Estimating Renovation Effort for 1920s REH

I would definitely renew the electrical system completely before moving in. For safety and comfort reasons. Once you have moved in, you usually don't do it anymore, as it is quite a lot of dirt and effort.

Even though the information we have so far is rather sparse and no exact statements can be made, we would still like to get a rough overview of the costs that will be coming our way.

Since it is a mixed bag, it is hard to say. Renovating bathrooms naturally depends a lot on what the pipes allow (pulling new water pipes, possibly new sewage pipes right under the living room floor). But with €100k you can get quite far.

The electronics made a still sufficient impression. There are still some fuses here and there and no FI, but for the stove already 3 wires with "modern" fuses in one fuse box per floor. From the feel of it, we would leave it like that at first, or should we change it before moving in and upgrade it completely to the latest standard?

You are already tearing up a lot anyway (bathrooms, hot water pipes), so I would renew the electrical system as well. Otherwise, you live in it and then have to open all the walls again. You plan to do it, but usually you don’t, because it means a huge mess.

We would probably take double glazing since the facade is not insulated. Is that enough? We are afraid that triple glazing will cause moisture on the walls.

That depends on tight windows, not on the glazing. Highly insulated windows feel better, for example when sitting in front of a window in winter and the cold does not radiate onto you. Otherwise, airing is the magic word – no matter what kind of new windows.

The location is in the Ruhr area and the purchase price is supposed to be €300,000.

According to the seller, the market value is €190,000.

Comparisons to other houses in the area? €190k can fit well in the Ruhr area. There are often nice houses. But it also depends on the location and plot size. Where exactly do you want to buy? Otherwise, the market value is the value that is paid. What does the bank say about the possible purchase price?

Thank you for your answers :)

It is already good to know that €100,000 is a budget with which we will not completely miscalculate.

Where did the seller get this market value appraisal from and how does he justify selling so far above market value himself?

The property is located in Gelsenkirchen and is being sold privately; the seller had an appraisal created for legal reasons. We were not told which type of valuation method was chosen. The size of the plot is 280 sqm, BRW €170 / sqm.

We have not found any comparable properties on Immobilienscout/Immowelt/EbayKleinanzeigen currently or in recent weeks.
There were occasional properties via foreclosures (below value) and with very extensive renovation measures (significantly above value) from the 2010s, which we have not viewed and therefore cannot assess.

Otherwise, market value is the value that is paid. What does the bank say about the possible purchase price?

Discussions with the banks have so far been general and not property-specific. We will of course talk to the bank soon about conditions and what the loan amount would be with this difference between purchase price and market value.

I have read that for a stone house, one roughly assumes a service life of 100 years.

The calculated service life for a single-family house/semi-detached house is often only 70 years, but this is extended again through renovations and conversions. During a renovation, according to the general formulas for the (remaining) service life, a fictitious year of construction is calculated, which in turn is the basis for the new service life. My project will have a fictitious year of construction 2018 after the major renovation (calculated), although the actual year of construction is 1914.

My project is unfortunately only comparable to yours in terms of the type of house and the year of construction (REH, year 1914).

Otherwise, nothing has been done to my house since 1970 (except the roof) and a complete renovation with adjustment of the floor plan is now pending. The goal is a renovation to new build standards including underfloor heating, new electrical systems, new pipes, new bathrooms, etc. Additionally, I still have the [Denkmalschutz] as an individual monument to deal with.

The renovation costs including architect services then amount to over €2500 / m2. So quite within new build range.

With a (somewhat current?) market value appraisal of €190K, €300K seems very high to me. This may vary regionally, but the auctions I have followed here were mostly about 20-30% above the appraisal.

The method of determining the market value does not play a big role, as all methods lead to a similar result. The difference between the appraisal and the desired price also seems too high to me. Even though 300k for the house does not seem like much to me. I would still negotiate hard. However, the market value [Verkehrswert] is not the price at which it is sold, that is the market price [Marktwert]. The market value [Verkehrswert] is a value determined based on objective criteria and is used, for example, as a guideline in forced auctions.

Regarding the renovations: Definitely do the electrical work and bathrooms as well. Both create such incredible mess that it is practically impossible in an inhabited house. Regarding the floors: Are the wooden floors not salvageable? They are actually nicer than laminate. The facade insulation does not pay off during one's lifetime; without an overall concept it is not sensible in my opinion.