House Valuation

The most important criterion is the location. The real estate prices varied regionally partly considerably. Therefore only objects in the proximity may enter into the real estate comparison. As experts for the real estate sales in the regions Rhineland-Palatinate and Hessen we can give fast a realistic estimate over the real estate comparison. With the house evaluation likewise aspects of the micro and macro situations, as well as the direct location of the object are of importance: Soundscape, view and lighting conditions interest potenzielle buyers and affect real estate value and the attainable price.

Before we get deeper into the matter of evaluation of location, building fabric, market value & Co., we first ask 3 basic questions which reach us in consulting discussions with customers:

• How can I value a property?
• How does the bank value a property?

Definition Market Value: Simply explained

The fair value is defined as the price that is calculated at a certain point in time according to different wars and that is realizable for the property in the ordinary course of business. There are several starting points for determining the fair value. On the one hand, they concern the legal circumstances and on the other hand, the actual characteristics of the property. This means the state of renovation, the equipment, the location in the building, the energy certificate, etc. Personal circumstances of the owner are not taken into account. So it does not matter for the market value whether and how urgently an owner needs the money from the sale. The general demand for the respective type of property, however, affects the market value. In European law the term market value is rather not used. Here one speaks already longer of the market value.

To determine the value of a property, three different procedures for determining the market value are defined. A house evaluation takes place approximately with the real value procedure, the income value procedure and the comparative value procedure. With all valuation methods, the material value of the property is decisive first. The valuation methods are applied individually or in combination. The choice of the procedure depends primarily on the use of the apartment. For example, the capitalized earnings value method is often used for rented apartments, while the comparative value method is used in particular for owner-occupied apartments and houses.

Factors Included in the Market Value

The fair value of a property is ultimately the selling price obtainable on the market. In practice, however, the market value of a house or apartment is largely based on a realistic assessment of supply and demand: the higher the demand for a plot of land or property and the scarcer the corresponding supply, the higher the market price of the property and thus its market value.

Determine the Value of the Location by Standard Land Value

The position of the object can be determined most easily with the ground reference value. The ground reference values are determined separately for each property in Germany. However, the land value is also only a guideline value, as only the fixed average value is taken into account. The actual characteristics – advantageous and less advantageous – of the specific property are not reflected in the standard land value. The guideline value is a calculated value derived from other land sales. The standard land value plays a central role in the comparative value procedure.

How the Building Value is Determined

For a complete property valuation, the market value of an existing building is taken into account in addition to the land value. The building value is determined by its potential uses. In the case of a rented building, the annual rental income and the maintenance costs to be incurred during the same period are compared. If, for example, only a very low rent can be achieved, for example on the basis of the local rent index, the potential for income from the property is also limited. This is also included in the market value.

Costs of a Valuation

For the calculation, a rough evaluation is first made. The price for the final valuation is therefore, in most cases, based on the estimated value of the property to be valued.

If the value of the property is below a limit of 150,000 Euros, you can expect approximate costs of 1,500 Euros. For luxury real estate or multi-family houses with a real estate value of more than 1 million, the estimated fee rises to 3,000 Euro.

• Below 150,000 Euro value, approx. 1,500 Euro

Source: Federal Association of Experts

What Counts in the House Evaluation

For buildings that are not rented, the following criteria are included in the house evaluation in addition to the land value:

• Equipment
• Quality of construction

Construction quality and condition of floor coverings, bathroom, kitchen and roof are also criteria for determining the market value. Further special equipment characteristics, which differentiate the object from others in the neighbourhood, like a fire-place, the beautifuly put on garden, winter gardens, soil heatings, a swimming pool or safety and Smart technology affect the price determination. Residential properties also become interesting due to large and modern bathrooms and regular renovation measures.

Asset Value Method: this is How the Net Asset Value is Calculated

In contrast to the market-oriented determination of comparative values, publicly appointed or sworn appraisers calculate the net asset value of the property using the real value method. Only the standard land value and the production costs of the property are taken into account. However, you can also rely on the determination of the best possible purchase price in a valuation by the Lukinski real estate agents. We know which locations and features are particularly sought after in Rhineland-Palatinate and Hesse. When determining the purchase price, we took into account the current situation on the real estate market. Our valuation procedure allows exact conclusions to be drawn about the realizable market value of your property. The comparative value method used does not focus on the material value of the property, but on the selling prices that similar property offers in comparable locations actually achieve.

