Purchase price assessment single-family house year of construction 1979

Hello everyone,

we (38, 37, 3 and 0.1 years old) came across an heir to a beautiful single-family house through acquaintances. Actually, we didn’t want to view any houses during parental leave, but as fate would have it. Today was our first time in the house. So far, we like it very much. The heir has not named a price yet.

Key data about the property ([BaWü], the outskirts of Karlsruhe):
- Plot size 634 sqm (Boris 600 per sqm). Right next to it is a playground.
- Single-family house (footprint 10 x 13m) (solid, brick house) built by the father himself in 1979/1980
- Oil heating (renewed in 2011), oil tank 4 * 2000L
- Roof is insulated
- Asbestos was denied by the seller / own assessment not present.
- I still have to check the electricity meter/distribution panel
- Double glazing, 3 windows replaced with triple glazing.
- Brick construction
- Fully basement (one living room, last inhabited by a caregiver)
- Attic currently only one large room (converted), water pipe prepared for the upper floor.
- Tiled roof
- Energy consumption according to heirs under 1800 liters of heating oil per year. I suspect the upper floor was not heated.
- Garage with flat roof, which apparently became a bit leaky and was fixed by a slanted metal roof.

Everything is very well maintained and in good condition, but everything is old.
Floor plans for the ground floor and basement are fine. We would probably divide the attic into two children's rooms and a "children’s bathroom."
So far, there are no dormer windows; if possible, we would probably add 3 more (one in each future room).
House orientation southeast is not perfect for photovoltaics. Depending on the situation, I would use the heating until it dies.
Toilets (1 in the basement, 2 on the ground floor) and bathroom (ground floor) + possible new bathroom should be done. They are still original but look very well maintained and neat.
The kitchen was renewed about 10 years ago - might not need to be renewed immediately.

Location etc. suits us very well. We currently live about 3 streets away renting. The next step would be to view the house with an energy consultant and a carpenter. I will then take a closer look at the electricity meter/distribution panel and take pictures.

Before parental leave, we had a monthly household income of 7500 euros. The targeted monthly burden corresponds to the current savings rate + current cold rent > 2500 euros per month. Equity capital for the house amounts to 300k euros. This means a total budget of about 800k.
Now the question - what is a realistic purchase price and what are the expected renovation/refurbishment costs?

Now the only question is, what should one watch out for with this year of construction?

We look forward to any input and thoughts!

This means a total budget of about 800k. Now the question - what is a realistic purchase price or how high are the expected renovation/refurbishment costs?

That could be enough for the purchase - purchase price €750k plus incidental purchase costs. I do not see much financial leeway for renovations.

I agree. Without knowing the QM in the attic, for example: if you can't buy the house cheaper (~600k?), then the attic conversion alone will exceed the budget (drywall partitions, bathroom including water pipes, electrical work, possibly structural engineering, dormers?, doors, painting, windows and as a result roof patching?, ...).

Thank you very much for your input. I did not expect that a house from 79/80 without modernization still has so much residual value. The distance to Karlsruhe is 20km. In case my description of the [Umland] has led to a misinterpretation.

Of course we don't know that – you have to see what the sellers want. Just check what similar properties are asking for on the usual portals? But just the plot according to BRW is already worth almost 400k, if the house for example has 200sqm, 600k would be just 1k€/sqm. That is very little for a building year 79/80, basement, not an ancient heating system, insulated roof, and partially renovated windows.

You can cautiously estimate a full renovation at a little over 2k€/sqm. Of course, it depends on what exactly is done.

You can also save by, for example, leaving out the photovoltaic system and possibly installing it later.

As input:
We have a similar household income (although with 1.5 salaries) and depending on the salary split, a 2.5k rate for a not fully renovated house with high additional costs would be too much for me. With additional costs beyond 3k just for living, you’re there. And 2x full-time with small kids is also pure stress.

What is a realistic purchase price

I did not expect a house from 79/80 without modernization to still have so much residual value.

Yes, yes. Take a look at comparable houses yourself… for the construction years 1970-80 with 500-800sqm land, prices start at 400,000-500,000, but more expensive ones are also not uncommon.