At what value is the property assessed during financing?

2016-01-29 09:24:25

Hello,

we have now purchased our plot of land or are currently in the process of finalizing the contracts. The land was purchased from an insolvency administrator for 25,000 EUR, but according to the land valuation on Immobilienscout24, the standard land value is significantly higher than the price we paid. It is listed there as 53,000 EUR.

Now I am not sure how the bank will assess the land. At the price paid or the actual value according to the standard land value?

Can someone please help?

2016-01-29 09:41:50

The bank evaluates the property according to its own standards, usually using the standard land value as a basis. The bank will probably not even ask you what you paid.

However, if things are done properly, your property is not worth the standard land value, but only about the actual purchase price. If it were worth more, there would have been someone who paid more. Even an insolvency administrator has nothing to give away, and "bargains" are hardly available anymore nowadays.

2016-01-29 09:45:11

If things are handled properly, however, your property is not worth the standard land value, but only about the actual purchase price. If it were worth more, there would have been someone who paid more. Even an insolvency administrator has nothing to give away, and "bargains" are almost non-existent these days.

Exactly. As a rule, the standard land value is actually significantly higher than the purchase price. This is due to the time delay and the method of determining the standard land value. If it is the other way around, it does not indicate a sought-after location. Rather the opposite..

2016-01-29 09:58:38

But the standard land value is decisive after all. Especially since in other districts the square meter is also sold for significantly more. The real estate agent told us that the insolvency administrator, who has been dealing with the settlement for 10 years, wants to have the matter resolved soon and is therefore very willing to negotiate on the price. The starting point was 40 EUR, other districts 3-5 km away demand between 50 and 80 EUR.

It is important for us how our property is valued, as this is supposed to represent our equity in the financing?!

2016-01-29 10:14:54

But the standard land value is decisive after all. Especially since in other districts the square meter is also sold for significantly more. The real estate agent told us that the insolvency administrator, who has been dealing with the settlement for 10 years, wants to have the matter off the table soon and is therefore very willing to negotiate on the price. The starting point was 40 EUR, other districts within 3-5 km demand between 50 and 80 EUR.

It is important for us how our property is valued, as it is supposed to represent our equity in the financing?!

Only the bank knows that, because the bank values the property. I would say that the standard land value hardly plays a role.

In our case, the property was valued exactly at the purchase price. And that even though the purchase price was more than twice as high as the standard land value.

2016-01-29 10:16:19

Ok, good to know. I'm curious....

Is only the net purchase price considered as equity, or are broker and notary fees also included?

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At what value is the property assessed during financing?

alex1304

nordanney

Steffen80

alex1304

Steffen80

alex1304