How successfully did you negotiate?

20 years at a branch of a large German bank. Equity ratio 80%...

Good morning

I don’t want to seem curious, but
what’s going on when 20% of the investment is financed over 20 years?
A castle for own use or a particularly low income?

Otherwise, I can only agree with Toxi from my own experience.

Regarding negotiations with craftsmen from the contractor’s perspective.
Usually, 2% discount is possible.
Further discounts are not possible with a well-calculated offer.
If I, for example, give a discount of €1000, that is not €1000 from, say, a €25,000 contract amount for me, but €1000 from my €2500 profit.
To cover my costs and make a living, I therefore have to carry out an additional €10,000 contract.

Olli

whether and how one can negotiate now depends on many factors. before signing, there is ALWAYS more room than after signing.

1. with banks you can compare online, but the differences are often not that big. hardly anyone really stands out. once you have compared a few banks, you quickly get a feeling for what is good and what is not. the online calculators are not bad at all, as long as they explain their stated interest rates along with the conditions. there are basically no interest surcharges if the loan is shaky. then there is simply no loan. if you have real equity, you should make sure to reach at least 80% loan-to-value. we now have 82%, but the interest rate is so low that it was probably calculated with 80%. with banks, there is not much room for negotiation after the comparison, because all already calculate low to attract customers. where there is still something to talk about is a longer interest-free commitment period (because it's nonsense anyway) and general conditions like special repayments (are rarely made anyway, the banks know that of course) or free rate changes (often changing the rate 3 times, we have 2% repayment and can change 3 times between 1%-3% repayment).

2. with construction companies you can negotiate a bit BEFORE signing. depending on the company's principle, there is more or less room, and depending on the order situation, there is more or less room. companies that advertise that something is included for free in some package from certain dates are generally always more negotiable than companies that always quote a fixed price. the former try the discount trick, although that is of course nonsense. (the free extra is of course also included for free on request outside the promotion period...). in the end, you always pay about the same amount for a certain service. if someone is significantly cheaper, they also deliver less or worse. good motivated employees with high expertise in craftsmanship always cost 2-3 euros (wage) per hour more than the bad ones, who also constantly change and the company loses knowledge. whether a company is good can be seen, among other things, by how they pay their employees. it's best if you know someone. very good have also been future neighbors. they can already report a lot about their contracted company and share the stories of the neighboring houses. price-wise, about 5% was possible without much negotiation for us. his house from the catalog was supposed to cost sum X. we asked for 2 extras (roller shutters, fireplace) and asked him for an offer. on a piece of paper he wrote down the sums, drew a line and added 5% lower on. that was his price, no haggling, etc., and done.

3. with direct assignment of subcontractors/trades, there is certainly the most room, because each company "fights" for the order.

Good morning,

a) how many percentage points were you able to negotiate with the bank? An acquaintance got 0.7% from his bank

The bankers here can answer that better; from my feeling, I would say that banks "also only boil with water."

b) how much were you able to negotiate down in € with the developer? What is even realistic in the current situation of the rush on construction financing or "concrete gold"?

First of all, the question arises whether you are willing to forego equipment analogously to the "negotiating down"?

I am always surprised to read these or similar questions. What would it be like if your employer wanted to negotiate your salary before you signed the employment contract? Would you have gladly waived a part because the personnel manager sitting in front of you has such pretty eyes? Or would you - still theoretically - have perhaps replied that you agree, but only under the premise of reduced working hours or other nice-to-haves?

I also like to negotiate, I simply enjoy it. But it must remain within the bounds of possibility. In my opinion, you must not expect the seller sitting in front of you to grant you a discount of 5%; with an order volume of EUR 200,000, that is EUR 10,000 after all. Where this is possible, it is a.) either previously factored in, b.) reclaimed according to the contract, c.) money is saved on sensible equipment, or d.) the single-family house will only be completed with a lot of luck.

tox, wrobel and even Payday have already given you good and correct approaches. Negotiation yes, but always so that both sides can live with it, because only then is it a good deal!

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?

You are dreaming or confusing gross revenue with net profit.

Rhine greetings

I also like to negotiate, it simply gives me pleasure. But it has to remain within the realm of possibility. In my opinion, you shouldn't expect the seller sitting in front of you to grant you a discount of 5%; with an order volume of EUR 200,000 that would be EUR 10,000. Where this is possible, a.) it was either calculated in advance, b.) will be "taken back" according to the contract, c.) savings are made on sensible equipment, or d.) the single-family house will only be completed with a lot of luck.

since everyone negotiates, especially with such high amounts, these are always factored in anyway. The art is to know how much has been calculated in. And you find that out best by comparison. Because basically, a certain thing always costs about the same. For example, from 5 construction companies I received a surcharge for underfloor heating between €3,700 and €3,800, a chimney always cost €4,500. If someone then wanted €5,000, it was clear to me that there was a 10% margin for negotiation. Since the descriptions of the construction are partly not even remotely comparable, you shouldn't buy too cheaply. Otherwise, as happened with a friend of my partner, the upper floor is not high enough for the proper wardrobe (no joke, because of tilting the wardrobe, the ceiling was too low... (wardrobe height 235cm)). Of course, somewhere in the building description it will say how high the finished ceiling height is, but with all the data, etc., you can easily overlook something.

Sorry, but it is completely legitimate to try to get the best possible deal! Everyone compares prices when buying a TV or at the supermarket, so why not with such an investment that you probably make only once in your life? Every €, every % point is a credit saving that pays off multiple times with compound interest. Please don’t misunderstand, but my impression is that those who shout so loudly here "that will never happen in life" simply have a problem because they themselves didn’t get the interest rate. With negotiation skills, a lot is possible. The example I gave was one of two from my circle of acquaintances. And Stefan G. here also got a great interest rate. Within 4 weeks, the interest rates didn’t drop that much either. Take a look at the interest rate curve from Dec. - Feb... sorry, but I think he simply negotiated well. And that’s exactly what we will try. I will then report on the results

But 0.7% is rather a 50,000 euro difference over the total duration.

That would be roughly like carrying the 1,000 euro TV from the weekend offer out of the store for 400 euros. That doesn't work and it doesn't exist.

I looked at the Zim curve, and now?