I was recently told that value of the land/plot is 10-20% less if there is a residenec/structure on it. e.g. if bare land value is CHF 100/m2, then the same land is worth between CHF 80/m2 and CHF 90/m2 if there already is house/dwelling on it.

Is this how a piece of land/plot priced in CH? Could someone confirm/deny? Does this vary across cantons (presumably)?

TIA!

It depends how good the property is, an old crappy house has a negative value as the cost of demolotion needs to accounted for.

Valuation is an opinion not fact!

If the building/structure is to be torn down in order to build something new, then comparing this to bare land, one would likely have to factor in the cost of destruction, which around here for a even a small/simple demolition could easily be 50,000 chf, going significantly higher if things like absestos, etc.. could be involved. So I guess one would not want to pay those costs IF a bare parcel were availabe with the same parameters in the same area.

On the other hand, if the parcel with the structure is buildable and the bare parcel not, or has to go through approvals, then the tides turn. Ditto if the parcel with building is "equipped", meaning the water and electic and all other infrastrure is there. Running all the infrastructure to a bare parcel, especially if distant from other houses, could cost a fortune.

Around here, Vaud Lac Leman, the value of land is so high that it is snapped up in a second, so difficult to compare the two types of parcels, all land is being sold for a significant profit these days.

@those_who_already_replied: thanks vm

The realtor I am talking to claimed what I was asking. The property is about 25 years, but removated about 10 years ago to a pretty good standard even by swiss tandards today. It is not minergy compliant - she is what she is, but well insulated.

I was just surprised to hear the realtor's evaluation. Like ya'll said, taking into consideration what adjacent lots sold for + gemeinde cost of bringing in water/sewage/plumbing/electricity/phone to build a new structure minus the demolition cost, the land would be valued lower than bare land.

Cheers . . .

The house depreciates the land not, the Swiss like new. It's cheaper to build new in many cases than do a high standard refurbishment.

thanks all for replies.

I am just having a hard time understanding the realtor's reasoning behind the valuation < (what insurance would pay for a completed rebuild + what bare land in the next to my house sold for last year).

Specially when there are almost no properties / land for sale in my part of town. All new apts will be available in 1+ years with office space in the first sevral floors and residences on the upper floor.

TA!

What insurance will pay for a rebuild could easily be 40% more than building from scratch, it's when only half the building is destroyed it can be very expensive. Insurance value & sales worth are not connected.

Once a property has been developed there are often tight restrictions put into place preventing further building/improvement. The value of already developed land drops markedly because you can't add-on to increase value or upgrade to today's standards/tastes.

In our area, vacant buildable land runs CHF 3000-3500 per m2. Right next to such a property, land with an existing house in a neighborhood built in 1960-1980 and governed by a strict Gestaltungsplan may be valued for as little as CHF 650 m2 - as improving the properties to meet today's standards is impossible.