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?
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?
Apparently, you are not yet fully aware of what lies ahead for you.
Here is what I would do:
Determine what you can afford... How much you can spend.
Estimate construction costs: For this, the general contractor (GC) must provide the question and the answer. An initial preliminary plan, pricing of your custom requests, and clarification of what is not included in the GC’s scope of work.
At the same time, clarify the situation with the tax authorities.
After that, take the current costs to a bank and check the feasibility of financing in advance.
Meanwhile, if you wish, you can sign a construction contract but include a financing contingency. If the bank does not offer favorable terms or even rejects the application, the contract should still be cancelable without the usual 15-20% penalty fees.
Here is what I would do:
Determine what you can afford... How much you can spend.
Estimate construction costs: For this, the general contractor (GC) must provide the question and the answer. An initial preliminary plan, pricing of your custom requests, and clarification of what is not included in the GC’s scope of work.
At the same time, clarify the situation with the tax authorities.
After that, take the current costs to a bank and check the feasibility of financing in advance.
Meanwhile, if you wish, you can sign a construction contract but include a financing contingency. If the bank does not offer favorable terms or even rejects the application, the contract should still be cancelable without the usual 15-20% penalty fees.
@Der Da: Well, I would say it only sounds like that. We already own property, but we bought it finished and are currently selling it. I also know very well what we can afford financially. I am a mortgage advisor myself. However, we have never built a house ourselves, and friends, acquaintances, and relatives have only built independently so far, never with a developer or general contractor. That’s why I have all these questions. Unfortunately, there are too many shady characters in this field, and we don’t want to be taken advantage of. 😉
@Michael: Great, that was very informative. So, we have already reached point 3. 🙂
@Michael: Great, that was very informative. So, we have already reached point 3. 🙂
I
insider201416 Jan 2014 19:35@Kisska88
The approach to economical construction and quality should be the same for every builder:
• the health and comfort of the occupants
• achieving accessibility as comprehensively as possible
• appropriate design of new buildings, where users can identify with their home, thereby encouraging careful maintenance
• contributing to global climate protection
• taking into account the already foreseeable effects of climate change (long-lasting heatwaves in summer, increased heavy rainfall events, stronger storms)
• the durability and recyclability of structures and building components
“In short, cheap construction should not be the goal for any builder; rather, it should be economical construction. The objective, even with defined preset quality standards and a building’s typical lifecycle of about 50 years, is to minimize the total annual costs. Economical building means not just focusing on the initial investment but considering the overall costs of a building.
These overall costs should be viewed holistically as the sum of capital costs, operating costs, and environmental follow-up costs.
Confucius said
“There are three ways a person can act wisely”
First, through thinking: That is the noblest.
Second, through imitation: That is the easiest.
Third, through experience: That is the bitterest.
The approach to economical construction and quality should be the same for every builder:
• the health and comfort of the occupants
• achieving accessibility as comprehensively as possible
• appropriate design of new buildings, where users can identify with their home, thereby encouraging careful maintenance
• contributing to global climate protection
• taking into account the already foreseeable effects of climate change (long-lasting heatwaves in summer, increased heavy rainfall events, stronger storms)
• the durability and recyclability of structures and building components
“In short, cheap construction should not be the goal for any builder; rather, it should be economical construction. The objective, even with defined preset quality standards and a building’s typical lifecycle of about 50 years, is to minimize the total annual costs. Economical building means not just focusing on the initial investment but considering the overall costs of a building.
These overall costs should be viewed holistically as the sum of capital costs, operating costs, and environmental follow-up costs.
Confucius said
“There are three ways a person can act wisely”
First, through thinking: That is the noblest.
Second, through imitation: That is the easiest.
Third, through experience: That is the bitterest.
I hope you’re not implying that I mean “cheap” when I say “economical”… Just imagine: we’re planning a house that is as self-sufficient as possible for the future, one that will still be suitable even after the kids have grown up. At the same time, I don’t want anyone to take advantage of us during the building process… :p
We’re both reasonable people and familiar with some new builds, so we know how things can go—or not go. We also know what we want in the end. It’s just that the path to get there isn’t an easy one… That’s why I joined this forum. 😉
We’re both reasonable people and familiar with some new builds, so we know how things can go—or not go. We also know what we want in the end. It’s just that the path to get there isn’t an easy one… That’s why I joined this forum. 😉