Financing the construction of a house on a plot of land based on the neighborhood

Hello everyone,

I plan to buy a plot of land and build a house. I am a bit confused about the valuation and financing here.

The plot is located in Vaterstetten (Bavaria) and there is an old house on it. There is no development plan, only based on the neighborhood.

The bank (and I) have some concerns:
1- According to the bank's valuation, the fair price is only 1600 EUR/m2 instead of the requested 2200 EUR/m2. The bank does not seem to fully trust this valuation but sticks to it anyway. Any price above this value would be considered high risk and would only be financed with a higher interest rate.
2- Based on this input from the bank, I tried to negotiate the price a bit and offered 2000 EUR/m2, but the agent told me he has already received offers of around 2400 EUR/m2.
3- The bank says this is also too risky because we don’t yet know what kind of house could be built here, which could change the value of the plot. There is also a risk that a neighbor might oppose the proposed building plan, which could force us to make additional changes affecting the house value (or at least delay the project).
Due to this perceived risk, the bank would only finance this project with a higher interest rate.

I contacted the building authority to get an informal building approval and they confirmed that:
1- We can demolish the old house without additional permission.
2- We can build 2 semi-detached houses with a basement, 2 full floors, and an attic, as they fit into the nature of the surrounding area depending on the building utilization factor and the distances and parking spaces are verifiable.
3- They have not confirmed any specific building boundaries or buildable areas.

I tried to get the standard land value but found nothing.

So my questions are:
1- How could I get an estimate of the fair value for such a plot? If it is really worth this number, I could offer more (2450-2500 EUR/m2).
2- Is it really risky to buy a plot that is built according to the neighborhood? Could that really change significantly? Is it common for banks to apply higher interest rates for such a plot?
I find it very difficult to get a binding confirmation from the building authority as it costs a lot of money and too much time.

Thank you very much,
Best regards

€2,500/m2 just for the land? I'm losing my faith.

The Fair Value is what the market pays. How long has the property been on the market? Between 1,600-2,500 is quite a wide range. Around 2k is somewhere in the middle.

The property has been there for about 8 days or so. It is just waiting to finalize the financing contract. The different figures come from different sources. Personally, I consider the 1600 EUR/m2 to be very low compared to other similar districts.

- Based on this input from the bank, I tried to negotiate a little on the price and offered 2000 EUR/m2. But the broker told me that he had already received offers of ~2400 EUR/m2.

Sorry, if that were true, the broker would have already passed the property on to the higher bidder. I don’t buy these stories from any broker or seller; why would anyone give up 200 EUR/m², certainly not out of charity...

The question is, what is it all worth to you? If there are no comparable properties from which you could somehow determine a value, then there are only two possibilities. Either buy and possibly bite the very extreme bitter bullet (high price per m² + higher interest rates), or leave it and keep looking.

2,500€/m2 just for the land? I'm losing faith.

Vaterstetten is in the Munich metropolitan area, also with direct S-Bahn connection. Additionally, a good residential area. Unfortunately, therefore no longer unrealistically expensive.