Single-family house demolition - Estimating incurred costs

Hello everyone,

thank you all for the tips in the forum!

I am looking for a plot to build a single-family house.

I have now found the following offer: Renovation-required (rather neglected) house

[*]Plot size: 630 m2
[*]Living area: 150 m2
[*]Usable area: 50 m2
[*]Full basement
[*]Year built: 1953
[*]Realtor's description: "There are two more sheds on the property. The outdoor area is overgrown and the house is now overgrown with various plants. The rear area is no longer accessible. The single-family house is completely in need of renovation and must be vacated. There are several bird cages or aviaries inside the house. The rooms are heavily soiled."
[*]Photos attached

Costs:

[*]Current purchase price: €95,000; it is an insolvency property; due to high demand there will "probably" be a bidding process according to the realtor
[*]Current price per m2 (excl. realtor fees etc.): €150 (purchase price / plot size)
[*](Standard land value for the street: €98 / m2)

Question: What kind of final plot price could roughly be expected here?
I am aware of general demolition costs, but due to the year built and the condition I fear high additional costs:

[*]Clearing out
[*]Demolition
[*]Getting rid of the small jungle (see photos)
[*]Asbestos etc. (I unfortunately could not find any further information here; soil report will be difficult timing-wise)
[*]New development necessary?

I fear the whole thing could already be in the region of €200,000...

Thanks for your assessment & best regards,
Donodo

Asbestos disposal is not that expensive. You can also get rid of the jungle quite easily by renting an excavator or something similar yourself. What do you think the demolition costs? If it is a popular location, then I rather see the cost explosion in the bidding process.

Demolition costs depend on many factors. Ask a demolition company in your area. They should give you a rough estimate including clearance and gutting. I estimate around 30 - 40k without major surprises and without any personal work. A neglected garden doesn’t mean everything has to be flattened. Maybe you have a pretty garden with old trees, which a landscaper with sense could walk through the jungle.

The single-family house is in complete need of renovation and must be vacated. There are several bird cages or aviaries in the house. The rooms are heavily soiled.

We have already had several small houses here from the 1950s - which, by the way, is not one decade but three, if you consider it in terms of construction substance eras. Basically, alone considered, a construction year of 1953 – this statement applies to both Germanys – is still no clear indication of questionable worthiness of renovation. However, combined with the fact that previously a pet-loving hoarder lived there, I would replace "vacated" with "demolished."

Current purchase price: 95,000€; is an insolvency property; due to high demand, according to the broker there will "probably" be a bidding process

I strongly recommend that you examine the context closely. Brokers love the subjunctive and are content with at best half-knowledge, even better for them is hearsay. It is more likely that a camel goes through the eye of a needle than that you get a statement with letter and seal from a broker. I can well imagine that "insolvency property" is a euphemism for the fact that the previous occupant left the house in a zinc coffin. You can buy from insolvency administrators without any fuss – and what they don't give to a creditor or buddy, usually not even the devil wants to win at cards. I would not let myself be dazzled by idyllic shrubbery – whatever wild gardening potential one might see in it – if I were you. My expectation of the condition "post overgrowth clearing and green waste disposal" is that afterwards at least plaster and screed can be put in the container. And afterwards, with this construction year, it is not a Sleeping Beauty that just needs a quick kiss awake and to be freed from its night storage heaters, but a witch's house with 7cm thin WC masonry – so at least demolition of pantry and broom closet walls would go quickly :)