Hello,
I have the following problem. The company we want to build with (let’s call it Stadt und Land) gave me a financing offer two weeks ago (10-year term) and then submitted an application to Ing-Diba. We also plan to take out two KfW loans totaling €50,000.
Now, this week I received a much better offer with a similar interest rate but for a 30-year term through my insurance company.
My problem is that the building planner naturally sees his commission at risk and insists on receiving it (he is very firm about this). So, he initially sent me two alternative offers from Ing-Diba, but they only have a fixed interest rate period of 15 years (Ing-Diba does not offer longer).
Just now, he called me and said he could arrange the same offer as the insurance company (also through the insurance) and thinks it is only fair that he gets the contract since he has put so much work into it.
Here’s the catch! Since the KfW loans were approved for Ing-Diba, we have to apply for switching banks with KfW (the fact that these funds can only be assigned once and are then blocked for 6 months was not mentioned by the guy).
The building planner told me on the phone that we have no choice but to sign the contract with him because we need his signature to access the KfW funds or to transfer them to another contract.
It feels a bit like blackmail. I now suspect that if I do not sign the contract with him, we will only encounter more problems during the construction, and I have a really bad feeling about this right now.
Wouldn’t it be fairer to award the contract to the person who first gave me the best offer?
Should we perhaps look for another building company? Maybe even an architect?
I’m a bit at a loss and have completely lost motivation for building by now, but I’m really glad that we haven’t signed anything yet (construction contract, etc.), only a power of attorney for the bank.
I hope someone can help me out. ((
I have the following problem. The company we want to build with (let’s call it Stadt und Land) gave me a financing offer two weeks ago (10-year term) and then submitted an application to Ing-Diba. We also plan to take out two KfW loans totaling €50,000.
Now, this week I received a much better offer with a similar interest rate but for a 30-year term through my insurance company.
My problem is that the building planner naturally sees his commission at risk and insists on receiving it (he is very firm about this). So, he initially sent me two alternative offers from Ing-Diba, but they only have a fixed interest rate period of 15 years (Ing-Diba does not offer longer).
Just now, he called me and said he could arrange the same offer as the insurance company (also through the insurance) and thinks it is only fair that he gets the contract since he has put so much work into it.
Here’s the catch! Since the KfW loans were approved for Ing-Diba, we have to apply for switching banks with KfW (the fact that these funds can only be assigned once and are then blocked for 6 months was not mentioned by the guy).
The building planner told me on the phone that we have no choice but to sign the contract with him because we need his signature to access the KfW funds or to transfer them to another contract.
It feels a bit like blackmail. I now suspect that if I do not sign the contract with him, we will only encounter more problems during the construction, and I have a really bad feeling about this right now.
Wouldn’t it be fairer to award the contract to the person who first gave me the best offer?
Should we perhaps look for another building company? Maybe even an architect?
I’m a bit at a loss and have completely lost motivation for building by now, but I’m really glad that we haven’t signed anything yet (construction contract, etc.), only a power of attorney for the bank.
I hope someone can help me out. ((
D
Doc.Schnaggls13 May 2014 09:44Hi baschti,
I think you made the right decision regarding the "consultant."
Building with an architect can be interesting, but no architect will be able to provide you with a binding fixed price upfront. That is only possible once the individual quotes come back.
However, I’m afraid you won’t get financing until it is clear what and with whom you want to build.
Maybe take a look at one or two companies acting as a general contractor — I’m sure you will find the right partner.
You’re planning a solidly built house, right?
Regards,
Dirk
I think you made the right decision regarding the "consultant."
Building with an architect can be interesting, but no architect will be able to provide you with a binding fixed price upfront. That is only possible once the individual quotes come back.
However, I’m afraid you won’t get financing until it is clear what and with whom you want to build.
Maybe take a look at one or two companies acting as a general contractor — I’m sure you will find the right partner.
You’re planning a solidly built house, right?
Regards,
Dirk
Koempy schrieb:
How do you expect to get financing if you don’t have a contract or building partner yet? Banks want to know what you plan to build.Yes, we do know what we want to build. Everything is specified in the contract. The bank doesn’t really care which general contractor or architect we choose. But I’m planning to find someone reliable to build with within the next 1-2 weeks.
The loan application has just been submitted for now, and then we will see what the bank says and what additional documents they might need.
Yes, we definitely want to build with solid construction. No external thermal insulation composite systems (ETICS) or anything like that… just a regular cavity wall. Inside, 36.5 cm (14.4 inches) Ytong with a thermal conductivity of 0.07, and outside, facing brick (NF).
D
DerBjoern13 May 2014 10:11If you want to build at a fixed price, usually the only option is a general contractor (GC). Make sure to choose a local company that has been in business for a longer time. These companies often care a lot about their reputation since they usually operate quite locally. Alternatively, you can visit new housing developments to see which companies are working there and then ask around about how they operate...
B
Bauexperte13 May 2014 10:15Hello,
I strongly recommend putting your request for the financing amount on hold. Your friend/insurance broker can handle it; it’s not rocket science. Because...
... in my opinion, you won’t find a provider—unless they have a similar approach to offer structure and customer service—who can match the prices from Stadt & Land. This provider specializes in young families and apparently offers cheap houses; but on closer inspection, the bargain quickly turns out to be an entry-level model full of additional agreements.
Regards, Bauexperte
I strongly recommend putting your request for the financing amount on hold. Your friend/insurance broker can handle it; it’s not rocket science. Because...
baschti schrieb:
Yes, we definitely want to build with solid construction. No external thermal insulation composite system (ETICS) or anything else… just standard two-shell masonry. Inside 36.5cm (14.4 inches) Ytong 0.07 and outside brick facing NF.
... in my opinion, you won’t find a provider—unless they have a similar approach to offer structure and customer service—who can match the prices from Stadt & Land. This provider specializes in young families and apparently offers cheap houses; but on closer inspection, the bargain quickly turns out to be an entry-level model full of additional agreements.
Regards, Bauexperte
H
HilfeHilfe13 May 2014 10:22Hello
Once again, it is urgently advised to stop everything for now.
Otherwise, we will soon have a section called "Help, I have a loan and the insurance refuses to increase the loan amount."
First, the framework conditions should be clarified, and then the financing secured. A penalty for early repayment can be very expensive.
The 14-day period probably refers to the cancellation period for the financing. Whether a reliable building partner can be found within this time, I do not know.
Once again, it is urgently advised to stop everything for now.
Otherwise, we will soon have a section called "Help, I have a loan and the insurance refuses to increase the loan amount."
First, the framework conditions should be clarified, and then the financing secured. A penalty for early repayment can be very expensive.
The 14-day period probably refers to the cancellation period for the financing. Whether a reliable building partner can be found within this time, I do not know.