Estimated costs used house

Hope the topic fits here somewhat:

We are interested in a house built in 1998, generally in good condition. 182 m2, detached. On the outskirts of town.

Now about the price: The seller wants 475 K€ - at the year of construction it cost him (without exterior facilities, wall and floor coverings) 730 K DM.

My question now is - without going further into details - is this price justified:

If I convert everything into € and apply about 2% inflation per year, I come to a price of about 503 K€, which the house would cost today.

But then there is the age-related depreciation? How can I calculate that? Based only on the above figures, it seems too expensive to me.

Daves

Hello, you don't have to calculate. The house has exactly the value (regardless of original construction costs or a current market value) that you are willing to pay. Supply and demand also determine the market here. If it is worth the price to you, then pay it. If not, someone else will do, or it is too high for others as well.

If I were you, I would consult an expert. They can then tell you whether the house is worth what the seller is asking. They can also provide reasons for possible price negotiations.

To get an initial overview, you can google standard construction costs.
For some houses that are currently being foreclosed, the expert reports are published online at w w w . zvg-portal . de.
If you find a house there with a similar year of construction, you can look at the calculations for the standard construction costs and depreciation. Maybe that will help already. However, not every house has the complete report included.

Of course, these are only theoretical figures. An actual value can, as mentioned above, only be obtained from an expert.

Hello nordanney,

that is of course
(a) correct
but also
(b) totally subjective.

One should not completely detach from the sober market.

Daves

Hello Musketeer,

I have already tried that - the problem is that the table from 2000 contains such large bandwidths that everything comes out ranging from outrageously expensive to super cheap.

There is also a certain subjective factor involved in how one evaluates the equipment.

That's why I tried it based on the purchase price at the time.

Daves

Hello DaveS, you are of course right that it is subjective. However, the market is you (and all other house buyers). You will hardly find truly comparable houses. I work in the real estate (financing sector) and can tell you that even appraisers have very large valuation ranges in their reports. An appraisal, for example, costs a lot of money at the appraiser committee. In the end, gut feeling and budget decide about the real estate investment. Although that is not entirely correct: decisive are - also for future value development - location, location, and location!