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Hamidhaus3 Jul 2021 10:53I am currently in the decision-making phase and would like to get a second opinion (preferably from you).
It concerns our future house. I found a new development project (3 duplex houses, i.e., 6 semi-detached units) in Langenhagen (Hannover region). A real estate agent purchased a large plot and plans to have an architect build 3 duplex houses on it. I contacted the agent and received an offer after the three of us (the agent, the architect, and I) discussed which features I would like in our semi-detached house (some changes in the floor plan).
The offer is as follows:
The house costs a total of €600,000 plus property transfer tax (€30,000) and notary fees (€8,000), so the total comes to €642,000 for about 150 sqm (1,615 sq ft) of living space and 374 sqm (4,025 sq ft) of land. The agent showed us her own house as a sample, which she built two years ago with high quality. I was promised that our house will be built to the same quality (solid construction, island kitchen, freestanding bathtub, Town & Country toilet, 1mx1m (3.3ft x 3.3ft) tiles, etc.). It is planned to be built to KfW 40 energy efficiency standard.
We are now at the point where I want the agent to sign a contract. Upon signing, a payment of €25,000 is due as a flat fee for modification work (and simultaneously as a down payment). This means the agent will start building the house with her own money. There is a draft for the notary purchase agreement, which we are only supposed to sign once the house is completed (around April 2022). We will receive the house turnkey.
My question to you is: Are we making a mistake by signing this agreement? The risk is that we would lose the €25,000 if we can’t secure financing for the house or for any other reason do not sign the notary purchase agreement (€575,000).
I have already spoken with banks about loan offers and received several options. I cannot finance the house on my own because the loan amount is too high. Unfortunately, my girlfriend is not currently taken into account because she does not yet have permanent residency. However, she will obtain permanent residency in February 2022, about two months before the house is completed. Together, we will probably be able to finance the house, as both of us are employed with a combined net income of over €5,000 and equity of about €80,000.
Would you take the risk in my position? If not, why?
Thank you in advance.
It concerns our future house. I found a new development project (3 duplex houses, i.e., 6 semi-detached units) in Langenhagen (Hannover region). A real estate agent purchased a large plot and plans to have an architect build 3 duplex houses on it. I contacted the agent and received an offer after the three of us (the agent, the architect, and I) discussed which features I would like in our semi-detached house (some changes in the floor plan).
The offer is as follows:
The house costs a total of €600,000 plus property transfer tax (€30,000) and notary fees (€8,000), so the total comes to €642,000 for about 150 sqm (1,615 sq ft) of living space and 374 sqm (4,025 sq ft) of land. The agent showed us her own house as a sample, which she built two years ago with high quality. I was promised that our house will be built to the same quality (solid construction, island kitchen, freestanding bathtub, Town & Country toilet, 1mx1m (3.3ft x 3.3ft) tiles, etc.). It is planned to be built to KfW 40 energy efficiency standard.
We are now at the point where I want the agent to sign a contract. Upon signing, a payment of €25,000 is due as a flat fee for modification work (and simultaneously as a down payment). This means the agent will start building the house with her own money. There is a draft for the notary purchase agreement, which we are only supposed to sign once the house is completed (around April 2022). We will receive the house turnkey.
My question to you is: Are we making a mistake by signing this agreement? The risk is that we would lose the €25,000 if we can’t secure financing for the house or for any other reason do not sign the notary purchase agreement (€575,000).
I have already spoken with banks about loan offers and received several options. I cannot finance the house on my own because the loan amount is too high. Unfortunately, my girlfriend is not currently taken into account because she does not yet have permanent residency. However, she will obtain permanent residency in February 2022, about two months before the house is completed. Together, we will probably be able to finance the house, as both of us are employed with a combined net income of over €5,000 and equity of about €80,000.
Would you take the risk in my position? If not, why?
Thank you in advance.
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hampshire3 Jul 2021 11:09It’s quite simple. As long as you are unsure about arranging the financing, it doesn’t make sense to enter into a contract. In other words: Don’t pay a deposit for something you cannot afford to buy.
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pagoni20203 Jul 2021 11:45Financing can be arranged quite quickly.
That is number one in the sequence; only after that come the wishes and ideas.
That is number one in the sequence; only after that come the wishes and ideas.
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Myrna_Loy3 Jul 2021 11:56That all sounds far too prone to problems. Many promises, but nothing fixed. But a flat fee? I wouldn’t enter into such deals.
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Myrna_Loy3 Jul 2021 12:10Actually, it sounds like a scam when I read it like this.
Myrna_Loy schrieb:
That all sounds far too prone to problems to me. Lots of promises, nothing fixed. But a flat rate? I wouldn’t enter into such a deal.Reminds me of Eduard Zimmermann’s “Scammers, Hustlers, Conmen.” And if it’s only being planned now, there’s still nothing by April 22.
What needs to be done, or not done, has already been stated.
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