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REAL ESTATE VALUATION

Your property valuation with Flexmakler

As soon as planning to buy or sell a property begins, the market value comes into play. The market value is an essential, if not the most important factor for buyers and sellers when selling a property. After all, anyone who owns a residential or commercial property wants to present it at the best possible value on the real estate market. It is also in the interests of buyers not to buy a property at a price that is higher than its actual value.

A real estate appraisal helps you to determine the value that an object can achieve at the specific time of sale, and thus to create better orientation and a basis for negotiation. Thanks to our experts and appraisers, you have a professional and experienced partner at your side in Flexmakler to safely conclude real estate transactions and commission reliable expertise on houses and apartments. Because especially in times of coveted living space and increasing rents, expert opinions and a realistic market value are decisive factors for the sale of apartments and houses.

Here you can find out everything about real estate valuation and get an overview of the process and key aspects of determining the market value of real estate.

Who can determine the market value of a property?

Before you actually start selling a property, it is important to consult experts. The valuation is regulated in the Real Estate Valuation Ordinance, ImmoWertV for short. The processes and procedures used to create an appraisal of an object are binding for independent and qualified experts and appraisers. These are mostly qualified architects, engineers and officially approved appraisers.

Please note above all that in the case of legal disputes, a publicly appointed expert is usually required. Only he can prepare a full report for you that also stands up in court. In the case of a simple real estate appraisal for the sale of a house or apartment, an officially approved appraiser is not absolutely necessary. The assessment can already be reliably carried out by qualified experts and real estate agents.

Alternatively, there is the option of carrying out a real estate appraisal online free of charge. However, anyone who has real estate valued with online comparison calculators must be aware that these are initially only non-specific estimated and comparative values.

If you want a realistic value that does justice to your property down to the last detail, it is necessary not only to use your own estimates, but also to leave the property valuation and the asking price to expert hands.

What legal regulations are there for determining the market value?

From a legal point of view, a distinction must first be made between a price determination and a market value determination. Various online providers provide you with calculators that carry out a property valuation online and free of charge. However, based on the information about your property, you will initially only receive rough price or value estimates that do not yet meet the legal requirements.

Only the market value, also market value, of a property is legally recognised. The Building Code (BauGB) defines this as the specific price for a property that can be achieved at the time of the valuation, in normal business transactions for the property. The market value is not a fixed value, but is based flexibly on the current real estate market situation. In the case of a certified appraisal, the validity of the appraisal is the date of the appraisal.

When determining the market value, experts must primarily comply with the following legal requirements:

  • Paragraph 194 of the Building Code (BauGB): Regulates the determination of the market value based on the open real estate market, the properties of a property and the location.
  • ImmoWertV: The market value of a property must be based on current market conditions.
  • DIN 277 for calculation of living space: Supports the calculation of the production costs and the rental/purchase prices of buildings. The usability and profitability of real estate can also be compared with the standard.

Why is a real estate appraisal necessary?

A neutral and reliable asking price is essential for a real estate sale. This is the only way to avoid sensitive price losses when selling your property. A asking price that is too high can mean that a property remains on the market for too long and can ultimately only be sold through unprofitable price reductions. A price that is too low in turn leads to avoidable price losses. With reliable expertise and a realistic market value, you can base your pricing on current market developments and present your property extensively and attractively.

An expert opinion is also required in inheritance and divorce matters and is essential for a qualified and judicial valuation of the house and apartment. Here it is important to record the property value in writing and to prepare a recognized market value appraisal.

So before you sell a property, remember that possible mistakes and pitfalls in the sales process can be avoided from the outset with a trustworthy appraisal. With Flexmakler you can always rely on many years of experience and a free property valuation.

What is the process of a real estate appraisal?

Regardless of whether you are selling your own home or a condominium: as soon as you have made a decision to sell, it is important to find the right partner for the valuation. Flexmakler provides you with experienced partners for this purpose.

Step 1: First overview

First of all, you have the opportunity to get an initial overview of the price potential of your property on Flexmakler. You simply enter data such as property type, year of construction, living space and equipment into our price calculator, commission an assessment of your market value and receive the potential market value of your property free of charge.

