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How to properly prepare for buying land: an overview of the process, costs and risks

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How to cleverly prepare for buying land – process, costs and typical pitfalls

For many, buying land is the starting point for their dream home – and at the same time a decision with significant financial and legal implications. Those who start without a plan can quickly run into miscalculations, additional costs, or difficulties with later construction. Here you'll learn how to approach the purchase in a structured, realistic, and legally sound manner.

1. Solid foundation: calculate first, then decide.

Before you fall in love with a property, you should have a budget in place – including all additional costs. Because the purchase price alone only shows part of what you can actually expect.

Typical cost categories include:

Real estate transfer tax (depending on the federal state approximately) 3.5–6.5 % of the purchase price)
Notary and land registry fees
Broker's commission, provided a real estate agent is involved
Development costs (Roads, water/sewage, electricity, telecommunications)
Remediation of contaminated sites, if the property is encumbered

Possible additional costs (depending on the situation):

Soil survey
Market value appraisal
Surveying costs

Important: Only when these points are factored in will you have a sound basis for your decision. Insufficient planning is one of the most common reasons why construction projects later falter.

2. Site check also means: Checking legal aspects and planning.

„"Good location" is important – but when it comes to land, it's not just the view and surroundings that count. Legal and planning regulations are at least as crucial.

You should clarify these points beforehand:

Development

Is the property fully developed?
If not: Who pays what – and when are the costs due?

Land register

Consist Rights of way, easements, usufruct or other easements?

Contaminated sites

Are there any indications of contamination from previous use (e.g., industry, landfill)?

Development plan

What is allowed to be built?
How many floors are possible?
Are there any regulations regarding roof shape, building lines, floor area ratio, etc.?

Land use plan

What developments are planned in the surrounding area (e.g., new roads, businesses, densification)?

Practical tip: Land register and development plan It is mandatory to consult the building authority – ideally with expert support to ensure that risks are not overlooked.

3. Assess the value realistically – before you negotiate.

Undeveloped land is difficult for laypeople to assess. Asking prices do not always reflect the actual market value – especially in popular areas.

An independent review offers you clear advantages:

realistic assessment of the property value
better arguments in price negotiations
Protection against overpayment
greater security for financing and contract conclusion

An expert opinion is particularly worthwhile if:

the purchase price significantly from Standard land value deviates
Special features may exist (e.g., hillside location, difficult layout, building encumbrances)
You want to objectively compare several properties

4. Contract & time pressure: the classic traps

A common mistake arises from external pressure: "There are already other interested parties" or "Only available for a short time." Such statements should not lead you to make hasty commitments.

Pay particular attention to:

sufficient time to review the purchase agreement
clear agreements on:
- Development
- Liability for contaminated sites
- handover date
No hasty reservation fees without legal review

Important: The notary is neutral – this does not replace individual advice when it comes to your economic interests and potential risks.

Conclusion: Thorough preparation saves a lot of money in the end.

Buying a plot of land means more than just accepting a price. Carefully examining your budget, location, legal framework, and the actual value lays the foundation for a stable building project – and minimizes unpleasant surprises.

Our advice: Take your time, thoroughly review all documents, and seek professional support if needed. A well-prepared land purchase is the best start to your building project.