Increase outbuildings the property value


Do you know how a property valuation works online or with an expert? Find out more here, in a few minutes you will be up to date.

General information on real estate valuation

If you want to sell a house, an apartment or a piece of land, the first step is a serious real estate appraisal. A property valuation is to be understood as a process with which the current time, market or market value of a property on a valuation date is estimated. This appraisal can be carried out by an expert or online. Always rely on the services of an expert who is certified and approved by the court. Freelance experts are cheaper, but their reports are not recognized in court. In addition, you can quickly get a good benchmark using an online assessment. An online evaluation is free of charge for you, but it has one major disadvantage. In order to arrive at a clear result, a specialist must nevertheless be consulted. Because only this is able to detect damage that is not apparent. A large number of online calculators are available on the Internet for online property valuation. In addition, real estate appraisals are also offered by most brokers.

Reading tip: The range of services offered by a real estate agent

When is a property valuation necessary?

It doesn't matter whether you want to buy or sell a property. A correct valuation is a prerequisite for determining the current price. You need the market value of a property for different purposes. For example, the property value is the basis for a mortgage loan. In practice, an expert for the valuation is usually provided by the respective bank. In order to be able to calculate tax charges correctly, the market value is also required for tax reasons on certain occasions. Examples of this are gifts, divorces as well as normal or contentious inheritance matters.

Criteria for a property valuation

Whether by an expert or online, a property valuation is influenced by various factors. The most important aspect is the location of the property. One thing is certain, however, because the more attractive the location, the higher the value and sales price or rents. Further criteria are the energy efficiency, equipment and size, any need for modernization or renovation, various options for further use, the age and, in the case of land, the question of building feasibility.

How the market value is determined

There are three methods available for determining the value of a property: the real value method, the income value method and the comparative value method.

In the material value method, the property value is determined by adding up the building value, land value and other existing material values ​​(e.g. furnishings, outbuildings, etc.). In practice, this method is used for those properties for which a possible income is not the focus. Examples of this are one- or two-family houses. The evaluation is influenced by age-related wear and tear, construction costs and location.

The capitalized earnings method is mostly used for commercial properties and investment houses. The focus of the assessment is the income that is likely to be achieved by the property. If you would like to consider a property as a capital investment, rent it out or use it commercially, then you are well advised to use the capitalized earnings method.

The comparative value method is used, for example, for terraced houses, condominiums, semi-detached houses, building plots or single and multi-family houses. The property value is ascertained by comparing it with the price of similar properties that have already been sold. This procedure is a general appraisal and is used as a snapshot of property purchases and sales, inheritances, gifts and divorces.

April 3, 2020