Market value: Sales price for house & apartment

Let’s start with the 2 most important questions:

What does market value mean?

The market value is the price that can be realized in the ordinary course of business within the specified time frame in accordance with the legal circumstances and actual characteristics, the other properties and the location of the property or the other object of the valuation.

In 2004, the term “market value”, which is used throughout the EU, was added to the definition of market value in Section 194 of the German BuildingCode (BauGB). The market value is therefore an estimate of the price that can be achieved on the market. The market value is generally used for the sale and purchase of land and buildings. It may also be necessary to determine the market value in the event of foreclosures, tax assessments by the tax office, divorces and inheritances .

Where can I find the market value?

You won’t find the market value in a list, it has to be calculated using the typical valuation methods – more on this in a moment.

Determining the market value: How do you calculate the market value?

The market value assessment refers to the macro-location (city/region) and micro-location (immediate surroundings of the property) of the property, its section, size and any existing land charges that may reduce the value. In accordance with the BauGB, the market value is not a permanently fixed value, but refers to the reference date stated in the appraisal. It is possible that the market value may change significantly over a certain period of time.

The market value quantifies the value at the time of valuation. The market value appraisal takes the following points into account:

• Material value of the property, if developed
• Nature and location of the property (size, type of development)
• Legal circumstances (e.g. land register, monument protection)
• Other objects of the valuation

But:

In reality, however, market demand has a decisive influence on the value of your property.

The demand for real estate and the features sought vary greatly from region to region. Just think of A-locations such as Munich and Berlin, where the location plays a major role in the market value.

Documents for determining the market value

The following documents are generally evaluated for the valuation of real estate sales:

• Land register extract
• Building plans, floor plans, sections
• Building description
• Site plan and parcel map
• Calculation of living space
• Energy certificate

For condominiums, the following are also required:

• Minutes of the last three owners’ meetings
• Business plan
• Declaration of division (land register)
• Housing benefit statement

For income-producing properties, these must also be submitted:

• Operating costs
• Rental listings
• Rental agreements

Rights and encumbrances must also be viewed:

• Notarial deeds
• Special registrations (rights of way, residential rights, etc.)

Weighting of criteria for market value

Particular weight is given to the location and the expected future risks of the property. The risks are mostly modernization risks, such as the costs to be expected due to a renovation backlog. The most expensive maintenance measures, which generally include the roof, cellar, windows and heating, are also assessed. The type of house is also assessed. A building built before 1945 is an old building, after 1945 it is classified as a new building. The exterior design, floor plan, garden, façade, room layout and lighting conditions are also taken into account.

Factors such as location, balcony and attractiveness for the target group play an important role in the rentability of the property. Other factors included in the valuation are, for example, an elevator and the property’s fixtures and fittings:

• Plot area (proportionate living space or total area)
• Living space according to the Living Space Ordinance (WoFIV)
• Garage, underground garage, parking spaces (existing renovation risks)
• Basement additionally usable or e.g. renovation backlog in the basement
• Demographics for the property location
• Property type (commercial, residential, care, listed, other special forms, mixed property)

Valuation: 3 valuation methods

All important information on the valuation of real estate sales and the other valuation procedures clearly summarized for you:

Income capitalization approach: Breakdown into market value & building income value

The income capitalization approach divides the property into the market value of the land and the income value of the building. This includes rental income, maintenance costs and the costs of managing the land and building. The rental income less management costs and the land value including interest are therefore compared.

Material value method: Value for the new construction of a property

In the asset value method, the market value of the land is first determined using the standard land value, after which the building asset value is added. The real value of the building is calculated from the building production costs less any age-related reductions.

The tangible land value (market value of the land) and the tangible building value are added together and multiplied by a tangible value factor. The calculation of the asset value factor depends on the type of building, the provisional asset value and the standard land value. The total tangible asset value calculated in this way indicates the financial resources that would be required to rebuild the property.

Comparative value method: Comparison with similar properties

The comparative value method compares your property with similar properties. It is used in particular when selling condominiums and residential buildings. The comparative value can also be determined for undeveloped land.

Only properties in similar locations and with a comparable layout are taken into account in the comparison. The properties included in the valuation should be in the immediate vicinity of the residential property. The comparative value method is considered to be particularly realistic. It is often used to determine the value of properties, as the locations are relatively comparable regionally.

Valuate property

House valuation, apartment valuation, what do you have to pay attention to for a good sales price? You can find my tips here:

• Valuate property

Underground parking at a glance: Increase in living quality through additional space

• Underground parking space for vehicles
• Protects against weather and theft
• Plays an important role in densely populated areas due to the additional space
• For older underground garages, pay attention to the spacing of the parking spaces, as they may be too small for larger cars like SUVs

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All the facts – alimony in separation and divorce

Separation maintenance is payable for the period between separation and divorce. However, the payment of separation maintenance is subject to certain conditions. Moreover, separation maintenance is not calculated automatically, but must be applied for separately. But when is there a claim to separation maintenance? How much is it? And what about maintenance after the divorce?

