Financing house construction / Land (self-financed) overpriced?

We just had the discussion about the property value. Oversized plots are not fully valued as building land (= standard land value). Normally, for example, it’s 600 or 800 sqm. Or plot width x 30 or 40 m depth. The rest is considered undevelopable garden land, which therefore only has a significantly lower value. Exceptions are, for example, villa areas where you expect an adequate plot for the house. This is a little excursus on why Dr. Klein rates the plot lower.
You can also see that smaller plots are correspondingly more expensive (the ratio of house to plot is different there too).

Calculation example for you: 800 sqm plot at €400 = €320k + 700 sqm garden land at €200 = €140k less demolition €20k = purchase price €440k

Oh, you mean that the seller has already deducted the demolition costs in the price, and that’s why it’s sold cheaper than the standard land value? Hmm.. that makes sense (at least it would be fair).
Then this statement from Dr. Klein surprises me even more, because objectively we’d still be at a standard land value of 307 with €460k and thus still below the "official" €320/sqm.
Of course, most plots are not that size and the overall construction project will of course be cheaper if I buy 800 sqm for €350k. But the price per sqm is still significantly worse than in our case?

I therefore wonder why Dr. Klein calls it a "proud price." Are we overlooking something, or are simply very few people willing/able to pay €440k for the plot?

Simple answer: Dr. Klein calculates with the reduced amount of building land and the BRW. The seller, on the other hand, looks at the market, maybe even mentally deducts a bit for demolition, and still ends up well above the bank's calculation due to the significantly higher price per square meter - and possibly also due to the lack of adjustment for the plot size. Your problem is that someone else will probably pay this price without objection, so you can only play along or keep looking.

Simple answer: Dr. Klein calculates with the reduced amount of building land and the BRW. The seller, on the other hand, looks at the market, maybe even mentally deducts a bit for the demolition, and still ends up well above the bank's calculation due to the significantly higher price per square meter – and possibly also due to a lack of adjustment for the plot size. Your problem is that probably someone else will pay this price without question, so you can only play along or keep looking.

Yes, you are right there. Allegedly, there were even higher bids than ours ("list price in the offer") and we got the contract out of sympathy. Whether that was really the case in the end, or if we were simply the only "fools" who submitted an offer, one will probably never find out. I always assumed that the plot is what really determines the value (and also has a value-increasing effect, while the house only loses value). Hence my issues with leasehold properties, which currently seem to be offered only by municipalities.

But actually, the bank is the problem, which omits a large part of the area in order to deliberately calculate equity as low as possible (even though you might be able to subdivide in the future)?

My problem is that Dr. Klein has now unsettled us as to whether it is subjectively too expensive (most people choose, for example, the €340K plot with smaller area to end up €100K less in total with the house) or objectively (overpriced considering the (sqm) price + demolition as well as the sqm prices of the alternatives)?

But basically the bank is the problem, as it omits a large part of the area to deliberately keep the equity capital small (even though it might be possible to split it in the future..)?

Yes and no, because "this bank" does exactly the same as any other reputable bank. :) Splitting only makes sense if construction is allowed on the remaining part – including the possibility of development.

Objectively, the property is expensive, since you still have to add the demolition costs, but due to lack of alternatives, it might be subjectively a normal price. You make the decision. :)

The demolition costs are added on, yes. But somehow there is now something on almost every building plot around Berlin that has to be demolished...

Wrong. Houses do not stand on building plots, but potential used houses are turned into demolition houses.

But please don't forget that a large part of the Berlin surrounding area is former GDR territory. There, the houses sometimes had a drastically different quality than in the West.