ᐅ Single-Family Home Purchase: Estimating Whether the Purchase Price Plus Renovation Costs Fit Your Budget?

Good evening,

we are planning to buy an existing house that we want to comprehensively renovate. Currently, we have one in mind. Built in 1976, 200m² (2,150 sq ft) of living space, 560m² (6,030 sq ft) plot including a secondary apartment. Quiet but conveniently located.

Approximately:
House price: 400,000 euros
Renovation budget: 200,000 euros

During house viewings, we often feel unsure whether our budget will be enough to realize our plans. I deliberately say “plans” because we probably won’t be able to implement everything we wish for. Ultimately, professional advice on which renovation work makes the most sense is crucial.

Therefore, my question to you: how did you approach the house search?

Did you involve and pay an architect or a building surveyor once things became more concrete? That can potentially get very expensive.
We ourselves are two IT specialists. Not unintelligent, but no experts in construction. ;-)

Many thanks for any advice.

bauan schrieb:
.....House price: 400,000 Euro
Renovation budget: 200,000 Euro

That’s quite something! ;-)

bauan schrieb:
....Whenever things became more concrete, was an architect or building surveyor consulted and paid? That can potentially become very expensive.

Quite true, and building surveyors and architects are at best qualified to assess the building structure. When it comes to building services systems, they usually fall behind, as is often the case with new construction projects as well! This is not a criticism, rather a reflection of their training simply not covering these areas.
How should one proceed? For buyers, two aspects usually matter most: purchase price and personal, emotional gut feeling. An independent expert is largely free from the latter ;-) Here, facts matter much more! Existing buildings often carry significant risks that newcomers may not recognize or properly assess. In many cases, this turns out to be a costly mistake afterwards!
When land prices are extremely high, it can make sense to acquire an otherwise “junk building,” but with moderate land prices this usually leads to economic problems due to inflated total purchase prices, since neither the building structure nor the building services systems are in reasonable proportion to current and future requirements.
Start like Robinson Crusoe: make a list of pros and cons for about three preferred properties. A responsible expert will factor costs accordingly and will not always charge full fees in every individual case but rather consider the overall picture! ;-)
What qualifications should the expert have?
- certified energy consultant
- training in construction engineering
- training in building services engineering (MEP)
Quite a lot to expect practically for “free”? Hardly possible!

Best regards

I don’t really want to respond to the previous commenter.
However, they are right on one point: 400,000 for a house built in 1976, located on a small 560 m² (6000 sq ft) plot, is indeed quite expensive.
Before spending money on a property in poor condition, you should definitely seek professional help. Whether the building services are adequate is probably not the main issue. Usually, in such buildings, the technical systems are oversized because the building is not insulated.
Be sure to hire a certified expert to inspect the house for you. A house is not just a heating system, but also the overall condition of the building.
Consulting an expert is generally not very expensive; budget around €300 (plus inspection report if needed) for the on-site visit and consultation.