Price negotiation for future building land - recommendations? experiences?

Hello and thanks for your responses so far!

Are there any guidelines from your point of view for development and planning?

If you assume that development costs 40 euros per sqm and planning 10 euros, you end up with 50 euros in costs. Maybe 45 euros because he is a professional and can do some things cheaper here and there. Then, with a selling price of 80 euros, 35 euros remain.

Of course, the professional bears all the risk, the effort, and has to pay wages, taxes, rent, etc.
He should definitely get something for that.
He then has 35 - 11.5 purchase price = 23.5 euros/sqm remaining.

Is my calculation somewhat realistic?
What do you think?

Hello and thanks for your answers so far!

Are there any guidelines from your perspective for development and planning?

Assuming that development costs 40 euros per sqm and planning 10 euros, then you end up with 50 euros costs. Maybe 45 euros because he is a professional and can do some things cheaper here and there. Then at a sales price of 80 euros, 35 euros remain.

Of course, the professional bears all the risk, the effort, and has to pay wages, taxes, rent, etc.
He is supposed to get something for that as well.
He then has 35 - 11.5 purchase price = 23.5 euros/sqm left.

Is my calculation somewhat realistic?
What do you think?

He will never reveal his margins to you. He gave you his price, you were given other market prices.

Just say no thanks and advertise online. Or make him a counteroffer. Maybe your piece of land isn’t attractive to build on at all!

Land designated for future development is usually valued at 65% of the buildable land value, but a professional won’t pay you that.

"Normal" was yesterday, back when Birne was still Chancellor Bimbes. Economy and politics have been acting too crazy for years for time-tested farmers' rules to still be reliably valid standards.

Of course, the professional bears all the risk, the effort, and has to pay wages, taxes, rents, etc.
That’s why he should gladly receive something for it.
He then is left with 35 – 11.5 purchase price = 23.5 euros/sqm
Is my calculation somewhat realistic?

No, because:

Maybe your piece of land isn’t even attractive to develop!

The biggest risk for the land developer currently is the municipality itself: it could make development unattractive by setting the land utilization factors too low or trying to save the world with district heating and greening requirements or the like. And more and more often, it lacks the resources to initiate infrastructure development (where an investor could at least step in, but that only pays off if he is at least close to the oligopoly of local land ownership). In the worst case, the municipality is currently not allowed to designate the building area at all. For a land developer, building plots are economic assets, not financial investments. Having to endure long holding periods can strangle his liquidity. Rising prices for sewer pipes or excavator operators’ wages are comparatively minor risks—they "only" nibble at his margin, but the aforementioned are serious insolvency risks.

If you assume that the development costs 40 euros per sqm and the planning costs 10 euros, then you end up with 50 euros in costs. Maybe 45 euros. Then, with a selling price of 80 euros, 35 euros remain.

He then has 35 - 11.5 purchase price = 23.5 euros/sqm left

Is my calculation somewhat realistic? What do you think?

You have forgotten a very important component in your calculation: From 1 ha of farmland, usually only about 6,000-8,000 sqm becomes building land. The rest is used for roads, RRB, playgrounds, green compensation areas, etc.

Hello everyone,
thank you again for your answers. That was very helpful to better assess the situation.

I have another question:
how is it actually with the sale of land? Do you still have to consider any fees and taxes or the like with such a sale? (this is the first time for me dealing with something like this...)
So I have had the land for about 20 years and before that it was also in the family. So it is not a speculative object.
But if I roughly get 70,000 euros, does the tax office not want a share of that?
Or are there other incidental costs, like notaries etc., that one has to consider??

Thanks again for your help!

A private sale transaction $ 23 Einkommensteuergesetz is obviously not present. It would need to be examined whether the area originates from an agricultural operation or was acquired privately 20 years ago…. In the first case, it could be problematic. Although with 6,000 sqm I rather suspect the latter.