Always Important: Energy Efficiency

The seller is legally obliged to present the interested party with an energy certificate of the apartment or building. A small energy requirement is an extremely looked for characteristic with real estates and affects favorably the real estate evaluation. Thumb formula: The higher the energy efficiency, the lower energy costs (heating, electricity) for the buyer. Meanwhile also ideal reasons play a large role with the energy efficiency with the real estate purchase: For the climatic change modern real estate customers want to be responsible only in as small a measure as possible.

Creating Added Value: Extensions, Conversions and Renovations

Renovations or conversions that contribute to increasing the living comfort, quality and equipment of the property can additionally increase the value of the property. Save the invoices for renovations and, if possible, submit them already during our online evaluation. The professional installation of the swimming pool, for example, with details of price, year of construction and components used, will convince future buyers of the added value of the property.

In the condition of the property, the windows, roof and façade are in the foreground. If, for example, an outdated or outdated installation has been replaced by renovations, the value of the property is certainly increased. Appraisers also consider the factors relating to the condition of the property under the term “renovation backlog”: What costs can the future owner expect to incur in subsequent years? New and energy-saving heating systems, renovated bathroom fittings, door handles or additional thermal insulation are further measures that enhance the value of a property

Submit an Extract from the Land Register

The extract from the land register contains past and present events concerning the property and its development: When was the property owned by whom, which buildings were erected or changed on which date? The land registry at the local district court administers all land registry entries in the region and provides the owner with an extract from the land register on request.

Lukinski Realtor-Tip: If you wish, we will gladly obtain the land register extract for you to speed up the sales process.

Rental Agreements are Included in the Valuation

Usually not rented real estates can be marketed more easily, because many buyers would like to move in even into the new house, the bought dwelling. If objects are rented, the sales proceeds are therefore somewhat smaller under these circumstances. For capital investors however the letting status of a dwelling is again very crucial with the purchase intention.

Very important for the property valuation of rented properties are the existing rental agreements. If the potential buyer can achieve a return by purchasing the property, a rented residential property may well be of interest to investors and increase the price. The rental agreements provide information on how long the tenants have already lived in the house or apartment and how high the monthly net rent is. The Lukinski experts use the capitalized earnings value method to determine how the purchase of a rented property actually pays off.

The Final Purchase Price

Regardless of the valuation procedure, the purchase price is ultimately influenced by market events. From the buyer’s point of view, the currently demanded purchase prices seem too high to many. The salesman however has a substantial advantage with the current development of the real estate prices: by the – depending upon situation naturally – at present attainable prices many owners of real estate can sell their objects at present clearly over the actual market value.

Also we, the real estate experts of Lukinski cannot escape this trend. Our evaluations for objects in Rhineland-Palatinate and Hessen are nevertheless based on solid columns. With many years of experience in the valuation of a wide variety of properties, we can provide very reliable figures and price ranges at very short notice and with only a few details. We determine the optimum of market value and market situation in order to achieve the best possible price within the time frame you have in mind.

Since we keep our customer data available to many interested parties, your buyer may already have been found. Contact us, we will be happy to help you sell your house, apartment, company building and land.

Foreword: Free tips for selling real estate? Yes!

All my tips in this guide are free of charge for you. As real estate agents we arrange real estates starting from 1 million Dollar value, thus real estates under the category luxury real estates. We give you here gladly Tipps and cheat for your sales, free of charge, in detail and step by step explained. Please also pay attention to our links, here you will find more detailed information on the individual topics.

Should you wish to sell your property with us: Do you know what our unbeatable advantage is? We independently reach over 250,000 readers per month, which means 3 million people per year. We are independent from common real estate portals and reach a solvent, special target group. In addition, we offer internal buyer groups and investors in our Off Market area, to whom you have no access via usual offers. Read more here: Real Estate Agents.

What distinguishes investor brokers from other companies is that we have our own money from our partners ready to buy your house. Our investor partners have been in the business for over 25 years and together have hundreds of years of experience. This allows us to have a fast sales process and means that if necessary, we are able to complete a purchase in just seven days.

For a quick, guaranteed cash sale, you won’t get a better offer from Privat for a quick house sale – sell to professionals who can and want to develop your property.

If you still want to sell privately, here is my XXL guide to selling real estate:

Sell real estate: What is to be considered ?

In this guide, you will learn everything you need to know for all types of real estate, from condominiums to apartment buildings and the sale of land. Let us start step by step into the subject of real estate sales.

