Factors That Affect the Level of Success of the Transaction between Home Buyers and Developers in Sell-Build Residential Projects

Abstract

The “Sell-Build” model in residential project transactions involves a home buyer agreeing to pay the developer in monthly installments starting very early in the design or construction phases of a project. It is hypothesized that the success of this transaction depends on (1) the home buyer’s knowledge about the transaction process and (2) the mutual trust between home buyer and developer. A survey was administered to 250 home buyers and 70 developers in Turkey to collect demographic information about the participants and about the participants’ perceptions of not only the success of the transactions they were involved in, but also of the impacts of how informed home buyers are about the transaction process and how much the two parties trust each other. The data collected was subjected to statistical analysis. The findings indicate that (1) the home buyer should make a special effort to study relevant materials and consult specialists before entering into an agreement with a developer, and (2) the trust between home buyer and developer depends largely on the buyer’s uninterrupted flow of monthly installment payments starting early in the project. The contribution of this study is that it provides a useful guideline to home buyers and developers.