Construction project - multi-party structure - experiences?

  • Erstellt am 2024-07-10 21:39:40

K a t j a

2024-07-11 20:02:24
  • #1
That all sounds to me like a money-making scheme. What do we have here? An elderly lady who has been wrapped around a broker's finger and presumably bound by a gag contract. He quickly realized that he had found a little gem. Now he is selling it to three parties at once: the builder, the construction company, and the project developer. Presumably, the broker, the construction company, and the project person are already a well-coordinated team and regularly pull this number, where all the risks remain nicely with the buyer and builder. He is not allowed to decide what he wants to build or with whom, because that could reduce the profit. What he is allowed to do is pay, and pay dearly, because everyone wants a big piece of this cake, causing the costs to double and triple. And all that for what? A semi-detached house! I would say this: Of course, these can also be nice and honest people who simply want to realize a beautiful project, and I am exaggerating massively. What is interesting here in the end are the total costs for the house and the land. If your "all in" is about 3K per sqm of living space and the local land values per sqm of land, then it is a fair offer. If you are significantly above that, you are probably being taken for a ride. And by "all in" I mean everything.
 

ypg

2024-07-11 21:50:57
  • #2
That is a general contractor - he does exactly what the project developer does when commissioned. If your area is so popular, then they should be lining up. I would go to the first realtor and theoretically buy, i.e. reserve, the entire property. Then look for another family and bundle the package.
 

deranfaenger

2024-07-12 11:44:53
  • #3
I basically share your concerns (which is why we are still so undecided), but I wouldn't see it as quite so harsh. Of course, they all want to make money – at the end of the day, the structure in this specific case is as it is, and there isn’t much to change about it (with regard to the brokers and the project developer). Ideally, I would of course prefer to do without parties that aren’t absolutely necessary – but reality is different. I see it somewhat like this: we only pay one brokerage fee on the land, and the PE costs could just as well have gone towards a commission on the existing house.

The costs amount to the standard land value for the property and about 3700 euros/m2 (but this would then include all foreseeable costs – project development, demolition, surveying, painting, flooring, taxes, brokerage, notary).
 

K a t j a

2024-07-12 12:10:19
  • #4
That's just 700 euros more than the average per square meter. For a small 130 square meter house, that's quickly 90K for nothing. If money is not such a problem, okay. But what would also annoy me in your place is the lack of freedom in choosing the building. In some areas, the land sellers can basically get away with almost anything.
 

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