HOW MUCH IS YOUR PROPERTY WORTH?

WHAT PROCEDURES ARE THERE?

For the calculation of a property's value, there are three possible valuation methods: the comparative value, the asset value, and the income value method. Which of these methods is applied in the valuation depends on the property being appraised. However, it is also possible to apply multiple valuation methods simultaneously. According to the Property Valuation Act, this may be necessary to take into account all circumstances that determine the value of the property.

THE COMPARATIVE VALUATION METHOD

In a comparative method, the value of the property is determined by comparing the purchase prices of similar properties. An average price is calculated from the inventory of comparable objects. The more comparable prices are included in this calculation, the more accurate the estimate. The age of the property, energy consumption, or the amenities are factored into the result through surcharges and discounts. This method is applied, for example, to used apartments, building plots, or terraced houses.

THE ASSET VALUATION PROCEDURE

In this procedure, the land and construction value as well as the values of other components of the property are determined. This may also include the accessories or the equipment of the object. Here, age-related wear and tear, location, construction costs, etc., are also taken into account in the calculations. The asset value method is applied, for example, in new construction projects or single-family and two-family homes.

THE INCOME VALUATION METHOD

The income value method determines the value of the property by capitalizing the net yields generated by this object. This method is primarily used for rental properties, such as apartment buildings or commercially used buildings and office properties, as well as tenement houses. Investors are interested not only in the location, amenities, etc., but especially in how much they can earn with this property.

CRITERIA FOR VALUE DETERMINATION

In addition to these three methods, there are also other criteria that must be taken into account when assessing 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 area, amenities, and condition, as well as legal factors, such as special usage rights and the amount of the repair reserve, must be considered. These criteria have varying degrees of weight relative to each other. 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 real estate appraiser takes all these factors into account to ultimately determine the value as accurately and precisely as possible. This is because a correctly determined property value not only accelerates the sale but also achieves the best possible price for the seller.

AKKADIA EVALUATES YOUR PROPERTY

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