Nebukadneza
2023-05-10 15:39:24
- #1
Hi everyone,
I probably have the chance to get a demolition plot in the Karlsruhe area through a non-broker "intermediary" (prefabricated house guy, as often...), which has some special features but which we still find interesting. Unfortunately, I can only very poorly assess the market situation and competition among the special features, and would like to know from you how you would proceed in such a situation.
The parameters I know are:
We find the quiet location appealing, the reduced number of neighbors due to the slope, and a bit the south view. We see a personal disadvantage in the connection, but that would approximately balance out with the "could build" bonus. The disadvantages remain of the slope on the property, the neighbor's edge development, the questionable cellar buildability (of course, soil survey comes before purchase/planning), and the nearby steep neighbor hill. Without making the slope at least partially usable (terracing), the garden area would be too small for us.
Well, and now the question is what to do. Including the demolition, we do not find 350k a particularly realistic actual value. Are there people who still pay that? Certainly — but do they want to be in the town center of a surrounding village, with the given disadvantages, and the medium size? No idea! We hear from everywhere that plots are being returned because people's financing falls through, that the market is stagnant (for existing properties), and simply fewer properties are sold/bought.
From a broker/appraiser who has already helped in the family elsewhere, I have heard without an inspection but just by phone that he assesses the location & pros/cons in such a way that the competition situation is probably not particularly large, quote "I see that such things have often been lying around longer since last year."
How can the value of such a parcel be reasonably estimated so that one can also explain it to intermediaries & sellers? Standard land value minus demolition? Very little... Standard land value minus slope? Devalue slope on garden land? Standard land value "plus a little something" but subtract the disadvantages? Or is the market for such deals still so hot that the negotiation position is weak, and I either grab it or can't count on anything.
Thanks in advance for reading, I look forward to your thoughts on this….
Cheers,
- NebuK
I probably have the chance to get a demolition plot in the Karlsruhe area through a non-broker "intermediary" (prefabricated house guy, as often...), which has some special features but which we still find interesting. Unfortunately, I can only very poorly assess the market situation and competition among the special features, and would like to know from you how you would proceed in such a situation.
The parameters I know are:
[*]Village in the Karlsruhe area (moderately good shopping options, only bus / no train, located on a hill (bike to the city is more difficult)
[*]~550m², of which the back ~¼ drops with ~25% slope
[*]End of a dead-end street, nice south view down the slope
[*]Built with a building ready for demolition + outbuilding
[*]2 neighboring buildings with partial edge development ("hobby barn"), other neighbor side is a hill (loosely wooded by the city)
[*]Terrain is a "historic quarry"
[*]Seller has gone down from 500k (early ~22) to 400k (04.23) to 350k (quickly after signal that I want to negotiate)
[*]Standard land value (early 22) 520€/m², "up the hill" is a flat area with 760€/m²
We find the quiet location appealing, the reduced number of neighbors due to the slope, and a bit the south view. We see a personal disadvantage in the connection, but that would approximately balance out with the "could build" bonus. The disadvantages remain of the slope on the property, the neighbor's edge development, the questionable cellar buildability (of course, soil survey comes before purchase/planning), and the nearby steep neighbor hill. Without making the slope at least partially usable (terracing), the garden area would be too small for us.
Well, and now the question is what to do. Including the demolition, we do not find 350k a particularly realistic actual value. Are there people who still pay that? Certainly — but do they want to be in the town center of a surrounding village, with the given disadvantages, and the medium size? No idea! We hear from everywhere that plots are being returned because people's financing falls through, that the market is stagnant (for existing properties), and simply fewer properties are sold/bought.
From a broker/appraiser who has already helped in the family elsewhere, I have heard without an inspection but just by phone that he assesses the location & pros/cons in such a way that the competition situation is probably not particularly large, quote "I see that such things have often been lying around longer since last year."
How can the value of such a parcel be reasonably estimated so that one can also explain it to intermediaries & sellers? Standard land value minus demolition? Very little... Standard land value minus slope? Devalue slope on garden land? Standard land value "plus a little something" but subtract the disadvantages? Or is the market for such deals still so hot that the negotiation position is weak, and I either grab it or can't count on anything.
Thanks in advance for reading, I look forward to your thoughts on this….
Cheers,
- NebuK