In our consulting sessions, these are the 8 most frequent questions of our clients:

• How is the best way to sell a property?
• When should I sell my property? Or does it make sense to sell a property now?
• When is the sale of a property tax-free?
• What should you clarify before the start of the sale?
• At what price can you offer your property?
• Sell property privately or through an estate agent?
• Advertising, marketing or off market property?
• Which paragraphs should be in the sales contract and what not? And… (clears throat) should you mention any known defects in the contract of sale?

The sale of real estate can have most diverse reasons, from cases of hardship such as insolvency, divorce or also inheritance up to investment reasons around liquidity to create. Still others sell their property for relatively simple reasons, for example the new spouse and the move to a new city or even the career change, combined with a move.

Property types and basics

In all areas: Selling land, selling an apartment, selling a house, but also if you sell your apartment building, the location is decisive for the selling price of your property.

Selling “free of charge”, i.e. privately and without a real estate agent, carries risks and makes the sale and the entire transaction (valuation up to notary and contract of sale) prone to errors.

Selling real estate means that you need a good network of buyers. Often real estate is not presented publicly, but only internally as off market real estate.

Property valuation: Land and buildings

What else is my house worth? Whether house, plot of land, apartment or an entire apartment building, the foundation of a successful real estate transfer is always a solid, realistic valuation of your own property.

If the price demanded is far above the realistic market value, you will not sell / buyer will not strike

If the price is too low, you are giving away money, a too high purchase price alienates the real prospective buyers. Setting the right offer price is one of the most important points in selling real estate.

Evaluation of the individual real estate types:

• Real estate valuation
• Land
• Apartment
• House – Tip! Also row house, semi-detached house & Co.
• Apartment house

Sell land

The sale of a plot of land is a decision that you have thought about for a long time. There can be various reasons for the sale. But when it comes to the success of the sale, all owners agree. The property should be sold at the best price and without long waiting periods. If you decide to sell privately, you are faced with an enormous portfolio of tasks and organizational details. In practice, offering the property through a real estate agent with know-how has proven to be successful, because sources of error are eliminated and you can offer your property without stress and a reorganization of your everyday life.

• Selling a plot of land

Sale apartment / condo

Apartment sale – Many reasons in life make us think about selling the condominium. Especially in old age. Is it less suitable for senior-friendly living, difficult to reach or simply too large and too expensive? Is a job-related move in or has the apartment become too small for the family? Lukinski supports you competently and reliably in selling your apartment. Use our online service and get an evaluation of your residential property.

From the valuation to the speculation tax. In this guidebook you will find all important factors simply explained. Learn step by step how to sell an apartment and answer your questions: Selling with or without a real estate agent? The private sale of real estate involves many risks and sources of error, starting with the apartment valuation, the offer price and the individual marketing, from “advertising” to internal customer network and off market real estate sales. Learn in the following the answers to questions like: When is a good time to sell your apartment? What documents do you need in advance to sell? And can you sell your apartment if it has not yet been fully paid for?

• Selling an apartment
• Rate the apartment

Sale house

Selling a house – Single-family houses are characterized by the fact that they are inhabited only by a family, a couple or a person living alone. They have a garden, which is also owned by the owner. Not all single-family houses are inhabited by their owners. There is also the possibility to rent a family house with a garden. In almost all federal states, single-family houses are very popular as a form of living. The demand on the property market is correspondingly high.

• Selling a house
• Sell your house quickly

House types: Types

The sales process for the different types of houses is similar.

• Single-family house (and apartment building)
• Double house
• City villa
• Villa
• Designer house
• Country house
• Half-timbered house
• Building house / Cube
• Mediterranean house
• More special (Captain’s house, Frisian house, pent roof house, Sweden house or bungalow)

In order to provide you with the best possible support in selling the property, we recommend that you prepare the necessary documents in the best possible way before the appointment.

• Selling a house

Sell your house quickly? Tips

Sell a house quickly – Selling a house is a complex matter and involves many different steps. From the creation of an attractive advertisement to the valuation of the property and the subsequent legal steps, such as the purchase contract and the appointments with the notary. During all these steps, various points must be considered in order to complete the sale of the property as profitably and quickly as possible.

Selling a property successfuly as quickly as possible is harder than you think. There are many things to consider and many mistakes that can be made. So you should inform yourself about the procedures from the beginning and be sure that you do everything right. Made easier, this process will only be easier for you if you have the right expertise and the right support on the subject.

• You do not have time? Sell your house quickly

Sell apartment house

Selling an apartment house – You want to sell? If you should decide to sell your house privately, this means a lot of time investment. Months pass without market knowledge from the appraisal to the preparation of the exposé, to customer contact and the sales phase.

