Are prices in advertisements real prices?

Hello everyone,

in my search for land, I have noticed several times now that the listings show price expectations that are completely inflated. These plots then do not sell and remain on the internet for months.

So far, I have assumed that there is always a bit of room for negotiation, but based on what I see with the plots that do not sell, I wouldn't be surprised if they only go for about half the asking price.

With apartments, I rather have the feeling that the listing prices somewhat reflect the actual achievable price. With land, that doesn't seem to be the case right now.

What experiences have you had: was there a lot of room for negotiation with your plots?

I am wondering if I should simply start making offers on plots that are clearly above my budget.

Best regards
insgruene

Hello,

In the search for a plot of land, I have often noticed that the price expectations stated in the listings are completely exaggerated. These plots then do not sell and remain on the internet for months.... Until now, I assumed that there is always a bit of room for negotiation... What experiences have you had: was there a lot of negotiation room with your plots?

From my experience: the prices for building land initially always depend on the location of the property, the rough standard land value, and to a greater extent on the price expectations of the private owners. Last but not least, a possible reduction of the sale price also depends on the financial background of the owners; if there is enough capital available, the owners do not budge from their price expectations. If they are open to market-relevant analyses or their personal circumstances change, this leads to a reduction in the price expectation. All in all, no generally valid statement can be made in this business area.

For municipal plots, the bidding procedure is increasingly applied in order to avoid the very lying fallow of the plots offered for sale. However, this implies a higher sales revenue than the local standard land value prescribes. Only after the third "auction" are plots that have not yet been sold released and offered according to the locally determined standard land values (incl. any development costs to be considered). Note: municipal properties are always cheaper compared to private offers.

In summary, it can be stated that municipal plots — even after the third auction — are only offered at a marginally lower price. For private sellers, it does no harm to simply submit an offer appropriate to one’s personal expectations; nothing more than a *No* can come of it; it’s definitely worth a try.

Kind regards