Selling Land – Know the Value Before You Negotiate

Many plots of land in Upper Franconia are sold below their value. The most common reason: the price is based only on the standard land value (Bodenrichtwert), not on the actual building rights. A plot that can take three semi-detached houses or an apartment building is worth considerably more to a developer than to a private buyer planning a detached house.

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Inhalt dieser Seite (6)
  1. What Your Plot Is Worth
  2. Private Buyer or Developer?
  3. How a Land Sale Works
  4. Taxes on Selling Land
  5. Worked Example: Private Buyer or Developer?
  6. Documents for Selling Land

Key points at a glance

  • The value of a plot depends above all on the building rights – not just on its size.
  • Developers often pay more than private buyers for plots with potential for several flats.
  • A preliminary building enquiry (Bauvoranfrage) can create clarity before the sale and increase the price.
  • Speculation tax may be due if you sell within ten years of buying – including building land.
  • We value plots free of charge and approach private buyers and developers in a targeted way.

What Your Plot Is Worth

The standard land value from BORIS Bayern is a good starting point – but it is only an average for a whole zone. The actual market value is determined by:

  • the building rights – development plan (Bebauungsplan), site coverage and floor area ratios (GRZ/GFZ), number of storeys, possibility of subdivision,
  • the state of development – fully serviced or not, development charges paid or outstanding,
  • shape, size and topography – a narrow slope is harder to build on than a level rectangle,
  • encumbrances in the land register – rights of way, utility easements or rights of residence reduce the value,
  • local demand – in Bamberg and Bayreuth developers are actively searching, in smaller municipalities it tends to be private buyers.

We check all these factors and show you who comes into question as a buyer – and at what price.

Private Buyer or Developer?

Private buyerDeveloper / project developer
Basis of the pricedream home, financingnumber of units that can be built
Speeddepends on bank approvaloften fast, sometimes with a right of withdrawal
Conditionsrarefrequent: building permit, soil survey
Ideal forsingle building plots, rural locationslarger sites, city-centre locations, demolition properties

For larger sites we obtain offers from several developers in our network in a targeted way – this creates competition and price certainty.

How a Land Sale Works

  1. Gather documents: land register extract, cadastral map (Flurkarte), development plan, certificate of development status.
  2. Valuation: standard land value, building rights, comparable sales – with a clear price recommendation.
  3. Marketing: exposé with site plan and an example development, direct approach to our registered buyers.
  4. Checking buyers: proof of financing or the developer's creditworthiness.
  5. Notary: draft purchase contract, notarisation, purchase price falling due.

Taxes on Selling Land

If you sell an undeveloped plot from private assets within ten years of acquiring it, the gain is subject to income tax as a private sale transaction (§ 23 EStG). For inherited plots, the date on which the deceased acquired the land counts. Our guide to speculation tax explains the details. For tax advice in individual cases we recommend a tax adviser.

Worked Example: Private Buyer or Developer?

A 1,200 m² plot on the edge of Bindlach, standard land value €120/m².

Private buyer (one detached house)Developer (semi-detached houses or small residential complex)
Purchase pricearound €130,000–145,000around €150,000–190,000, depending on building rights
Requirementplot can be built onbuilding rights for several units
Time to the notaryshort, if the buyer has financinglonger, often conditional on a building permit
Risklowconditions, rights of withdrawal in the contract

Only a review of the building rights shows whether the developer route is worthwhile. More under Developers and Project development.

Documents for Selling Land

  • Land register extract and cadastral map
  • Development plan or information from the municipality on whether the land can be built on
  • Proof of paid development charges
  • Information on utility lines, rights of way, contamination
  • For a subdivision: site plan and, if necessary, a survey

Frequently asked questions

How long does it take to sell a building plot?

In sought-after locations often only a few weeks, in rural municipalities several months. Sales to developers take longer if the contract is tied to a building permit.

Can I sell part of my garden as a building plot?

Often yes – if the building rights allow additional development. The partial area is then surveyed, separated in the land register and sold as its own parcel. We check with the building authority in advance whether development could be approved.

What if a community of heirs wants to sell?

All heirs must agree to the sale and sign the purchase contract (or be represented). We mediate between the parties and provide a transparent valuation as a common basis. More under Inheritance & property.

Is a preliminary building enquiry worthwhile before the sale?

For larger or unclear plots, often yes. A positive preliminary building enquiry gives buyers legal certainty and can increase the achievable price considerably.

What is your property worth today?

A market-based valuation using real comparable sales from Upper Franconia – free, without obligation, usually within 48 hours.

  • One personal contact for all of Upper Franconia
  • Reply usually within 24 hours