Rear wall, floor slab, and ceiling must withstand the pressure of the slope. The classic timber frame is too light for that. The tightness of waterproof concrete is also not sufficient.
Companies make money on their walls.
Proposed solution 1)
Cellar used as a utility cellar/secondary apartment underneath
Proposed solution 2)
Retaining wall and a house on a floor slab about 100 to 150 cm in front at a distance
Proposed solution 3)
Basement with masonry/concrete living spaces, the rest of the house as a timber frame, correspondingly smaller.
No one offered us option 3 voluntarily; on the contrary, there were refusals. There are also some who do that.
Option 2) usually means more earthworks. In any case, it creates a shady spot. It negates the advantage of garden access from 2 floors. The property must allow for the wasted space.
Option 1) Secondary apartment/utility cellar results in unnecessary square meters, higher costs, one more floor.
Garden access or balcony from the living level.
Timber frame is not bad. Simply difficult on a slope and therefore not the first choice.