Land purchase, partially building land and partially farmland

Hello dear forum members,

my partner and I have been interested in a plot of land for about 2 years, which was still used for agricultural purposes until last week. The owner of the plot submitted a building inquiry, which fortunately was approved 4 days ago. This means the biggest hurdle has been overcome for now. The plot is buildable, and we are the primary prospective buyers.

Now to my problem:
The actual building land is about 600 m2. Due to the natural conditions of the plot, some regulations regarding distance to neighboring properties, and the fact that we both would like to have a large garden, we need a plot of about 1000 m2.
Since the plot borders other farmland owned by the current owner, he offered us to purchase an additional 400 m2 of land. However, we would have to pay the local m2 price for building land (48 euros in our case) for the additional 400 m2 as well. The owner said this is always the case. After all, in larger plots in the neighborhood (1500-2000 m2), only about 600 m2 is pure building land. The rest of the land owners would have also had to purchase at the building land price.

Is that correct? Unfortunately, I have no idea about this.

And another question:
Assuming I buy the 1000 m2 under the seller's conditions (which I could easily pay from my own capital). If I want to use the land as equity for financing the house, the bank presumably will not refer to the actual purchase price paid but will probably have the land appraised again, right?

Thanks in advance for your answers.

Best regards

Christian

Oh how sweet - 48€ per sqm
At that price - and the fact that you have no chance for negotiations and can only choose between buying or not buying - I would simply go for it.

The bank naturally looks at the standard land value and if the 400sqm are declared as farmland, probably only the farmland price will be considered. That is just bad luck that maybe a few € are missing from the loan value - by the way, the property including the planned house is evaluated.

Apart from that, in the valuation of oversized plots, usually only a certain part is assessed at the standard land value (e.g. plot depth 20m) and the rest is valued as hinterland (e.g. at 25% of the standard land value), since it is not usable for construction and only serves as a garden.

P.S. You can live very well on 600sqm as well

Hello, mustard seed!

If the others are that stupid, that’s their problem.

The fact is that the remaining 400m² according to your descriptions is neither building land nor land designated for future building, ergo farmland. Of course, the farmer is clever and sells the farmland at building land prices. A fair price would be a mixed price or a garden land price for the 400m² (max. 10€/m²), because you can only use the land like that – you can’t build there later anyway, so why pay building land price?

He can’t freely trade the 400m² either, because who else besides you would even use/acquire the land? Probably no one or at most other adjacent landowners. So there are no or at best few competitors who obviously already have enough land, and thus the seller’s price is … well … hard to enforce on the market.

Best regards
Dirk Grafe

Hello,
On the other hand... does the farmer have to sell? If not - then he names a price and waits until someone is willing to pay that price. You cannot force him to sell cheaper...

Regards
I.

Does it actually make a difference whether you build a house on a plot of land that is fully designated as building land or only partially designated as building land.
Tax-wise or fee-wise?

For 600 m² times garden land price, the farmer will hardly be eager for a notary appointment. Letting it lie fallow is probably more lucrative (I’m not an expert in EU agricultural subsidies).