Our dream of the house: Approach

So, 4 months after my posting, we have now by chance found a building plot that we really like. However, it is a bit more expensive than we had actually planned. The question now is how we should proceed. I would try to reserve the building plot and at the same time make an appointment with a financing advisor. That way I don't have to look for a bank right away, but hope that he recommends something to me. What we are also considering is whether to buy/finance the building plot first and then build in 1-2 years. That would save some time. I'm really not sure what the best way to approach this is now. We don't know exactly what kind of house we want yet. Can you give us a tip?

Here are also a few data:

- Grundstück: inkl. Steuer, Notar, Provision, Vermessung --> approx. €157,000
- Haus: we think we would like 180 sqm :-) --> approx. €300,000
- Baunebenkosten: I calculate approx. --> €60,000
- Außenanlage: I calculate approx. --> €20,000
- Garage: I calculate approx. --> €20,000
- Keller: I calculate approx. --> €50,000

Total: €607,000 (a hefty sum)

600,000€ is quite a sum. The equity should accordingly be high. Does the building plot then have to be financed?
That is actually the minimum amount of equity that should be available... rather more.

Acquaintances of ours didn’t make the best choice with a financial advisor. He didn’t sugarcoat anything, but the bank still rejected what the financial advisor had proposed due to lack of equity. So don’t rely too much on him. Info yes, but before any contracts are signed, have everything checked first.

We are building 200sqm on 2 1/2 floors without a basement, but we also have 3 children. For us, a basement was out of the question due to flood risk (but we are not basement fans either). We are currently working with the architect on the floor plan and are almost finished - except for minor details.

We proceeded as follows.
1. Land purchase (completely from equity - no development plan, so based on the neighboring development). Already two years ago
2. Checking financing options
3. Collecting ideas for the floor plan / mainly agreeing on them ;)
4. Looking for an architect/developer

2, 3, and 4 ran quite in parallel. We started this in autumn/winter 2012. I can only recommend getting in touch early with potential architects etc.
We were partially disappointed here, wasted too much time with one, and it took us quite a while until we found the architect we trust. If we had gone to him right away, the shell would probably already be standing :(

Our house is currently estimated at 330,000€ without garage and incidental costs and without HOAI. The land already belongs to us.
So if you plan with an architect, you also have to add the fees here.

Oh yes, we also looked into prefabricated houses once. But price-wise, they were beyond good and evil. I don’t know if it was because of our individual 2 1/2 story design, but we started at 380,000€ for 180sqm of living space (without painting and flooring)... And the equipment was ONLY standard.

Hello,

So, 4 months after my posting we have now found a building plot by chance ... The question is now how we should proceed ... I would try to reserve the building plot and at the same time make an appointment with a financing advisor. Then I don’t have to look for a bank right away, but hope that he will recommend something to me. What we are also considering is whether to first buy/finance the building plot and then only build in 1-2 years. That way there is still some time to save.

Definitely don’t rush anything; nice plot or not!

Reservation is a good tool to gain some time. An independent financing broker you trust will surely guide you through the financing world. I keep my opinion on this topic to myself because it is not my core area and the variants are hardly less numerous than in my professional field. Whether it makes sense to finance a plot beforehand – the expert will also be able to answer that for you. But I tend to think it would be better to cover it from equity capital, then there will be no problems later with the financing bank during the construction financing.

I’m really not sure how to tackle this best now. We don’t yet know exactly what kind of house we want. Can you give a tip?

That also depends on the development plan and the textual stipulations for the plot. There you should find the key data like building window, eaves/ridge height and thus number of floors as well as roof pitch. If the plot is not located in any development plan, you have to comply with the surrounding development according to § 34. One way or another, you then have certain specifications within which you can develop your personal single-family house.

Here are some data as well:

- Plot: incl. taxes, notary, commission, survey --> approx. €157,000
- House: we think we would like 180 sqm :-) --> approx. €300,000
- Additional building costs: I calculate --> €60,000
- Outdoor facilities: I calculate --> €20,000
- Garage: I calculate --> €20,000
- Basement: I calculate --> €50,000

Total: €607,000 (a hefty sum)

180 sqm of pure living space is quite an amount of house; do you really want it to be that big? And if yes, your estimated price above isn’t really correct. The bigger a house gets, the proportionally lower the price per sqm/living space is. I would say that a house of the above size – simple architecture, possibly with a bay window or cross gable – is around €250,000–260,000.

The basement price – for a utility basement – should be about right; the cost for a garage – if it is to be a prefabricated garage – is set too high. For 3 x 9 m including an electric sectional door, about €12,000 is to be expected. Also, the additional building costs are set very high – you have already included the pure costs for the plot in the plot price; is it a hillside location or why did you choose this amount?

As a tip – my estimated prices refer to solid (masonry) houses: First decide which system you actually want to build. Should it be a prefabricated house and if yes, do you prefer timber frame, rather ready-made wall elements or should it be a solid house? When this decision is made – after the financing discussion – then look around among the common providers, visit a new development area in your vicinity and talk to the builders there. Oh yes – sellers should also be able to provide references, which you should be able to contact at any time!

If you don’t like all that, consult an architect you trust and discuss it with him. Here you have to bear in mind that architects do not give fixed price guarantees and the price for your single-family house will only become concrete when you receive the tender documents!

How you can make this decision – for that, reading here on the HBF is the right way. Take suggestions and tips from the users with you and then decide “calmly” where the journey should go. Never decide under time pressure!

Rhenish greetings

I already thank you for your answers.
In addition, it should be said that we want a solid house. From what we liked, they were all very simple houses without any "strange" shapes.
I set the price for the garage so high because I was thinking of a double garage.
I estimated the ancillary construction costs at 20% because I read that in some current book... *g*
You just gather your information to have a reference point.
Do we have to finance the building plot? Well, it depends on the price. We already have a bit of equity.

Unfortunately, the issue with the building plot has probably been settled for now. The actual plot with a south-facing garden is already taken, and instead, we were offered a plot opposite with a north-facing garden. So far, we cannot quite come to terms with it. A pity, really.

Furthermore, we had a (in my opinion) good appointment today with an independent financial advisor. He listened to what we are planning and how much we budgeted in €. Our numbers sounded plausible to him, maybe rather a bit high. The same was told to us yesterday by the real estate agent and is also what the construction expert here writes.

We assumed an amount of about €600,000. At the end of the appointment, it turned out that with our income and equity, this is definitely feasible. Whether it will ultimately be that much is another question. I’m fine if it’s €100,000 less. ^^

The current "point of contention" is the basement. I actually say, no house without a (usable) basement. My wife says she doesn’t want a basement.
She wants the washing machine and dryer not in a hole but "in the house". The technology should be in a room behind the garage or something like that.
Well, let’s see where we end up. I’m afraid I’ll regret not having a basement in 10 years.

Is there by chance a model house center with solid houses between Frankfurt and Stuttgart? Or do the centers only have prefabricated houses due to the effort?