Are self build houses more expensive to buy?

jimpix12

I mentioned the issues raised by leveller2911 to the EA and also noticed the light fittings weren't screwed fully into the ceiling, etc. Again might be nothing, my confidence is still there but reduced a little It transpires that Scandia built the shell, i.e. the wood frame and the externals, the rest was done by the developer.

So.. Is it feasible to get a survey done by a local builder to assess how 'well built' the place is? I'm really not that clued up on such things or how best to ascertain the build quality. The EA obviously continues to assure me it is exceptionally well built....

GDB2222

spunko2010 wrote: »

I mentioned the issues raised by leveller2911 to the EA and also noticed the light fittings weren't screwed fully into the ceiling, etc. Again might be nothing, my confidence is still there but reduced a little It transpires that Scandia built the shell, i.e. the wood frame and the externals, the rest was done by the developer.

So.. Is it feasible to get a survey done by a local builder to assess how 'well built' the place is? I'm really not that clued up on such things or how best to ascertain the build quality. The EA obviously continues to assure me it is exceptionally well built....

Why not get a survey done by a surveyor?

theartfullodger

There's a massive industry (magazines, exhibitions, builders, kit-makers etc etc etc..) flogging these lego-deal stick-it-together kit thingies... and they'll whinge on & on about what a great idea they are...

I'm not convinced... as someone said, a house is only worth what someone else is prepared to pay...

Cheers!

jimpix12

GDB2222 wrote: »

Why not get a survey done by a surveyor?

I was planning on doing this after having an offer accepted (if it got that far..) would it be feasible to do it before?

GDB2222

spunko2010 wrote: »

I was planning on doing this after having an offer accepted (if it got that far..) would it be feasible to do it before?

could be wasted money.

Doozergirl

I can't believe the developer is leaving it to an Estate Agent to sell this house. You need to speak to the person that built it to understand what they've built. An estate agent won't even begin to comprehend the complexities and relay it to a prospective buyer. From the replies to the thread, even people who have built their own houses don't necessarily get what level of detail has been put into creating what looks like a 'sustainable home'

You need to establish what level of insulation is in the house. If you read the specification, they've super insulated it, have put in triple glazing and a mechanical heat recovery system which, if all of this is done correctly will bring the bills right down. Down enough to the point that in theory it really should affect the value of the property positively.

However, "green" features don't really exist in the market so the market isn't really geared up to pay for it. Developers are still loathe to build houses like this as it costs more and the market isn't geared up so there's a bit of a vicious circle, but this is the way houses will probably be built in the future. It just need the government to continue to put more pressure on the Building Regulations and the Code for Sustainable Homes. We're in the initial stages now of designing what we hope will be our own self-build and it will cost a lot more money to create a house with no bills; I have to say, you'd be a very brave developer to purpose build an expensive house like that especially for the general market! I wonder if it was a condition of the planning agreement...

I think it could potentially be a fabulous future-proof house but you need the person who built it to explain it and a surveyor that genuinely understands. If there was a SAP test carried out on the house for airtightness by building control, it would be very interesting to see what it scored. Any way of getting hold of that? With a mechanical heat recovery system the score would hopefully be very low indeed - The score on the SAP test should give you an idea of how much heat would genuinely be needed.

I'd go as far as speaking to Scandiahus directly. They will have someone who knows that house intimately.

GDB2222

Doozergirl wrote: »

However, "green" features don't really exist in the market so the market isn't really geared up to pay for it

Doozer are you saying that it could be very difficult to resell at a price to reflect the increased cost of building it? If so, does it make the house a bit of a white elephant?

jimpix12

Doozergirl wrote: »

I can't believe the developer is leaving it to an Estate Agent to sell this house. You need to speak to the person that built it to understand what they've built. An estate agent won't even begin to comprehend the complexities and relay it to a prospective buyer. From the replies to the thread, even people who have built their own houses don't necessarily get what level of detail has been put into creating what looks like a 'sustainable home'

You need to establish what level of insulation is in the house. If you read the specification, they've super insulated it, have put in triple glazing and a mechanical heat recovery system which, if all of this is done correctly will bring the bills right down. Down enough to the point that in theory it really should affect the value of the property positively.

