Buy a commission-free plot of land from a private owner

Buying a plot of land in Germany: check and evaluate offers

The plot of land is literally the basis for every house. The land on which to build is essential. That is why the first step before any building project is to find a suitable building plot. Usually, builders buy the piece of land. However, there are also other alternatives such as leasehold or other types of land such as agricultural land or woodland plots. However, most houses are built on their own plot of land. This is because the house and land then form a single unit.

Expensive business: buying a plot of land is the supreme discipline

A plot of land can sometimes be surprisingly expensive. Depending on the location, the land may even be the most expensive item in a new build. Six-figure sums for a small piece of land are not uncommon. But there are exceptions. It is therefore worth looking intensively for a plot of land to build on in the vicinity or looking a little beyond the borders of your own region. Offers for commission-free plots are particularly attractive. This is because you save on estate agent costs and may be able to purchase the land at a slightly lower price.

Only the building plot is suitable for new builds

As expensive as the land may be, it is necessary in order to build. Only the building plot offers this option. Other types of land can also be purchased, but are tied to other types of use. The municipality defines the details in the area's land use plan. However, this can change, so that some bargains initially appear useless and are redefined as building land after a few years. Suddenly a brownfield site becomes a valuable area. Some players specialize in such land speculation and buy land cheaply in order to profit from it later.

There are so many differences in land

Some experts claim that land is even more different from one another than real estate. This is due to the important parameters that define a piece of land:

• Size of the plot: the larger it is, the easier it is to subdivide. Very large plots of land are usually oversized for a single development. While plots of around 1,000 m² and more were not uncommon in the past, many properties today manage with significantly less space.
• Location of the plot: As with real estate, the location is decisive for the value. Even within a building section, one plot can be located directly on a main road and another quietly on the edge of a field. This means considerable differences in the price valuation. However, a poor location can also mean that important infrastructure is far away or that developing the land will be particularly expensive.
• Possible uses: Not every piece of land is a building plot. This is why plots of land differ in terms of their possible uses. Some allow agriculture and forestry, others can be built on or only used for gardening, others may even be protected. Before buying, interested parties should definitely clarify the possible uses. The more options for use it offers, the more expensive it will be.
• Development: A piece of land is initially just soil and vegetation. In order to build, it must be developed with water/wastewater, electricity, energy, telecommunications, roads, etc. There are undeveloped, fully developed and partially developed plots. Depending on the condition, further development costs are to be expected in the future.
• Encumbrances: Properties may have defects. On the one hand, this may be soil contaminated by contaminated sites or a building ready for demolition or an existing old foundation. On the other hand, there may be legal defects such as rights of way. It is essential to check such details, as they can have a significant impact on the value.
• Price: Ultimately, the price strongly defines the attractiveness of a property. Inexpensive sections are popular, expensive sections should offer something special. Land offered free of commission is an attractive alternative.

Check land offers in advance

Building plots that have already been designated and/or developed are particularly sought-after. The more sought-after the location, the more difficult it is to buy an affordable piece of land. Sometimes private buyers don't even get a chance. Overall, there is not enough space for residential construction in Germany and at the same time there are many commercial developers and/or developers acting on behalf of the public sector.

Nevertheless, anyone can live the dream of owning their own property. Perhaps not always in the immediate vicinity of their current place of residence, but there are plenty on offer. However, interested parties have to search longer and more carefully than they did a few decades ago. This also involves making compromises. However, one thing should always be part of the search: intensive examination of what is on offer.

There is a certain risk that the piece of land you own could quickly turn into a trap. Risks can result in incalculable follow-up costs. The above-mentioned defects and encumbrances or unauthorized types of use can sometimes prevent the smooth construction of a house or other desired use. The following therefore applies. The land should be checked for legal pitfalls such as rights of way or other third-party rights of use in the land register as well as for contaminated sites. Last but not least, existing lines on the land that cannot be removed can also make building difficult.

To clarify these risks, buyers should always consult experts and not rely on their gut feeling. Informal information may also be available from the respective neighbors, while official information can be obtained from the state environmental and water authorities and the registers of contaminated sites.

Observe planning law parameters!

Another point is also often underestimated: planning law. This is because restrictions under planning law and building regulations can make new builds virtually impossible. Before buying, land use plans, development plans and other regulations should be carefully checked and clarified with the architect and the relevant authorities.

If there are no planning regulations, it is advisable to submit a preliminary building application before submitting a building application. The standard land values of the local municipality are also helpful in assessing the actual land value. Information on this can be obtained from the standard land value maps of the local expert committee.

Note additional costs

Land is divided into land subject to development charges and land free of development charges. Every prospective buyer should obtain written confirmation of the status of the development and foreseeable future development costs. This applies to the intended purchase of parts of a plot of land for the important subdivision permit, for which a surveying application must be submitted to the relevant surveying office. The pro rata financing must be set out in writing in the purchase contract.

In summary: important points when buying a plot of land

• Plots of land vary greatly and are not always suitable for the desired purpose.
• Versatile and different possible uses result in higher land prices.
• Building plots should be checked carefully.
• Hidden problems such as contaminated sites, third-party rights of use or pipes that have already been built can impair use and cause costs.
• Municipal requirements influence the use.
• Development, subdivision and surveying are important parameters.
• Commission-free offers can be significantly more attractive.