ᐅ Concrete offer for a turnkey home only available with proof of land ownership?

Created on: 23 Jan 2019 11:32
G
goalkeeper
Hello everyone,

My wife and I are currently applying for a municipally owned building plot, or several. Since we also live in this community, we will probably get a plot.

However, some construction companies are hesitant to provide a concrete, turnkey offer upfront because we do not yet have the mentioned plot.

What are your experiences? Similar?
face2623 Jan 2019 19:34
…I don’t want to take away your excitement, but with us it still takes a while. From the confirmation of the plot to the completion of site development, it will probably be around 18 months. It doesn’t have to be a water protection area everywhere, maybe bark beetles or bats, and possibly some historical shards in the ground, but delays tend to be longer than the building authority might lead you to believe.
Z
Zaba12
23 Jan 2019 19:42
For us, it also took 1.5 years after the notary appointment until the site was ready for construction due to utility connections and surveying.
G
goalkeeper
23 Jan 2019 20:44
The site development is expected to be completed by November.
ypg schrieb:
Whether it makes sense or not that in semi-detached or detached house developments everyone goes their own way, a concrete offer means that the building plot is defined with its ground condition (geotechnical report) and its orientation.
How can a builder provide you with a concrete offer if all of this is uncertain? A concrete offer means it is fixed — a “turnkey” offer that is valid for a certain period, which you can rely on.
The site development may still take several months, as well as the surveying.

The downtime can be used well if you roughly define your financing framework, i.e. your limit, and consider your preferred house style, nice-to-haves, and dealbreakers. Visit show homes and enjoy the time. Look at new housing areas to see how other semi-detached or detached houses have arranged their front gardens.
Read through this forum, and so on.
A builder should not be chosen just based on price but also on quality. The phase of pressure and rush will come soon enough.

We have already been through all of that — we already know quite well what we want.

However, we now have the next three appointments with local builders who will prepare offers without having a specific plot — I clarified this in advance.

And today Kern-Haus visited — for them, this is not a problem at all.
Y
Yosan
23 Jan 2019 21:07
goalkeeper schrieb:
Hello everyone,

my wife and I are currently applying for a municipal building plot, or actually several. Since we also live in this municipality, we will probably get a plot.

However, some construction companies are now reluctant to provide a concrete, turnkey offer in advance because we do not yet own the said plot.

What are your experiences with this? Similar?

It was not a problem for us. We even signed the construction contract before buying the plot. However, we bought it from friends who had firmly committed to selling it to us and whom we definitely trusted... so it was a slightly different situation.
11ant23 Jan 2019 21:12
goalkeeper schrieb:
However, some construction companies are currently reluctant to provide a concrete turnkey offer because we do not yet own the said plot.
goalkeeper schrieb:
There are a total of nine semi-detached and 22 terraced house plots. Strangely, there have already been about 50 applications.

Well, 50 to 31 is still manageable – it’s not uncommon for building plots in newly launched areas to be oversubscribed four, five or even more times.

Every plot is unique, meaning the more detailed the offer, the more its validity is limited to the specific case. As a financing layperson, you should be able to get the current list price for a “town villa Cindy 152” at any time off the cuff.

If you want to know more precisely, that takes more effort – I find it understandable that a provider only makes an offer if there is a reasonable chance of realization. In this scenario, the provider faces three risks: 1. You don’t secure financing; 2. Someone else gets “your” plot; 3. You have many “options running.” Any one of these risks – apart from the inevitable risk of you finding a better provider – must be assessed for the provider’s effort not to be wasted (but qualified offers are quite time-consuming).
Niloa schrieb:
Just out of curiosity: how does it work with terraced and semi-detached houses when each buyer uses their own builder?

We’ve had this question repeatedly, and the answer is always the same: I say it requires either a great deal of naivety or a cynical, sadistic mindset to allocate plots for house groups of any kind to individual buyers (so-called “dispersed ownership” developers); several other participants share this view to a greater or lesser extent; and some others argue that I’m exaggerating or overplaying the issue; quite often, the latter is supported by pointing out that there are success stories (which I do not deny, by the way), but with such high stakes, I firmly oppose that kind of risky gamble.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
M
MayrCh
23 Jan 2019 21:14
goalkeeper schrieb:
However, we now have the next three appointments with local builders who will provide a quote without a specific plot of land – I specifically clarified this in advance.

And today Kern-Haus visited – for them, this is absolutely no problem.

Of course, this is possible. They simply price in the worst-case scenario. Or, if necessary, they use the "was not known at the time of the offer" surcharge. So they certainly do not take any risk. Whether this results in a cost-effective offer for you is another matter.