How successfully did you negotiate?

Hello everyone,

we are facing the final negotiations with the bank and our property developer.

I would be interested to know what your negotiation successes were.

Specifically

a) how many percentage points were you able to negotiate down at the bank? An acquaintance got 0.7% from his bank
b) how much were you able to negotiate down in € with the property developer? What is realistically achievable in the current situation of the rush for construction loans or [Betongold]?

I would be very interested in your experiences to get a feel for it. Of course, it depends on the individual case and negotiation skills, but at the moment we have no sense of it at all. I would also be interested to know if you know the average profit margin of a property developer. I guess it is at least 10%, right?

Thanks in advance for your help!

A question that also interests me a lot. Especially the negotiation with a prefabricated house manufacturer in our case.

Regarding a) what is it supposed to bring you? I consider 70 basis points nonsense, unless the bank was initially 50BP more expensive than a normal offer. Then of course I can also give a big discount.

Hello everyone,

we are facing the final negotiations with the bank and our developer.

I would be interested to know what your negotiation successes were.

Specifically

a) how many percentage points were you able to negotiate with the bank? An acquaintance got 0.7% from his bank
b) how much were you able to negotiate down with the developer in €? What is even realistic in the current situation with the run on construction loans or "concrete gold"?

I would be very interested in your experience to get a feel for it.
Of course, it depends on the individual case and negotiation skills, but at the moment we have no feeling for it at all. I would also be interested to know if you know the average profit margin of a developer. I guess it is at least 10%, right?

Thanks in advance for your help!

Due to the interest rate change, 0.7% is currently not achievable at banks. He certainly negotiated at different times or had a joke offer as a reference point. Today, you orient yourself towards mortgage brokers and negotiate at most in the second decimal range up to a maximum of 0.1%.

This forum is moderated by developers or general contractors....... I would rather rely on experiences from acquaintances.

A question that also interests me a lot. Especially the negotiation with a prefabricated house manufacturer in our case.

In my research on prefabricated house manufacturers, depending on the manufacturer, up to 5%. Here I would consider in advance whether it has to be a thoroughly eco-house, which has its surcharge - or - whether a normal prefabricated house is sufficient.

With the prefabricated house, I would definitely seek contact with additional reference builders and inquire about the incidental and additional costs. As a non-expert, you can hardly estimate or calculate these. The one-page flyers "incidental costs" are more or less useless.

Hello,

he had negotiated in November, from 2.4 to 1.7%. 2.4 was market standard at that time, so not a lowball offer from the bank. In this respect: why should that not be possible now... more than 0.1% should be achievable. Especially since we would certainly be attractive customers for the bank.