Hello everyone,
I would like to tap into the collective knowledge here because I’m currently feeling a bit “lost” or even stressed.
I am part of an inheritance group with a total of 3 parties involved. The issue concerns a plot of land measuring 1000 sqm (approximately 10,764 sq ft) in Baden-Württemberg. The general value for farmland is around €10 per sqm (approximately $11 per 10.76 sq ft), and the official standard value when classified as building land is about €700 per sqm (approximately $755 per 10.76 sq ft).
Anyway, as it often happens, the land is not yet classified as building land, but it borders directly on a residential area. After consulting with the city authorities, it appears that the land will not be reclassified as building land anytime soon, partly because of its small size and the lack of interest to initiate any change.
All of us in the group still want to sell the property and, based on discussions with a real estate agent, we expect a price in the range of about €300–400 per sqm (approximately $323–431 per 10.76 sq ft). (We will not accept less.)
Now the agent has drawn up a contract for us. Unfortunately, I’m starting to have second thoughts. Do you see any potential issues in the contract? Of course, we want to pay the agent only when a contract is signed and the buyers pay more than €300,000 (approximately $323,000). If there are no offers or only lower ones, we don’t want to sell.
What do you think about the agent’s contract? Is it easy to terminate it after one year, and what happens if we reject offers for whatever reason?
Here is an excerpt from the contract:
See attachment
I would like to tap into the collective knowledge here because I’m currently feeling a bit “lost” or even stressed.
I am part of an inheritance group with a total of 3 parties involved. The issue concerns a plot of land measuring 1000 sqm (approximately 10,764 sq ft) in Baden-Württemberg. The general value for farmland is around €10 per sqm (approximately $11 per 10.76 sq ft), and the official standard value when classified as building land is about €700 per sqm (approximately $755 per 10.76 sq ft).
Anyway, as it often happens, the land is not yet classified as building land, but it borders directly on a residential area. After consulting with the city authorities, it appears that the land will not be reclassified as building land anytime soon, partly because of its small size and the lack of interest to initiate any change.
All of us in the group still want to sell the property and, based on discussions with a real estate agent, we expect a price in the range of about €300–400 per sqm (approximately $323–431 per 10.76 sq ft). (We will not accept less.)
Now the agent has drawn up a contract for us. Unfortunately, I’m starting to have second thoughts. Do you see any potential issues in the contract? Of course, we want to pay the agent only when a contract is signed and the buyers pay more than €300,000 (approximately $323,000). If there are no offers or only lower ones, we don’t want to sell.
What do you think about the agent’s contract? Is it easy to terminate it after one year, and what happens if we reject offers for whatever reason?
Here is an excerpt from the contract:
See attachment
Am I correct in understanding that you want to sell the farmland, which the city has said will not be designated as building land for the time being, through a real estate agent to some (sorry) fool who is supposed to pay 300€/sqm (about 28$/sqft) in the mistaken hope that they might eventually be allowed to build on it? O.o
kati1337 schrieb:
Am I correct in understanding that you plan to sell the agricultural land, which the city said will not be designated as building land for the time being, through a broker to some (sorry) fool who is expected to pay €300 per square meter (about $320 per square meter) in the mistaken hope that they might be allowed to build on it someday? 🤨 That was not my question! Yes, it is agricultural land, but it will very likely become building land eventually! Whether that is now or in 10 years, the buyer will be aware of that. (If anyone is found)
H
hampshire24 Nov 2021 21:01Roger12 schrieb:
I or the entire community would of course still like to sell the property now and, after consulting with a realtor, we expect a value of around €300-400 per sqm (approximately $320-430 per sq ft). (We won’t accept less.) The price is unrealistic for anyone without good insider information from the municipality. Therefore, the realtor’s contract is worthless for you. The realtor will do nothing and just pocket money if it becomes development land. You can keep the land without a realtor’s contract. Sell when the time comes.
hampshire schrieb:
The price is unrealistic for anyone who doesn’t have good insider knowledge from the municipality. Therefore, the broker contract is worthless for you. The broker won’t do anything and will just pocket the money if the land’s zoning changes to development land. You can keep the land without a broker contract. Sell it when the time comes.I don’t quite understand. I thought the broker only gets paid when a purchase agreement is signed and receives the commission from that?
Roger12 schrieb:
Yes, it is farmland, but it will very likely become building land at some point!No, it doesn’t have to. There’s always a limit somewhere. A boundary. On one side of the street, there’s a development plan with many nice houses, next to it only apartment buildings, and on the other side is forest or farmland, which will remain as is. No one will buy there without any guarantee.
That’s why many plots are sold with a positive preliminary building permit or building feasibility inquiry. Sellers often advance the costs for this inquiry along with possible architectural plans.
Anyway: why use a real estate agent? I would sell something like that myself. For the hoped-for 3 x 100,000€ or more, one of you could handle it. They would then receive a small commission. I would never tie myself to an agent.
Otherwise, you don’t need to get cold feet. Or do you have to pay anything?