ᐅ Stopping or pausing a home construction project? Costs too high

Created on: 23 Nov 2021 12:06
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Coffee82
Good morning,

My husband and I want to build a house.
We already have the plot of land. We are now facing an unpleasant situation.

We planned the house roughly with an architect, which went very quickly.
No building permit / planning permission has been applied for yet, and no detailed execution plan has been made.
The architect provided a cost estimate that surprised us a lot.
Of course, we had previously asked acquaintances, friends, and family members about the costs of their construction projects.
Obviously, we only considered recent projects.
The architect’s estimate is more than double what we initially expected—around 4500-5000€/sqm (420-465 USD/sqft).

After this, we consulted a few others locally and two from a bit further away. Everyone seems to agree on the construction costs.
I’m not allowed to share the documents here, but there is really nothing unusual. It’s a KW40+ house with 198 sqm (2132 sqft) of living and usable space, plus a double garage attached to the left side of the house. Of course, no basement.
The specifications given to the architect were average and typical. No marble floors, no smart home features. A simple house like my uncle’s, just new.

It looks like the house will cost around 1 million euros. On top of that, of course, there are additional costs such as fees for the architect, landscaping, etc. Together with the land, the total is so high that we neither can finance it nor afford to pay it.
Unfortunately, the architect had to do quite some work before he could estimate the costs.

Now we are worried that if we cancel the project, the architect will want 15,000 to 20,000 euros for the work he has already done.

What would you do in our place?

Best regards,
Coffee82
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hampshire
29 Nov 2021 13:59
doubleTT schrieb:

Nice post! It’s surprising how quickly seemingly “small” details can push the price into the five-digit range, whereas a few years ago they might have only been in the four-digit range.
As a layperson, it’s often difficult to imagine what is expensive and what is not. This can lead to situations where wishes that seem quite “modest” actually consume enormous amounts of money. It’s easy to misjudge that.

I find the use of the term “sacrifice” amusing in this context, as if something one is entitled to is being taken away. The focus is placed on what one would like to have but cannot realize. This causes people to feel deprived while fulfilling the dream of owning a home. How odd is that?

Someone complaining that they can only afford a 300-hp car and would prefer a 600-hp model will hardly get much sympathy. Likewise, someone building a house without a pantry, dressing room, garage, and with unfinished landscaping has reason to be happy and shouldn’t complain that rising prices prevented them from fulfilling every wish.
11ant29 Nov 2021 14:23
hampshire schrieb:

Anyone building a house without a pantry, walk-in closet, garage, and with unfinished landscaping has a reason to be happy and shouldn’t complain that rising prices prevented them from fulfilling every wish.

But those who prefer to be unhappy and even feel sorry for themselves insist on the belief that every new “Neuschwanstein” must be built in a single construction phase. And this, even though many of the homebuilders here discussing their bling-bling mansions weren’t even born when Gitte’s “I Want It All” was in the charts (1982) 🙂
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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haydee
29 Nov 2021 14:35
Every builder experiences the moment when their wishes and budget don’t match. A list of cutbacks is also common. I often smile thinking about many of the things we eliminated—it’s not really about missing out, just that one light switch.

If I haven’t missed it, the original poster hasn’t provided a list that explains the cost.

The floor plan expert, ypg, offered to look for cost drivers, and as for the fittings, one can only guess.

@Coffee82
Review your space plan and the fixtures you want. Look for ways to save money.
Define each item as essential, nice-to-have, or dispensable.
Ask yourselves if there are cheaper alternatives. A store-bought showerhead cleans just as well as an in-wall oversized rain shower.
Don’t reduce the number of outlets and switches right away; start by choosing a simpler switch system.
There are often options if you’re flexible with your preferences.
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Myrna_Loy
29 Nov 2021 14:58
haydee schrieb:

Every homeowner will eventually realize that their wishes and their budget do not always align. A list of items to cut is common, too. Looking back at many of the things we removed, I can only smile. Nothing is really missing—except maybe that one light switch.
If I haven’t missed it, the original poster hasn’t provided a list that explains the price justification.

The floor plan was offered by ypg to review the cost drivers, and the finishes can only be guessed.

@Coffee82
Review your room program and your finishes. Look for savings opportunities.
Define each item as necessary, nice to have, or dispensable.
Ask yourselves if there are cheaper alternatives. A showerhead from a hardware store cleans just as well as a built-in XXL rain shower.
Don’t reduce the number of outlets and switches, but start with a basic switch program.
There are often options if you are flexible with your expectations.

That said, I recommend not cutting too much on things that are difficult or expensive to replace later. This includes, for example, floor coverings and windows.
Hangman29 Nov 2021 15:02
Is @Coffee82 still around? Given the scale mentioned at the beginning, it’s clearly not just about the choice of switch types and showerhead models. I’d boldly claim that over 80% of the costs are determined by the design itself. If you get too creative with building recesses and projections, bay windows, dormers, corner glazing, unnecessary circulation areas, site layout including access routes, and possibly terrain modeling, then a trip to the hardware store won’t make much difference. Also important nowadays (even though this topic is debated here) are insulation standards, building services, and the associated level of subsidies.

When building became a topic for us, I first devoured books about compact and low-budget building. We didn’t end up doing either, but you get a good sense of what to watch out for. An outstanding positive example of what can be achieved through consistent cost optimization, while still (or precisely because of that!) creating an individual, beautiful, and functional house, for me, is https://www.hausbau-forum.de/threads/unser-entwurf-fuer-ein-guenstiges-haus.34041/post-535325
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Benutzer200
29 Nov 2021 15:18
Hangman schrieb:

Is @Coffee82 still active?
Up to page 22, @Coffee82 was diligently reading everything. Then they left the discussion, as no expected responses came...