Additional/secondary costs for prefab houses

Hello forum community,

we (a couple with two children aged 3 and 6) are planning to buy a house. Recently, we have come across prefab house offers more frequently, which at first glance look interesting. At the moment, we are currently weighing the pros and cons of building a prefab house versus buying a "used" house. A significant point here, of course, is the costs that add up in the end. Some offers mentioned additional building costs of around €24,000 - €25,000 for prefab houses.

Overall (including all costs), a maximum of €250,000 is available.

Now to my actual questions:
+ What quality does the standard execution of prefab houses usually offer? (I would almost compare it to a fitted kitchen, where the final price differs significantly from the offer price just because of wanting different handles.) We understand that the price goes up continuously, but a luxury version is not necessary...

+ What additional costs (apart from the additional building costs) should roughly/be expected based on experience? (For example, flooring, exterior area, etc.)

+ Is a new build and land purchase realistic with the specified budget?

Maybe someone here in the forum can help us (even if the questions are not that specific...)

Thanks in advance!

Regards, Eltih

Hello,

Some offers referred to ancillary construction costs of about €24,000 - 25,000 for prefabricated houses.

You must calculate ancillary construction costs of about TEUR 35-40 for every construction project:

1. Land

5% property transfer tax - varies by municipality
possibly broker fees, approx. 3.5% of the land price, varies by municipality
approx. 1.5% notary costs, calculated from the land price
3 x entry in the land register (1. reservation of conveyance, 2. transfer of ownership, 3. entry of mortgage)

2. Financing

Possibly consulting/closing costs for financing, approx. 1.5% of the total loan amount
Approx. 0.25% commitment interest, measured on the loan amount

3. Construction preparation

Approx. €2,800 - €3,200 surveying services (qualified site plans / height surveying / staking out / building surveying)
Creation of soil report, approx. €1,200
Provision of connections for construction water / construction power, approx. €6 - €8 rental for standpipe/day, approx. €300 rental for construction power meter
Fees (for house number, drainage approval, building permit), approx. €1,000 – €1,500, varies by municipality
Fire/building owner liability insurance approx. €80 - €150/year, depending on insurance company

3. Earthworks

Removal of excess soil (normal soil conditions) for basement, approx. €1,500
Internal development (wastewater/stormwater pipes), approx. €2,500 – depending on the routing of pipes
Inspection shafts, soakaway or infiltration shaft, approx. €1,900 - €2,200
Reserve for additional foundation costs approx. €8,000

4. House connection costs

Electricity/gas/water/telecom, connection to sewage system, approx. €8,000 - €8,500 - varies by municipality

5. Fees

Acceptance of drainage pipe, approx. €150 - varies by municipality
Chimney sweep (acceptance of chimney / gas system - note fee applies twice), approx. €200 - varies by municipality
Land registry office (transfer of surveyor’s data to property map), approx. €150 – varies by municipality

Total approx.: Euro 35,000 – 40,000

Important: The above list does not include costs for painting work, floor coverings, and outdoor facilities!

Altogether (including all costs) a maximum of €250,000 is available.

TEUR 250 minus TEUR 40 => TEUR 210 for house and land

Is a new build and land purchase realistic with the given budget?

You stated NRW as the location – there you can find land in almost all peripheral areas at a price of approx. €150 per sqm. Assuming you want to build a semi-detached house (semi-detached house), you need at least 300 sqm of land => resulting in TEUR 45 for the land. After deducting the above amount, TEUR 165 remain for house construction including funds for floor coverings, wallpaper, and outdoor facilities. In my experience, I consider this unrealistic; nowadays you need a volume of TEUR 300 for a semi-detached house including land. Lots of money and still not all wishes can be fulfilled.

Best regards

Hello Elith,

I can only agree with my predecessor.

We will start building the house in about 2 weeks, and at the beginning of our considerations (4-5 years ago) we also had a budget of 250,000 euros. However, it quickly became clear to us that with this money we could not realize a new building in our area between Cologne and Bonn.

