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REAL ESTATE VALUATION

Your property valuation with Flexmakler

As soon as the 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 real estate. Anyone who owns a residential or commercial property ultimately wants to present it at the best possible value on the real estate market. It is also in the interest of buyers not to buy an object at a purchase price above its actual value.

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

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

Who may determine the market value of a property?

Before you start the actual sale of a property, it is important to consult experts and appraisers. The valuation is regulated in the Real Estate Valuation Ordinance, ImmoWertV for short. The processes and procedures on the basis of which the valuation of a property is prepared are binding for independent and qualified experts and appraisers. These are mostly qualified architects, engineers and officially licensed appraisers.

Please note above all that in the case of legal disputes a publicly appointed expert is usually necessary. Only he can provide you with a full expert opinion that will stand up in court. In the case of a simple real estate valuation for the sale of a house or apartment, on the other hand, an officially certified appraiser is not necessarily required. The valuation can already be carried out reliably by qualified experts and real estate agents.

Alternatively, there is the possibility to carry out a real estate valuation online free of charge. Who lets however with on-line comparison computers real estates evaluate, it must be clear over the fact that it concerns here first only not concrete estimate and comparison values.

If you want a realistic value that does justice to your property in detail, it is necessary not only to use your own estimated values, but to leave the property valuation and the offer price in the hands of experts.

Which legal regulations exist for the determination of market value?

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

Legally recognized is only the market value, also market value, of a property. The German Building Code (BauGB) defines this as the concrete price for a property that can be achieved for the property in normal business transactions at the time of the valuation. The market value is not a fixed value, but is flexibly oriented to the current real estate market situation. In the case of a certified appraisal, the day of the appraisal is valid for the validity of the value.

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

  • Paragraph 194 of the German Building Code (BauGB): regulates the determination of market value based on the open real estate market, the characteristics of a property and the location.
  • mmoWertV: The market value of a property must be based on current market conditions.
  • DIN 277 for calculation of living space: Supports the calculation of production costs and rent/purchase prices of buildings. Likewise, the standard can be used to compare the usability and profitability of real estate.

Why is a property valuation necessary?

A neutral and reliable offer price is essential for a property sale. This is the only way to avoid considerable price losses when selling your property. An excessively high offer price can lead to a property remaining on the market for too long and ultimately can only be sold by unprofitable price reductions. A too low price in turn leads to avoidable price losses. With reliable expertise and a realistic market value, you can orientate your pricing specifically to current market developments and present your property in a far-reaching and attractive manner.

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

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

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What is the process of a real estate valuation?

No matter whether it is the sale of a 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.

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.de. You simply enter data such as type of property, year of construction, living space and fittings into our price calculator, commission an evaluation 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 the sale of the property in an initial telephone conversation with you. The first question is whether a court-certified market appraisal, as required in divorce or inheritance matters, should be prepared or whether you need the market value for a normal property sale.

Details such as the location, the type of building and the year of construction of the property are also already clarified. Thus, the scope of the valuation can be determined from the outset and a first impression of the property value can be gained. We will then arrange a meeting with you and let you know which documents you need for the property.

Step 3: Property inspection

Once the reasons for the sale and property details have been clarified, the property is inspected by the expert. The market value is determined in full depth in line with the market and it is recorded which value-increasing or value-decreasing features the property has. Above all, factors such as the current condition of the property, possible structural damage, the specific location, the cityscape, energy efficiency and equipment are taken into account. Also the existence of cellar, garage and elevator is considered.

After the inspection, we go through your documents relevant for the sale with you, create an initial marketing strategy and discuss the further time schedule.

Step 4: Result of the valuation

After inspecting the property and viewing your documents, your consultant will provide you with the results of the valuation. Based on this, we will determine the offer price and a concrete plan for marketing together with you.

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

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

If necessary, architects from our network will prepare any other necessary documents such as a floor plan or a living space calculation.

What documents are required for the expertise?

In order to be able to value an apartment or a house, your surveyor or real estate valuer needs all documents belonging to the property, which contain important information about the market value. Gather the documents as soon as the sale of the property is decided or request the documents as soon as possible.

