I live in a booming area and had been searching for a plot or a house for a long time. When I see the prices on real estate platforms like Immoscout, I often get really frustrated. Especially the following things bother me:
- A developer offers a very expensive, ugly plot at an inflated price, but that’s not all: you also have to build an outrageously expensive house with them, so that a single-family home in a small town ends up costing almost 600,000 euros. "Living close to nature"
- Nearly dilapidated single-family houses from the 1960s with 90 square meters (970 square feet) of living space are offered at prices for which you could buy a new single-family home of 120 square meters (1,290 square feet) with 100,000 euros more. "A fixer-upper for the handy family"
- "Land with development potential" is sold at prices between 40 to 50% of regular plot prices, but a call to the local authority reveals notes such as "nature reserve," "archaeological sites," "water protection area," or that the land is planned to remain agricultural for an even longer period.
- Naive private sellers demand sky-high prices: renovated houses from the 1970s costing more than a new build plus land. "Absolutely like-new gem" (despite being almost 50 years old)
- Small villages with around 1,000 residents, located 100 kilometers (62 miles) away, are described as being within the "Munich catchment area" just because you can reach a train station in 30 minutes, with trains that take 50 more minutes to get to Munich.
Sometimes I really feel like telling people that what they’re doing is almost misleading and exploitative. It seems like many are just waiting for the one "fool" who’s willing to pay one and a half to twice the market value.
Just wanted to share this... I’m sure the insights from this thread aren’t all that profound.
- A developer offers a very expensive, ugly plot at an inflated price, but that’s not all: you also have to build an outrageously expensive house with them, so that a single-family home in a small town ends up costing almost 600,000 euros. "Living close to nature"
- Nearly dilapidated single-family houses from the 1960s with 90 square meters (970 square feet) of living space are offered at prices for which you could buy a new single-family home of 120 square meters (1,290 square feet) with 100,000 euros more. "A fixer-upper for the handy family"
- "Land with development potential" is sold at prices between 40 to 50% of regular plot prices, but a call to the local authority reveals notes such as "nature reserve," "archaeological sites," "water protection area," or that the land is planned to remain agricultural for an even longer period.
- Naive private sellers demand sky-high prices: renovated houses from the 1970s costing more than a new build plus land. "Absolutely like-new gem" (despite being almost 50 years old)
- Small villages with around 1,000 residents, located 100 kilometers (62 miles) away, are described as being within the "Munich catchment area" just because you can reach a train station in 30 minutes, with trains that take 50 more minutes to get to Munich.
Sometimes I really feel like telling people that what they’re doing is almost misleading and exploitative. It seems like many are just waiting for the one "fool" who’s willing to pay one and a half to twice the market value.
Just wanted to share this... I’m sure the insights from this thread aren’t all that profound.
T
thelastscout853 Jul 2017 16:42As part of our house construction, we sold our condominium unit (profit = equity). We didn’t give it away; if the market supports it, it will be sold at that price. I’m not forcing anyone to buy my apartment[emoji6]
T
Traumfaenger3 Jul 2017 22:50Bauanfänger36 schrieb:
When I see the prices on Immoscout and similar sites, I often get really upset. That's true, but by now it is widely known that Immoscout often lists low-quality properties at inflated prices that were unsellable privately within informal networks. Or these are listings where sellers have been persuaded by their real estate agents to set higher prices.
Comparing Immoscout prices with official market value appraisals from forced auctions shows that Immoscout listings are frequently priced 30% or more above the appraised market value.
On the other hand, it is worth questioning how often these Immoscout prices are actually paid. It is not uncommon for financing banks to say: No way! — Overpriced — We won’t finance it! And then the property ends up being sold to the second or third highest bidder. I have seen this happen quite often in my area, including in metropolitan regions.
O
Obstlerbaum31 Aug 2018 17:20Traumfaenger schrieb:
Comparing Immoscout prices with official appraisal values from public foreclosure auctions shows that Immoscout prices are often 30% or more above the appraised market value. The appraised market value is not the same as the market value but rather the starting bid for the auction. I can only speak for our area (Benztown), but in the last two years, all reasonably attractive properties were bought by developers who competitively bid the prices up. They don’t mind paying 100,000 euros more for the property. If, on a 700 m² (8,000 sq ft) lot, you later sell four semi-detached houses, you only need to charge 25,000 euros more per unit. The market can support that...
When you have built a house yourself, you also understand better why prices on the resale market are so high. In our area, you won’t find a new single-family home for less than 650,000 euros. Usually, prices are significantly higher, often exceeding the magical one million.
I’m curious to see how this will develop further; the government’s child home subsidy will add to this.
I’m curious to see how this will develop further; the government’s child home subsidy will add to this.
Bookstar schrieb:
I’m curious to see how this will develop; the child building subsidy will add its part. At these prices, the child building subsidy doesn’t make much of a difference anymore. When dealing with a million, what are 12,000 to 36,000, which are paid out over 10 years starting about one year after construction, and therefore don’t even qualify as equity but are only usable for extra repayments?