What significance do standard land values have?

I can hardly judge that. The question is ... what does the bank base it on?

If the bank is valued in two years and the BRW has not been adjusted, in case of doubt only the BRW – unless it has local expertise.

The question is not so uninteresting. Different scenarios can be created here:

Example 1: Received land as a gift? What does the bank usually consider as collateral?

Example 2: Land purchased for 50,000 euros, according to BRW the land is worth 100,000 euros. What does the bank usually consider as collateral?

Example 3: Land purchased for 200,000 euros, according to BRW the land is worth 100,000 euros. What does the bank usually consider as collateral?

How are the incidental costs for the land purchase (broker, notary, taxes) handled? Are they taken into account in a later collateralization if they were paid in advance with the planned equity funds?

Which BRW is then used? The one current at the time of collateralization?

1. BRW possibly adjusted due to factors or based on the bank's experience (regional banks naturally have no idea about this) 2. There must be a reason for the low KP, e.g. micro-location or purchase within the family, i.e. the bank’s approach = it depends 3. see 2. = reason must exist, i.e. also here = it depends, regional bank rather follows BRW approach, as mentally it is the purchase of a lover’s plot at any price

P.S. Additional costs initially have nothing to do with the financing, as they do not affect the value of the property

P.S. Additional costs initially have nothing to do with the loan, as they do not affect the value of the property

Sure, but a simple numerical example regarding the background of my question (purely hypothetical assumption):

Total budget: 600,000 euros (100,000 for land and 500,000 for building)
Equity: 300,000 euros (50% loan-to-value, right?)
Loan: 300,000 euros

Now you find a plot of land for 85,000 euros. Additional costs simplified to 15,000 euros (notary, land registry, taxes, commission)
The 100,000 euros are taken from the equity. For the later financing you would have:

Total budget: 500,000 euros (for the building)
Land: 85,000 euros
Equity: 200,000 euros
Loan: 300,000 euros