Single-family house - developer rejected

And this is not a new realization. Security costs money. By the way, this always applies. Why should it be different here? The only question is whose money.

So I claim, no clear-headed client wants to deal with such stress. There is clearly much more at stake than "just money"

Hi,

But you have read the rest of the thread and know who is being counted here, right?

Take it easy....


No, I still don't know exactly. The decisive question is still: developer or general contractor?


If it's a developer, that means if the OP really wants this plot, they have to take the developer or give up this building plot. Take it or leave it! And in exactly that case, the OP's negotiating position is the worst, they want the plot and presumably three other interested parties are already lining up. (At least that would be the case here in the greater Nuremberg area). You can forget about making a demand like "deferred payment," they would just kick you out and say: "next please." Besides, with developer models there is a prescribed payment plan afaik, no idea if that can be changed in favor of the buyer...?


What would be a smart decision there is, well, debatable...


If it's a general contractor, i.e. the OP already owns the plot, the situation is completely different. Then it would be unnecessary to continue talking with the GC. Just kick them out and next please!


The new one would have to be already sensationally cheaper, although that can be a red flag. Nobody is giving anything away and reputable GCs won't differ by more than 2-5% for comparable performance.


Best regards,


Andreas

Hello,

basically, I agree with the statements here that urge increased caution.

At first, it doesn't really matter whether this is a BT, a GÜ, or a GU.

If the company in question "goes down the drain," a lot of extra work, stress, delays, and financial expenses are inevitable. Not to mention possible warranty claims that may no longer be enforceable.

A bank will not do the devil's work by issuing unfounded warnings!

In your position, I would be grateful to the bank for pointing out a circumstance that might have otherwise escaped your attention.

Have you already checked whether the company in question possibly also maintains accounts with this bank – that could, for example, be a reason why one bank knows more than another and can only tell you this indirectly or "between the lines"...

As already said, examine the background of the company thoroughly – if in doubt, seek professional help.

If (justified) doubts still remain, I personally would look for another company.

The risk would then be too great for me.

Regards,

Dirk

Hello Chris,

I have to ask a somewhat "strange" question.

That is not a "strange" question, but a legitimate one, and I am glad you asked it!

We want to build a single-family house, also went to the bank, but the loan was rejected. With the statement "Our chosen construction company has a poor score at CreditReform." According to our advisor, it definitely is not due to our financial situation.

Potential builders usually pay for such information; you get it free of charge.

No bank gives such statements _without_ reason or lightly; so you should be glad to have received this "hint" and look for another provider. But since you instead inquired at another bank – probably with less experience with the favored provider – the offer price must be very tempting, ignoring the valuable hint from the first bank. I can only recommend consulting Aunt Google and searching for John Ruskin.

Of course, you cannot "look inside" a construction company, but he builds several houses in our district. Theoretically, other banks should also have problems, right?

Among others, IBG also built many houses – did that save them from insolvency?

Tox’s advice also does not seem helpful to me. What use is a payment according to construction progress, in 7 steps or upon handover, if the delivered performance, for example, does not meet the state of the art or construction status? It does not matter at all whether you actually want to build with a general contractor or a main contractor/subcontractor. Trouble seems inevitable. Apart from the fact that providers rarely agree to change their contractual arrangements, as Andreas rightly pointed out.

Your money – your decision – your risk

Rhine greetings

Construction expert needs no further introduction.
It is about your financial existence.