Is the customary price per square meter applicable to an old building plot?

Hello!

My brother wants to buy an old farmhouse in the absolute middle of nowhere in Bavaria. Such houses are often demolished by local owners (the one in question is partly habitable, practically like a holiday home, but for permanent residence quite a bit of money would have to be invested), and new construction takes place on the plot. As is often the case in the area, there is boundary construction on three sides of the house, and the neighboring buildings around it are characteristically dense in a rural way and not exactly highly sought after.

The potential seller breaks down his asking price into
- x euros for the house itself
- plus y euros for the land price, based on the local usual price per square meter for developed building land.

In my opinion, considering the circumstances, the demanded house price definitely needs to be adjusted downwards/negotiated. But can one demand the local usual price per square meter (officially asked is 45 euros for developed land) for such a built-up plot?

Regards Peter

For larger farms, generally only up to a maximum of 800m2 of creditable building land applies. The remaining area is to be calculated depending on the distance to the road at 50%-10% of the building land price. More detailed information is provided by the standard land value tables or the affiliated expert committees of the municipalities, which annually set the standard land values/real estate values anew. In Bavaria, this information is largely accessible free of charge:

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Source: Boris-Bayern.de

The old property now has only a symbolic residual value. In NRW, such farms with up to 1,500m2 of land, e.g., in the Eifel, are negotiated for €50,000 - €80,000. A friend who is an architect bought such a farm for €45,000, in an almost ready-to-demolish condition, but with a nice plot of land. If you or your brother are considering demolition, you must take into account that with a three-sided boundary development, legal protection for existing structures then expires and at least 3m boundary distance must be maintained on all sides. The admissibility of new construction is then governed by the currently valid building and planning law. Before purchasing with this intention, hire an architect and have yourself advised accordingly. Aside from this, renovating old farmhouses or converting dilapidated barns and stables is a very costly matter. Do not buy without expert advice on the consequential costs!

Thank you for the response.

The plot size is about 750 sqm. The whole thing was once used as an agricultural farm, but obviously nothing has happened there for a very long time. Thus, the attached former stable has long since been integrated into the living space and can only be guessed as a stable by the outer walls. Unfortunately, the house's upper floor has only 2 meters of ceiling height; together with the roof, which is tight but still needs to be newly covered/insulated, the entire upper area would have to be reorganized (combining the roof space with the low rooms below).
Viewed very soberly, it is at least a borderline case whether to demolish or not, and thus rather only suitable as a kind of modest holiday home. The newly appearing bathroom in basic standard would have to be "relocated." The electrical installation at least has been redone.
A possible resale, even in improved condition after years, would probably not be easy. A value increase will not be great or really happen at all due to rural depopulation and the associated reduction of infrastructure. In the surrounding area, there is already a fairly high vacancy rate in similar old buildings within a village.

But back to the price per sqm of the plot: can the seller therefore demand the full local building land price here?

The seller can demand whatever he wants. What is your brother willing to pay? If he agrees with the seller, that's good; if not, he will keep looking. It seems there are many such opportunities in the area. Since the house is probably worth close to zero, I would deduct the demolition costs from the usual local land price. That's what it would be worth to me. Whether the seller cooperates, see above.

Michael