Estimated costs used house

I work in the real estate (financing) industry and can tell you that appraisers also 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 the wallet decide about the real estate investment. Although that is not entirely correct: Decisive are – also for the future value development – location, location, location!

An appraisal is definitely expensive, but it’s worth it. Because only when DaveS knows the exact value of the house can he negotiate much better terms with the seller, right?

And about the location! The location that was still relatively affordable today can completely change in 2 years. An example of this is Hamburg! In the last 2 years, rents here have grown by an average of 21%!

Best regards

There is no fixed price for real estate, but various evaluation methods.

I have used the online evaluation tool on meineimmobilie.de several times and received fairly plausible data. However, you need to know some things about the house for that. For example, the standard land value is available here in NRW on borisNRW.de.

But these are all just "guideline values"!

After that, I walked through the house for 2 hours with a building surveyor and architect to get a more precise understanding. You don’t need a complete "valuation report" for this, just the assessment of a professional. It cost me about €150 and I would recommend it to anyone who wants to purchase an existing property.

Possibly, this surveyor/architect also plans the renovation measures and charges the initial inspection towards that.

Hi,
about 3 years ago, when selling our property, we had an appraisal done.
Verbally, the conducting appraiser/architect gave us a price range.
The "lower value" and the "upper value" were about 10% apart, and of course, we decided to have the "upper" value included in the appraisal... :D

The first offer that came in was pretty much the amount of the "lower" value.
That was unacceptable to us, but we were also – with enough lead time, though – under some time pressure.
Ultimately, shortly thereafter, a buyer was found who – except for a small amount – was willing to meet our price expectations.

In the further course, it turned out that all our "worries" about not selling the house on time or at the targeted price were unnecessary, as several interested parties with concrete purchase intentions contacted us, whom we then unfortunately had to turn down.

To get an idea of what the property might be worth even before using the appraiser’s services, we calculated ourselves.
For determination, we used the construction cost *of all* components (including permanently installed interior fittings, outdoor facilities, wood-burning stove, fence system, etc.) and reduced this value by 1% per year of use – regardless of an inflation rate.
We surprisingly arrived very exactly at the amount that the appraiser later identified as the "upper" value. Conditions: Detached single-family house, good middle-class neighborhood of a small town (~15k inhabitants) with very good infrastructure in the commuter belt of a 300,000-inhabitant city.

Regards
ks

Hello,
I’m joining in here.
It’s about the question of whether it is "bold" to offer the agent 48,000 when the asking price is 70,000. I’m too soft to negotiate well...

Key data: run-down terraced house, flat roof defective, must be renovated in any case. Electrical system and windows are old, bathroom too, some mold on ceilings and walls because the balcony is also defective and water runs into the walls there. Garden also totally run-down and overgrown. Living area 100 sqm, plot 196 sqm, plot price 80€/sqm. Only the gas heating is just 5 years old, but no storage tank for hot water.
The house belonged to a very old lady who recently passed away. I have been in the house twice already, the last time with my parents, who have quite a bit of experience with construction. They estimate the renovation costs at around 65,000€ and said I should offer 48,000. Right next door another house is being sold, which is superficially in better condition (roof is sealed due to regular repairs), but technically has the same backlog of renovations, yet it is supposed to cost 90,000!

The plan is to do a third inspection with a builder friend.
But since I wouldn’t pay more than a certain price anyway (at most 52,000), I think it’s better to first make my offer and then bring in the builder if it is accepted... Otherwise, I’m just wasting his time, or what do you think?
The agent and heirs surely also know that the various damages need to be fixed, no expert needs to calculate exactly what that will cost... The market value of the houses is supposedly 90,000 (I talked to a neighbor who paid 110,000 a year ago for his already fully renovated neighboring house).

Hello HuggyLilly!

If the market value is around 100K€ and you want to invest 65K€, your absolute limit is 35K€.

When I read the post, my price quickly dropped to zero, because: standard land value x area = ~16K€, demolition costs at least 20K€ => so value zero.

What can still be considered is the standard land value plus the shell condition, which here already seems heavily damaged or may also be minimal. Then from my side 15K€ for the land and 15-20K€ for the shell, if it still allows that. Then you would be back at ~30-35K€.

Around 50K€ is definitely too much, because then you would spend about 120K€ in addition to your time and work and would already be above the maximum value the houses (with comparable features) are apparently worth. Your work effort +10-20K€ would then be your "loving effort," which only pays off if location and house are your dream.

If you want it to be a price dream, offer 30K€ and wait until the realtor stops laughing. Then tell him calmly that this was no joke and where you can submit the purchase offer in writing. You definitely submit that, whether the realtor even wants it or not, and wait to see what happens. If something happens, all is good – if nothing happens, also.

Best regards
Dirk Grafe

Hello Dirk,

thank you very much for your invoice. I haven't planned to tear down, that would be difficult because of the hard-to-reach location. You would have to flatten the whole row (4 little houses)... Ok, then I will start the attack tomorrow! Have a nice evening. Best regards HL