Hello forum,
I’m new here and would like to start with a question. My wife and I have been looking for a house for some time now. We have found a house that fits our location preferences very well. The living area (200m² (2,152 sq ft)) and the plot size (1100m² (11,840 sq ft)) are also appealing to us. The only drawback: in my opinion, the house needs a complete renovation. The roof needs work (possibly just replacing the tiles), the exterior walls might need new insulation and rendering (??), and the interior layout needs to be redesigned because the current arrangement requires walking through one room to get to another, which I find inconvenient. Additionally, I think the electrical system must be updated, and of course, the painting work will need to be done at the end. The windows seem to be in good condition.
I know it’s difficult to give a price estimate now. It obviously depends on whether I choose high-end granite or settle for laminate flooring. Nevertheless, I am interested in your experience, for example, which of the tasks mentioned tend to be the most expensive?
What would you advise? Of course, I first need a cost overview to know whether I can afford the renovation at all. Who should I consult—an architect? I can’t buy the house only to find out later that I can’t afford the renovation. What would be the right approach?
Thanks in advance
I’m new here and would like to start with a question. My wife and I have been looking for a house for some time now. We have found a house that fits our location preferences very well. The living area (200m² (2,152 sq ft)) and the plot size (1100m² (11,840 sq ft)) are also appealing to us. The only drawback: in my opinion, the house needs a complete renovation. The roof needs work (possibly just replacing the tiles), the exterior walls might need new insulation and rendering (??), and the interior layout needs to be redesigned because the current arrangement requires walking through one room to get to another, which I find inconvenient. Additionally, I think the electrical system must be updated, and of course, the painting work will need to be done at the end. The windows seem to be in good condition.
I know it’s difficult to give a price estimate now. It obviously depends on whether I choose high-end granite or settle for laminate flooring. Nevertheless, I am interested in your experience, for example, which of the tasks mentioned tend to be the most expensive?
What would you advise? Of course, I first need a cost overview to know whether I can afford the renovation at all. Who should I consult—an architect? I can’t buy the house only to find out later that I can’t afford the renovation. What would be the right approach?
Thanks in advance
Hello,
of course, the costs for obvious construction defects/building faults are taken into account. But what about the costs for changes to the floor plan?
Are costs, for example, for exterior insulation generally deducted from the market value / sale value? Or for the energy-efficient renovation of a roof (not just the costs for the leaking spot)?
I don’t think these costs are usually included in a property valuation report.
Best regards
of course, the costs for obvious construction defects/building faults are taken into account. But what about the costs for changes to the floor plan?
Are costs, for example, for exterior insulation generally deducted from the market value / sale value? Or for the energy-efficient renovation of a roof (not just the costs for the leaking spot)?
I don’t think these costs are usually included in a property valuation report.
Best regards
B
Bauexperte15 Feb 2011 15:13B
Bauexperte15 Feb 2011 16:22Hello,
YMMD – You Made My Day
“Parcus” and I have, in my honest opinion, explained what a valuation report means and what to consider when buying an older building. If you hope with your questions to purchase an “old” property and reduce the purchase price by the cost of renovating it to meet the latest Renewable Energy Heat Act and Energy Saving Ordinance standards (similar to energy efficiency regulations in other countries), the seller will most likely just write those four letters on a piece of paper; he probably won’t be able to explain it verbally.
Kind regards
YMMD – You Made My Day
“Parcus” and I have, in my honest opinion, explained what a valuation report means and what to consider when buying an older building. If you hope with your questions to purchase an “old” property and reduce the purchase price by the cost of renovating it to meet the latest Renewable Energy Heat Act and Energy Saving Ordinance standards (similar to energy efficiency regulations in other countries), the seller will most likely just write those four letters on a piece of paper; he probably won’t be able to explain it verbally.
Kind regards
okay, let me try a calculation example:
The seller wants: .................................. €200,000
My cost estimate for renovation ............. €60,000
My cost estimate for modifications .......... €20,000
Costs for the service phase according to HOAI ... €4,000
------------------------------------------------------
Valuation report ................................. €140,000
Negotiated purchase price .................... €160,000
Financing .......................................... €184,000
of which 30% KfW 124 ........................... €49,000
of which KfW 152 energy-efficient renovation ... €50,000
KfW subsidy for service phase 431 ............... €2,000
of which house bank .............................. €83,000
-----------------------------------------------------
This means the expensive house bank share is only 45%
Savings €184,230 - €153,295 = €30,935 just in interest
Total savings a solid €73,000 — remember, the capital invested is €2,000
The seller wants: .................................. €200,000
My cost estimate for renovation ............. €60,000
My cost estimate for modifications .......... €20,000
Costs for the service phase according to HOAI ... €4,000
------------------------------------------------------
Valuation report ................................. €140,000
Negotiated purchase price .................... €160,000
Financing .......................................... €184,000
of which 30% KfW 124 ........................... €49,000
of which KfW 152 energy-efficient renovation ... €50,000
KfW subsidy for service phase 431 ............... €2,000
of which house bank .............................. €83,000
-----------------------------------------------------
This means the expensive house bank share is only 45%
Savings €184,230 - €153,295 = €30,935 just in interest
Total savings a solid €73,000 — remember, the capital invested is €2,000
6
6Richtige15 Feb 2011 23:03... and where exactly do the 60,000 € for the renovation come from?
Is the seller paying them out of the 160,000 € they receive, meaning the purchase price of 200,000 € is effectively reduced by half, or did you simply forget to include these costs in the financing?
Is the seller paying them out of the 160,000 € they receive, meaning the purchase price of 200,000 € is effectively reduced by half, or did you simply forget to include these costs in the financing?