Knowing how much a property is worth is especially important when selling or buying. Many factors determine the value of the property and only an expert can objectively assess this. However, there are also with the experts again some differences and different qualifications decide on the effectiveness of these.
Especially for people without much expertise in real estate, it is difficult to assess whether the requested sum is realistic and whether the property is really worth that much. To find this out, experts are called in to help, who can determine how high the value really is through specialist knowledge and an objective assessment. But where can you find such experts and who is really entitled to give an expert opinion?
Experts certified by the EU
Since the name of the expert is not protected, anyone can use it. To prevent this and to prove a real qualification, there are experts certified by the EU. They have a high level of expertise and professional experience. They prove their knowledge by passing a test and have to prove their new level of knowledge every five years. The test is carried out by accredited certification bodies and only those who prove their level of knowledge again every five years are awarded EU certification. In any case, this qualification identifies a good expert who can help you with his specialist knowledge.
Publicly appointed and sworn experts
As the name suggests, these experts are appointed and sworn in by an institution under public law. They are also called öbuv experts. Such an institution under public law can be the chamber of architects, engineers, industry, crafts or commerce of a country. They then examine the personal and professional suitability of the applicants and if they are qualified, they are appointed for five years. They act under the values of objectivity, conscientiousness, independence, freedom from instructions and impartiality, which is why they are preferred under the Code of Procedure.
Free, independent experts
Freelance appraisers are not subject to examinations or government monitoring. They act independently and without verification of qualifications, which is why they are considered more of a risk. Nevertheless, they should have a certain education to be able to prove their qualification. Expert knowledge and many years of professional experience as well as rules should be present in the level of knowledge in order to be able to carry out the profession as an expert conscientiously.
Chartered Surveyors from the Royal Institution of Chartered Surveyors (RICS)
A chartered surveyor is a surveyor who is chartered by the Royal Institution of Chartered Surveyors (RICS). The institute is a professional association of real estate experts and surveyors, which is represented in about 150 countries today. The qualification as a Chartered Surveyor requires very high professional standards and has a high practical relevance. Trained chartered surveyors are therefore very good experts whose judgement you can trust with a high degree of certainty.
Experts from associations
Associations can appoint experts according to their requirements, no matter how high or low these are. There is no common system for the requirements here. Should you consult such an expert, pay particular attention to what training and experience he brings with him and how long he has actual experience on the market. Complete appraisals require a high level of knowledge, which is why you should not skimp on this point. Go for a good valuation rather than a low price.
Authorities as experts through expert committees
In the area of land, the expert committee is to be named here. In authorities of all districts and independent cities there are independent expert committees. These committees receive from notaries and courts all purchase and heritable building right deeds about real estate and resolutions about compulsory auctions, as you are obliged to do so. The deeds go directly into the collection of purchase prices and can be taken into account by the experts of the authorities.
Costs for appraisers – preparing value appraisals
Costs for expert opinions are not regulated or fixed by law. The costs for an expert opinion and for the expert are therefore agreed individually and depend on the respective case and the expert. However, many experts are guided by the old Ordinance on Fees for Architects and Engineers (HOAI). This states that depending on the purchase price and the degree of difficulty of the effort between 2 and 10 percent of the value of the house as a fee. So if you want an expert opinion from a surveyor, make a note in advance of exactly what the expert opinion should contain and which aspects will be taken into account in order to avoid any surprises when it comes to the bill. The rule is that a full appraisal is more expensive than an appraisal alone. It can be billed by hourly rate as well as by minimum fee or even by commission. Get several offers in advance that are comparable in terms of both price and service and find the best offer for you!
Determining the value of real estate – this is how experts proceed
But what are the exact criteria to determine the value of the property and how exactly do appraisers proceed in preparing the appraisal? In general, according to § 194 BauGB, the market value should reflect the price that would have been achieved in the normal business year at the time of the determination without regard to unusual or personal circumstances. In order to determine this value, experts are guided by various criteria:
The ground value
The standard land value is probably the most important criterion for determining the market value, as it is the basis for its calculation. The standard land value indicates the value for one square metre of undeveloped land in the respective standard land value zones.
The structural and technical condition of a property
The second important criterion is of course the condition of the property. This includes not only the materials used, such as building materials, wiring, pipes or electrical systems, but also the age of the property and the materials. In addition, extras such as outdoor facilities, carports, gardens and garages can have a positive effect on the valuation and reinforce a positive assessment.
The location of the properties
On the one hand, the location of the property includes the infrastructure of the nearby surroundings, such as transport connections, shopping facilities, but also connections to doctors or hospitals. On the other hand, trendy locations have an advantage, especially in large cities. The higher the popularity of the neighbourhood, the higher the value of the property there.
The energetic state
First of all, of course, the presentation of the energy certificate is necessary. This shows how high the energy consumption is. The higher, the worse. In addition, how high quality and new the insulation of the outer walls and the roof are. These significantly determine the energy consumption and the energy costs increase enormously with poor insulation.
The degree of development of the property
Also important for the value of the property is the degree of development. This means that it must be checked whether the property is connected to important networks such as the water system, the telephone network but also the electricity. Of course, it is an advantage if the property is connected to all important networks.
Contaminated sites on the property
Contaminated sites on the property are of course not advantageous for the property, as they have to be taken over by the new owner. Such contaminated sites are noted in the land register and negatively affect the appraisal, as more costs come to potential buyers.
The current market situation
The price of a property is always determined by supply and demand, which is why this criterion also plays an important role for the expert. Here, sales data from comparable properties in similar locations are used and compared with the data for the property under review.
