HOW MUCH IS YOUR PROPERTY WORTH?

WHAT PROCEDURES ARE THERE?

For the calculation of the value of a property, there are three possible valuation methods: the comparative value method, the intrinsic value method, and the income value method. Which of these methods is applied in the assessment depends on the property being valued. However, it is also possible to apply several valuation methods at the same time. According to the Property Valuation Act, this may be necessary in order to take into account all circumstances that determine the value of the property.

THE COMPARATIVE METHOD

In a comparative procedure, the value of the property is determined by comparing the purchase prices of similar properties. An average price is calculated from the stock of comparable objects. The more comparison prices are included in this calculation, the more accurate the estimate is. Factors such as the age of the property, energy consumption, or the furnishings are taken into account in the result through surcharges and discounts. This method is used, for example, for used apartments, building plots, or row houses.

THE ASSET VALUATION PROCESS

In this process, the land and building value as well as the value of other components of the property are determined. This may also include the accessories or equipment of the object. Here, age-related wear and tear, location, construction costs, etc., also factor into the calculation. The expert value method is applied, for example, in new construction projects or single-family and two-family houses.

THE INCOME VALUE METHOD

The yield value method determines the value of the property by capitalizing the net income generated by this object. This method is primarily used for rental properties, such as multi-family houses or commercially used buildings and office real estate, as well as investment properties. Capital investors are interested not only in location, amenities, etc., but especially in how much they can generate with this property.

CRITERIA FOR VALUATION

In addition to these three methods, there are also other criteria that must be included in the assessment of a property. In order to determine the actual value as accurately as possible, both the characteristics of the property, such as location, year of construction, usable and living space, facilities and condition, as well as the energy certificate, and legal factors, such as special usage rights and the amount of repair reserves, must be considered. These criteria have varying degrees of importance among themselves. For example, a house with a larger living area can be cheaper than a small house—just because of its location.

Basically, the interplay of all these relevant criteria is crucial for property valuation. A professional and experienced property appraiser considers all these factors to ultimately determine the value as accurately and precisely as possible. A correctly determined property value not only speeds up the mediation process but also achieves the best possible price for the seller.

AKKADIA EVALUATES YOUR PROPERTY

We at AKKADIA are happy to be there for you and provide you with detailed advice on all topics related to the sale of real estate and its valuation.