Why don't construction prices go down?

We had a quote drawn up to see if we can even still afford it. Town & Country 108sqm bungalow 302k€. Special requests would probably amount to roughly 10k€ (gray windows on the outside, electric shutters, additional outdoor water connection + socket).

Overall, we would be looking at a rate of about 2400€/month for, I believe, 30 years at 4%. 4% was the phone statement from a bank contact of our finance guy last week. For our income (about 5500€ net) it feels brutal but we will try it anyway.

In our case, it’s about next year, but you could already lock in the price for 14 months. Next week we have another appointment with a different provider and will compare. With Town & Country, we thus end up at just under 3000€/sqm for the house. Edit: Our impression of the Town & Country offer is very positive. The advice and scope of the package is very good.

Smaller houses cost more per m². Heating and bathrooms cost almost the same as in a larger house. The Flair 152 RE should be available in your region for 350,000 EUR. That’s only 2,300 EUR/m² then. In my region, the Flair 152 costs from 275,000, which is 1,800 EUR/m².

By the way, the Winkelbungalow 108 is available here from 235,000 EUR. Because of that alone, the 3,000 EUR/m² rule of thumb is complete nonsense, as you can see.

And by the way, you can also see the absurdity that Town & Country is supposed to be a Dacia. For your 3,000 EUR/m², you don’t get better equipment than the equipment in the Flair 152 in my region. Vigour is Vigour, Vaillant is Vaillant, no matter where.

At Town & Country, we thus end up with just under €3,000/sqm for the house.

Apparently not. Or is the final price from the OP nonsense? We recommend +/- €3,000/sqm and here is a live example showing that this even works with Town & Country.

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I do not want to start a dispute about the different construction methods here, just provide a possibly helpful hint: If I am correct, Town & Country builds solid (massive). In our follow-up financing, it was an issue with each of the providers whether our house is a solidly built house or a prefabricated house.

With our follow-up financing, it was a topic with every provider whether our house is a solidly built house or a prefabricated house.

Normally, this has no influence on the financing. It is only relevant for older properties.
Prefabricated houses even have a practical advantage in the assessment. In the case of new construction, an inspection after completion is not necessary, provided it is a typical catalog house (the lending value is also no different than that of a solidly built house). Although a prefabricated house can also be a solidly built house. There are plenty of providers who build solidly but use prefabricated parts.

Our finance guy also said that wood or solid makes no difference when it comes to the loan or interest rates. Banks probably prefer solid, but in the end, it doesn’t make a difference for oneself.