Step 2: Preliminary discussion with your consultant

If you would like to start selling with Flexmakler, we will clarify the reasons for selling the property in an initial telephone conversation with you. The first question is whether a legal traffic report, as is required in divorce or inheritance issues, should be prepared or whether you need the market value for an ordinary property sale.

Details such as the location, the type of building and the year of construction of the property are also clarified. In this way, the scope of the evaluation can be determined from the outset and a first impression of the real estate value can be gained. We will then arrange an appointment with you and tell you what documents you need about the property.

Step 3: Property inspection

Once the reasons for the sale and real estate details have been clarified, the property is inspected by the expert. Here, the market value is determined in full depth in line with the market and it is recorded which value-increasing or value-reducing properties the property has. Above all, factors such as the current condition of the property, possible structural damage, the specific location, the cityscape, the energy efficiency and the equipment are important. The presence of a basement, garage and elevator is also noted.

After the inspection, we will go through the documents relevant to the sale with you, create an initial marketing strategy and discuss the next steps.

Step 4: Result of the valuation

After inspecting the property and examining your documents, you will receive the results of the valuation from your advisor. Based on this, we work with you to determine the offer price and a concrete plan for marketing.

For the best possible marketing of your property, we commission first-class photographers who specialize in high-quality real estate photography. To get the most out of your property, you can also make use of our creative interior designers if you wish.

We will then create an attractive real estate exposé for you. A successful exposé must give potential buyers the most important points about the property at a glance and be the inviting face of a successful marketing strategy.

If necessary, architects from our network will create necessary documents such as a floor plan or a calculation of living space.

What documents are required for the expertise?

In order to be able to value an apartment or a house, your appraiser or real estate appraiser needs all the documents belonging to the property that contain important information on the market value. Gather the documents as soon as the sale of the property has been decided or request the documents as soon as possible.

You should have the following documents ready for the appraiser:

  • Current extract from the land register
  • Excerpt from the field map
  • Floor plan of the property
  • Excerpt from the list of building encumbrances (regarding the public-law obligations of the apartment owner)
  • living area calculation
  • Evidence of modernization work

In the case of condominiums, in addition to these essential documents, you will also need:

  • a declaration of division
  • utility bills
  • an economic plan
  • Minutes of the last three owners’ meetings

In the case of a heritable building right, also have the following ready:

  • leasehold contract
  • Evidence of the current ground rent

The following are also required for listed objects:

  • a copy of the monument protection notice

For rental properties you also need:

  • leases
  • List of net cold rents
  • utility bills
  • management costs

THE THREE VALUATION METHODS

Which methods can be used to value real estate?

For the determination of the market value, the legislator describes the following three specific procedures in the “Regulation on the principles for determining the market value of real estate”, which an appraiser can use.

Bei diesem Verfahren vergleicht der Gutachter Ihre Immobilie mit den erzielten Kaufpreisen ähnlicher Immobilien. Für den Vergleich lassen sich Daten aus der Kaufpreissammlung des örtlichen Gutachterausschusses heranziehen. Die Durchschnittswerte wendet der Gutachter pro Quadratmeter an und stellt sie den wertsteigernden und wertmindernden Eigenschaften Ihrer Immobilie gegenüber.

Dieses Verfahren spielt für Miet- und Pachtobjekte eine Rolle bei der Wertermittlung. Der Gutachter ermittelt in diesem Fall den Gebäudeertragswert anhand der Mieteinnahmen und Instandhaltungsausgaben und leitet unter anderem daraus den Verkehrswert ab. Wesentliche Faktoren für das Verfahren sind Bewirtschaftungskosten, die Restnutzungsdauer und der Liegenschaftszinssatz. Für dieses Verfahren sind vor allem die Erfahrung und die Expertise des Gutachters ausschlaggebend, da die Wertentwicklung auch langfristig und unter Berücksichtigung von Risikofaktoren erfolgen muss. Bei Flexmakler können Sie sich darauf verlassen, dass Ihnen zuverlässige Partner mit langjähriger Erfahrung zur Seite stehen.

