ᐅ Contracts Signed – Doubts Within the Cooling-Off Period
Created on: 28 Mar 2018 06:48
S
StagenbergerS
Stagenberger28 Mar 2018 06:48I signed the contract with the bank and the developer last week and was initially optimistic.
But now I have some doubts about the developer. The reasons are:
1. Several negative reviews online (though almost as many positive ones as well), which I only discovered after signing the contract; if I had seen them beforehand, I might not have signed.
2. I don’t personally know anyone who has built with this company. However, most people say the company has a good reputation and that they are not aware of any negative experiences.
3. The originally very low-priced offer was somewhat optimistically estimated, as my architect friend pointed out (this is also one of the criticisms mentioned online). With additional corrections costing around 20,000 (about 22,000) it is now roughly at the same price level as the competition.
4. The bank representative almost let slip shortly before signing that there could possibly be problems with the loan-to-value ratio “due to the value of the house” (which ultimately did not occur).
5. I reviewed the offer from my second favorite developer and found that it actually offers slightly better services for almost the same price.
Why I originally chose this developer:
Good advice beforehand, detailed costs, they were the only ones to visit the plot, and I had a good feeling.
What would you do in my situation?
a) Have the contract reviewed again by other experts (second architect, second lawyer)?
b) ["Radical solution"] Withdraw from the contract and go with my second choice (a different developer, almost the same price)?
c) Build with the architect, which might be more expensive and would significantly delay the process since he currently has several large projects underway?
d) ?
But now I have some doubts about the developer. The reasons are:
1. Several negative reviews online (though almost as many positive ones as well), which I only discovered after signing the contract; if I had seen them beforehand, I might not have signed.
2. I don’t personally know anyone who has built with this company. However, most people say the company has a good reputation and that they are not aware of any negative experiences.
3. The originally very low-priced offer was somewhat optimistically estimated, as my architect friend pointed out (this is also one of the criticisms mentioned online). With additional corrections costing around 20,000 (about 22,000) it is now roughly at the same price level as the competition.
4. The bank representative almost let slip shortly before signing that there could possibly be problems with the loan-to-value ratio “due to the value of the house” (which ultimately did not occur).
5. I reviewed the offer from my second favorite developer and found that it actually offers slightly better services for almost the same price.
Why I originally chose this developer:
Good advice beforehand, detailed costs, they were the only ones to visit the plot, and I had a good feeling.
What would you do in my situation?
a) Have the contract reviewed again by other experts (second architect, second lawyer)?
b) ["Radical solution"] Withdraw from the contract and go with my second choice (a different developer, almost the same price)?
c) Build with the architect, which might be more expensive and would significantly delay the process since he currently has several large projects underway?
d) ?
T
toxicmolotof28 Mar 2018 08:02You’re signing a contract worth 200,000–300,000 euros or more, yet you can’t even properly identify your counterpart (developer?!?!???) for what they really are? (Which is definitely not a developer!)
Keep in mind that people tend to write negative reviews much faster than positive ones. (I once heard it’s about seven times more often.)
If you look at 10 reviews split roughly 50/50, 35 out of 40 customers were satisfied, and 5 were not.
I think that’s still quite a few negative reviews, but it sounds much better than an even split.
Why do you always find this out only after signing the contract in the new territory of the internet?
Remember: same service = same price.
This applies everywhere. A Dacia Duster isn’t cheaper than an Audi Q3 because of cool tricks, but because they cut corners (whatever those may be). It’s no different with houses.
In addition to an architect, you might want to have a legal expert review the contract to see if that raises any red flags. That way, you’ll be aware of any issues in the contract.
But these are all things you should have done before signing. Of course, you can use your right of withdrawal. Just don’t expect your counterpart to remain very happy afterward. And regarding the alternative builder… will you do the same there?
Homework: First, familiarize yourself with the basics, contract types, and company forms—and sooner is better than later.
Keep in mind that people tend to write negative reviews much faster than positive ones. (I once heard it’s about seven times more often.)
If you look at 10 reviews split roughly 50/50, 35 out of 40 customers were satisfied, and 5 were not.
I think that’s still quite a few negative reviews, but it sounds much better than an even split.
Why do you always find this out only after signing the contract in the new territory of the internet?
Remember: same service = same price.
This applies everywhere. A Dacia Duster isn’t cheaper than an Audi Q3 because of cool tricks, but because they cut corners (whatever those may be). It’s no different with houses.
In addition to an architect, you might want to have a legal expert review the contract to see if that raises any red flags. That way, you’ll be aware of any issues in the contract.
But these are all things you should have done before signing. Of course, you can use your right of withdrawal. Just don’t expect your counterpart to remain very happy afterward. And regarding the alternative builder… will you do the same there?
Homework: First, familiarize yourself with the basics, contract types, and company forms—and sooner is better than later.
toxicmolotow schrieb:
Note: same performance = same price. Nonsense. That might be an ideal to strive for, but it has absolutely no relation to the current market situation.
toxicmolotow schrieb:
A Dacia Duster is not cheaper than an Audi Q3 Please. Not every flawed comparison is valid. Fully developed modular transverse platforms, brand image, target audience—all of these factors influence price more than performance or quality.
markus270328 Mar 2018 10:11If your personal feeling is right, then stick with him. On the internet, you will always find negative reviews; satisfied customers usually don’t write any. Besides, construction rarely goes completely smoothly, that’s just the way it is.
Running away just because of a few reviews is not the best decision. If the offer is still competitive, then everything is fine.
You have signed the contract, and that’s that. You don’t really know what happens with the competitor you mentioned either.
Running away just because of a few reviews is not the best decision. If the offer is still competitive, then everything is fine.
You have signed the contract, and that’s that. You don’t really know what happens with the competitor you mentioned either.
The question is settled once it’s clear: Can you step back? Is there a clause for that?
If that’s not possible, discussing it is pointless.
If it is possible, there are three psychological motives:
1) “Damn, I didn’t get the cheapest option.” The reassuring thought: There is always someone somewhere who got it cheaper.
2) “Damn, I was cheated.” This feeling is serious and hard to dismiss.
3) “Oh no, I’ve just spent 300,000 euros.” Where will this end? The reassuring thought: If you want to build, you have to pay. If you don’t want to pay, you can’t build.
Karsten
If that’s not possible, discussing it is pointless.
If it is possible, there are three psychological motives:
1) “Damn, I didn’t get the cheapest option.” The reassuring thought: There is always someone somewhere who got it cheaper.
2) “Damn, I was cheated.” This feeling is serious and hard to dismiss.
3) “Oh no, I’ve just spent 300,000 euros.” Where will this end? The reassuring thought: If you want to build, you have to pay. If you don’t want to pay, you can’t build.
Karsten
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