However, "green" features don't really exist in the market so the market isn't really geared up to pay for it. Developers are still loathe to build houses like this as it costs more and the market isn't geared up so there's a bit of a vicious circle, but this is the way houses will probably be built in the future. It just need the government to continue to put more pressure on the Building Regulations and the Code for Sustainable Homes. We're in the initial stages now of designing what we hope will be our own self-build and it will cost a lot more money to create a house with no bills; I have to say, you'd be a very brave developer to purpose build an expensive house like that especially for the general market! I wonder if it was a condition of the planning agreement...

I think it could potentially be a fabulous future-proof house but you need the person who built it to explain it and a surveyor that genuinely understands. If there was a SAP test carried out on the house for airtightness by building control, it would be very interesting to see what it scored. Any way of getting hold of that? With a mechanical heat recovery system the score would hopefully be very low indeed - The score on the SAP test should give you an idea of how much heat would genuinely be needed.

I'd go as far as speaking to Scandiahus directly. They will have someone who knows that house intimately.

Thank you for replying, sounds like you are very knowledgeable in this area I am still trying to ascertain the premium that has been placed on this house and if it's overpriced. I managed to get the EA to eventually give a price of around £340k (before offers) if it were a bog-standard new build with no eco credentials. Assuming that's accurate, that means there is a £45k premium on this house.

The SAP test was done recently, the EA is trying to view the results herself, but EA has said it is (apparently) the "highest rating" and there is another test being done shortly; I can't recall which but I have requested to see the results - possibly airtight test. Let's assume it scores highly for both - is it still worth paying a £45k (~12%) premium for that? I believe green features *are* worth paying a premium for - but not to the extent being asked. Unless I am mistaken, which is often quite likely...

The house is not 100% carbon neutral etc. Shame, as I believe I would qualify for reduced/no SDLT :A

Finally, I am already in contact with Skandia, just waiting for them to contact me back. My own research indicates that the doors, windows etc are Skandia supplied also, despite the EA saying she was 'sure' they weren't. The plot thickens...

Doozergirl

GDB2222 wrote: »

Doozer are you saying that it could be very difficult to resell at a price to reflect the increased cost of building it? If so, does it make the house a bit of a white elephant?

I think that the vendor needs to clearly project what the benefits of the house are. If they don't but they've managed to get the price that they want for it, then Mr Smith MRICS doing a valuation survey on behalf of Bog Standard Mortgages plc, will totally miss the entire point of the house and downvalue it.

For me, personally, if the savings on the bills are enough, then I would see that as more of an investment on which I would see a return than just the fluctuating price of land, which is what house prices are solely based on atm. So for me, if I could see the evidence, I would pay more for a truly energy efficient home. It's acknowledged that energy saving features should reflect in house value but don't atm - however, this house appears to go above and beyond what Building Regulations calls for and I think they are probably justified in asking a bit more. Whether they get it, I don't know. I'm sure there's a profit in it, but whether the developer's margin is reduced by people not really recognising what they've done, I don't know. I think it's commendable though, making the effort to build a proper house.

Everyone thinks a house is worth magnolia walls, oak doors and pretty kitchens. When you build a house yourself, you know that the investment is truly in bricks and mortar - and these days, insulation.

OP, I can't tell you what even I think the premium might be until I find out myself how much extra it costs to build . My gut says £45k is too high based on the savings you make on bills. The saving you make has to initially go into building the house so there is a payback - I guess you decide what that timeframe should be. The problem for developers is that they will never see that benefit personally and it's hard to claim it in hard cash on the house price.

GDB2222

Doozer, I'm trying to work out the extra cost to the developer of putting in the energy saving features:

Band A boiler - £200 ??
Triple-glazed windows - £2,000 ??
Extra insulation in the loft - £200 ??
Mechanical ventilation system - £2000 ??

Am I wildly underestimating the cost here? And have I missed anything out from the spec?

Surely, the cost of adding these features is just as relevant as the capitalised value of future energy savings?

One other point is presumably the inside of this house is smaller because of the space taken up by the insulation. Or to put it another way, the exterior needs to be bigger for the same interior space, and building the larger exterior costs a bit more?