Dieses Verfahren dient für freie, selbst bewohnte oder vermietete Objekte. Dabei bestimmt der Gutachter den Wert von Boden und Bauwerken getrennt voneinander. Zunächst werden die Normalherstellungskosten anhand der „Richtlinie zur Ermittlung des Sachwerts“ betrachtet, die der Bau eines identischen Gebäudes heute erfordern würde. Anschließend reduziert der Gutachter den Verkehrswert um Abzüge durch Alterswertminderung für gebrauchte Immobilien. Den Angebotspreis ermittelt er schließlich anhand der regionalen Baupreisverhältnisse in Form einer „Marktanpassung“. Welches Verfahren das passende ist, hängt letztlich von der spezifischen Immobilie und den örtlichen Gegebenheiten ab. Mit einem verlässlichen Partner können Sie sich jedoch darauf bauen, dass Sie mit dem idealen Verfahren den bestmöglichen Angebotspreis erhalten.

Which factors are decisive for the real estate valuation?

Factors affecting property valuation can vary and depend on the various characteristics of your property. In any case, the supply-demand ratio on the regional real estate market is central to the market value of houses and apartments. The supply of comparable, current properties in a similar or the same location is decisive for the demand.

The following applies here: the more similar offers, the lower the market value. The fewer comparable offers, the higher the real estate valuation.

The following factors are decisive for vacant and rented properties:

  • location of the property
  • environmental factors
  • House type and build quality
  • Possibilities of using the property
  • Standard land values (based on similar land sales)
  • year of construction of the property
  • living and usable space
  • condition of the property
  • Energy efficiency and modernization works
  • equipment standard

In the case of rental properties, the following factors must also be taken into account:

  • Amount of potential rental income
  • maintenance costs
  • Observance of rent levels
  • possible rental price brake

Which criteria are important for experts in property valuation?

The main criteria for determining the market value are:

– Object relatedness:

When evaluating real estate, the market value always refers to the specific property or plot of land.

– value orientation:

The aim of the appraisal is the specific market value of the property in question.

– Key date reference:

Determined market values always refer to the date of the expert opinion.

– Ordinary business transactions:

In addition to the properties of the property, the current and past values and price developments for comparable properties are also taken into account.

– Regardless of personal circumstances:

Personal circumstances of the owner or seller play no role in the valuation and are not included in the evaluation.

Are commercial real estate and residential real estate valued differently?

The difference in the valuation of commercial and residential real estate lies primarily in the valuation method that the appraiser uses to determine the value. Real estate used by owners is primarily valued using the real value method, whereas the market value of commercial and rental properties is determined using the discounted earnings method. The value of owner-occupied residential properties, on the other hand, is usually determined using the comparative value method.

SERVICES

Real estate appraisal services

  • Professional & individual valuation by experts according to ImmoWertV
  • Recording & consideration of all special features of your property
  • Determination of the best buy or sell price
  • Tailored marketing package for sales
  • Professional marketing incl. high-quality exposé
  • Fixed contact person & personal support for your property
  • Berlin, Dusseldorf, Hamburg

REAL ESTATE VALUATION

Valuing a property: What are the costs for the expertise?

The cost of an expertise depends on the scope of the expert’s tasks and should be negotiated as early as possible. The cost of the appraisal is based on the market value of your property plus the cost of the appraisal.

As a guideline, the Federal Association of Experts specifies a fee of 1,500 euros for a property value of less than 150,000 euros and around 3,000 euros for a property value of more than one million. For a short report you have to reckon with costs from 500 euros. However, be aware that a short appraisal is not legally binding, but rather represents a professional appraisal that does not offer the depth of the property’s value.

Of course, you can also get an initial price overview and carry out an initial real estate appraisal online free of charge. Various online calculators and comparison tools are available for this purpose.

Which bodies support the valuation of real estate?

There are various contact points that will support you in determining the value or evaluate your property directly. You can consider the following positions:

  • Real estate agents who offer real estate appraisal as a service.
  • Comparison portals that enable real estate appraisals online free of charge.
  • Qualified appraisers and experts (e.g. architects, engineers and brokers) who carry out a complete property valuation.