Therefore the A&O for private sellers, always estimate the time planning realistically! Because even before the sale starts, you should not underestimate the preparation time. Be realistic and be honest with yourself, for example regarding the possible renovation backlog. In addition to all the work on the condominium or the house, there are also all the preparations for the sale.

Fundamental questions arise well before the sale. Here is a quick overview of the most important questions before the sale of your apartment building: Do you have a follow-up property in prospect? Is there a need for renovation / refurbishment? Do you have all documents (land register map, extract from the land register, floor plans, energy performance certificate)?

• Selling an apartment house

Sell real estate: Divorce

Those who choose to marry and be married, in most cases, have the intention to spend their life with their spouse forever and share everything that belongs to them. Nobody thinks during a marriage about the fact that there might be a divorce one day and that there might even be arguments about belongings. But in 2017 the divorce rate in Germany was over 36 percent, which shows that unfortunately not all marriages last forever. Often fraud, daily life including routine or even financial problems are the reasons for divorce.

• Selling property: Divorce

Sell property: Inheritance

Inherited house selling – There are general questions that reach us, such as “When can I sell an inherited house?” and especially many variants around one topic: taxes on the sale. Is the sale of an inherited house taxable? How is an inherited house taxed? How much is the inheritance tax for a house? Before the inherited house can be sold, it must first be decided whether the inheritance will be accepted at all. It should be noted that an inheritance can only be accepted as a whole. Not only land and property are acquired, but also the mortgage and any debts are accepted by the heir. Thus, not only rights but also obligations are incumbent on the heirs. You have six weeks to decide for or against the inheritance. Within this period, it is necessary to work out whether it is financially worthwhile to accept the inheritance.

• Sell property: Inheritance

In most cases, the heirs decide on the inheritance. Even if the property is located far from the heir’s place of residence. But in exactly this situation the question arises what to do with the property. If neither inhabiting nor renting the house is an option, the most common consideration is to sell the inherited house.

Insolvency of estates

Estate insolvency, what is that? The death of a person who was close to us is always a heavy burden. No matter whether it was already foreseeable that a person would not have long to live or whether it was a surprising stroke of fate, the situation is never easy for the relatives. The death of a person is usually not only associated with incriminating grief, but the issue of inheritance must also be dealt with. There are the most different situations: Some people have already thought about who should inherit which shares before their death and other people have not thought about it or have not had time to deal with the topic because they were surprised by a stroke of fate.

• Sell property: Insolvency of estate

Valuation at the sale of real estate: Calculation

All important information on the valuation of real estate sales summarized for you: Valuing real estate.

Ertermswertverfahren: Distribution of traffic & building income value

The income capitalization approach divides the property into the market value of the land and the building income value.

land value interest amount = 7 percent * 100,000 Euro = 7,000 Euro

Building yield value = 5.600 Euro * 12,50 (duplicator) = 70.000 Euro

This includes rental income, maintenance costs and costs for the management of land and buildings. This is compared with rental income less operating costs and the value of the land including interest.

• Income capitalization method

Material value procedure: Value for the reconstruction of a real estate property

The calculation first determines the market value of the floor with the floor standard value, then the building standard value is added.

The real value of the building is the building production costs minus any age reductions. The land value (market value of the land) and the building value are added and multiplied by a material value factor.

Natural value = (100,000 Dollar + 150,000 Dollar ) * 0.5 = 125,000 Dollar

The calculation of the asset value factor depends on the building type, the provisional asset value and the standard land value. The total real value determined in this way indicates the financial resources that would be required for a new construction of the property.

• Asset value method

Comparison_value method: Comparison of similar properties

The comparative value method compares your property with similar objects. It is used in particular for the sale of condominiums and apartment buildings. The comparative value can also be determined for undeveloped land.

square meter price of the comparison object = 300.000 Dollar / 100 sqm = 3.000 Dollar per sqm

Purchase price of the property to be valued = 3,000 Dollar * 200 sqm = 600,000 Dollar

Only objects in similar locations and with comparable cuts are taken into account in the comparison. The real estates entering into the valuation should come from direct proximity of the residential object. The comparative value procedure is considered as particularly realistic. It is very often used in the valuation of real estate, because the locations are regionally relatively well comparable.

• Comparison value method

Valuate apartment

Apartment valuation and value factors – You have a condominium and want to know what it is worth? Of course you can immediately go to an appraiser and/or real estate agent with this question. However, the exact valuation becomes important at the latest when you want to sell or bequeath the apartment. Even in the case of a mortgage – for example if you want to buy another property – the value should be determined very precisely. That is when the expert comes into play.

