Cost estimation for demolition and new construction

Are we talking about Espelkamp? A replacement new build costs just like a new house in the same location plus demolition. I suspect the structure is merely basic, but not dilapidated, and thus the basement can be preserved. This way you have the foundation and house connections as well as storage space. A new build with "extensions" compared to the previous basement layout is something different than a usually not worthwhile partial basement. Inquire about the development plan or, in the §34 area, about the actual building envelopes that can be read from the cadastral excerpts.

I just had to google the place. No, a town in Schleswig-Holstein.

If the basement could be preserved, that would be great. I don’t want to rely on that.

It is a §34 area. I assume that at least what was there before may be built again. Including the extension, that is 140 sqm. Since the extension is only single-story, probably also 160 sqm, if necessary. That also corresponds to the surrounding buildings.

Beyond the land value, I would here only offer what the businessman calls a "memorability value" - with the consequence that I would not expect the property to be sufficient from the bank's perspective as sole collateral for his renovation financing. It looks remarkably good for its construction method, but to me it appears as a textbook example of a simple post-war home. Is it located in an area that had to accommodate many refugees / resettlers?

Land value is a good keyword. What is the land probably worth?

The appraiser assumes a value of 320,000€ for house + land, but only saw the house from the outside and estimates a remaining useful life of 20 years as a rough estimate...

The "minimum bid" is therefore already at 224,000€.

Of the market value, 180,000€ is attributed to the land (standard land value minus deduction because it is built upon).

There are no comparable values for current real land prices. There is absolutely nothing on the market.

We probably won't be able or willing to go up to the market value according to the appraiser, but I assume we'll be out quite quickly then.

But as is well known, hope dies last.

Always bid as if you were a dealer and still needed a margin in the sale; and under no circumstances try to outbid a fool. Never adjust your maximum bid again during the course! Let your guardian angels do their work undisturbed - missing your misfortune is also a blessing. So do not, under any circumstances, feverishly try to force your way through the wall to snatch your misfortune at any price!

One last post to wrap things up from my side here.

It all turned out well ... for the debtor. He was able to pay off his debts a few days before the appointment and the appointment (which, by the way, would have taken place despite the lockdown) is now permanently canceled.

So for now, we are staying where we are, but keeping an eye on the real estate market with half an eye. Maybe something will come up again.