Hello everyone,
now I really need your help. And please try to avoid abbreviations in your answers. Iâm 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 doesnât seem to be bad. We havenât 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 donât 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. Itâs 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, doesnât 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?
now I really need your help. And please try to avoid abbreviations in your answers. Iâm 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 doesnât seem to be bad. We havenât 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 donât 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. Itâs 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, doesnât 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?
B
Bauexperte15 Jan 2014 15:17Hello,
Regards, Bauexperte
HilfeHilfe schrieb:That is the downside; it depends on the location of the property. If there are many interested buyers, the general contractor certainly wonât give up their advantage without good reason 😉
I doubt that the general contractor will allow so many trades to be removed and subcontracted to outside companies... The problem is, when the contractor has exclusive rights to build on the plot, you have no chance. Take it or leave it. I can imagine they can pick the "right" customers.
Regards, Bauexperte
The general contractor (or perhaps the developer?) will tell you how much you can save by doing certain work yourself â however, it is rarely the case that these savings cover the cost of hiring your own tradesperson plus materials. The general contractor needs to make a profit somewhere â and the fact that the real estate agent does not receive a commission for this suggests, in my opinion, that they are paid by the general contractor. So, there is another financial connection involved (see taxes), and an increased incentive for the general contractor to profit from this deal.
Good luck
K1300S
Good luck
K1300S
H
HilfeHilfe15 Jan 2014 15:41Hello
Generally, the general contractor rarely provides the individual prices. At least, that was the case for us. We didnât want to handle anything on our own anyway, and he wouldnât have allowed it. The issue was the location of the plot, which was very attractive to buyers.
Usually, if you have special requests, you will be quoted an additional cost. If itâs a solid house, you probably wonât get a (even) cheaper standard built in that would make it less expensive.
Generally, the general contractor rarely provides the individual prices. At least, that was the case for us. We didnât want to handle anything on our own anyway, and he wouldnât have allowed it. The issue was the location of the plot, which was very attractive to buyers.
Usually, if you have special requests, you will be quoted an additional cost. If itâs a solid house, you probably wonât get a (even) cheaper standard built in that would make it less expensive.
If the general contractor quotes that a trade will cost âŹ8000, and you find a tradesperson who offers to do it for âŹ7000, it is quite possible that the general contractor will only reduce their price by âŹ6000 and may also exclude themselves from any warranty obligations for the trades below. Such matters should be asked about or taken into consideration during your planning.
Oh man, this is really complicated... So, I guess Iâll have to ask the real estate agent a lot of questions at the next appointment? How do the general contractors usually estimate the total cost of the house? Do they need the floor plans to provide a price, or how does that usually work? I mean the process in general. We will only decide 100% once we know the exact price and everything fits. But does the general contractor, the agent, or whoever else typically invest in the planning upfront, or how does this usually work?
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