Online tools for calculating property values: Useful or just a rough guide?
There are numerous free online calculators available on the Internet that you can use to obtain an estimated value for your property in just a few minutes. However, these quick tests are not official valuation methods in accordance with the German Property Valuation Ordinance (ImmoWertV) and only provide a rough guide.
How do the online calculators work?
Most tools require basic information such as
- Location (postcode)
- Living space
- Number of rooms
- Type of property (detached house, flat, terraced house, etc.)
- Condition of the building
The online calculators then compare this data with information from their database to determine an approximately suitable value.
Challenge: Data quality and comparability
The quality of the results depends heavily on the underlying database. Sometimes only asking prices are used, which are often higher than the actual sales prices realised. In other cases, the tools use real sales data based on information from local expert committees. The problem is that the database of these online tools is usually not transparent for users.
In large cities with lively property markets, the data situation is generally better than in rural regions. It is also easier to compare a flat with other flats than a detached house, where numerous individual factors influence the value.
Only a rough guide
An online calculator can give you an initial impression of whether you are in the right value range. However, these quick tests are not sufficient for a realistic asking price or a legally compliant valuation. Under no circumstances should you set a sales price based solely on an online tool.
Professional valuation is essential
Anyone who needs to know the exact value of their property, for example because a sale, letting or inheritance is imminent, should definitely consult an expert. Qualified estate agents, architects or building experts use recognised methods to determine a well-founded market value. These methods take into account numerous factors that an online calculator cannot fully reflect.
Get non-binding advice now
Robert Schüßler
Property valuer (EIA and IHK)