With Flexmakler you can use the online calculator to evaluate your property free of charge in order to get an initial price estimate and also take advantage of comprehensive advice, property inspections and property valuations from our experts.

What online tools are there for property valuation?

Anyone who is still at the very beginning of a real estate sale may want to get a rough overview of price comparisons and offers before starting a specific marketing strategy.

There are an increasing number of online tools that offer free home valuations in just a few minutes. When using an online comparison calculator, however, you must be aware that this is not an assessment by experts.

What online tools can deliver quickly and conveniently is a price estimate based on comparisons of offers and value developments in the real estate sector. However, the estimated value is general and only uses your information on location, construction, year of construction, living and usable space and equipment.

A first impression of possible sales prices gives you a first basis for negotiation when evaluating and pricing your property. However, trained experts cannot be replaced by online tools.

Among the many online providers, there are only a few that deliver really reliable values. The most popular and trusted online tools include the following providers for an assessment:

  • real estate world
  • Immobilienscout24
  • sprinkler
  • flex broker

Can a free property appraisal be trusted?

Not every provider who offers a property valuation online free of charge is also trustworthy. As in many cases in the digital service sector, the following often applies here: If you get something for free, you pay with your data.

There are more than enough free offers. Above all, they rely on the fact that a property sale should often take place promptly and with as little effort as possible. However, an evaluation of your property that takes all aspects and factors into account and creates an individual offer in line with the market is not possible if the property evaluation is carried out free of charge and online.

In addition, there is a risk that a free home appraisal for less trustworthy providers is only used to quickly obtain brokerage orders without ultimately assuming liability for the sale. In these cases, the attractive price estimate rarely corresponds to the true market value.

So make sure that you stick to reliable and tested providers such as Flexmakler when searching. Immowelt, Immobilienscout24 and Sprengnetter are also reputable providers. Above all, do not make any economic decisions based on incomplete analyses, because free and fast services cannot replace the expert knowledge of experts.

With Flexmakler you not only have the opportunity to get an initial orientation based on well-founded analyzes free of charge through an online property valuation. You can also contact our experts directly afterwards in order to determine a concrete and trustworthy market value for your property and to develop a marketing strategy.

Can the market value also be determined anonymously?

Anyone who decides to determine the market value of their own property online and free of charge probably wants one thing: an anonymous preliminary assessment and the best possible data protection. With a service such as the valuation of real estate, however, it is unavoidable to provide essential data on the location and condition of a house or apartment. The more data on the property is available, the more specific the evaluation will be. The less data you want to provide, the less accurate the result will be.

If you choose Flexmakler, you can rely on safe and trustworthy handling of personal data. In addition, you are in direct contact with our personal advisors, who will help you to determine a reliable and concrete market value.

What distinguishes a reputable appraisal?

Not every real estate sale requires a certified market value appraisal. However, when it comes to court proceedings, inheritance and divorce matters, tax issues or asset transactions, you need a legally reliable real estate appraisal in the form of well-founded and court-approved market value reports.

A reputable appraisal is a full appraisal that is only prepared by officially recognized appraisers and qualified experts. In any case, the experts should be familiar with the location-specific real estate market.

An appraisal can be prepared for undeveloped land as well as for condominiums/houses and commercial or commercial real estate. It must comply with paragraph 194 of the Building Code and the valuation must be based on the provisions of ImmoWertV and the guidelines of the Federal Ministry of Transport, Building and Urban Development.

A reputable report must contain at least the following:

  • Legal conditions of valuation
  • Specific properties and condition of the property
  • Property location and other value-increasing or -reducing valuation factors

The property value is determined and recorded in the appraisal using pricing mechanisms on the property market and under normal business conditions. Unusual and personal circumstances of the property owner are not taken into account.

Which software can be used to value a property?

Professional real estate appraisal software is particularly important for appraisers and brokers. It should be emphasized that even sophisticated evaluation software cannot replace the experience and knowledge of experts, but can only supplement it.

