Determination of purchase price for land with old building

The guy is just weird.... The price difference is immense. If he had said 70k for 100 sqm OK but not double and you have the stress

Especially since it is partly an "illegal construction".

Well, basically all you can do then is try to negotiate and show him that the living area is actually irrelevant in this case. Because if the house is only good for demolition anyway, it no longer has any value (the illegal construction also complicates a possible renovation). Whether he then accepts this and agrees to a pure land value - possibly minus the demolition costs - you will only find out this way.

The guy is just weird.... The price difference is immense. If he had said 70k for 100 sqm, OK, but not double that and you get the stress

Especially since it is partly "illegal construction".

aha so basically your only option is to try to negotiate and show him that the living area is actually irrelevant in this case. Because if the house is only good for demolition anyway, it has no value anymore (the illegal construction makes a possibly still feasible renovation even more difficult).

Okay, so I’m not the only one who sees it that way

Thanks!

I have a suspicion about how he comes up with such a price..
One street over, a 3-family house is being built on a similar plot, which is supposed to be sold for a total of 800k (each apartment separately). On our plots, you are allowed to build the same. So I think that’s where his idea comes from.

In any case, I will not pay this price because I am not building.

Okay, so I’m not the only one who sees it that way

Thank you!

I have a suspicion about how he arrives at such a price..
One street over, a 3-family house is being built on a similar plot, it is supposed to be sold for a total of 800k (each apartment separately). On our plots, the same type of building is allowed. So I think that’s where his idea comes from.

In any case, I won’t pay this price, as I am not building.

Then he made a mistake selling you the plot too cheaply. Is it the same person?

His reasoning is that he had a real estate tool at work (he works at a bank), where he entered the plot size and living area, and it came to 150k.

But then he clearly sold the first plot well below value? Does he work at the bank like the stock market ads on TV? Sorry, but if I sell something like this, I deal with the subject and check the value. He can't specify the living area as a value because there is no living area (to me, ready for demolition is not living area) and besides, 208 sqm living area + plot would then be significantly more expensive? An apartment for 800k? Somehow the numbers don’t add up for me at all. Unless the plot prices are very high where you are and he already deducted the demolition costs and sold the first plot way, way too cheap. What is the price per sqm where you are?

Tell him that the values from his tool are not applicable, as the house no longer has any value, in fact it is even depreciated. Either he realizes that or he doesn’t.