Real estate valuation: Advantages of an expert opinion using various methods

A well-founded property valuation enables all parties involved to conduct fair and transparent real estate transactions. This applies to homeowners as well as buyers and real estate agents. With solid facts, every party benefits from security and clarity as soon as private home sellers have a property valued. Even if a sale or other transfer of ownership is not currently on the agenda, a property valuation offers owners important advantages. This is because homeowners need this valuation for a general overview of their assets. If the property owner needs financial resources at short notice, knowing the potential sales proceeds makes it easier to decide on possible marketing plans. Without a thorough property valuation, there is a risk that owners will underestimate the value of their home when selling it and thus miss out on the opportunity to achieve a reasonable sales price. After a quick sale, some property sellers often regret that the property was not carefully valued. While private home sellers assume that the property value is too high, complications can arise during the sale. Excessive prices initially make it difficult to attract interested buyers. This ultimately results in a loss of valuable time, and even after a delayed reduction in the fixed sales price, some prospective buyers may already have been deterred. Property valuation prevents such problems from complicating and delaying a sale. Therefore, well-founded valuations simplify timely real estate transactions with reasonable terms and conditions. Before gifts or an expected inheritance, real estate appraisals provide more clarity about expected tax calculations. At the same time, a valuation report makes it easier for the previous homeowner to divide the property fairly among several heirs or beneficiaries. The objective valuation of a property also enables objective negotiations during the divorce of married owners.

In Germany, there are three established methods for real estate valuation: the comparative value method, the income value method, and the asset value method. Authorities and courts recognize these proven valuation methods. In most cases, appraisers use at least two different methods to ensure an authentic valuation. The comparative value method is based on comparing the real estate with similar properties. A sufficient number of comparable properties is a crucial prerequisite for the application of this method. Comparable properties must have a similar construction and a location of equal value. Experts use this information to calculate average values that indicate the property value per square meter. The determined value can be negatively influenced by individual environmental factors, for example, and positively influenced by modernization measures. The income approach can be used for real estate valuation as soon as the property being valued generates income. This applies primarily to rented properties. Examples include offices, residential properties, and shops with a lease. In the income approach, the income values from rental income are supplemented with the land values of the properties in order to value a property. Appraisers deduct operating costs from annual net cold rents to calculate the net income. To take into account the effects of high property interest rates, experts also include the deduction of land value interest in the property valuation. The remaining useful life and defects in the property also influence the income approach. In the asset value method, the property valuation is based on the question of what costs would be associated with the construction of a comparable building. For used properties, depreciation due to age and the remaining useful life are included in the calculation. In addition, the regional real estate market and local construction prices influence the valuation method. Appraisal committees often determine a real value factor for this purpose, thereby facilitating the property valuation. Property appraisers use the real value method to first determine the building value and the land value separately, in order to add the values together at the end. In addition to the size of the property, other property characteristics such as the year of construction, the living space, and outdoor facilities are relevant for determining the real value.

With a wide range of approaches and valuation bases, a sound real estate valuation can be individually adapted to properties and locations. Competent experts and suitable procedures result in comprehensive reports that provide real estate owners with neutral and reliable guidance, both in general and in particular in connection with property transfers. Recognition by authorities and courts is often important when owners have a property valued. Small details often have a very beneficial influence on the valuation process. It is worth commissioning Hamburger Grundriss Schmiede now to optimize your floor plan, thereby increasing your chances of a quick and positive real estate valuation!