Demolition plot with special features - how to assess the value?

How can one reasonably estimate the value of such a particle

… the value is actually irrelevant, as long as there is someone who values it at what the seller wants. From 500,000 to 350,000… that’s a nice chunk of money. 350,000€ plus demolition (asbestos?) plus extensive earthworks (“rocky soil”) plus difficult house construction (slope). 550 sqm is neither large nor small, but what about the buildability if a quarter is an unbuildable slope?

It will somehow be buildable. In many new housing developments, significantly less is planned for "detached" houses. However, one must be aware that the standard solution straight from the catalog can be quite unsuitable here. Not much open space will be left either. A 25% slope is no joke, and a lot needs to be invested in terracing. The rocky soil will also be a disadvantage for a possible hillside house here.

Hi everyone,

and thanks for the numerous replies!

Just to prevent misunderstandings: ¾ of the plot is flat, and it is not a slope plot as such. Where the flat area ends, there is a sudden "kink" to the approximately 25% steep slope. Next to the plot, on the city’s parcel, it goes steeply uphill, also with a clear edge.

refers to a mediated communication via the "property service" house seller, and you have no direct access to the current owner of the plot.

Yes, exactly that kind of trickery it is. I have already read a lot about this here in the forum (including from you), and believe me, I am aware of the risk. If so, I would only sign if a right of withdrawal, legally reviewed by a lawyer _on the purchase of this exact parcel_, is assured. Everything else (and even that) is, as you often emphasize, trickery.

Conclusion: I see here "concerns a dime a dozen" and probably many reasons why this Sleeping Beauty has lain unkissed for so long. […] and not-yet-agents are never less questionable in their seriousness.

I share a large part of the concerns, starting with the intermediary, whom I see at best as a vehicle to the seller and would not trust him in any step until then. Regarding demolition and ground work, I had in mind so far: with an oral "agreement," I would want a soil report, would then have contacted an excavation company instead of prefab house builders, obtained an offer for demolition and a sample construction pit, and checked whether that fits into the current cost estimate (which still contains many flat rates/experience values). If that works out, I would consult an architect regarding more detailed buildability (likely there is neighboring construction, and aside from the ridge direction, it’s chaos: 1 Does that roughly fit with the way of thinking?

- What is your plan for building there? Options and budget?

We are actually quite easy: whether 1.5 or 2 stories, knee wall height, footprint—we are not very picky, and with some catalog houses we would already be happier in terms of floor plan than with our current terraced middle house—as long as living (and utility!) space is right. We like basements (probably problematic here), but not having one is not a dealbreaker. We are rather demanding regarding technical niceties and interior finishing, but that is primarily a budget issue, and I think not dependent on the fundamental buildability/design.

- What are you willing to pay for a plot in today’s market?

Well... if I calculate with the very rough thumb values here from the forum and those I have heard from more reputable prefab house builders, we would come to about ~650k for the house. Incidentals depend substantially on the plot, but in the total budget, we could manage something over ~1.2m. If I reserve some for the various incidental costs, the plot would probably cost around 350-400k. But that is already seriously a lot of money for the whole project and must be uncompromising. There are compromises included here—ones we are willing to make, but only if they don’t break the maximum budget.

[…] I see very good chances to push the price down significantly.

I would be very cautious or buy only at a bargain price (e.g., completely exclude the unusable quarter from the valuation).

… and thanks for your assessment as well! That really seems to be the tenor here in the thread, and many hit the same chord.

2. is it even about a construction plot in a relevant area?
1. can the intermediary guarantee an acquisition opportunity (or does the OP end up stuck with just a construction contract)?

1. No, he cannot. I see this as a possible way to initiate a deal. If the intermediary loses interest at some point or it turns out to be a pipe dream, I will have lost time (and in the worst case, some money). The important thing then is not to be stuck with a pipe dream contract at that point, right?
2. Well, that’s one of the better questions I have to clarify before any signatures or money transfers happen. At least I see as an indication that there is currently a house on the plot. It’s not more concrete and tangible than that, true. What risks regarding fundamental buildability do you suspect otherwise?

25% slope is no joke either; a lot will have to be invested in terracing. The stony soil will also be problematic for a possible hillside house here.

Yes, I am not thinking of a hillside house on the non-flat part of the plot. The houses in the area currently all have basements—but they are also old enough that it was probably still more affordable back then. What you mention is a point I find hard to estimate. An acquaintance terraced a similarly steep plot and did not get poor doing it. But if I imagine that substantial retaining might be needed here, I can imagine that this would make a big hole in the incidental costs.

350,000€ plus demolition (asbestos?), plus extensive earthworks ("stony ground"), plus difficult house construction (slope).

That is why I definitely want to get a reasonably reliable offer before buying. The highly reputable intermediary presented a highly reputable offer from a "friendly" earthworks contractor (… the company’s tax number is even missing), which assumes roughly by Fermi estimate ~30k for demolition & disposal, ~20k for excavation, ~5k for backfilling and compaction. It’s clear to me that this is not reliable, especially since it does not state the requirements the excavation pit must meet, etc. I also don’t know about asbestos yet.

550 sqm is not big but not small either, but how does buildability look if a quarter is an unusable slope?

On the flat & level part, building areas with 2.5m edge distance assumed, that we can imagine fit easily. Then there remains a seating area in the yard, a large terrace on the flat/level part, and a bit of garden area—and yes, then something would still have to be taken from the slope, otherwise it gets too small. If I imagine a big terrace step that generates about 60-65 sqm of reasonably flat garden from the ~140 sqm slope, that would be okay for the garden area for us. How realistic that is: .

So, thanks very much up to this point. I think, after your assessments, my negotiation position is probably better than I feared—yes, panic about missing out on plots is simply a feeling that occurs and is completely illogical (and dangerous).

Best regards,
-NebuK

What you are addressing is a point that I find difficult to assess. An acquaintance has terraced a similarly steep plot and did not become poor in the process. However, if I imagine that substantial support might be needed here, I can imagine that this would make quite a hole in the additional costs.

How much height difference does the plot have in the rear part? Roughly estimating, I would now guess about 2m? Efficiently compensating for that is already a bigger effort and only conditionally suitable for amateurs. I would have the exact location plan with elevation profile given for the plot. Eye measurement is useless for something like this. And then, before the purchase, I would insist that a soil survey be done on the planned building area so that I can assess what the ground is like. Ideally at the seller's expense, if necessary at my own expense. Then you will know whether a basement is realistic or not and whether other nasty surprises are lurking underground.

Uhm ah. Good point: Freudian slip. 25°, not %. 3.6m height difference over 7.8m length. This is also not surveyed, but taken from the city's Geoportal, so not precise. The flat part of the property is approx. 26m×18m. I assume that before a final purchase, quite a bit would be due here, right? Soil survey, [¿Survey?], architect (at least a rough preliminary inquiry or assessment?), demolition offer, excavation, terracing — am I roughly seeing this correctly?

three-quarters of the property are flat, and it is not a hillside property as such. Where the flat area ends, there is a sudden "bend" to the approximately 25% slope.

That sounds like filled land and not natural. When inspecting, pay attention to cracks and crevices in the ground, paths, and terraces, and signs of heavy rain (water). Where do the neighbors drain their rainwater, so keep your eyes open.