What influences the value of an apartment? Let’s stick to a very rough valuation. In order to determine the value of your apartment, a number of “soft” factors play a role.

• Rate the apartment

Rating a house

Purchase price roughly estimate or let estimate – If house or dwelling were bought not too long ago, building costs or the purchase price offer first appoximate values with the house evaluation. The most important criterion is the location. The real estate prices differed regionally partly substantially. Therefore only objects in the proximity may enter into the real estate comparison. With the house evaluation are likewise aspects of the micro and macro situations, as well as the direct location of the object of importance: Soundscape, view and lighting conditions interest potenzielle buyers and affect real estate value and the attainable price.

• Evaluate the house

Valuate apartment building

If you want to sell your apartment building, then one thing is important: A sound, market-oriented, realistic purchase price. The central questions of owners: What is my property worth? How do you calculate the value of an apartment building? How does the tax office determine the value of a house? Who determines the market value of a property? How does the bank value a property? Many questions and many facts that you will encounter when valuing an apartment building. To give you a first impression of the complexity of location, market value, comparative properties, building fabric & Co., we have written this guide on the subject of multi-family house valuation for you. Value factors, location, equipment, market value, realistic price:

• Evaluate apartment building

Valuing land

Determining market value, valuation and purchase price – How do you value a property? How to calculate the market value of a property Who may value a property? Who provides information about the standard land value?

• Valuate property

You want to sell? Read more tips on taxes, procedure & Co. under Selling an apartment.

What influences the value of an apartment?

But let’s stick to the so-called “Pi times thumb value”, a very rough value determination. In order to determine the value of your apartment, a number of “soft” factors play a role.

Before we get deeper into the matter of evaluation of location, building fabric, market value & Co., we first ask 3 basic questions which reach us in consulting discussions with customers:

• How can I value a property?
• Who determines the market value of a property?
• How does the bank value a property?

Location, location, location: value enhancement and sales argument

This refers to all those things that you can see but cannot immediately translate into money or other value. First and foremost, this means, for example, the so-called micro and macro location of the apartment, i.e. the view of the immediate and regional surroundings. Whether your apartment is located on a busy street or in a quiet suburb, whether the surroundings of your apartment are rather middle-class or socially disadvantaged – all these “soft” conditions influence the value of your apartment.

Hard facts: Infrastructure and equipment

The “hard” factors of the micro-location include the proximity to doctors, public institutions or cultural sites. For here, the conditions can be measured at least in terms of distance and number of available facilities. Basically, the following applies here:

The closer you are to public life, the more value these factors add.

The proximity of your home to public transport is also – and certainly increasingly so – a plus point. After all, buses and trains are becoming increasingly important in urban and rural areas in the context of the climate debate. Certainly: the availability of your own parking spaces or even an underground car park also has a positive effect on the value of your apartment.

Do you know the crime rate in your residential environment? This is a real “mixed factor” of hard and soft in apartment valuation. On the one hand, this rate can be “hard” by means of figures, but on the other hand, the rate of a district does not necessarily apply to the immediate street situation of your property. Especially in this area there is a lot of “felt” security or insecurity.

Decrease in value or increase factor

These criteria have one thing in common: they cannot be converted into hard currency, or only with great difficulty. There is no exact value reduction or increase factor here. This also applies to the macro location of the apartment. In other words, the location of the apartment in a larger geographical region or a district in the case of larger cities. Even if apartments in southern Germany are generally considered more expensive than in the north, a chic apartment on Hamburg’s Alster is always worth more than in Göggingen near Augsburg, for example. An apartment – for example in Essen – is on average much more expensive in southern districts than in the north.

Checklist: Rate apartment for sale

Important when selling an apartment:

1. Take the time for the preparatory work
2. Present the apartment professionally
3. Use our service to achieve a good sales price.

Comparable values and square meter prices

In the apartment valuation we include the local square meter prices in the comparison. We determine comparable residential properties and their selling prices from nationwide and especially regional databases.

The square meter price which is usual in the industry and regionally obtained is apportioned to your free-hold apartment in the comparative value procedure. Thus you receive a realistic sales price estimate for your apartment. In addition to the comparative characteristics such as location and size of the apartment, individual furnishings and fittings are also included in the real estate value determination. Thus, conservatories or high energy efficiency can significantly increase the price. But also building damages, pending repairs or modernization measures are considered with the price determination.

Real estate prices in Germany

Here you will find a selection of the largest German cities with information on purchase prices, comparisons and development of economy and infrastructure at a glance.

