Real estate offer evaluation

Hello everyone,

after there are once again delays in the development area where we have reserved a plot of land and the development plan has to be redrawn (they suddenly found a forest that wasn’t there before), we are also casually looking at some existing properties that are popping up... what caught our eye:

Region: Northern Germany, Schleswig Holstein
Plot: 680 sqm in a 2015 new development area in a "good residential location"
Standard land value according to Boris-D: 120 EUR (as of 31.12.2018)
Plot dimensions: slightly trapezoidal - 22.50m wide at the street, sides each 35m, 17m wide at the back
Behind the plot a sandy path, followed by a 10-meter deep green area... then come other plots

House type: city villa, two full floors, attic used as storage
Year built: 2017
GU: Team Massivhaus
Base area: 12 meters x 8.75 meters
Energy efficiency: probably KFW70, info to follow
Features: complete underfloor heating, KNX bus system (lighting and blinds), kitchen for about 18,000 euros (invoice seen), no garage but possible next to the house (however max about 4.50m wide), two parking spaces (not really designed as such) in front of the house, so three parking spaces in total, gas boiler Junkers, ventilation system, no photovoltaic, no basement, basement and upper floor fully tiled, guest WC including shower in basement, full bathroom without shower on upper floor (there would be space), standard would be normal I’d say, all windows with electric blinds, IT cabling, satellite dish, chimney shaft (without chimney/stove), house half clinker, half plaster, garden normally landscaped, no turf, simple terrace and access path
Living space: approx. 165 sqm divided into:
Hallway: 12 sqm
Utility room: 9.5 sqm
Guest WC: 4.5 sqm
Kitchen: 13.2 sqm
Living/dining: 45 sqm
Bedroom: 17.8 sqm
Corridor: 10 sqm
Child’s room: 22.8 sqm
Dressing room: 11.1 sqm
Bathroom: 9.5 sqm
Child’s dressing room: 10.1 sqm

House is obviously designed for one child – I don’t have one yet, so that works for me. Basically, though, I would want to make two relatively equally sized rooms out of “child’s dressing room” and “child’s room” on the upper floor, which would incur some conversion costs (removing one door, setting a new one, removing one wall, building a new one + necessary modifications to walls and especially floors – surely not exactly cheap such a floorplan change?)

Price supposed to be 600,000 euros, already negotiated – might go down a bit.

Now, the standard land value is just a guideline, and I see that pretty much everything is paid in new development areas these days. If I estimate 250 euros instead of the 120 standard rate here, then I’d get 170,000 for the land – leaving 430,000 for the house, ergo: about 2,600 per sqm... seems quite expensive to me, especially since Team Massivhaus is certainly not among the more expensive providers – or am I missing something?

Can you even say anything about this? Missing info?

Thanks for your assessment.

How are land prices currently traded with you? If you have reserved in a new development area, you should know the current land prices. I also suspect that the sellers factor in things like incidental construction costs and exterior facilities so that they can sell without a loss. You would have to subtract that from your price per sqm (as well as the kitchen).

Argument!

Prices are actually higher than the standard land value. In the area where I reserved, a few plots became available recently (due to the long waiting time)... they were gone within minutes at 250 EUR per sqm. The area itself is not yet listed on Boris-D - adjacent mixed-use areas are classified as ready-to-build land at 60 EUR per sqm.

Can you even say anything about it like this? Are there missing details?

You are not calculating correctly. You have a land value, pure construction costs, additional construction costs, outdoor facilities. And in the end, all the calculations are for nothing, since either you buy the house or someone else does. The house is worth what is paid for it. At least for now. And you can also exclude the kitchen (it is hardly worth anything now either).

Price seems realistic. I don't know where that is in SH, but we also live here and are currently buying a house. Furthermore, I know the prices in a new development area from the neighboring town. There are currently 2 houses (2016, 2017) for sale at 550,000 and 650,000. Both are town villas with similar features. So it fits.

If you want it cheaper, you have to make compromises. Even here in the still quite affordable north. Our (hopefully) future house is rural but central (Hamburg center 55 minutes by car, HL center 40 minutes by car, KI center 35 minutes by car). Plus no KNX and a bit smaller. But double the plot size. We are buying it for 480,000. If the house were in a new development area 10 km away in Bad Segeberg, we would definitely have to add 100,000 on top.

I don't want it cheaper at all - I just have no idea and don't want to buy something for 600,000 that people who know about it would only pay 200,000 for (massively exaggerated now).

It's normal that both sides try to get a good price.

I just don't know anything about real estate - and since this isn't my "target property," I don't want to find out later that I bought way too expensive. I just don't know about it.

I know that the answer to my question is usually "it depends," but there are always good tips and ideas here - so I thought I'd ask for your opinion.