ᐅ Letter of Intent to Purchase – Construction Planning Process – Seller Pressure
Created on: 23 Sep 2017 23:01
T
traumhaus123T
traumhaus12323 Sep 2017 23:01Hello,
we logically want to build a house. We live in an area where land is scarce and there has been a significant price increase in recent years. We have now found a plot tied to a developer online. The developer also offers houses that we find visually appealing. After an appointment with the developer, they provided us with the address of the plot. During this appointment, we shared our wishes regarding extras such as a glass bay window, gables, and similar features, and the developer wanted to include these in a cost calculation for a specific house type by the next meeting. Meanwhile, we were supposed to look at the plot.
The second meeting took place a week later. As mentioned above, we like the location and price of the plot (very good price), but we have never been able to access it properly and could only view it from the outside. For the house type we find visually appealing, we would like to make changes to the upper floor (attic) layout but have not yet come up with a clear idea.
During the second meeting with the representative of the house building company, we were presented with a letter of intent to purchase the plot along with the house type, subject to financing in spring 2018. When we asked about additional costs we were not yet sure about, such as higher-quality choices in the interior finishing selection (a flat rate of €4000 was assumed), extra groundwork (a soil survey will only be done after purchasing the plot), or even whether a floor plan tailored to our needs would be possible for that house type, the representative said the costs had already been calculated very well and that the architect would find a solution with us and advise us later. Is this common practice? We would like to feel that this will really be our house! Somewhere, we want to know exactly where to sign. Do architectural services always take place only after signing the house-building contract? Then our extras are included in the calculation, but what if we later decide something is too expensive and want to leave it out, or if we choose items exceeding the flat €4000 budget during the finishing selection? For example, no dormer window?
We would be very grateful for any help!
we logically want to build a house. We live in an area where land is scarce and there has been a significant price increase in recent years. We have now found a plot tied to a developer online. The developer also offers houses that we find visually appealing. After an appointment with the developer, they provided us with the address of the plot. During this appointment, we shared our wishes regarding extras such as a glass bay window, gables, and similar features, and the developer wanted to include these in a cost calculation for a specific house type by the next meeting. Meanwhile, we were supposed to look at the plot.
The second meeting took place a week later. As mentioned above, we like the location and price of the plot (very good price), but we have never been able to access it properly and could only view it from the outside. For the house type we find visually appealing, we would like to make changes to the upper floor (attic) layout but have not yet come up with a clear idea.
During the second meeting with the representative of the house building company, we were presented with a letter of intent to purchase the plot along with the house type, subject to financing in spring 2018. When we asked about additional costs we were not yet sure about, such as higher-quality choices in the interior finishing selection (a flat rate of €4000 was assumed), extra groundwork (a soil survey will only be done after purchasing the plot), or even whether a floor plan tailored to our needs would be possible for that house type, the representative said the costs had already been calculated very well and that the architect would find a solution with us and advise us later. Is this common practice? We would like to feel that this will really be our house! Somewhere, we want to know exactly where to sign. Do architectural services always take place only after signing the house-building contract? Then our extras are included in the calculation, but what if we later decide something is too expensive and want to leave it out, or if we choose items exceeding the flat €4000 budget during the finishing selection? For example, no dormer window?
We would be very grateful for any help!
He who pays calls the tune. Go at your own pace; if the other person then overwhelms someone else with the house, that’s their choice. You alone are responsible for your finances. Stay calm, be mature about it, recognize the pressure, and tell the seller what you want. If you can’t reach an agreement, then they are the wrong contracting partner for you. Karsten
I agree with Nordlys. I wouldn’t rely on statements like “We’ll find a solution.” Basically, that means “We’ll see what’s possible, and if it doesn’t meet your preferences, you’ll have to accept a compromise and live with it.” Feel free to ask for a preliminary selection preview or where you can view the options. This way, you can estimate any additional costs before signing. You can also let him know that you won’t feel pressured. If he sells to someone else in the meantime, so be it.
When we signed, we only did so after the preliminary selection was done and we knew the approximate costs. In our case, the (verified) contract even stated that we could withdraw free of charge (except for architect fees amounting to sum xxx) if the written financing commitment didn’t come through. We had already received the verbal one.
Therefore, everything should be negotiable; if he’s not willing, that’s his loss.
When we signed, we only did so after the preliminary selection was done and we knew the approximate costs. In our case, the (verified) contract even stated that we could withdraw free of charge (except for architect fees amounting to sum xxx) if the written financing commitment didn’t come through. We had already received the verbal one.
Therefore, everything should be negotiable; if he’s not willing, that’s his loss.
I agree with Mike!
I have no idea what exactly is included in the construction scope and specifications, but just to share our example:
The house was offered at 149,000 (without land, it was a plot purchase agreement), and we ended up paying an additional 45,000 for extras like KfW (energy efficiency funding), ventilation, windows, chimney, etc. On top of that, we added electrical, plumbing, and tile upgrades costing around 10,000€.
We do not have villa-level finishes! Also, expensive features like dormers or similar were not included in the price. These are more or less necessary items that turn the catalog price into the final house price.
Mobile greetings from the road
I have no idea what exactly is included in the construction scope and specifications, but just to share our example:
The house was offered at 149,000 (without land, it was a plot purchase agreement), and we ended up paying an additional 45,000 for extras like KfW (energy efficiency funding), ventilation, windows, chimney, etc. On top of that, we added electrical, plumbing, and tile upgrades costing around 10,000€.
We do not have villa-level finishes! Also, expensive features like dormers or similar were not included in the price. These are more or less necessary items that turn the catalog price into the final house price.
Mobile greetings from the road
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