When purchasing a property, numerous additional costs arise besides the pure purchase price. These so-called ancillary costs can quickly add up and significantly strain your budget. Therefore, it's important to be fully aware of these costs in advance and incorporate them into your financial planning. The costs of property purchase are often very variable.

The Purchase Price and How It's Determined

The purchase price is naturally the largest cost factor in a property purchase. It is usually determined by supply and demand. However, other factors also play a role, such as the location, size, development plan, and soil condition of the land. It is advisable to have the purchase price reviewed by an independent surveyor to ensure that it corresponds to the realistic market value.

Ancillary Costs: An Often Underestimated Factor

The ancillary costs are often underestimated but can constitute a significant portion of the total costs. Important ancillary costs include the land transfer tax, land registry and notary fees, estate agent fees, approval fees, development costs, costs for land surveying, site remediation, demolition costs, tree felling, valuation reports, and soil surveys. It's crucial to calculate these costs accurately in advance to avoid unpleasant surprises.

Land Transfer Tax: Regional Differences in Rates (3.5% - 6.5%)

The land transfer tax is a tax incurred when purchasing a property. It is levied by the respective federal state and varies between 3.5% and 6.5% of the purchase price. It's important to know the current tax rate in your state to calculate the land transfer tax correctly.

• Table: Land Transfer Tax Rates by State for a €150,000 Purchase

Here is a table showing the land transfer tax rates by state for a purchase price of €150,000:

• Bavaria: 3.5% (€5,250)

• Brandenburg, North Rhine-Westphalia, Schleswig-Holstein, Saarland: 6.5% (€9,750)

Land Registry and Notary Fees (approx. 1.5% of the Purchase Price)

The land registry and notary fees are incurred for registering the property purchase in the land register and notarising the purchase contract. They usually amount to approximately 1.5% of the purchase price. The notary plays a crucial role in the secure and legally valid execution of the property purchase.

Agent Fees: Subject to Negotiation with Regional Differences (3.57% - 7.14%)

If you commission an estate agent, a fee is incurred. This is negotiable, but varies regionally between 3.57% and 7.14% of the purchase price. It is advisable to negotiate the agent's fee in advance and carefully review the agent's services.

Approval Fees (0.5% - 1% of the Construction Cost)

Fees for the building permit are incurred based on the construction cost. They usually amount to between 0.5% and 1% of the construction cost. It's important to include these fees in your financial planning.

Development Costs: A Variable Item (€15,000 - €20,000 for Unbuilt Land)

The development costs are incurred for connecting the land to the public supply network. They include the costs for connecting to water, electricity, gas, sewage, and telecommunications. Development costs can vary greatly, especially for unbuilt land, and generally amount to between €15,000 and €20,000.

• Ebp vs. Ebf: What Do These Acronyms Mean in the Land Value?

The acronyms ebp (subject to development contributions) and ebf (free from development contributions) indicate whether development contributions are still to be paid for the land or not. This information can be found in the land value.

Costs for Land Surveying (€1,000 - €3,000+)

The costs for surveying the land vary depending on the size and location of the property. They generally range between €1,000 and €3,000 or more.

Site Remediation: A Potentially Costly Factor (€150 - €600 per m³ of Soil Replacement)

If the land is contaminated, such as with polluted soil, remediation costs are incurred. These can be very high and usually range between €150 and €600 per cubic metre of soil replacement.

Demolition Costs: When Old Buildings Need to Be Removed (€50 - €100 per m²)

If there is an old building on the property that needs to be demolished, demolition costs are incurred. These usually range between €50 and €100 per square metre.

Tree Felling: Permits and Costs (€450 - €600+)

If there are trees on the property that need to be felled, a permit is required. The tree felling costs usually range between €450 and €600 or more, depending on the size and complexity.

Valuation Reports: Brief Reports vs. Full Valuations (€500 vs. up to 1.5% of the Property Value)

A valuation report can help determine the realistic market value of the property. There are brief reports (around €500) and full valuations (up to 1.5% of the property value). The choice depends on your specific needs.

Soil Survey: Important for Buildability (~€1,000, Can Rise Up to €2,500)

A soil survey is essential to assess the buildability of the property. It typically costs around €1,000, but further investigations can raise the cost to up to €2,500.

Development Costs in Detail: Water, Electricity, Gas, etc. (€1,500 - €5,000 per Connection)

The development costs include the costs for connecting to water, electricity, gas, and sewage. These costs can range between €1,500 and €5,000 per connection, depending on the distance to existing connections and local fees.

Example Calculation: Total Costs for a Property in Baden-Württemberg

To give you a better overview, here is an example calculation for the total costs of a property in Baden-Württemberg:

Purchase Price, Ancillary Costs, Construction Costs, Total Costs (€359,031.82)

Assuming you purchase a 1,000 m² plot in Baden-Württemberg for €318,320. Additional costs include land transfer tax, land registry and notary fees, approval fees, development costs, agent's commission, costs for land surveying, costs for a valuation report, and costs for a soil survey. If you then build a house for €378,000, the total costs amount to approximately €359,031.82.