HOW MUCH IS YOUR PROPERTY WORTH?

WHAT PROCEDURES ARE THERE?

There are three possible evaluation methods for calculating the value of a property: the comparative value method, the asset value method, and the income value method. Which of these methods is applied in the evaluation depends on the property being assessed. However, it is also possible to apply multiple valuation methods at the same time. According to the Property Valuation Act, this may be necessary to consider all circumstances that determine the value of the property.

THE COMPARABLE 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 stock of comparable properties. The more comparison prices included in this calculation, the more accurate the estimate is. Factors such as the age of the property, energy consumption, or the quality of fittings are incorporated into the result through adjustments. This method is applied, for example, to used apartments, building plots, or terraced houses.

THE ASSET VALUE PROCEDURE

In this procedure, the land and building value as well as the values of other components of the property are determined. This may also include the accessories or the furnishings of the object. In this case, age-related wear and tear, location, construction costs, etc., are also included in the calculation. The tangible asset value method is applied, for example, in new construction projects or single-family and two-family houses.

THE INCOME VALUE PROCEDURE

In the income approach, the value of the property is determined by capitalizing the net returns generated by this property. This method is primarily used for rental properties, such as multi-family homes or commercially used buildings and office properties, but also for rent-controlled houses. Investors are interested not only in location, amenities, etc., but especially in how much they can earn from this property.

CRITERIA FOR VALUE DETERMINATION

In addition to these three methods, there are also further criteria that must be included in the evaluation of a property. 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, furnishings and condition, as well as the energy certificate, and legal factors, such as special usage rights and the amount of the repair reserve, must be taken into account. These criteria have varying levels of weighting relative to each other. For example, a house with a larger living area may be cheaper than a small house - and that only because of the location.

Basically, the interplay of all these relevant criteria is crucial for the valuation. A professional and experienced property appraiser takes all these factors into account in order to determine the value as accurately and precisely as possible. Because a correctly determined property value not only accelerates the mediation but also achieves the best possible price for the seller.

AKKADIA VALUATES YOUR PROPERTY

We at AKKADIA are happy to assist you and provide you with comprehensive advice on all topics related to the sale of real estate and their valuation.