Hello everyone,
We are considering purchasing a plot of land through a real estate agent. The purchase of the land is linked to the construction of a turnkey house. So, we have an overall offer (land + house without additional construction-related costs).
Does anyone have experience with this? What else should we be aware of? We are uncertain about additional costs that may arise, which the agent did not mention during the construction discussion. I would appreciate any tips.
We are considering purchasing a plot of land through a real estate agent. The purchase of the land is linked to the construction of a turnkey house. So, we have an overall offer (land + house without additional construction-related costs).
Does anyone have experience with this? What else should we be aware of? We are uncertain about additional costs that may arise, which the agent did not mention during the construction discussion. I would appreciate any tips.
Niloa schrieb:
And you are then also tied to the materials he uses, or you can choose others only for a significant additional cost. This is generally always the case with a general contractor.
tomtom79 schrieb:
A really clever developer! Additional building costs are the biggest unknowns in construction, which almost always ruin any budget, and he wants to pass those on to you, plus land transfer tax as a penalty... Respect, but you always find someone willing to sign something like this. And still, contracts like this are signed here multiple times daily. Just look at all the row houses, for example. This is exactly that situation. Tied contracts are nothing unusual.
But this is how large areas are released for construction, practically enabling almost anyone to build a house.
That does not mean this is particularly good or that I approve of it. It’s just commonplace and doesn’t necessarily mean the deal is a bad one.
I always thought that contracts with developers are turnkey and include additional construction costs. If the arrangement is as I described, I consider this setup even less favorable, if not outright misleading for buyers. Here, every general contractor works more cost-effectively and transparently.
Mycraft schrieb:
This is usually always the case with a general contractor.Yes, but if I am tied to one through the plot, I can’t choose the one who uses the materials I would prefer.Similar topics