How can one find out if a house construction is too expensive?

Your description sounds like you want to build with a developer? Hopefully, you are aware that real estate transfer tax is then due on both the land and the house price. A developer told us about various tricks, but that is tax fraud. (This is not tax or legal advice)

A few percent discount should be possible; we didn’t even have to negotiate much for that. The idea of being ripped off is relative. The surcharges that the general contractor (we are not building with a developer; we bought the land independently) charges for our special requests are sometimes ridiculously high. For example, a bigger bathtub is charged at four times the price you would pay at a plumbing store, and you don’t even really have the option to choose from different variants. You either have to do tile work yourself or contract it yourself; expressing any special tile-related wishes is pointless since every general contractor here demanded insane surcharges. It should also be clear, and is logical, that the standard offer is usually more expensive than individual contracting, after all, awarding the trades is work that must be paid for if you don’t do it yourself.

Hello Stefan,

I just went to your profile and among other things found the note "Review and evaluation of construction documents from private builders." Does that mean you would, for a fee, review and evaluate the offer I get from my seller? (Could I basically throw money at a problem of becoming knowledgeable myself?) What would something like that cost?

Yes, that’s what it means; if you want to know more details, we can gladly exchange messages via PM.

Otherwise, I’m currently studying your posts to find something to estimate construction costs.

I have written it so many times .... To be on the reasonably safe side, every builder in NRW should calculate about €1500.00 per sqm/living area for a Kfw 70 efficiency house. This approximate value still varies depending on (villa or single-family house, Bauhaus style or classic), fittings, and technology. In the north of the country, it is 3-5 times cheaper; in the south, it is 5+ times more expensive.

Topic land in KR: House and land together should cost €300,000 (move-in ready including all additional costs?). In the city center, the square meter prices—depending on location—range between €280.00 and at the peak (Stadtwald) €500.00/sqm. I now assume that the sqm price with your provider is around €280.00/sqm. For a single-family house, you need at least 300 sqm, and it must be very well proportioned. That already means €84,000 for the land, leaving €216,000 for a single-story single-family house. If I deduct the typical ancillary construction costs of €35-40,000, €175,000 remains for the new build. According to my calculation (construction costs/sqm/living area), you should expect a maximum of 116 sqm living area. You should not forget that, as a rule, with "turnkey" service, the painting work and flooring usually still need to be done by the owner. A bit of access road and a terrace should certainly also come within reach; however, that also costs money.

We have just applied for the building permit for Kempen, and here we are already at €210,000 for a two-story semi-detached house on a slab ;)

From this issue, €300,000—although certainly a lot of money—is not the most capital for a solid construction project in KR, especially the city center.

Kind regards

Hello Der Da,

The statement that over €3000 can be discussed is pure mockery... you can negotiate significantly more.

BUT only where every discount is calculated in advance :D

Kind regards

Hello construction expert, we are currently in preliminary talks with a general contractor. When asked if there is a discount, he said no. However, since I requested a few special wishes, including electric roller shutter drives for all windows, our salesperson said that the extra cost for the electric drives could be negotiated again. (In our case, this would be about €2000). During a site visit of the company, I was able to talk with the builders, and he told me that during the selection of the equipment (building materials wholesale that works with the general contractor and the construction craftsmen) he was able to negotiate a 10% discount on the materials. He himself had previously informed himself precisely about the prices of tiles, sanitary articles, doors, etc. from other building materials dealers and so on. No dealer could compete. Is that realistic or not? That is, is it common practice that a discount is rather granted on the materials during the selection? And is the amount of 10% reasonable?

Hello @all

I have to agree with Bauexperte - I have also experienced that you can only negotiate (significant) discounts where they are already factored into the price from the start.

It is basically always negotiable to include a few additional services "for free."
If the developer reduces the price by, for example, 1000 euros, it costs him 1000 euros and the customer gains 1000 euros.
If the developer adds, for example, electric shutters worth 1000 euros, it costs him significantly less - maybe 400 euros - but the customer still benefits by 1000 euros.
With this kind of discount, both sides win!

If a supplier is able to grant a 5-10% discount, that would be a reason for me not to do business with the supplier.
Who knows where else they hide significant markups to be able to grant discounts to the few customers who negotiate properly...

Regards
Micha :cool:

Hello everyone,

and many thanks for your comments. Since I spent a long time reading here in the forums yesterday, I feel a bit more confident. On another website, I found reference values for land prices, so now I roughly know what I should pay.

Here, in the album of [Bauexperte] I found some guidelines on the other costs.
Furthermore, I now know that a Kfw 70 house can / should cost around 1,400 to 1,500 euros.

Hello Stefan,
Yes, that’s what it means; if you want to know more details, we can gladly exchange messages via PM.[/QUOTE]

Hello [Bauexperte], many thanks for your support, as soon as I get more precise documents I will get back to you to have a ""examination and evaluation of construction documents of private builders" performed by you for a fee. Especially since you apparently work at Niederrhein anyway, see below.

I have written it so many times ... To be on the somewhat safe side, every builder in NRW should calculate about €1500.00 per sqm/WF for a KfW 70 efficiency house. This approximate value still varies depending on the style (villa or single-family house, Bauhaus or classic), equipment, and technology. In the north of the republic it is 3-5 times cheaper, in the south 5+ times more expensive.

I understand, see above.

Topic land in KR: House and land should cost around TEUR 300 together (move-in ready including all incidental costs?). In the city center, the square meter prices – depending on where – are between €280.00 and at the top (Stadtwald) €500.00/sqm. I assume that the sqm price with your provider is about €280.00/sqm. For a single-family house you need at least 300 sqm and these must be very well shaped. This already means TEUR 84 for the land and TEUR 216 remain for a single-story single-family house. If I subtract the typical ancillary building costs of about TEUR 35-40, TEUR 175 remain for the new build. According to my calculation (construction costs/sqm/WF), you should expect max. 116 sqm/WF.

These are almost exactly my values. If I print the offer now, I will go into the details again, but I think it will really be a matter for fee-based consultancy.

You should not forget that usually in a "turnkey" service, painting work and flooring still have to be carried out as extra services. A little driveway and terrace should surely also come into reach; but that also costs money.

Flooring is already included, the builder gives square meter prices there, which can still be adjusted accordingly.

Hello Der Da,
BUT only where every discount is calculated in advance :D
Kind regards

Which the builder unfortunately will not disclose to you. :-)

Your description sounds like you want to build with a builder? Hopefully, you are aware that real estate transfer tax is then due on both the land and the house price. A builder told us about various tricks, but that is tax fraud. (This is not tax or legal advice)

A few % discount should be possible, we didn’t even have to negotiate much for that. The getting ripped off part is relative. The surcharges that general contractors (we are not building with a builder, we bought the land independently) demand for our special requests are sometimes ridiculously high. For example, a larger bathtub is charged at four times the price compared to a sanitary store, and then you don’t even have a real choice of different options. You either have to do the tiling yourself or subcontract it yourself; I consider making special requests here pointless, as every general contractor demanded insane surcharges here.
But it should be clear that the standard offer is usually more expensive than direct contracting, and this is also logical, after all, awarding the trades is also work that must be paid for if you don’t do it yourself.

I see it the same way.