Determination of purchase price for land with old building

Hello everyone,

we bought a plot of land in April this year, it has a size of 389sqm. It cost 67,500 €.

Now the seller of the plot has contacted me and asked if I would also like to purchase the adjacent plot. The plots are currently only separated by the "plot marker" and previously belonged together.

The newly offered plot has a size of 484sqm. On the plot there is a house with a living area of almost 208sqm. Of this, 160sqm are "approved," the rest was simply added on back then (according to the seller).

The house is from 1929, the extension from 1957. It is completely rundown and essentially only fit for demolition or fully in need of renovation. That is how the seller explained it from his perspective.

I then saw the house from the inside, partially it seems straw is used in the ceilings?! The floors are only wooden, there is no screed or similar; between the loose wooden floorboards you can see the earth. The wooden windows are still the original ones.. Everything is at the state of the year of construction, only the heating was apparently updated once in the 90s. In some rooms there are radiators on the wall, in others convectors powered by electricity.

When asked about the price, he said he wants at least 150k.

However, I cannot explain the price difference to the other plot and wonder how he came up with this amount.

Can an old dilapidated house still have a "value" that is added, or what factors, which I cannot think of, still play a role?

I would appreciate some food for thought!

Thank you

Maybe he realized that the price was too low in April?! Otherwise, a house to be demolished should actually only be depreciating, since it involves costs. But if he is now asking for a correspondingly higher price, there is not much you can do except try to negotiate.

Dilapidated = depreciated. The 389sqm for €67,500 corresponds to €173/sqm, which would mean, with the same land value, approximately €83,700 for 484sqm minus depreciation due to contamination. How does he justify this price? Of course, you are a neighbor and possibly willing to pay more than others, but with demolition you are looking at >€170,000 for 484sqm.

See the previous speaker. In the end, a property is worth what someone is willing to pay for it.

Maybe he realized that the price in April was too low?!

Ready for demolition = depreciated value. The 389 sqm for €67,500 corresponds to €173/sqm, which would mean, with the same land value, about €83,700 for 484 sqm minus depreciation due to contamination. How does he justify this price?

At our notary appointment in February, he already hinted to me that the mother is very old and would soon have to move into a nursing home and that he would then want to sell the whole thing. At that time he said, "I assume it will be offered at the land price." But unfortunately, since I had received very sad news within the family that day, I did not pursue it further.

When he contacted me, I remembered this and assumed about €85k minus demolition costs.

His justification is that at work (he works at a bank) he has a real estate tool, and there he entered the land size and the living area, and it then came out to €150k.

See the previous speaker. In the end, it is a piece of land worth what someone is willing to pay for it.

That is clear to me already...