House too expensive, please share your opinions

Hello,

Thank you for the quick responses. Demolition and new construction exceed our financial capabilities. The property is indeed large, but not particularly great, with the main road in front, a stream flowing behind, a neighbor on the right, and a street on the left. Scattered on the site are 2 garages, 2 sheds, 1 garden house, several piles of junk, and apple trees. I don’t need a large plot either if the house is no good. We’ll probably have to keep looking. Land prices don’t seem to be very high here; recently, a ruin house plus about 1000 sqm of land sold for 15,000 euros.

I have to say that we live here in the deep east in the countryside. I also don’t need a large plot, a small garden would be completely sufficient for me and a reasonably move-in ready house up to 80,000 euros. Recently, we viewed a house, 100 sqm, basement, attic, 2 garages, new oil heating, renovated inside, bathroom okay, large garden, and that for the price of 59,000 euros. Unfortunately, it was too far away and for professional and family reasons we wanted something nearby. I still regret that now.

Hello,

Thanks for the quick answers. Demolition and new construction exceed our financial means.

I almost suspected that. Otherwise, you wouldn't have gone into such detail. I'd say: keep looking. Otherwise, you might find yourselves in a money pit :(

Hello Annemarie,

if you only want to invest 80k€, the property according to your descriptions is not feasible for you, or you would have to push the purchase price almost down to zero (see below), which is probably unrealistic even in this location. An inspection with an expert would be sensible if you had capital for a comprehensive renovation in addition to the purchase price (which can probably still be negotiated if you invest time). However, it is questionable whether a renovation is even worthwhile in this location; based on the descriptions including the information on your cost expectations, it is a clear demolition for me.

A reference point for the purchase price is, as already mentioned, the standard land value, although with the large plot it may be that only part of the land is valued as building land because the rest may not be built on/cannot be built on. As a guideline for such plots, the area above approximately 1000m² is significantly devalued, i.e., only the garden land price is achieved.

One can/must also gamble with such a property and simply offer 15k€. The reasoning for this looks like this, for example:

Plot price 1000m² building land x 50€/m²: 50k€
Plot price garden land: 5k€
Demolition and refurbishment of the overgrown garden: - 30-40k€

=> Residual value ~10-20k€.

If you then get it for 15k€, you would have about 65k€ for the renovation, although I assume that this will not be enough by far.
If you don’t get it for 15k€, that’s not bad, because otherwise you would have tied yourself to a financial disaster.

Best regards
Dirk Grafe

Hello Dirk,

You can/must also gamble with such a property and simply offer 15K€. The reasoning looks like this, for example:

Land price 1000m² building land x 50€/m²: 50K€
Land price garden land: 5K€
Demolition and restoration of the overgrown garden: - 30-40K€

=> Residual value ~10-20K€.

You’re not seriously saying that now, are you? :confused:

Rhineland greetings

Why not? His suggestion is to gamble. Nothing ventured, nothing gained. Maybe the sellers gamble just the same, even though they know there isn’t much to gain.