Costs for completion and warranty bonds?

Good day,

we have an offer of approximately EUR 240,000 for a single-family house (basement, land, etc. separately). I have now in a subordinate clause asked about the above-mentioned guarantees and was told that these could of course be provided, but that this would be associated with costs.

Is it usual for the customer to bear these costs entirely? What should these guarantees cost at most?

Thank you and best regards

Our BU gave us the guarantee without charging us anything.

Hello,

of course the provider incurs costs due to the guarantee, no bank or insurance issues a guarantee without charging a fee.

If the guarantee is included in the contract (offered by the company on its own initiative) he, as a prudent businessman, will have factored these costs into the offer price.

Another will simply calculate these separately. It would be interesting to know what the guarantee is supposed to cost.

Best regards

Michael

As a rule, craftsmen/BT/GU/GÜ pay somewhere between 0.25 - 3.00% p.a. to their own house bank or insurance. Depending on the terms set by the guarantor and the creditworthiness of the applicant.

Sometimes a one-time fee (a small 2-3 digit amount) is added.

Of course, there are always deviations from this.

A good sign is already that your contractor does not flatly say no to a completion guarantee. I would try to negotiate it in at the end. I can only warmly recommend everyone to insist on a completion guarantee, even if you might have to bear the costs yourself. At least you could also offer to share the costs, but I would not do without it...

Hello,
thank you very much for the answers.
I can read a bit that it already costs something and those who offer it for free may have factored in some leeway in the price...
What exactly do the 0.25 - 3% refer to? To the guarantee amount? How high might it be for a warranty bond?

Regards