How to plan the process for your own single-family house?

@ Bonnat: Why is it wrong to pay in cash? It is counted the same as equity and you save yourself a lot of work, trouble, and money.

@Bubb: Developers (I learned it all here too) mostly build terraced houses or entire settlements with land from A-Z. GU GÜ is probably what you mean. A company that awards everything or also does it themselves. You only have one ASP.

I would also be interested now in what is supposed to be wrong with that, for example paying the property in cash now and building a house on it next year. It is counted as equity and I have less trouble than if I finance it with a loan.

Counterarguments?

Hello,

As soon as we have the plan, we will contact local developers. Since all companies create an offer based on the same plan, the prices should be comparable. If each company designs on its own, I would be comparing apples with pears and plums, right?

Plans alone do not achieve comparability. To really have comparable prices, you have to go into more detail. Material specifications, construction, insulation standards, heating technology, etc. If you give the contractor free rein and say: "Here is the drawing of my house. How much does it cost?", then he will calculate the cheapest option for you because he knows you will also go to the competition. Better are detailed tenders with specifications of services.

This is how I would proceed:

- Check which amount is available to me for building a house

- Find an architect who designs a plan according to my ideas, also taking into account the budget, building regulations, and location of the plot

- Plan the finished design in detail and have specifications of services created that include detailed information on materials, execution methods, and quantities. These specifications of services are then sent to the individual companies and you receive comparable offers

Best regards

Thank you all for your answers, I have one more question regarding the order, first plan the house and then take care of the financing or first arrange the financing and then plan the house and look for a general contractor? The budget is already set. Regards Bubb

Since you have a budget, and the plot represents enough equity, the financing itself should work. Roughly plan what your dream house with the desired features will cost, and then go to the bank.

@ Bonnat: Why is it wrong to pay in cash? It is counted the same as equity and you save yourself a lot of work, trouble, and money.

Because it doesn’t always make sense to pay for the property entirely in cash and then arrange the financing for the house separately – or is the house also paid for in cash? That won’t save you any trouble or money either; the amount to be financed remains the same.

Regards Peter