Automation of comparable standards and real estate properties is quite common and hardly conceivable on the current real estate market without digital support. However, complex analyzes require the expertise and experience of real estate agents and appraisers.

There is a whole range of established and reliable software that helps real estate appraisers with the evaluation. The following software products are among the best known and most popular applications:

  • RIWI (Regional Real Estate Information System)
  • Property Value Check
  • asset check
  • QUIS
  • Sprengnetter AVM (Automated Valuation Model)

Promising newcomers among assessment software products are:

  • STmate
  • Price Hubble
  • RELAS
  • LORA
  • IMBAS

What role does IFRS play in the valuation?

The first thing to be clarified is: What does IFRS actually mean? IFRS stands for International Financial Reporting Standards. The IFRS are accounting standards that apply to companies internationally and are issued by the International Accounting Standards Board. They make it possible to compare operating results separately from national accounting standards for the world market and to promote cross-border standardization of real estate valuation.

Two principles are central to the IRFS:

1. Accrual principle:

Balance sheet items are assigned and considered in terms of time.

2. Continuation principle:

When evaluating balance sheet items, it is assumed that the company will continue to operate.

The IFRS play a role in real estate valuations in that the market for international real estate transactions is becoming more and more dynamic and flexible, and experts therefore have to keep an eye not only on national value developments, but also on international market value trends.

Internationally, the IFRS also have a significant impact on German valuation standards. It is all the more important to be able to rely on a reliable valuation and to stick to experts who can prepare appraisals based on the standardized, internationally recognized IFRS rules.

Which points are important for the market value?

The value of a property is determined by various objective criteria, all of which must be considered and evaluated in the context of the individual property valuation. The following factors are particularly important when it comes to determining the value.

1. Condition and characteristics of the property:

The real estate value essentially depends on the year of construction, the current condition and the need for renovation. Completed or pending modernization and renovation work can increase or decrease the value. Equipment, type of construction and materials are also important. When it comes to equipment, a distinction is made between simple, medium, upscale and very upscale equipment.

2. Energy standard:

The energy standard is part of every assessment. An energy certificate must be available for every house sale. Energy consumption or requirement certificates are in turn dependent on the year of construction and the type of property.

3. Location analysis:

The location and the local supply-demand situation have a major impact on the value. A distinction is made between macro and micro locations. The macro location evaluates the property according to its regional or urban location. The micro-location evaluates the immediate location of the property in terms of road proximity, neighborhood, district, shopping and childcare facilities, pollution and connection to local public transport.

4. Living and usable space:

A main criterion in determining the market value is the determination of living space, which determines the real estate value on the basis of living and usable space.

Is there a valuation difference between houses and apartments?

For the valuation, it basically makes no difference whether you want to have an apartment or a house appraised. For appraisers, it is first of all decisive whether it is a condominium or a condominium or whether a commercial property is to be sold. Further details and factors are then determined during the inspection of the property and the evaluation of the necessary property documents and information.

What specialist literature is there on the subject of property valuation?

The ImmoWertV (Real Estate Value Determination Ordinance) is a central reading matter for real estate valuation. In it you will find the key legal regulations and criteria for current valuation standards for real estate explained.

If you are looking for further specialist literature on real estate valuation, the following texts are recommended:

  • The valuation reform with all changes 2010 by Thomas H. Garthe
  • ImmoWertV – The new valuation law – Commentary on the real estate determination regulation by Hans-Otto Sprengnetter
  • Land valuation for practitioners by Klaus Bernhard Gablenz
  • ImmoWertV. Commentary by Peter Zimmerman

What should be considered when choosing experts?

When choosing a reputable expert, the most important thing is to pay attention to legal and technical knowledge and a connection to the location. Only consultants who are familiar with the local real estate market are able to give the best possible assessment for your individual sales project.

Choosing the right appraiser is very important because an incorrect valuation can result in you having to undersell a property if it stays on the market for too long. It is therefore all the more important to have an expert at your side who assumes liability for a market value determination and explains the value determination to you in a transparent and understandable way.

With Flexmakler you can rely on reliable and experienced partners who are keen to support you in the valuation and marketing of your property.

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