How successfully did you negotiate?

Is the management board of LB advising on the conditions for financing your property?
Olli

No, of course not. It would be terrible if the management board had nothing else to do. I was just told that...

Some simply do not want to believe it. They prefer to continue believing that it is not possible, just so they do not feel bad for not having negotiated (harder). 0.45% is easily achievable, I have seen it in black and white myself. Dr. Klein got that from the local Sparkasse... First meeting, no renegotiation! Therefore, I am sure, there is even more to come.

Just stay in that belief and that's fine. I know what works and what doesn't.

If you overdo it, you're out. It's that simple.

And that a bank makes a counteroffer is not objectionable; MediaMarkt or any hardware store does that too.

But that doesn't always work, specifically when the costs exceed the returns. And sometimes it's calculated so tightly that there isn't much room left.

Sure! Completely correct! It doesn't always work. One wants to earn, the other wants to save. Still, I don't find it objectionable to test the pain threshold. Neither party has anything to give away! But it shows that asking brings real money.

We completed our financing in February 2015.

Our main bank offered us 2.4% fixed for 15 years, with an LTV of 80%.

Interhyp offered us 2.1% for 15 years, also 80% LTV.

And the finance center of the Sparkasse initially offered us 2.3% fixed, and when we said that was still too high for us, suddenly 1.7% was on the table.

I presented the Sparkasse offer to my main bank, and the advisor said, "Sorry, I guess I'll have to let you go, I can't compete with that."

So we signed with the Sparkasse, LTV 85% (we declared less equity so that we would have a small buffer), 1.70% fixed for 15 years, 2x repayment changes, and an annual special repayment of 9,500 euros included.

I am satisfied
(although that was less due to my negotiating skills..)

Good morning,

but since everyone negotiates, especially with such large amounts, these are always included anyway.

No! What you as a seller can often rely on is that potential builders assume this very easily. The thought that - if it were actually the case - they have been cheated unnecessarily seems to occur to only a few.

By the way, you should not want to transfer the "experiences" from your profession 1:1 to the construction industry. Especially when foreign contracts are negotiated, the necessary "gifts" are already considered in the offer. Nationally, this still worked in the days of Varta; today rather less so; the self-disclosures from the companies speak for themselves.

because basically a certain thing always costs the same.

Now you got it! Add: "+/- € 5/7,000.00 for comparable performance" and I fully agree with you.

... a chimney always cost 4500€. If someone then wanted 5000 euros, it was clear to me that there is a 10% negotiation margin.

Not necessarily. It can also be that his cost structure, his contribution margin, is set higher.

because the construction descriptions are sometimes not even remotely comparable,

There are specialists for that; but of course they cost money. Money that will later be regretted not having been invested.

Rhenish greetings

Hello Tox,

And that a bank goes along with a counteroffer is not reprehensible ...

I have experienced that once or twice as well – but admittedly only when the builder was self-employed, that the house bank accepted the cheapest offer; probably keeping an eye on the company accounts.

Could it be that banks/savings banks have a limited quota at certain times – or even only for such cases, which they can then "tap into"?

Edit: always assuming my clients have not lied to me.

Rhenish greetings