Determine the value of a property

Hello everyone,

I want to build in the next few years. Fortunately, I already own a plot of land. It is also large enough that I can sell half of it and thus have a good basis for the future house.

In order to advance the house planning, I now need to know what my plot of land is actually worth. The first reference point is, of course, the official standard land value of the municipality. In addition, there are other factors such as location and whether the land is developed.

What options do I have? There are, of course, appraisers. But from what I have read so far, they demand a certain percentage of the land value, right? And I don’t really want to invest a large sum just to get a value that can only be an indication. Because if by chance someone with deep pockets comes along, the price can certainly go up. Just as well, the determined value might not be reached.

My ideas would also be to ask my house bank or a developer what they would offer for the land. Has anyone already had experience with that?

I also have another question.

In my circle of friends/acquaintances, quite a few are currently looking for land as well.

That puts you in quite a dilemma. On the one hand, it really is true that money ends friendship. On the other hand, in my opinion, it is priceless to have neighbors you have been friends with for years. Has anyone had experience with this? If so, how much of a discount (%) have you given your friends on the price?

I know some people who have real nightmare neighbors. That is, of course, a risk I want to avoid as much as possible.

Thank you very much for your answers and have a nice Sunday.

Just go to relevant real estate portals and see what is being asked for per sqm in your region.

A bank will initially start with the standard land value, possibly applying some correction factors due to different sizes compared to the standard plot or possibly only considering garden land instead of building land, especially if the plot is very deep and only a part is actually developable.

Then you have the value of a usually fully developed plot of land. This should already help you as a guideline.

With friends, I would basically trade at the BRW or, if a direct increase in value after redevelopment (e.g., to the current level of the surroundings, if it is higher) is expected, at that price. You cannot pay for a well-maintained neighborhood with money, I can assure you that from professional experience.

You will certainly be able to get a quick answer and a few more details (see post by toxic) from the responsible appraisal committee; if necessary, just ask in writing and briefly describe the specific situation.

Best regards
Dirk Grafe

Thanks a lot already for your previous answers. My preferred solution will of course be to sell to friends. It is hard to find comparable properties on the internet because building land is very scarce in the town itself. What unsettled me the most was that recently someone (who lives in the town but is personally unknown to me) asked very persistently whether he could buy part of the property. The gentleman was also immediately willing to pay almost 100 euros more per sqm (about 70 euros/sqm more than the budget of the friends I had already talked to) than the official standard land value. The property also has a very good location with a great view. But just because he is the kind of person who believes that money can buy everything, he is not an option for me. It's quite a lot of money, but I'd rather secure a neighbor I know.

How much a good neighborhood is worth is something everyone has to decide for themselves. I would ask a developer how much of your house he would build "for free" if you give him half of your [Grundstück]. That could be the cheapest way to get a house. If you also have an acquaintance who buys the other house from the developer, then you would also have good neighbors.