The most important at a glance:

• In order to claim separation maintenance, a number of requirements must be met. The spouses must live separately from each other and one of the two must be needy and the other must be able to perform.
• Separation maintenance is calculated according to the adjusted net income of the spouses. This is calculated with reference to many different financial factors
• Separation maintenance is generally payable for the period from separation to divorce and is intended to ensure a similar standard of living for both partners even after separation.
• Even if the separation maintenance ceases after the divorce, the maintenance obligation does not also end automatically. Post-marital maintenance must be applied for again separately after the divorce.

When is there a claim to separation maintenance?

As long as a marriage exists, the spouses are also responsible for each other, even if they live separately. This refers especially to the financial aspect, as this changes significantly for both partners after a separation. Generally speaking, the person who cannot support themselves is entitled to separation maintenance, but this only applies if the other partner earns enough money to be able to pay maintenance at all. However, these rules are subject to certain conditions.

Living apart from each other

A prerequisite for receiving separation maintenance is that both partners live separately from each other. This is possible both in separate dwellings and in the same dwelling. The decisive factor is that both partners run a separate household from each other. Things such as shopping or eating meals together are therefore done separately from each other. When separating, it is also important to record the exact date, both for determining the separation year and for other legal consequences of the separation. A document signed by both partners with the date and content of the separation is therefore helpful for taking further legal steps.

The neediness of a partner

The partner who demands separation maintenance must be needy according to the law. There are no fixed framework conditions for this principle. The decisive factor is the income of both spouses that was achieved during the marriage. The aim is that the person entitled to maintenance should be able to maintain a similar standard of living during the separation as before the separation. This arrangement is particularly important for spouses where one of them has not worked during the marriage and has no income of his or her own.

The performance of the partner

In order for the person entitled to maintenance to be able to claim maintenance at all, the partner must be able to pay. This means that the partner must be able to pay maintenance without jeopardising his or her own reasonable livelihood. The paying partner must have a deductible after deducting the maintenance. If this is less than 1,200 euros per month or if the paying partner only receives unemployment benefit I or II, he or she does not usually have to pay separation maintenance.

If all these conditions are met, one of the spouses is entitled to separation maintenance. However, this must be applied for and is not automatically paid to the spouse in need.

• In order to claim separation maintenance, a number of conditions must be met
• The spouses must live separately and one of the two must be indigent and the other must be able to pay.

How is separation maintenance calculated?

In general, each spouse is entitled to half of the total disposable income, but the working spouse receives a kind of employment bonus amounting to one seventh of the income. The maintenance claim therefore amounts to three sevenths of the adjusted net income of the spouse according to the Düsseldorf table. However, this calculation is only applied if the maintenance recipient does not generate any income of his or her own. However, if the recipient of maintenance is gainfully employed himself, the maintenance amounts to three sevenths of the difference between the two adjusted net incomes. If both partners work, the maintenance claim is lower.

However, the law does not provide a uniform rule for calculating the adjusted net income on which the amount of separation maintenance is based. In determining this income, the family courts are guided by guidelines issued by the competent higher regional court. To determine this, a large number of factors are usually added together and an average monthly income is calculated from this for the time during the marriage. Here, not only the income plays a role, but also factors such as back taxes, income from renting or leasing and Christmas and holiday bonuses.

• The separation maintenance is calculated according to the adjusted net income of the spouses
• Adjusted net income is calculated with reference to many different financial factors

How long is there entitlement to separation maintenance?

Separation maintenance is generally calculated from the time of separation until the divorce. How long the separation lasts is not important. In certain cases, however, the obligation to pay maintenance can also end earlier. For example, if the spouse entitled to maintenance earns enough money himself or herself and is no longer dependent on maintenance, if the spouse entitled to maintenance lives permanently with a new partner or if the spouse entitled to maintenance has committed a serious criminal offence against the other. In these cases, it always depends on the individual situation.

• Separation maintenance is generally payable for the period from separation to divorce
• Separation maintenance is intended to guarantee both partners a similar standard of living even after separation

Maintenance after divorce – spousal maintenance and separation maintenance

The right to separation maintenance expires with the divorce, but this does not mean that the obligation to pay maintenance ends. After the divorce, maintenance can still be claimed, namely post-marital spousal maintenance. This is usually even the same amount, unless the income situation has changed with the divorce. However, it should be noted that post-marital spousal maintenance must also be applied for separately and is not paid automatically, even if separation maintenance was previously paid!

• Even if the separation maintenance ceases after the divorce, the obligation to pay maintenance does not end automatically.
• Post-marital maintenance must be applied for again separately after divorce

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide

Standard land value (Berlin) at a glance: To enable the comparability of properties

• Refers to the ground and thus to the undeveloped plot of land
• Purchase price collections are required for the determination
• Through purchase price collections, guideline value zones are formed, whereby the standard land values are determined.
• Average location value in euros per square metre for the floor
• In Berlin, standard land values from 1964 to the present can be accessed online free of charge

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