Land as equity - bank valuation

Hello dear forum,

last year we purchased our plot of land for a very good price (115€/sqm, with a standard land value of 130€/sqm).
We bought it entirely with equity, meaning the plot is debt-free.
Now the question for us is how the bank will assess the plot as equity in the construction financing.
Since the area is growing strongly (Berlin outskirts), it looks very likely that the standard land value will rise again this year. Plots within a radius of 5-10 km sometimes sold last year for 200-300 €/sqm.
I am aware that in the end this depends, of course, on the bank’s valuation method and many other factors.
Maybe someone here has a similar case and can share their experience so that we get a rough idea.

Best regards!

You yourself write that it very much depends on the respective bank.

With us, the following procedure was used:
If the land purchase was not long ago (I believe up to max. 3-5 years), the paid purchase price counts. Otherwise, the current standard land value is used.

Addendum: For the standard land value, the bank referred to an online database. The value corresponded exactly to the value I had also determined online.

Good morning,

the standard land values for 2022 should be released in 4-6 weeks, at which point the banks will likely assess it more favorably than today.

The valuation depends on 2 factors:
standard land value
size

many banks assess plots of 400sqm at 100% of the standard land value
in your example: if it is 400sqm then x €130 = €52,000

if the plot is smaller than 400sqm, there are surcharges, i.e. the bank will calculate with more than €130/sqm
if it is larger, there are discounts, i.e. the bank calculates with less than €130/sqm

as a rule, banks also consider plots up to 800sqm/1000sqm as building land, everything above that is regarded as garden area, and usually only taken into account at 10% of the land value.

if you give me [PLZ], [Straße] + the size, then I’ll quickly calculate it using values from 2021 ;)

You yourself write that it very much depends on the respective bank. With us, it was said that the following procedure is used: If the land purchase was not long ago (I believe up to max. 3-5 years), the paid purchase price counts. Otherwise, the current standard land value is used.

NOT necessarily, I know banks that like to calculate with the better value for the customer. If you buy a piece of land worth €80,000 but paid €120,000 for it, the banks also calculate with €120,000 in the customer's interest. I also had customers who bought a plot of land for €120,000 one year earlier, the land value was €150,000 six months later (they bought cheaper), and the bank calculated accordingly with €150,000 as the value (after I intervened... they initially wanted to calculate with the €120,000, but at €150,000 the customer had better terms exposure... and he then got them).

if you give me the postal code, street + the size, then I will quickly calculate it

Unfortunately, I do not yet have the right to send private messages, so I cannot provide details. The postal code is 14542, the standard land value in 2021 is €130/sqm, the size is 1236 sqm.