Construction costs are currently skyrocketing

He just doesn't like talking to himself.

According to the Deloitte Property Index 2021, Germany ranks 3rd after Austria and France with a price of €4100 per m2, an increase of 10.8% compared to the previous year.

Manager Magazin

Price Crash in the USA
Why the Wood Price is Crashing Again

On the same page, a more recent article from yesterday:

Wood price: Construction timber in Germany expensive despite price drop in the USA

Are you aware of whether or from which price increase one can withdraw from an already signed house purchase contract? I mean, if, for example, a purchased prefabricated house should suddenly cost 450,000 euros instead of, say, 350,000 due to higher material costs, does the buyer still have to accept it/pay the 5% withdrawal fee?

I also think it would even make sense for the house sellers to let the older contracts collapse, since they can in the meantime earn more money with newer contracts. Or am I wrong? As mentioned above, prices for, among other things, wood are already falling again, whereas there is no reason for the house sellers to pass on the falling prices (in contrast to the rising prices) for materials to the house buyer, if they can sell their house for more money due to the market situation.

How do you see it or how do you think the house sellers will proceed, even if the customer has not yet had an appointment for selection or a construction execution plan?

I think there are only a few contracts that include such a clause. It may be possible to wiggle out of it with a failed financing at the higher amount or to hope for the goodwill of the seller/ company. Basically, however, both contracting parties expect security – the client with a fixed price commitment and the builder through the customer’s signature.