Hello everyone,
we are looking for advice on what the typical process of building or buying a house from prefabricated house manufacturers should look like.
Our story: About 12 weeks ago, we decided to invest in a home for our family with two children. Our initial online research showed that something might be possible within our budget, specifically with a prefabricated house provider. Our next step was to visit a smaller model home park nearby. There, we met a very friendly and, from our layman’s perspective, seemingly competent salesperson from prefabricated house provider O (we’ll just call them that). He asked about our budget (which we had roughly calculated with our bank beforehand) and ran some numbers. He finally told us that with our price expectations (based on internet research and our own ideas of a house) and planned personal contributions, it might just work. BUT: there was a 3.5% price increase coming this month (January 18) — he showed us the calculation to emphasize how much money we would lose if we didn’t act quickly. He then presented a document for us to sign. It was a letter guaranteeing the current price according to the official price list but giving us the right to withdraw if we did not secure the chosen plot of land (which was still up for public tender) or if financing fell through. Regarding financing, he also said he had an ace up his sleeve and wanted to lock us in with an on-site appointment with an (of course) independent financial broker who would work for us free of charge. We felt rushed — this was supposed to be the first conversation. We thought it was unbelievable — provider O was off our list.
What can I say — other providers had a similar approach, as we found out during other model home visits. At provider F’s model home in Fellbach, we found exactly the house we had imagined in terms of layout. The salesperson, also very business-minded, made a good impression, but our enthusiasm quickly vanished when he urged us to sign the construction contract because of the current price increase (February 2018). To top it off, he wanted to print the offer he had just calculated at the computer and backdate it by 14 days — his reasoning: legally, the customer must have at least 14 days to review the offer and possibly revoke it. Since the price increase deadline was already past, we could not wait the full 14 days but only until the next day. WHAT??? Is that even allowed? Candidate number two also dropped off our list of serious providers.
Our last visit to a model home nearby was with provider B, which was our second appointment there. During the first contact, the salesperson took a lot of time, and we talked for two hours about possible house options based on our wishes. He calculated what we could afford based on our current income situation but did not give us a concrete price. He promised to clarify this and present initial plans by the next appointment. To build what he called a “mutual basic trust” (after all, we could tell stories about what the bank said we could afford), he insisted we speak beforehand with an independent mortgage broker to establish the actual financing framework. Overall, we had high expectations of company B, as the first meeting was pressure-free and online research was almost exclusively positive. A recent test comparing fair prefabricated house manufacturers reinforced our positive impression — this seemed like a fair and honest partner. However, at the end of today’s appointment, this provider also wanted us to secure the current prices and save 30,000 euros (around $33,000) by signing a construction contract. Of course, we would sign an addendum in case we did not find a plot or financing fell through. We have not yet seen an offer or house plans. He said he would prepare those only at the next meeting, which was supposedly urgent. He did not keep the promises from the first visit.
We are now honestly wondering if it is common to sign a construction contract even though
A) I have not secured a plot yet (which can significantly affect the actual costs)
B) I do not have concrete financing plans (we definitely do not want to exclude the option of the L-Bank loan — all financial advisers actually advise against it!)
C) Or even have seen an offer with the provider’s prices and service details???
To us, this just feels like a scam. I myself work in sales, and my clients would tell me off if I used such methods. Signing first and then seeing what services you actually receive from me...
How do we find a reputable provider who enables a “normal” house-building process? Are we possibly approaching this the wrong way? Who has had similar experiences, and how did it turn out?
I want to make it clear that I do not generally object to being informed about possible price increases — in fact, I see it as a sign of competence when a salesperson informs customers of major changes. But the way they pressure us into signing is very off-putting.
How can we get offers to compare without ending up at the “contract table” facing binding attempts every time?
We would be very grateful for advice, experiences, or guidance from other homebuilders.
Best regards
we are looking for advice on what the typical process of building or buying a house from prefabricated house manufacturers should look like.
Our story: About 12 weeks ago, we decided to invest in a home for our family with two children. Our initial online research showed that something might be possible within our budget, specifically with a prefabricated house provider. Our next step was to visit a smaller model home park nearby. There, we met a very friendly and, from our layman’s perspective, seemingly competent salesperson from prefabricated house provider O (we’ll just call them that). He asked about our budget (which we had roughly calculated with our bank beforehand) and ran some numbers. He finally told us that with our price expectations (based on internet research and our own ideas of a house) and planned personal contributions, it might just work. BUT: there was a 3.5% price increase coming this month (January 18) — he showed us the calculation to emphasize how much money we would lose if we didn’t act quickly. He then presented a document for us to sign. It was a letter guaranteeing the current price according to the official price list but giving us the right to withdraw if we did not secure the chosen plot of land (which was still up for public tender) or if financing fell through. Regarding financing, he also said he had an ace up his sleeve and wanted to lock us in with an on-site appointment with an (of course) independent financial broker who would work for us free of charge. We felt rushed — this was supposed to be the first conversation. We thought it was unbelievable — provider O was off our list.
