Sell duplex off the plan and allow purchaser changes?

I'm in the early planning stages of a duplex and am thinking whether it'd be a good idea to sell off the plan and allow the purchasers to make changes and customise to their taste/requirements.
I wouldn't allow downgrading, but perhaps I could include a medium level of finishes and allow the purchasers to change paint colours, bench tops, tiles, carpet, white goods, finishes, add gas points, add power outlets, etc.
I think this could be a winning strategy differing from most other duplexes on the market that sell you a finished product, after completion. The purchaser ends up with a new home with no input.
I'll be building them both as I'm a builder, so for me I do see the potential to make a little extra dosh through the variations as the purchasers won't have any other choice but to use my services during construction, otherwise they'd have to pay someone else more to do it later.
I guess the downside to the strategy is by selling off the plan, the property will be sold at an earlier date rather than after completion, so any increases in value may be lost.
I know this is common on larger scale developments where you can buy off the plan, but I personally haven't heard of anything like this for smaller scale developments.

What are your thoughts? Is this something anyone has experience with?
 
My parents did this and everyone was happy with the outcome. They had a buyer, the purchaser made a few minor adjustments to the plan to suit them, chose colours etc. might depend on the market though if that would be popular. Also, depending on the market you might miss some capital gain?
 
I'd guess the reason this type of customising is not done is due to the administration work involved.
It would be quite a complicated, time consuming job calculating the differences and adjusting contracts, etc, to make sure there will be no disputes later.
Also, I'd imagine most people change their minds back and forth many times when you give them too many options.
Keeping track of and adjusting all these changes would be a hassle if you main job is to concentrate on the construction, as this scenario requires you to be a marketer/salesperson too.

Personally, I'd favour to build what suits the area at lowest cost for highest perceived value.
That way if you sell on or near completion, you'll attract the maximum potential market which will in turn maximise the price.
 
I'm in the early planning stages of a duplex and am thinking whether it'd be a good idea to sell off the plan and allow the purchasers to make changes and customise to their taste/requirements.
I wouldn't allow downgrading, but perhaps I could include a medium level of finishes and allow the purchasers to change paint colours, bench tops, tiles, carpet, white goods, finishes, add gas points, add power outlets, etc.
I think this could be a winning strategy differing from most other duplexes on the market that sell you a finished product, after completion. The purchaser ends up with a new home with no input.
I'll be building them both as I'm a builder, so for me I do see the potential to make a little extra dosh through the variations as the purchasers won't have any other choice but to use my services during construction, otherwise they'd have to pay someone else more to do it later.
I guess the downside to the strategy is by selling off the plan, the property will be sold at an earlier date rather than after completion, so any increases in value may be lost.
I know this is common on larger scale developments where you can buy off the plan, but I personally haven't heard of anything like this for smaller scale developments.

What are your thoughts? Is this something anyone has experience with?


it will really depends who is buyer and how difficult they are to deal with.


you may find that it will be enough headache to develop properties itself and may not be your worthwhile dealing with issues with selection of PC items.

selection = Delay = more holding cost = loss of profit for you

Plus, it is cheaper to buy things in bulk and easier handling process of material on site.
 
Friend who builds spec houses used to sell before finish but found the hassles more trouble than they were worth when the buyer wanted changes, even though he charged more for the variations.

Now he won't let any prospective buyers even look through until the property is completed.
Marg
 
The administration side of things for me will be quite simple as I have administration experience on larger low density residential projects.
When it comes to bulk buying, the internal finishes won't really impact discounts much. All the bulk discounts will be for bricks, timber, and other items used for the structure which won't be changed by purchasers, or at least I won't allow it.
 
But what is your time worth?
Do you make more money doing development work or administration work?

Yep. Focus on the bigger picture.

Also, some buyers can be a nightmare to deal with. If you are confident that you will sell at completion (which generally equates to a higher selling price) why would you want to deal with buyer demands to make some (unlikely) extra coin??
 
Pro tip - most people don't even know what they want until they see it. Develop something suitable for the area in nice modern neutral colours and it will move.
 
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