Buy land with a house or have it demolished by the real estate agent

Hello everyone,

a plot of land is being offered for 68k (1300m²) with a junk house on it.
The realtor, who is also the owner, has a cost estimate for the demolition of 14k.
He offered to sell me the plot for 55k and I would demolish it myself.
Then I would save the real estate transfer tax for the demolition accordingly.
No realtor fees apply because of owner inventory.

What do you think about that? The utility lines are already in place and therefore do not need to be completely newly connected.

That's how it's done. You can ask [Abbruch Jakob] if he could get by with 14 as well.

ask a demolition contractor what he charges.

I would have big questions about the condition. In the end, there is contaminated material there

better to buy the property free of encumbrances then

A plot of land is being offered for 68k (1300m²) with a junk house on it.
The realtor, who is also the owner, has a cost estimate of 14k for the demolition.
He offered to sell me the plot for 55k and I carry out the demolition myself.
That way, I save the property transfer tax for the demolition accordingly.
There are no realtor fees because it is an owner-held property.

Comparative calculation, based on 6.5% property transfer tax:

68k€ land price + 6.5% property transfer tax + 2% notary/court = 74k€

55k€ land price + 6.5% property transfer tax + 2% notary/court = 60k€ plus 14k€ demolition = 74k€

Who wins?
The realtor, because instead of 68-14k€ = 54k€, he gets 55k€ from you and has neither risk nor work with the demolition.
You get the risk and the work in return.
Deal? I don’t think so.

Another disadvantage of his proposal: The lower purchase price of the land can be used by the bank for the mortgage lending value assessment. Lower land price = lower lending value = higher interest rate. The lower purchase price will also be included in the land value reference tables.

Moreover, it is questionable whether the demolition offer really exists and what exactly it includes. Will it be refilled again, how high, with what? In the worst case, he just leaves a hole that you have to fill, in the very worst case he fills it with something else, as cheap as possible, and all the rubbish has to be removed again for your house construction, disposed of, and refilled properly.

I would have an offer made for demolition with backfilling, suitable for the planned house. You deduct the costs from the purchase price, minus another 3k€. That should be the value for the risk and the work.

And once again emphasized, I wouldn’t have anything demolished or at least refilled on suspicion as long as it’s not clear how the foundation for the new building should look. Better to do it all at once to gain synergies.

so there was a mistake on my part. The property is offered for 69k. basically, I then save 14k€ x 0.085 = 1.12k€ The rest are really good suggestions. I will get the offer from the demolition contractor tomorrow. The problem is we have been searching for a year and this is the only property on the market in our region ( Saarland ) We will discuss everything with the construction company and see. Furthermore, there are two properties, one of which has been converted into [Bauerwartungsland]. possibly an application for conversion could be submitted and sold if successful.