What can I say — other providers had a similar approach, as we found out during other model home visits. At provider F’s model home in Fellbach, we found exactly the house we had imagined in terms of layout. The salesperson, also very business-minded, made a good impression, but our enthusiasm quickly vanished when he urged us to sign the construction contract because of the current price increase (February 2018). To top it off, he wanted to print the offer he had just calculated at the computer and backdate it by 14 days — his reasoning: legally, the customer must have at least 14 days to review the offer and possibly revoke it. Since the price increase deadline was already past, we could not wait the full 14 days but only until the next day. WHAT??? Is that even allowed? Candidate number two also dropped off our list of serious providers.
Our last visit to a model home nearby was with provider B, which was our second appointment there. During the first contact, the salesperson took a lot of time, and we talked for two hours about possible house options based on our wishes. He calculated what we could afford based on our current income situation but did not give us a concrete price. He promised to clarify this and present initial plans by the next appointment. To build what he called a “mutual basic trust” (after all, we could tell stories about what the bank said we could afford), he insisted we speak beforehand with an independent mortgage broker to establish the actual financing framework. Overall, we had high expectations of company B, as the first meeting was pressure-free and online research was almost exclusively positive. A recent test comparing fair prefabricated house manufacturers reinforced our positive impression — this seemed like a fair and honest partner. However, at the end of today’s appointment, this provider also wanted us to secure the current prices and save 30,000 euros (around $33,000) by signing a construction contract. Of course, we would sign an addendum in case we did not find a plot or financing fell through. We have not yet seen an offer or house plans. He said he would prepare those only at the next meeting, which was supposedly urgent. He did not keep the promises from the first visit.
We are now honestly wondering if it is common to sign a construction contract even though
A) I have not secured a plot yet (which can significantly affect the actual costs)
B) I do not have concrete financing plans (we definitely do not want to exclude the option of the L-Bank loan — all financial advisers actually advise against it!)
C) Or even have seen an offer with the provider’s prices and service details???
To us, this just feels like a scam. I myself work in sales, and my clients would tell me off if I used such methods. Signing first and then seeing what services you actually receive from me...
How do we find a reputable provider who enables a “normal” house-building process? Are we possibly approaching this the wrong way? Who has had similar experiences, and how did it turn out?
I want to make it clear that I do not generally object to being informed about possible price increases — in fact, I see it as a sign of competence when a salesperson informs customers of major changes. But the way they pressure us into signing is very off-putting.
How can we get offers to compare without ending up at the “contract table” facing binding attempts every time?
We would be very grateful for advice, experiences, or guidance from other homebuilders.
Best regards
Reisefee, please do this for real: go to a local general contractor. It won’t be more expensive—you are already paying for all the distribution, model home centers, the thick colorful brochures, and the commissions of the pushy salespeople with the big companies anyway. Also, the builder from the neighboring town isn’t any better. The chance of finding local craftsmen who will still be available for service later is high, and the chance of getting a contractor who not only wants your signature and money, which is true, but also satisfied customers, is equally high. Karsten
R
Reisefee8126 Mar 2018 20:12Caspar2020 schrieb:
Have any of you actually received a detailed scope of work from one of the prefab house manufacturers?So far, none at all!!!! As I said, O, F, and B are now out of the running...
Reisefee81 schrieb:
How can I find a reputable provider who offers the "standard" house-building process? Are we possibly approaching this the wrong way? Has anyone had similar experiences, and how did it turn out?
How can we get quotes to compare providers without ending up at the "contract table" facing pressure tactics?
We would really appreciate any tips, experiences, or procedures from other homebuilders.
RegardsWe first bought our plot of land; before that, we had only looked around a bit and thought about what we wanted. Then we went to various brick-and-mortar house builders (somewhat cheaper than timber-frame prefabricated houses) and had them prepare quotes based on a floor plan we brought ourselves, according to their respective scope of work descriptions. We also mentioned our preferences (different roof tiles, higher ceilings, taller doors and front door, etc.) and received floor plans and prices. In the end, we chose the builder we had worked with before, refined the floor plan further, and received revised quotes via email multiple times, which we were able to review calmly at home. After about four months, when everything was in order, we signed a contract without being pressured. That’s how we would do it again, even though I doubt we’ll build a third time.
I would never sign a contract without owning a plot of land first, and I would not sign anything without receiving an exact floor plan beforehand.
Best regards,
Sabine
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