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?
Z
Zaba12
23 Jan 2019 16:26
I’m familiar with it; it’s called a local resident model.

Just because it’s not called FIFO anymore but local resident model doesn’t mean it’s managed in an orderly way. I hope you understand what I mean. You probably won’t find out why you might not get a plot of land.
It’s like a job application, rejection without a clear explanation.
And if you don’t have children, you won’t stand a chance anyway.

How many plots are there, and how many interested parties?
Z
Zaba12
23 Jan 2019 16:31
face26 schrieb:
Wow... that's a selection process I hadn't encountered before ^^

In our area, there were 12 building plots marketed by the local municipality. According to verbal information, there were later over 100 applicants, about half of whom were from the municipality. The application process was reportedly stopped after 3 or 4 weeks. Allocation was based on various factors (previous residence, family/children, workplace, club membership, parents/relatives, etc.).
I know from future neighbors that even after receiving a confirmation for the building plot, they still had difficulties finding an architect or general contractor. Basically, if the site development hadn’t even started yet, it was considered too early...

It wasn’t easy. I had to firmly reserve one of the few remaining available plots on site without discussing it with my wife.
G
goalkeeper
23 Jan 2019 16:32
Zaba12 schrieb:
I know, it’s called the local resident model.

Just because it’s not called FIFO now but local resident model doesn’t mean it’s organized. I hope you understand what I mean. You probably won’t find out why you might not get a plot of land. It’s like a job application, rejection without a clear reason.

How many plots are there and how many interested parties?

There are a total of nine semi-detached and 22 terraced house plots. Strangely, there have been about 50 applications so far. The application period runs until January 31.

According to the building authority officer (the only one at the building department), it shouldn’t be a problem with our points score.

I do understand what you mean – however, there is still a lot of waiting time until the final allocation in mid-March, which we want to use effectively before the “rush” on the construction companies begins. We wanted to start as soon as possible right after the infrastructure work is completed.
face2623 Jan 2019 16:37
goalkeeper schrieb:
I understand what you mean – however, there is still a lot of downtime until the final contract award in mid-March, which we want to use efficiently before the “rush” on construction companies begins. We wanted to start right after the site development is completed, if possible.

Has the site development already started?
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Niloa
23 Jan 2019 16:42
goalkeeper schrieb:
There are a total of nine semi-detached and 22 terraced house plots.

Just out of curiosity: how does it work with terraced and semi-detached houses when each owner hires their own construction company?
Y
ypg
23 Jan 2019 17:04
goalkeeper schrieb:
I understand what you mean – however, there is still a lot of downtime until the final contract award in mid-March, which we want to use productively before the "rush" on construction companies begins. We wanted to start right after the infrastructure work is completed, if possible.

Whether it makes sense or not that in townhouse or semi-detached developments everyone does their own thing, a concrete offer means that the building plot is clearly defined with its soil conditions (geotechnical report) and its orientation.
How is a builder supposed to give you a firm quote if all that is uncertain? A concrete offer means it is fixed, a turnkey offer with a set validity period that you can rely on.
The infrastructure development may still take several months, as well as the land surveying.

The downtime can be used well if you roughly set your financing framework, that is the budget limit, and consider the house style, must-haves, and no-gos. Visit show homes and enjoy this time. Look at new housing areas to see how others have designed their front gardens in semi-detached or townhouses.
Read through this forum, and so on.
A builder shouldn’t be chosen based only on the building price but also on quality. The rush phase will come soon enough.