House purchase foreclosure auction - What price is realistic

Good morning,

We could buy a house built in 1960. The current owner bought it two years ago from a foreclosure auction. The market value was stated as 75k. He won the bid for 100k. Afterwards, he apparently settled a land charge of 45k that was still on the property.
If he were to sell it now, he would have to get about 200k for it because he has to pay so many taxes (due to the land charge). After 6 years, this would probably no longer apply.
Is all of that correct? Unfortunately, we have no idea!
Are there other options? The amount of 200k would unfortunately be beyond our budget and also seems a bit much to us.
Regards, Martin

It is absolutely none of your business what the previous owner would need to get to come out of the matter with a blue eye. For you, what matters is the value of the house (current market situation, condition, etc.) and what you can and want to pay. The rest is supply and demand. If you can't come to an agreement with the seller, then that's just how it is. Offer what you want to give, he can accept it or not, and that's that.

Is all of this correct? Unfortunately, we have no clue! Are there other ways?

It is like buying a car. If you can't afford the price, you have to buy a smaller model. Even if the price of a Porsche seems high to you, there are plenty of people who buy it. You can try to negotiate the price. But what factual reason should there be for the seller to sell you the house cheaper?

Aside from Altai's correct remarks: if the owner has lived in the house themselves the entire time, they do NOT have to pay taxes on the capital gains.

100 TE plus 45 TE are 145 TE on which he had to pay the real estate transfer tax according to the rate applicable in your federal state. With a maximum of 6.5%, that would be around 155 TE plus land registry fees (2 TE). No notary fees apply in the case of a forced auction. So he will not have paid more than 160 TE!

If the house was rented out, you would have to ask a tax advisor which part he has to pay taxes on. But that is then the difference between the acquisition costs (minus ancillary costs), i.e., 145 TE, and the selling price. Assuming a sales price of 180 TE, that would be 35 TE with a maximum 45% tax rate, so 20 TE tax.

Thank you for the answers. It is the case that the house has been rented in the meantime. The house is in great condition structurally, nothing needs to be done except maybe the interior doors and the stairs to the upper floor need renovation. Normal renovation work, which is common everywhere, is clear. Roof is like new, roof structure insulated, electrical system new, water pipes new, basement dry, heating (oil) about 13 years old. Windows are double-glazed wooden ones. It is a pity if one has to buy the house much more expensive than the current market value because of this tax burden, which of course he wants to have paid. Although he has also gambled on that himself. Probably someone else would also take the house, so he does not need to worry about that. The market for existing properties here is very scarce! We have to think about what we want to pay at most. Either he goes along or not.

It's a shame if you have to buy the house much more expensive than the current market value because of this tax burden, which he of course wants to be paid. Though he has gambled on that himself.. Probably someone else would take the house as well,

Then he wouldn't sell it below market value if someone else takes it. So your chances for negotiation should be zero. But honestly, a house in the quality you described must be at the very bottom of the world for that price. Where else can you buy such a house? But putting that aside, if the purchase price of €200,000 is far above your budget, you should rather not pursue the wish of "buying a house." That would mean a financing rate of about €600 per month. And you can't afford that by far?