ᐅ What is the most cost-effective way to build?

Created on: 15 Jan 2014 14:41
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Kisska86
Kisska8615 Jan 2014 14:41
Hello everyone,
now I really need your help. And please try to avoid abbreviations in your answers. I’m still a bit inexperienced in this area. 😱

Problem: We have found a plot of land through a sales agent/broker who only sells it tied to a specific developer. The developer doesn’t seem to be bad. We haven’t heard anything negative about them so far in this region. They apparently have never been involved in court cases related to construction defects or similar issues. Well, the problem is that we get the feeling they do everything with a very basic, standard approach. They don’t seem to consider the individual needs of the builder. So far, we have only spoken with the broker, who offers a fixed price for a turnkey house. It’s a great KfW 70 house with a heat pump, triple glazing, rendered facade, and more... As soon as I mentioned that we want a fireplace and brick facade instead of rendering, it was dismissed immediately... because it costs more, doesn’t make sense, and is just nonsense… blah, blah, blah...

Question: Is this some kind of common tactic? What is their problem? What would be the best way to negotiate with them to get the most effective and economical outcome from the entire building project?
Kisska8615 Jan 2014 14:41
Thanks in advance for your help and for the lively exchange here!
K1300S15 Jan 2014 14:47
Well, what can you really suggest? If the developer (who is actually more like a general contractor) only offers their package, then you can either buy it or not. Perhaps the general contractor themselves is a bit more open to discussion than the intermediary – worth trying. In any case, I would like to point out that in such a situation, it is very likely that transfer tax will have to be paid on both the land and the house construction, which means a significant additional expense.

Good luck

K1300S
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Bauexperte
15 Jan 2014 14:50
Hello,
Kisska86 schrieb:

Problem: We found a plot through a distributor/agent who only sells it tied to a specific developer. The developer is apparently not bad. So far, we haven’t heard anything negative about them in this region. They’ve never been involved in court over construction defects or anything like that. However, our concern is that it seems they only build basic, standard houses without much consideration for the individual needs of the client. Up to now, we have only spoken with the agent, who offered a fixed price turnkey package. It’s a great KfW 70 energy-efficient house with a heat pump, triple glazing, plastered exterior, and so on. But as soon as I mentioned wanting a fireplace and bricks instead of plaster, it was dismissed… saying it would just cost more, doesn’t make sense, and is nonsense… blah, blah, blah…

Question: Is this some common sales tactic? What is their issue? What’s the best way to agree with them so that, in the end, the construction project is handled most efficiently and economically?
Just to make sure I understand correctly: you are willing to sign the contract which you consider flawed, but you want to know now how to get out of it later with as little effort as possible?

Best regards, Bauexperte
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Doc.Schnaggls
15 Jan 2014 14:54
Hello Kisska86, I’m not sure—statements like those from the realtor or sales rep would raise some red flags for me... In the end, it’s your house, so it shouldn’t matter to them whether it makes sense or costs more. If I were you, I would first have a conversation with the builder and present your “special requests.” I can’t imagine the builder acting the same way—after all, they make their money by fulfilling customer wishes. I configure my car the way I want, not how the property manager (as a maintenance-free example) at the dealership prefers. Regards, Dirk
Kisska8615 Jan 2014 14:55
No, no, no... I want to know how to perfectly arrange the construction contract for us. I can exclude some trades and then assign them myself. We already have some experience with house building and feel confident doing that.

@K1300S: How should the contracts be structured so that we only have to pay tax on the land? Simply two separate contracts? One for the land purchase and one for the construction work? Would that be sufficient?