The agony of choice

Hello everyone,

I am new to this forum and hope for some good tips from you.

About 2 years ago, my partner and I decided that we want to build a house. Unfortunately, all the existing houses we have looked at are out of the question.
Within these 2 years, we have already visited several model house fairs and have also looked at some developers.

Now there is a new development area near us, where we have the agony of choice:

1. 500 sqm plot with a play street to the north (18 linear meters), one neighbor each to the west and east, and a green strip to the south. Unfortunately, we can only get this plot if we build with the developer, about whom we can find virtually no information on the Internet except the homepage. This makes us somewhat suspicious. We have already received and studied the construction and service description diligently. In yesterday’s conversation, almost all our concerns were dismissed. This is an offer for a detached city villa with about 130 sqm of living space, a basement, and a 3x9m garage.

2. At the same time, we also independently sought a plot in the desirable new development area. We were now offered a 400 sqm plot, play street to the south (27 linear meters) and east (15 linear meters), and one neighbor each to the west and north. Basically, we don’t find the smaller plot problematic because we don’t want a big garden anyway and would therefore have less maintenance (we are both employed and often work overtime). The plot is naturally also cheaper to purchase. The concerns we have here are simply the greater maintenance effort on the street, i.e., winter work, hedge trimming, etc. We will probably handle the construction through a well-known and already highly recommended architect. Whether the whole thing will be cheaper than through the developer is currently still questionable.

So, the text turned out a bit longer than planned. But I hope some of you will take the time to read it through and support us in our decision-making process with your comment.

Have a nice day
Teufelchen1985

Whether the whole thing becomes cheaper than through the developer is currently still questionable.

Why?

The plot is cheaper and no property transfer taxes are incurred on the house, as is the case with the developer (BT) solution.

If you pay more for the house from the architect, it is probably because you also get more.. or do you believe that the developer's (BT) house would be noticeably cheaper with the same quality/features?

Shism is right. With the same house quality, only the 2nd solution can be the cheaper one. You can avoid cutting the hedge by not planting one. :)

Although the real estate transfer tax is payable by the developer, no VAT must be paid on the service. In return, the developer is not allowed to deduct input tax from the services provided to him (sub). Ultimately, the pure service from the developer (including their profit) can be obtained 19% cheaper. Depending on how much labor the developer provides and how much profit is calculated, the project can therefore be cheaper or more expensive than a comparable general contractor / general subcontractor / architect project.

Simply based on gut feeling, I would choose the 2nd option. You know the architect who has already been recommended to you. You don’t want too large a plot... the maintenance probably won’t be that dramatic either, there will surely always be some neighbor kids who want to earn some money (at least that's the case with my parents, who have been having the neighbor kids rake the leaves for them for about 5 years now.... just as an example.) Something has already been written about the rest.

Hello,

There is now a new development area here where we have the agony of choice:

Where is this new development area?

Unfortunately, we can only get this plot if we build with the developer ...

A commonly played game – it is not uncommon for interested parties to be able to purchase the plots directly from the respective municipality because the developer has only reserved them rather than bought them!

... During yesterday’s conversation, pretty much all our concerns were brushed aside. It is an offer for a detached city villa with approx. 130 sqm living space, basement, and a 3x9m garage

Which concerns and how were they resolved?

At the same time, we have also independently sought a plot in the sought-after new development area. Now we’ve been offered a plot with 400 sqm, play street to the south (27 running meters) and Oster (15 running meters) ... The concerns we have here are simply the greater maintenance effort for the street, i.e. winter work, hedge trimming, etc.

What does the municipality require as new planting? And how many of the running meters are actually used by pedestrians?

We will probably carry out the construction through a well-known and already repeatedly recommended architect. Whether it will be cheaper than going through the developer is currently still questionable.

You better quickly forget the answer from "Musketier" in connection with tax savings/performed service/developer, because it is not correct. As an end customer, you always pay the full VAT; we are all required to quote you "gross" amounts as private customers.

The most essential/obvious differences between developer and architect are, on the one hand,

[*]the due real estate transfer tax of 5% on the plot and house with the developer

and on the other hand

[*]the additional effort in selection and awarding with the architect

Whether an architect is cheaper or not depends – and here Shism is absolutely right – primarily on your wishes. One thing an architect certainly is not: he does not take on the role of a developer or general contractor/general contractor with guarantee, because then he would be one himself and liable to you.

So, regardless of whether or not you accept the developer’s offer, you have to decide for yourself how much decision-making you dare to take on without relying blindly on an architect. Because the latter – if he does his job properly – will suggest 3 providers per trade (we have 16 trades in total on the construction) from which you have to choose the “right” one for you. However, there are quite a few architects who work with a fixed roster of craftspeople and thus only request bids from these 16 trades once; if at all. In fact, they thus act as a general contractor/general contractor with guarantee but avoid liability through individual awarding by their clients to the individual craft firms.

I have the subjective impression that you are quite unsettled and your decision does not depend exclusively on the choice of the right plot for you. Is there even anyone you have spoken to so far about the new build whom you fully trust?

Kind regards