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?
G
goalkeeper
23 Jan 2019 21:16
11ant schrieb:
Well, 50:31 is still manageable – plots of land in newly marketed areas are often oversubscribed by four, five, or even more times.

Every plot is unique, meaning the more detailed the offer, the more it applies specifically to that individual case. For you as someone unfamiliar with financing, being given the current list price for a "city villa Cindy 152" should always be easy to provide.

If you want more precise information, that naturally requires more work – I find it understandable that a provider only takes this on if there is a reasonable chance of implementation. The provider faces three risks in this process: 1. You don’t secure financing; 2. Someone else gets “your” plot; 3. You have multiple “projects on the go.” Only one of these risks – apart from the inevitable that you might find a better provider – needs to be evaluated for the provider’s effort not to be wasted (but qualified offers are definitely time-consuming).

We’ve often discussed this, and the conclusion is always the same: I say it takes a huge dose of naivety or a cynical-sadistic mindset to develop land for any kind of housing group held in fragmented ownership; several other participants largely agree; while some others think I’m exaggerating or overstating the case; this is often supported by pointing to successful cases (which I don’t dispute, but given the stakes I strongly oppose such gambling).

So far, Cindy 152 has not been offered to us – our previous appointments all lasted between three and four hours, and every room was planned accordingly so that the calculation and offer could be made accurately.
G
goalkeeper
23 Jan 2019 21:20
MayrCh schrieb:
Of course, that’s possible. They just factor in the worst-case scenario. Or, if in doubt, they use the “was not known at the time of the offer” surcharge excuse. So they definitely don’t take any risks themselves.
Whether the whole thing is a cost-efficient offer for you is another matter.

As mentioned, the meetings so far have been quite constructive, and I believe no one would spend three to four hours on this unless it results in a market-appropriate offer.

Other friends and acquaintances who have also built or are planning to build have done it the same way as we have until now. Many want or need to plan accordingly faster and cannot take several months more time. Especially regarding financing, it’s important to know what additional building costs on top of the land will be.
11ant23 Jan 2019 21:23
goalkeeper schrieb:
our previous appointments all lasted between three and four hours, and each room was planned accordingly,
On what basis is one supposed to plan if you don’t even know whether it will be plot no. 6, 18, 31 (or too bad, unfortunately none of them)?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
G
goalkeeper
23 Jan 2019 21:30
11ant schrieb:
On what basis is one supposed to plan if it’s not known whether it will be lot No. 6, 18, 31 (or whichever, sadly none of them)?

All the lots we applied for are the same size – so that makes it quite simple.
M
MayrCh
23 Jan 2019 21:30
goalkeeper schrieb:
not a market-appropriate offer

The foundation for a market-appropriate offer is missing, which would define the building structure. It may sound a bit abstract, but the plot and the building should form a single unit.
Building envelope / building boundary. Access route. Plot orientation. Slope. Corner plot or at the end of a cul-de-sac...
The architect of our construction company didn’t make any progress during acquisition without a site plan and an on-site visit. The resulting offer was cheaper than all other “building structure” offers.
11ant23 Jan 2019 21:34
goalkeeper schrieb:
All the plots we applied for are the same size – so that makes it quite straightforward.

On one hand, there is the risk that you might not get any of them; on the other hand, this is an unusual case (at least if the dimensions and orientation are also the same).
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/