Real estate prices:

• Berlin
• Düsseldorf
• Frankfurt
• Cologne
• Hamburg
• Hanover
• Munich
• Stuttgart

Criteria for the valuation

Other criteria for determining your real estate value include general information about the real estate object such as floor, room and equipment.

1. Year of construction of the object
2. Living floor
3. Number and size of rooms
4. Balcony, terrace, loggia and winter gardens
5. Community property
6. Rented apartments

Year of construction of the object

In the case of old buildings (built before 1945), renovation of old buildings increases the sales value. The price for apartments in well-preserved or renovated old buildings is often higher than the local average price. Newly built apartments are also generally valued higher. However, many apartments from the 1960s and 1970s often have to reckon with price discounts if a particularly poor building fabric is found.

• Purchase price reduction often for 60’s / 70’s buildings

Residential floor: first floor, penthouse & elevator

The higher the apartment is in the building, the higher its price. First floor apartments are less in demand and their price can be up to 30 percent below the average. If the higher-lying apartment is also accessible by elevator, the circle of potential buyers is also increased.

-30% for first floor apartments

From own experience real estate buyers are often “spontaneously in love” especially with penthouse and loft apartments. The purchase price here may definitely be slightly above the market value. With appropriate development of the attic with open space, additional, value-increasing factors are added.

Equally decisive, the higher the condominium, the sooner an elevator must be installed. Apartments without an elevator discourage many buyers nowadays, especially in the inner cities of metropolitan areas, which have many alternative real estate offers.

• Ground floor up to -30% of market value
• Loft / Penthouse increase the purchase price
• Important: elevator installation

Number and size of rooms

Rooms with at least ten square meters are counted. If it is less, the rooms are counted as half rooms. The kitchen and bathroom are not counted. In principle, apartments with many rooms are also valued at a higher price per square meter.

From experience, the number of bedrooms is what counts most. Especially for luxury properties, the number of bedrooms must be sufficient. Even singles attach importance here that sufficient capacities are available, whether they are needed after the purchase or not.

Number:

• Bedroom
• Living room
• Bath / baths
• Kitchen, walk-in kitchen
• Study office
• Walk-in closet
• Corridor / foyer

Balcony, terrace, loggia and winter gardens

Places to chill are sought after and so these additional features increase the possible selling price of the apartment. They enter with 25 per cent into the floor space calculation. In particularly favorable residential areas or with very complex organization they can be considered with up to 50 per cent as floor space.

Community property

Common property such as elevators, stairwells, roofs, doors, heating and utility lines can be very attractive special property. If the outdoor facilities are particularly well maintained or if meaningful common rooms are available, the market value of the apartment will also increase.

Rented apartments

If the future buyer cannot move directly into the new property, this often has an unfavorable effect on the purchase price. However, well-let properties are also sought after on the market. Investors take into account the expected yield of the property. Also in these cases we can help you decisively with an evaluation of your ETW.

Flat valuation online

Housing evaluation online? Many people use real estate portals for the evaluation of their apartment – but does that make sense? An algorithm can never assess the condition of your property as accurately as the human eye. Starting with the distribution of rooms with light exposure through south-north-north-east-west location, the possible further use for the buyer, the actual state of renovation, insights into the last modernization works, etc. If you generate your online evaluation online as PDF free of charge, you will receive a standard evaluation based on a few parameters.

This is not a sound evaluation! Because here never all conditions are asked in detail. This includes as described above, among others:

• Object data of the apartment
• Equipment of the interior
• Construction condition and facilities
• Modernization measures
• Individual object criteria of your apartment
• City district and local connection (school, supermarket, etc.)

If you carry out an online evaluation, you will also quickly notice that many portals also ask questions about the property, for example, when evaluating apartments: Does that make sense? No. That’s why such standardized queries usually don’t give you any relevant results that you can use to sell your apartment.

Sell? We will give you a clear assessment: Contact

Regional differences and real estate

As a real estate team with regional roots, we can only warmly recommend that you obtain your valuation from a trusted real estate agent. Here you will be asked really important questions, you will receive a free and well-founded assessment of your condominium based on truly market-relevant valuation criteria.

A simple online valuation, as it is offered on many real estate portals, can give you an insight, but not a sound analysis for the sale of your apartment.

Statistics Germany: Square meter prices

Here you can see the cities with the highest prices per square meter for condominiums in a comparison of 2010 and 2018* (in euros per square meter). More facts, figures and the development of real estate prices can be found at Real Estate Statistics.

