ᐅ Buying a house, prefabricated home from a developer including the land

Created on: 6 Jan 2020 09:13
M
Mabo111
Dear community,

I would like to ask how to best approach purchasing a house from a developer (prefabricated house) together with the land. When browsing relevant real estate platforms, you can find quite a few such offers. These either state that the land is already included in the price or that it is included and sold through a cooperating real estate agent.

My question is whether such offers are generally handled through real estate agents, or if you need to contact the respective developer directly to receive early offers and avoid missing out on the last available plot.

Thank you very much for your help.
Y
ypg
6 Jan 2020 17:44
Pinkiponk schrieb:

If you are referring to advertisements directly from home builders (whether prefab or traditional construction), I would like to share my many experiences from last year, which may not necessarily be representative:


You are confusing home builders and their quotes with the actual developers. Developer offers do exist. They sell you both AI.
Y
ypg
6 Jan 2020 17:48
There are bundle offers,
there are house providers who offer their house and also present a potential plot of land,
and there are developer offers, usually recognizable as row houses or semi-detached houses, but they also build detached houses, mostly in a group.

Whether you inquire directly with a developer is up to you.
However, developers usually handle everything commission-free through real estate agents, since they want to have little involvement in the mediation.
P
Pinkiponk
6 Jan 2020 18:02
Pinky0301 schrieb:

There are already other threads about this here in the forum. It seems that the prefabricated house providers list a plot of land, but they only reveal its location after you have signed a contract with them. In the end, the originally offered plot often doesn’t even exist, and they offer you less desirable alternatives.
That’s how I experienced it last year as well, except for your distinction between prefabricated houses and solid (brick-and-mortar) houses. The company that was trying to sell the house together with the plot of land we had already purchased with a notarial deed was a solid house builder.
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Pinkiponk
6 Jan 2020 18:14
11ant schrieb:

...
It is far more common that a house provider uses third-party land—not actually available to them—to deceive potential buyers into believing that a building contract is ready to be signed, including the required land already secured.
...
Thank you, you expressed it much better than I could. It was very important for me to warn the original poster. Depending on how urgently someone is looking for land and how little experience they have with this environment (the sellers often seem "trustworthy"), it is easier to be deceived.
11ant6 Jan 2020 18:20
hampshire schrieb:

From my own experience, I am skeptical of these tied offers.
ypg schrieb:

There are developer offers, usually recognizable as terraced or semi-detached house packages, but they also build detached houses, often as part of a group.
[...] Usually, developers handle everything commission-free through real estate agents because they want to have little involvement in the sales process,

You have raised three points here: 1. Yes, an offer can still be a legitimate developer offer even if it is atypical and does not have similar homes on neighboring plots or is even truly a one-off. 2. Yes, for two separate parties, there can be a very practical operational reason that the part dealing with “land acquisition and brokerage” is better handled by an external specialist (real estate agent) rather than an in-house sales department. 3. In my opinion, there is nothing wrong with genuine tied offers—that is, where a) the land is actually available, b) the provider either owns the land or holds contractually secured decision rights ensuring the customer can become the land buyer, and c) the shown house is planned for or suitable and approved for that specific land—because in such cases, any tax advisor chosen by the customer can explain the tax implications of such a tied deal. What I find objectionable, however, is the increasingly common “short selling” practice, which in my view comes very close to fraud: in the not uncommon worst case, the house provider has discovered point a) (the land) only through a third party’s sales offer; b) they have no contractual relationship, meaning the land is not encumbered by any right granting them decision-making or even proposal rights regarding the buyer; and often the owner has already sold the land to someone else by the time the interested party reads the house provider’s offer; c) in such cases, the land area is often simply multiplied by the floor area ratio and, without clarifying building envelope and other conditions, a model of a suitable size is selected from the portfolio to create the price example. In these cases, all three points objectively make it impossible to satisfy the interest of the prospective homebuyer—without the magic word “subject to contract,” the criteria for fraud would be met. This is what I mean when I say that with such offers, Eduard “XY” Zimmermann would be turning in his grave every time.
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