How have you handled this in similar situations?

Many thanks in advance for your feedback!!!!!!
J
johbis2310
29 Apr 2021 15:57
Thank you for the messages.
11ant schrieb:

Then the good news is that it is at least not a short sale – but the bad news is that real estate transfer tax must also be paid on the building – in this case, of course, not on the finishing work as well. If the provider is a supporter of the two-company scam theory, then they are not trustworthy and do not deserve to do business with you. Tax authorities are organized in such a way that this trick cannot work anywhere – except through illegal actions by the builder.

Yes, I believe that too. It was especially advertised that the real estate transfer tax only applies to the land. But I do not think that is correct.
Altai schrieb:

Has it become clear now?

Yes, thank you for the details.
11ant schrieb:

Warranty, yes, also: the finishing trades cover much of the shell construction, which of course means defects become visible only with delay. But you can counter this by having your own expert carry out an inspection of the shell construction. The simple trick is rather that it is easier to make money on the shell construction: while finishing work is more fiddly and time-consuming, and actually involves more added value, the shell construction disproportionately contributes to the fact that the builder can already "recognize a house." Additionally, many finishing trades are ones that even renovators or tenants have dealt with and feel more confident about profiting from price competition. Taken together, these two aspects lead to the builder underestimating the potential of the finishing trades and ultimately being willing to pay more for the shell construction than it really represents of the total house cost. If you specifically focus on “bargain hunters” and offer “shell construction only” or “only minimally extended shell,” it is easier to make money than on the shell part of a complete house. There is no easier prey than “price-conscious” smart shoppers. Simply put, a builder makes better profits from a complete house with higher-end specifications (and that target group), and better profits on shell construction (plus) with frugal specifications (and that target group).

As you describe it, I also see the risk of excessive costs here. The provider naturally tries to get as much as possible out of the shell construction, especially since they hold the land as leverage. A cost estimate for the finishing work is not so easy for a layperson.

Are there any further experiences from other users? Thank you!
11ant29 Apr 2021 17:11
johbis2310 schrieb:

As you describe it, I also see the risk of excessive costs here. The provider naturally tries to maximize profit from the shell construction, especially since they hold the land as leverage. For a layperson, it is not easy to estimate the costs for the interior finishing.

Are there any other experiences from the user community? Thanks!
Of course, there are several / many users here who have recently built or are at least in the quotation phase. Their information is transferable to the extent that they can provide a clear division between shell construction and interior finishing in their quotes: the fair price for the shell is the same as what a complete build would have cost up to the end of the shell stage.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
Baugrübchen1 May 2021 23:05
What I can offer you is a cost breakdown for the finishing trades. We are contracting freely, so the trade offers are itemized. We are building 167 sqm (1800 sq ft) in a one-and-a-half-story house.

Heating and plumbing (underfloor heating, Weishaupt split heat pump, bathroom fittings of above-average quality, installation): €49,000

Electrical (grounding, temporary construction power, wiring, all related services such as sockets, etc.): €14,000

Interior plaster, Q2 quality (425 sqm / 4573 sq ft) + 80 sqm (860 sq ft) smooth finish: €8,200

Drywall: €16,500

Painting (paint fleece, surface preparation, approx. 580 sqm / 6243 sq ft total): €9,000

Tiling (bathrooms, utility room, hallway, approx. 40 sqm (430 sq ft) floor + x sqm wall area, based on €35/sqm (3.25/sq ft) tile price): €11,000

Floors: remaining floor coverings (parquet) in finishing stage approx. €5,500

Screed: €4,600

Interior doors (solid wood, 12 doors, offer from finishing company, I will handle in finishing stage): €7,500

Window sills and stair treads on concrete staircase (slate, offer from finishing company, also finishing stage): €4,700

Total €130,000 (including VAT)

Extras:
Sauna €9,000
Kitchen €17,500

Please note that the quoted prices may vary by +/- 10% after on-site consultation. The offers come from local companies; I know most of the workers personally through sports, so many still include a 3% cancellation discount.

For context: We are building on Rügen Island, are local here, and the wage and cost level is significantly different from (almost all) more southern regions.

Hope this helps. If you have any questions, just ask. 🙂