1. Munich (Bavaria) with 8,342 euros per square meter; from 6,737 euros per square meter in 2014; increase of 1,695 euros per square meter in 4 years
2. Stuttgart (Baden-Württemberg) with 5,925 euros per square meter; from 4744 euros per square meter in 2014; increase 1,181 euros per square meter
3. Frankfurt am Main (Hesse) with 6,060 euros per square meter; from 4,373 euros per square meter in 2014; increase 1,687 euros per square meter
4. Freiburg im Breisgau (Bavaria) with 4,943 euros per square meter; from 4,740 euros per square meter in 2014; increase 203 euros per square meter
5. Ingolstadt (Bavaria) with 4,969 euros per square meter; from 4,287 euros per square meter in 2014; increase 682 euros per square meter

What are “hard” criteria for the valuation ?

Let us therefore adhere to the strict criteria in the strict sense of the word when determining the value of an apartment. And in doing so, those which you as a citizen can usually easily reach. For example, the household income of a city or district. Although there is no direct correlation between the level of household income and the value of a home, a high income means you can expect a high standard of living, high purchasing power and also a certain attractiveness of the location.

If the residential environment – in this case also seen from a regional perspective – shows a high number of different attractive employers, this hard criterion also has a positive effect on the value of the housing. Finally, one can assume that the demand for living space in this environment is quite high and thus also the value of the supply (apartment).

Among the hard criteria, which are independent of the location of the apartment, is the basic economic stability in the country. The course of economic development – also known as the business cycle – has a noticeable influence on the demand for residential property and thus also on the price.

Valuation method

A property is worth as much as others are willing to pay for it – that is the basic principle of the real estate market. Of course, the purchase price of a house or apartment depends on how much it cost to build and extend. But if no buyer can be found for a luxury villa or luxury apartment at a price that would be reasonable in view of the construction costs, the value is unfortunately still lower. However, this also applies vice versa!

A “spoiled” apartment in an otherwise passable house, but located in a sought-after environment, generates a high demand and thus a high price. With this so-called “comparative value method” you can even determine an approximate value of your apartment yourself. Comparable in the sense of the comparative value procedure would be a similar apartment in the immediate vicinity.

For this purpose, however, the value-giving “example” of the neighboring apartment should also be reasonably up-to-date. A value that was achieved ten years ago – let’s say – also reflects the market situation ten years ago.

Note: Each of the three methods will usually come to a different result!

Calculation example comparison value

Simply explained: For the calculation real estate comparative value we set exemplarily two real estates in the relationship. Based on the information on purchase price and total living space, we can then calculate the proportional purchase price for your property.

Details of the property to be valued:

• Area of the property to be valued: 200 square meters
• Purchase price of the property to be valued: ?

Details of the comparative property:

• Area of the comparative property: 100 square meters
• Purchase price for comparative property: 300.000 Euro

Income value, comparative value and material value

In the case of rented real estate, the “capitalized earnings value method” is usually the focus of the valuation. In addition to the land value of the property, the rental income and the so-called property interest rate of the property are also used for valuation.

For owner-occupied apartments, the “real value method” is also often used in addition to the comparative value method, especially in the case of luxury properties. In the foreground here is the material value of the building structures, which is derived, among other things, from the cubic meter price of the building and a building price index.

Both of the latter two methods are in any case suitable for a very precise valuation of your apartment, but in the end can only be applied by an expert. In the end, only an experienced real estate agent has an overview of the market situation with the comparative value procedure.

This is quite normal, because the underlying parameters of the valuation are different. Your real estate agent as real estate expert will then explain to you which value is the right one for you or your goals.

Costs of an apartment valuation

For the calculation, a rough evaluation is first made. The price for the final valuation is therefore, in most cases, based on the estimated value of the property to be valued.

If the value of the property is below a limit of 150,000 Euros, you can expect approximate costs of 1,500 Euros. For luxury properties or apartment buildings with a property value of more than 1 million, the estimated fee is 3,000 euros.

• Below 150,000 Euro value, approx. 1,500 Euro
• Over 1.000.000 Euro value, ,about 3.000 Euro

Source: Federal Association of Experts

Conclusion on the apartment evaluation – Checklist

The comparison of the value of an apartment in your neighborhood offers you a very good first indication for the valuation of your own apartment. In principle, the following factors increase in value:

• The location of your apartment in an attractive residential area
• The location within a conurbation or the proximity to major centers
• A quiet inner-city location, also very central in the city
• Good connections to public transport
• Short distances to supermarkets, doctors, pharmacies, authorities
• A neat living environment
• The good condition of community facilities in the house
• A high level of care for your home
• An elevator system
• Parking spaces or underground car park

A thing for experts: the valuation of your apartment

Documents for valuation

The exact determination of the housing value includes thus a quantity of basic conditions with. Even if you do not have a sale of your apartment in mind at the moment, you should compile some basic documents for an exact valuation. These documents will help the real estate agent to make an exact appraisal and create a solid basis of trust for possible future buyers.

