Valuation of existing property

Hm, yes, exactly, that's what I mean. The amount called out will probably be significantly more than these 24 annual cold rents (also, the current properties cost much more than that, although here nothing is classically built and bought as an investment property and there are not that many rental houses (in the sense of single-family homes). I wonder if I won't then risk burning capital if we want to move again later. It is housing in a conveniently located area, decent, but I don't think anyone dreams of this house. Ten years ago it was built with other properties and then initially offered unsuccessfully. But I already notice, this is difficult to discuss, there is probably no law and no guarantee. Thanks anyway.

It would be annoying if another interested party takes it for 5000 more than the limit we have set as our pain threshold.

but I don’t think anyone dreams of this house.

Then gamble. But don’t get upset afterwards. If you have other properties, e.g. through BT, in hand, it’s bearable if you’re not the winner. However, be aware that with a BT price there is always quite a bit added. You can’t gamble with us, you have to know the whole offer in the region. In spring: sale of a bungalow on leasehold, built with Ytong by hand by the deceased owner. You can see the self-construction in the tiles, everything outside still unfinished, no driveway, no garden, no terrace. Energy efficiency question mark. Impossible floor plan. Kitchen had to be removed because of vermin. The builder was over 60 (mind you, self-builder over 6 years). It was gone within a week. And don’t believe that there was any bargaining or haggling.

Is the house empty or rented? Rented, then the 24. Otherwise, the return is incorrect. Empty, then close to new build price.

You can also determine the value the other way around: land reference value * area + 1500€/m2 * living area. One can still discuss cellar, garage, and other surcharges, but 10 years old is move-in ready for many people with minimal renovation, so I would set it at 2000€ above.

How are the data with you?

For investment properties, they say 24 times the annual cold rent equals the real price.

That applied once in the last millennium. In reasonable locations (not in metropolises, where it goes up to 100 times - e.g. Munich) it is rather 30-35 times.

The asking price will probably be significantly more than these 24 times the annual cold rent

For single-family houses/condominiums you can’t really calculate with factors. For example, I have a rented apartment from the 60s in a middle location in the deepest Ruhr area - there the factor is already over 20 times. That says absolutely nothing.

I wonder if I am then at risk of burning capital if we want to move again later.

You can only answer that retrospectively. It’s the same with purchase prices as with loan interest rates. In hindsight, you’re always smarter.

You don’t really seem to believe in the house, otherwise you wouldn’t be worrying so much.

Set your pain threshold, get a confirmation of financing from the bank, and make an offer including the confirmation. Either they accept or they don't. I wouldn't stress about it at all. You have nothing to lose. Especially since it is not the absolute dream house.