Assessment Purchase Price / Market Price Single-family House from 1900

The question is also what you can afford and what costs might still come up for you, or what it is worth to you.

We had a similar situation with our house. €850,000 costs, with €400,000 BRW land value. The house is 190 sqm + 75 sqm basement, for which we basically paid €450,000. If you subtract the basement, you probably end up at about €2,000/sqm – and we are now investing another €1,500/sqm in renovations. So, we paid €3,500 per sqm, which is more expensive than new construction (without ending up with the same standard), but it was still worth it to us (well, we also bought when the market was still very hot and money was cheap).

Of course, you can also include the outdoor area etc., and then the calculation looks a bit better. But the question is whether you're not just sweetening the purchase a bit. At least the risk seems close. Can the outdoor area and the paving on the 330m² (which mostly houses a building) really be so nice that you set 70k€ for it? The basement is certainly not to be underestimated – I assume it was not included in the 160m² either? If it's renovated with high quality, with parquet and whatnot, it’s of course nice as well. You would simply be rid of the usual renovation risk (keyword: bottomless pit), it’s already done. On the other hand, after completion of the work, an expert can only give limited information about how the renovation was carried out. Most of it is probably hidden again, I assume. Is the company reputable? If defects emerge after a while, would the company be liable / do you have a warranty? I think that would be important with these price structures. Overall, my gut feeling also says that it would need to be cheaper to be a good deal.

70,000 euros is certainly on the high side for the outdoor area despite garage & parking space. I still included ancillary costs here (in terms of additional costs for construction / renovation) and thus mixed cost types a bit because I wanted to get a feeling for the seller’s costs. The basement is not included in the 160 sqm. We like the renovation aesthetically and it seems to have been carried out in a high-quality and comprehensive manner; it feels like nothing major will be needed for the next 10+ years. A 5-year warranty is included. The company has existed for a long time and has some good reference projects, both private and public. The expert will only be able to provide limited information and will partly have to rely on the documentation & the seller’s feedback on the renovation. As a layperson, it gives me a bit more security not to overlook anything important and will give me arguments for negotiation. Do you have a rough idea or a range of what square meter price could be set for the living area? I suspect that 3,500 euros are far too high, but maybe 2,000 euros is a bit too low?

That at least gives a direction. How is it with the garden... a large area used by everyone or does everyone have their own, which could also be separated by a hedge/fence?

Everyone has their own, although only the garden of the existing house borders the yard and lies between the existing house and the semi-detached house. The two semi-detached houses have their gardens behind their houses; the garden of the existing house can be somewhat separated by a hedge or similar, but due to the arrangement of the yard & the other houses, the garden and also the terrace will certainly not be visually screened.

The question is also what you can afford and what costs might still come up for you, or what it is worth to you. We had a similar situation with our house. 850,000€ cost, with a 400,000€ BRW land value. The house has 190sqm + 75sqm basement, for which we paid about 450,000€. If you subtract the basement, you probably end up at about 2000€/sqm – and now we are investing another 1500€/sqm into renovation. So we paid 3500€ per sqm, which is more expensive than new construction (without ultimately having the same standard), but it was still worth it to us (well, we also bought when the market was still very hot and money was cheap).

I calculate the usual additional purchase costs (property transfer tax 6%, notary, land registry), a kitchen, curtains, garden (which luckily is not huge, we are not gardeners), an awning for the terrace and possibly some furniture here and there. The conversation with the bank is still pending this week, although my income is quite high and a lot of equity is available. I think financing is less the problem, rather finding a good and market-appropriate price for us without being influenced by emotions. Of course, no one knows how prices will develop, but I feel they will probably go down in the coming months, especially compared to the prices currently being asked.

€70,000 is probably an overestimation for the outdoor area despite the garage & parking space. I also included additional costs here (in terms of additional costs for construction/renovation) and thus mixed cost categories a bit because I wanted to get a feel for the seller's costs. The basement is not included in the 160 sqm. We like the renovation aesthetically and it also seems to have been carried out with high quality and comprehensiveness, so it feels like nothing major will need to be done for the next 10+ years. There is a 5-year warranty included. The company has been around for a long time and has several good reference projects, both private and public.

The expert will only be able to provide limited information and will partly have to rely on the documentation & the seller's feedback on the renovation. For me as a layperson, it just gives me a bit more security not to overlook anything important and will provide me with arguments for negotiation.

Do you have a rough idea or range of what price per square meter should be applied for the living area? I suspect that €3,500 is way too high, but is €2,000 maybe a bit too low?

I also think that €2,000 might be a bit too low. To be fair, in renovations the same costs often arise as in new construction, but you cannot reach the new-build standard. Renovations frequently add up more and more costs that many did not anticipate beforehand, so the supposedly "cheaper" renovation ends up costing as much as new construction.
The disadvantage, of course, is that you will not achieve the energy efficiency standard that a new building could provide. Furthermore, the interior fittings might be somewhat outdated (questions like: Do you have enough power outlets? Were LAN sockets installed in the rooms during the renovation? Are water pipes new, or the originals?).
On the other hand, the outdoor area is already done and probably nicely matured. You can’t speed that up easily with money in new construction either. Plants need time.
The reputable company and 5-year warranty are definitely plus points.

I also think that 2000 might be a bit too little. To be fair, renovations often incur the same costs as a new build, but you can't achieve the new build standard. Often in renovations, more and more costs add up that many did not expect beforehand, so the supposedly "cheaper" renovation ends up costing as much as a new build. The downside, of course, is that you don't reach the energy standard that a new build could achieve. Furthermore, the interior fittings may be somewhat outdated (questions like: Do you have enough power outlets? Were LAN sockets installed in the rooms during the renovation? Are water pipes new, or still the original ones?). On the other hand, the outdoor area is already done and probably already nicely grown. You can't easily accelerate that with money in a new build. Plants need time. The reputable company and 5 years warranty are definitely positives.

The garden was redone and currently consists only of soil; time and work still need to be invested. Power outlets are sufficiently available, and LAN sockets are also provided. Supply and drainage are newly made of plastic.

My suggestion to you: Offer €695,000 and see what happens. If the seller is still not willing to sell and there is no other interested party (which I firmly assume in the current times), he will surely come down to €795,000. New construction projects from the developer are currently being offered with up to a 10% discount. So that you don’t pay too much and he doesn’t get too little, propose €745,000 and he will then agree or you offer €760,000. Depending on how much the house is worth to you. But actually, €750,000 is the maximum limit from my point of view (especially because interest rates have risen so drastically and hardly anyone can afford such an expensive house anymore). You should play your advantage and negotiate well. €700,000 would be realistic from my point of view (even if the housing market is much more expensive for you) and paying anything over €750,000 would be sentimental (so not rational, but emotional behavior).