250,000,- Implementation of the construction plan including all incidental costs?

If the salespeople in the model home parks or trade fairs or similar were to go around with realistic numbers at the first contact, almost all customers would run away immediately. My experience at such meetings was that it is actually only about getting your contact address, in order to subsequently delve deeper into planning and cost calculation there. As written above, if the salesperson had told you right away that under 350k it won't work... you would have had an honest statement but you would have politely said goodbye and thanked them for the information, but the salesperson would not have gotten anything to build on. And since house planning is so individual, a good cost estimate is not just done in 30 minutes. A building expert can certainly give you countless examples where customers showed a long face after their first cost estimate and disappeared never to be seen again.

Regards Ronny

Hello BratacDD,

For me, there is somehow a meaning behind this strategy. What does it bring to the seller to first lure the customer and win them over with an offer including a second meeting, if then the real numbers are revealed, which only THEN are discouraging for the customer?

Regards Campino

Hello Campino, with the progressing planning, you fall more and more in love with the project house construction. And then you slowly and quietly get introduced to the complete numbers. But usually, by that time, you are already so far into the planning that there are only two ways. Either you build with this provider or you give up entirely because the bank does not want to support the whole thing.

One more note about building a house with land purchase through the SAME provider:
Keep in mind that in this case, you pay the real estate transfer tax on the total amount (land + house). This can lead to a significant increase in additional costs. As far as I know, it is currently 5.50% in Saarland.
However, there are also providers who find a plot of land for you from the municipality or the like. You then buy the land directly from the municipality and only use the (often free) search service – of course, companies only do this if they are reasonably sure to get your signature.

The seller/employee also mentioned this. In that case, I am not buying the land together with the house. The company does not offer that. They only have a certain priority on specific plots where new buildings are planned through this provider. He also offered that if we see a plot of land where we are not sure if it is for sale, we should tell him its location. He would then find out who owns it and possibly make offers. But this is a method I personally would not use.

However, we are aware of the problem of the higher land transfer tax when the plot is sold TOGETHER with the house, as he pointed out to us. But thanks nevertheless for the hint.

It's not quite that simple with the real estate transfer tax "savings":

There must be 2 separate transactions that are also recognized as such by the tax office. In many cases, even when splitting into land purchase and house construction, a single transaction is assumed, which is then subject to taxation as a whole. Clever people have already bitten the dust there. For example, take a look at the BFH ruling of September 27, 2012 - II R 7/12, Bundessteuerblatt II 2013 page 86

Hello Die Toten Hosen fan,

My life partner and I are planning to break free from renting in the near future and get our own four walls. Until now, the plan was basically to buy a relatively new house. However, I didn’t want to completely ignore the possibility of building new, and at least get some information.

I don’t know how it is in Saarland, but here I get feedback from “new” building interested parties that the market for existing properties is pretty scraped clean and that the houses still left in the lottery drum are either way too expensive or require enormous renovation work. You should look into this and possibly consider a big item in your financing if it will be the existing property.

But – I am almost certain that this provider wears "Red," "Blue," or alternatively the color "Green" in their logo; the former is a franchiser, the other colors unite with a larger parent company under the roof of a holding. All advertise – especially the red one – that they stand up for the “little man.” Once the offer is on the table and you want to add one or the other extra (for most not really extra), all approach the usual construction prices.

Between 130 and 150 sqm
Plot between 400 and 600 sqm
Basement
Underfloor heating
Painter/turnkey

Otherwise, we had no special wishes regarding balconies, bay windows, or anything else; it was rather a first conversation for information. It should not be a city villa but a relatively “normal” one and a half story gable roof house.
Our budget, which we stated for everything together, was 250,000 euros.

Maybe I forgot to write that we want to build in Saarland, and the plot should not be near the larger cities like Saarbrücken, Saarlouis, or Perl. The plot prices in Saarland currently average around 90 euros per sqm, but the plot we are looking for (region-related) would probably be just below average.

Plot 500 sqm: TEUR 45
Single-family house, 140 sqm living space as KfW 70 efficiency house: TEUR 196 (on concrete slab; Saarland is somewhat cheaper in the outskirts regarding construction costs)
Additional construction costs: TEUR 35-40
Painting work in EL: TEUR 10
Floor coverings in EL: TEUR 10
Reserve for extras: TEUR 10
Garage (3 x 9): TEUR 10

All in all, this results in a total budget of TEUR 321.

You have to be careful about property transfer tax; the user "Allrounder" has already correctly pointed this out. It’s not that simple; there are also quite a few municipalities that only drop their intention to charge 5% on house and land once half a year has passed between land purchase and house construction. So inform yourself in this regard as well.

The employee’s statement was that “you can already do something about that,” which we imagined, and he would make us a non-binding offer.

Sure, when essential things like typical additional construction costs are simply reduced to public costs. On paper it looks good; you have to finance afterwards, often worse.

After I have read through a bit here: is that even realistic? Can we seriously plan to get a house with a plot of land of this size with this budget?

No, not really, as you can see from the above cost estimate – even if, as mentioned, the outskirts of SL are somewhat cheaper.

On the other hand, with this budget you will also not be able to make an existing property habitable. So a calculation exercise of what is cheaper for you, since some existing properties have their own charm.

According to the employee, all costs are covered in this offer, including property taxes, additional construction costs, or construction site costs.

Then have him put that in writing …!

Rhenish regards