So back then we had no choice but to keep saving.

As additional costs, I can list:

- Interest during the construction period, calculated at 4,000 euros in our case
- Outdoor facilities budgeted at 11,000 euros
- Wallpapering/painting/floor coverings budgeted at 10,000 euros

Furthermore, from my own experience, I can say that the builder will come up with things that you would then like to have as well, which, of course, involves additional costs.

And what is also very important is a buffer for possibly unforeseeable costs.

Regards Dirk

Hello Elith,

wherever you want to build, in OWL the plots of land with full connection are sometimes traded for less than €80.00; then you might be in a village (e.g. a municipality with 14,000 inhabitants in the Mi-Lk district), which does not have to be bad in terms of infrastructure. What you want and like is decisive.

Your question:
What quality does the standard version of prefabricated houses usually offer? (I almost want to make the comparison to a fitted kitchen, which differs significantly in the final price from the offer price if you want just different handles) We are aware that prices can go up endlessly, but a luxury version is not necessary...

My answer:
No general statement can be made about standard versions from different manufacturers. I myself sell prefabricated houses from a mid-sized manufacturer from Kalbach in Lower Saxony. In almost 25 years of construction practice (carpentry + timber construction) and now with my second employer in the prefabricated house business, I know that the service specifications can be very different. Some offer supposedly very cheap houses that require significant upgrades to become good and nice. Of course, always at a not insignificant surcharge. Caution is certainly advised there.
Others name a price that even includes floor coverings and wallpaper with paint – so really turnkey – and offer performance reduction packages as a downgrade (own work, changes to used materials, modification of house technology, etc.).
What is important is a correct determination of requirements and a complete and individually suitable offer. Which price then comes out can hardly be said in general beforehand; that it does not correspond to your expectations is one of several possibilities.

In any case, it should be considered that not necessarily the final price of the entire building project, but much more often the monthly capital burden and its risk factor must be viewed. If a bearable burden with low risk can be achieved for a loan, it is irrelevant whether the house financed this way with everything included cost two or three hundred thousand.
Follow-up costs should also be included:
Old buildings cost significantly less in acquisition in part, but most people still adapt them to their own wishes (conversion costs!) and often consume a considerable amount of energy. In addition, there is usually a need for renovation still within the loan period (!!).
With new construction, you (presumably) get a house according to current technical standards (watch out for details!), which will not require renovations or repairs over a longer period and which also consumes significantly less energy.

Summary:
Pay attention to completeness regarding your wishes and ideas. Keyword: construction and performance specification
Think about follow-up costs. Keyword: renovation, energy, etc.
Include early financing planning in your considerations. Keyword: monthly burden

Best regards

Malte

@all
First of all, thank you very much for the quick and above all meaningful responses. That helps to realistically assess the situation and prevents "cooking the books." If in the end it still turns out to be cheaper, that wouldn't be so bad either.

As for the location, we are looking for something in the Lower Rhine area (around Neukirchen-Vylun, Kempen).
The financial framework is set so that we can maintain our standard of living and a broken washing machine does not ruin us completely.

As for the service descriptions, I have to admit that sometimes I can't see the forest for the trees. I probably need to pay a bit more attention to these details...

By the way, we are looking at a semi-detached house (built in 1999) tomorrow. Maybe the question of a new build will then be moot and new questions will arise.

@ Dirk
Good luck with your house construction and may everything go according to your plans and wishes.

Regards,

Eltih

Hello Elith,

we are in a similar situation to you, except that we have land prices of really 80,-/sqm and even want to build a single-family house.

Ultimately, it is about getting a monthly rate of no more than 900,- in the end.

We lived in Munich until recently and paid that for a "dump" in rent!

I have indeed heard from acquaintances that it is possible to pay around 250,000,- for everything and I am not giving up yet

But I am also interested, as already said, in the monthly rate, which must be manageable for us.