mayglow
2022-07-06 11:14:23
- #1
Hello!
We are currently very interested in a townhouse being built by a developer. Unfortunately, our main contact person is on vacation at the moment, and I don’t want to excessively bother the representative (even though I have already done so a few times, oops). So I thought, for more general questions, I’d just ask the forum :)
We currently have, among other things, a building specification, but no contract draft yet. We are trying to assess ourselves where there might be potential additional costs beyond the fixed price ("special requests"), but in one or two areas we are still having difficulty estimating this.
Generally speaking: there is a lot of discussion here in the forum about ancillary construction costs etc. But with a developer, they are the builder and not me. Am I correct in assuming that we therefore don’t really have to worry about any "builder’s side" costs? A few general details are included regarding infrastructure (e.g. electricity, water, telecommunications are included), when I think of something like construction power, nothing is mentioned in the documents I have received so far, but basically I assume that is the developer’s responsibility since they are the builder?
There are often statements in the building specification like "according to structural design" or similar (excerpt: "The exterior walls above ground are made of sand-lime brick, if structurally required in reinforced concrete. All other load-bearing walls according to structural design.") or "as specified by the architect" ("In some areas, clinker brick slips, color tone and design as specified by the architect, will be used."). We do understand that with a townhouse built by the developer, we don’t have much choice in such matters and that is perfectly fine with us. But if I imagine we are in the construction phase and I send an expert there, handing them the building specification beforehand, such statements seem quite vague to easily check anything. (I mean, they will still be able to determine if something is completely botched in execution) Are such formulations normal or should they be specified in more detail?
What is the usual procedure regarding "special requests"? I had read that these are or can be part of the notarial contract. What is typically agreed before the contract is signed, and what only afterwards? So can I expect to have to select tiles and decide on sockets before signing the contract, or is it initially about more fundamental things (possibly moving a wall or similar)? We will certainly ask the developer ourselves about this, but it doesn’t hurt to know how this usually works ;) I imagine that the more I decide on beforehand, the more secure I am about the price — or is that assumption wrong?
Speaking of price. We are currently checking with banks, but are unsure how exactly to deal with the topic of "special requests." Our first impression is that we are quite satisfied with the standard in the building specification we have. There are one or two things we have a small question mark about (floors are included, tiles or parquet up to €30/sqm depending on the area ... is that enough or should we plan a buffer?), besides that, there are a few things we might want to add (possibly 2-3 more LAN ports for access points, possibly empty conduits for photovoltaics, possibly empty conduits in the garage for a wallbox OR depending on the price just have a wallbox installed directly). We would also be happy without these, but it just seems sensible to have these included now. Our original idea was that we would just pay for that out of pocket, independent of financing, but if it ends up in the notary contract and is an additional cost and we haven’t mentioned it to the bank, the price might be higher than what was communicated to the bank. Does the bank not care because it is our own funds, or is it possibly even foolish not to inform the bank, because it might improve the loan-to-value ratio? (House possibly worth more without additional bank funds). I mean, these are probably small things that won’t have much impact, but I am just a bit confused about how to handle this.
We are currently very interested in a townhouse being built by a developer. Unfortunately, our main contact person is on vacation at the moment, and I don’t want to excessively bother the representative (even though I have already done so a few times, oops). So I thought, for more general questions, I’d just ask the forum :)
We currently have, among other things, a building specification, but no contract draft yet. We are trying to assess ourselves where there might be potential additional costs beyond the fixed price ("special requests"), but in one or two areas we are still having difficulty estimating this.
Generally speaking: there is a lot of discussion here in the forum about ancillary construction costs etc. But with a developer, they are the builder and not me. Am I correct in assuming that we therefore don’t really have to worry about any "builder’s side" costs? A few general details are included regarding infrastructure (e.g. electricity, water, telecommunications are included), when I think of something like construction power, nothing is mentioned in the documents I have received so far, but basically I assume that is the developer’s responsibility since they are the builder?
There are often statements in the building specification like "according to structural design" or similar (excerpt: "The exterior walls above ground are made of sand-lime brick, if structurally required in reinforced concrete. All other load-bearing walls according to structural design.") or "as specified by the architect" ("In some areas, clinker brick slips, color tone and design as specified by the architect, will be used."). We do understand that with a townhouse built by the developer, we don’t have much choice in such matters and that is perfectly fine with us. But if I imagine we are in the construction phase and I send an expert there, handing them the building specification beforehand, such statements seem quite vague to easily check anything. (I mean, they will still be able to determine if something is completely botched in execution) Are such formulations normal or should they be specified in more detail?
What is the usual procedure regarding "special requests"? I had read that these are or can be part of the notarial contract. What is typically agreed before the contract is signed, and what only afterwards? So can I expect to have to select tiles and decide on sockets before signing the contract, or is it initially about more fundamental things (possibly moving a wall or similar)? We will certainly ask the developer ourselves about this, but it doesn’t hurt to know how this usually works ;) I imagine that the more I decide on beforehand, the more secure I am about the price — or is that assumption wrong?
Speaking of price. We are currently checking with banks, but are unsure how exactly to deal with the topic of "special requests." Our first impression is that we are quite satisfied with the standard in the building specification we have. There are one or two things we have a small question mark about (floors are included, tiles or parquet up to €30/sqm depending on the area ... is that enough or should we plan a buffer?), besides that, there are a few things we might want to add (possibly 2-3 more LAN ports for access points, possibly empty conduits for photovoltaics, possibly empty conduits in the garage for a wallbox OR depending on the price just have a wallbox installed directly). We would also be happy without these, but it just seems sensible to have these included now. Our original idea was that we would just pay for that out of pocket, independent of financing, but if it ends up in the notary contract and is an additional cost and we haven’t mentioned it to the bank, the price might be higher than what was communicated to the bank. Does the bank not care because it is our own funds, or is it possibly even foolish not to inform the bank, because it might improve the loan-to-value ratio? (House possibly worth more without additional bank funds). I mean, these are probably small things that won’t have much impact, but I am just a bit confused about how to handle this.