At what value is the property assessed during financing?

The bank evaluates the property according to its own criteria, usually based on the standard land value. The bank will probably not even ask you what you paid for it.

That also makes little sense. After all, the property could have been given as a gift.

How would one proceed as an applicant if they want to use their property virtually as collateral or equity? First calculate and prepare the standard land value and then see what the bank makes of it?

I just thought of something else. I was recently told at a bank that the standard land value does play a role, but not for the entire property, since part of the property is used as a garden and cannot be built on. By the way, I also have my doubts about this information.

It was the same with us, however, with us even the standard land value is what you actually pay.

If I understand correctly, the equity is only for the financing calculation, but is no longer actually available. After all, the 25,000 are tied up in the property.

In my opinion, the ancillary costs are deducted from the 200,000 loan and reduce the budget for the house. Assuming you come up with 30,000 ancillary costs, 10,000 exterior facilities, and 10,000 kitchen, then 150,000 would remain for the house itself (presumably floors and painting are not yet covered there). Or is my reasoning wrong?

If I understand correctly, the equity is only for the financing calculation, but is no longer actually available. After all, the 25,000 are tied up in the property.

In my opinion, the additional costs are deducted from the 200,000 loan and reduce the budget for the house. Assuming you manage with 30,000 additional costs, 10,000 outdoor facilities, and 10,000 kitchen, then 150,000 would remain for the house itself (presumably floors and painting are not yet covered there). Or is my reasoning currently wrong?

That is purely a matter of definition. Banks usually do not finance incidental building costs and kitchen. Of course, you can "shift" something via the construction costs and still co-finance it. But that's just moving money from one pocket to the other.

What matters is: Land + purchase incidental costs + building construction costs + incidental building costs + other expenses (kitchen, moving etc.) + outdoor facilities + buffer = total amount X

Loan + equity = Y

X should be <= Y

The bank does the calculation of the loan-to-value ratio and decides what is included (e.g., the outdoor facilities).

Regards, Steffen

Exactly. As a rule, the standard land value is 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..

Aren't you confusing something? The standard land value should be below the asked price when prices are rising, otherwise prices will fall. And this is usually not the case at the moment.