Determine costs for clearing building land before purchasing the property

Hello dear forum community!

We are faced with the decision to buy a plot of land. We know our approximate financing framework for the entire project of land purchase and house construction. The land would have to be fully financed and it will be purchased separately through a real estate agent. We will make use of KfW funding for the house (124+153) - we would then have to start building the house at the latest within 6 months after the land purchase, otherwise there will be no funding.

What is causing us headaches are the still incalculable costs for clearing the building site. There is an old solid bungalow with a high basement on the plot (roughly in the middle of the plot where the house is supposed to be) and exactly there is a slope about 2 meters high, 10 meters long.

We have thought long and hard about who we should build the house with and are now at the point that we will turn to an architect. It should be a solid house without a basement. Several prefabricated house companies were already in the close selection, but in the end it is a matter of luck what you get. From everywhere we have also heard shocking negative reports, which made us abandon the idea of building with a general contractor again.

So before we say YES to the land purchase, we would at least need to know the approximate amount for the demolition costs, earthworks, etc. An architect should be able to roughly estimate something like that within the scope of the service planning, right?

We understand that no one can give exact figures here, since the conditions are still completely unclear (contaminated sites?) Our maximum budget for this is 15-20K€ - excluding development costs for the house.

Is it possible to include a clause in the land purchase that the purchase is subject to the financing approval from the bank and only when the planning costs for the demolition are calculable? The location is great, plots are scarce, the price is not cheap - therefore we want to be sure.

A soil survey definitely has to be done as well - that would also be handled through the architect, right? Better after demolition and backfilling?

Suggestions, opinions and criticism are warmly welcome :-)

Is it possible to include a clause in the purchase of a plot of land stating that the purchase is subject to the bank's financing approval and only valid once the planning costs for the demolition are calculable? The location is great, plots are scarce, the price is not insignificant – that's why we want to be sure.

I can't say anything about the possible costs. Just get a few offers, you won't get more concrete estimates from the architect either. But if plots are scarce and in demand where you are, why should the seller include such a clause in the contract? The only reason could be that you sweeten the right of withdrawal with an amount X ;)

@nordanney: That is probably true - the owner will not want to adjust the purchase price.

Our concern is not to be overwhelmed by a huge sum when it comes to creating the excavation pit and the foundation, and first having to level the building land to 2m. The demolition company will also not be able to provide me with a calculation for that. Most likely, we thought, the planner, that is the architect, is familiar with that. ;-)

Normally, the earthworker should be able to estimate the expected costs for you. Then have the demolition costs estimated as well, and at least you have a rough reference.

If you want to change the building land by 2 meters, this must first be applied for in the building application and approved by the municipality. So be careful not to act hastily in advance,... A look at the development plan helps. If it is a comparable replacement building, it could be that you have to do some filling (since there is no basement)? In such cases, an architect can help very well because they know exactly what is allowed, what must be done, and what may be done.

Hello Ivi, what actually came out of it? How much did you have to invest? We have a similar case. The architect will take a look at it on site on Monday.