The important documents include:

1. Extract from the land register
2. Declaration of division
3. Floor plan
4. Ground plan
5. Minutes of the owners’ meeting
6. Housing allowance statement for the last three years
7. Overview of the maintenance reserve
8. Proof of insurance
9. Energy Performance Certificate
10. Copy of the rental contract, if your apartment is rented

Even though the energy pass is always issued for the entire house in which the apartment is located, this pass allows direct conclusions to be drawn about the energy status of the apartment. Therefore, the certificate should not be missing in any valuation.

For insurance companies, only the policies that secure the actual building fabric are important. Thus fire and/or building insurances. Since the apartment is usually part of a multiple dwelling, a copy of the policy must usually be requested from the insurance company via the administrator. The insurance of your household contents is not part of the valuation!

Avoid errors in the valuation

To mention one of the most important mistakes in the (own) valuation right away: Most condominium owners have strong emotional ties to their property. Usually they do not notice this bond themselves, but unconsciously set the value of their apartment too high.

The second mistake often occurs when the sale of the apartment takes place under (time) pressure. As a result, the price is usually too low, because owners hope that this will lead to a quicker sale. Exactly for this reason, it is also sensible to let the owner determine the value of the apartment even without any concrete intention to sell. This way I can be sure that I have a solid value basis “in the drawer” when selling and also gain insight into the value development of my apartment over the years.

Even though we have mentioned the comparative value procedure as the most common method of determining the value above and referred to the price level of comparable apartments in the immediate vicinity, this is precisely where errors can occur if you use the value statements of neighbors, friends or acquaintances, or even advertisements in relevant real estate listings. Because who knows already whether the statements made represent the later reality with the sales happening.

What can a real estate agent do in the investigation?

Who is the right person for the valuation of your apartment? An estate agent or an appraiser? The answer to this basic question depends on the goal that you are pursuing with him.

You will always need an appraiser or expert if the valuation has to stand up in court – for example in the event of a divorce. An even higher level is to have the appraisal valued by a “state-approved real estate appraiser”. Then the appraisal is accepted by all authorities. No matter which of these two ways you choose: these appraisals cost money. An actual difference in quality or even the achievement of different values does not exist with either appraiser.

Also the value of the apartment determined by the real estate agent will not differ from the values of the appraisers, if both work seriously and according to the same guidelines. However, the “expert opinion” of the real estate agent will not stand up in court or other authorities. This has nothing to do with a lack of education or qualification of the real estate agent.

If you would like to appear confident and competent in front of potential buyers with a valuation report, the (usually also free of charge) opinion of an independent real estate expert or real estate agent is absolutely sufficient.

Because there is one thing that all experts should bear in mind: not everyone who calls himself an appraiser or expert is one. Pay attention with appraisers, for example, to certificates and training on the part of the Chamber of Industry and Commerce, and with estate agent appraisers to appropriate expert opinions in valuations and sales processes of apartments.

Conclusion: Apartment valuation

The value of a property, including your apartment, can be determined using various valuation methods. The results are as numerous as the possibilities, because you will always get a different result. This is quite normal and correct, as each valuation procedure is based on a different approach.

Online valuation only appearance: Simplest parameters

Why? Portals want to fill in your contact details, “free of charge” and off you go…

An online evaluation is mainly based on the location of the property and usually does not sufficiently capture the actual condition of a property. Therefore, an online valuation tends to yield only an overly optimistic property value.

The result should not be viewed too euphorically.

If you then commission a broker or other expert – including a state surveyor – to carry out a valuation, he will determine a lower market value for you.

The appraiser always determines the value on a valuation date and works with data from the recent past. While an online valuation is a free tool, you will incur costs with a certified appraiser. However, there will never be any unpleasant surprises, because the success fee is already fixed in advance.

Data from the recent past as well as forecasts for the coming months are incorporated into his evaluation. In addition, the real estate agent will discuss the value with you and recommend an advertisement price.

The valuation is the linchpin of a real estate marketing. Here you as the owner should leave nothing to chance or dare to experiment. After all, your financial future is at stake and it should be rosy.

You want to sell? Read more tips on taxes, procedure & Co. under selling an apartment.