You should have the following documents ready for the assessor:

  • Current extract from the land register
  • Extract from the field map
  • Floor plan of the property
  • Excerpt from the register of building charges (with regard to public-law obligations of the condominium owner)
  • Living space calculation
  • Proof of modernization work

For condominiums, you will need these essential documents in addition to the above:

  • a declaration of partition
  • Service charge settlements
  • a business plan
  • Minutes of the last three owners' meetings

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

  • Leasehold contract
  • Proof of the current ground rent

For listed buildings are also required:

  • a copy of the monument protection order

for rental objects you need additional:

  • rental contracts
  • List of net cold rents
  • Service charge settlements
  • Operating costs

THE THREE VALUATION METHODS

Which methods can be used to value real estate?

For the determination of the market value, the legislator describes in the "Ordinance on the Principles for Determining the Market Value of Real Estate" the following three specific procedures that can be used by an appraiser.

In this procedure, the appraiser compares your property with the achieved purchase prices of similar properties. Data from the purchase price collection of the local expert committee can be used for the comparison. The average values are applied per square meter and compared to the value-increasing and value-decreasing characteristics of your property.

This procedure plays a role in the valuation of rental and leased properties. In this case, the appraiser determines the building income value based on the rental income and maintenance expenses and derives the market value from this, among other things. Key factors for the procedure are management costs, the remaining useful life and the property interest rate. The experience and expertise of the surveyor are particularly important for this procedure, as the value development must also be long-term and take into account risk factors. With Flexmakler you can rely on reliable partners with many years of experience to assist you.

This procedure is used for vacant, self-occupied or rented properties. The appraiser determines the value of land and buildings separately. First of all, the normal production costs are considered on the basis of the "guideline for the determination of the material value", which would be required today for the construction of an identical building. Then the appraiser reduces the market value by deductions due to age reduction for used real estate. Finally, he determines the offer price on the basis of the regional building price ratios in the form of a "market adjustment". Which procedure is the most appropriate one ultimately depends on the specific property and local conditions. With a reliable partner, however, you can be sure that the ideal procedure will give you the best possible offer price.

Which factors are decisive for the property valuation?

Factors that influence the property valuation can vary and depend on the different characteristics of your property. In any case, the supply-demand ratio on the regional property market is central to the market value of houses and apartments. Decisive for the demand is the supply of comparable, current properties in a similar or identical location.

The more similar offers, the lower the market value. The fewer comparable offers, the higher the property valuation.

For vacant and rented properties the following factors are decisive:

  • Location of the real estate
  • Environmental factors
  • House type and construction quality
  • Possible uses of the property
  • Standard land values (based on similar land sales)
  • Year of construction of the real estate
  • Living and usable area
  • Condition of the property
  • Energy efficiency and modernization work
  • Equipment standard

For rental properties, the following factors must also be taken into account:

  • the amount of potential rental income
  • Maintenance costs
  • Observance of rent index
  • possible rent brake

What criteria are important for experts in real estate valuation?

Essential criteria in determining the market value are

Property-relatedness:

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

Value orientation:

The objective of the valuation is the concrete market value of the property in question.

Reference date reference:

Determined market values always refer to the date of the appraisal.

Ordinary business transactions:

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

Regardless of personal circumstances:

Personal circumstances of the owner or seller are not relevant for the valuation and are not included in the valuation.

Are commercial and residential properties valued differently?

The difference in the valuation of commercial and residential real estate lies primarily in the valuation procedure used by the expert to determine the value. The valuation of real estate used by owners is primarily based on the real value method, whereas the market value of commercial and residential properties is determined according to the capitalized earnings value method. The value of owner-occupied residential property, on the other hand, is usually determined using the comparative value method.

SERVICES

Real estate valuation services

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

VALUATION OF REAL ESTATE

Valuing real estate: 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 costs for the valuation are based on the market value of your property plus the valuation expenses.

As a guideline, the Federal Association of Valuers specifies a fee of 1,500 euros for a property value of less than 150,000 euros and around 3,000 euros for a value of over one million. For a short appraisal you have to expect costs starting at 500 Euro. Be aware, however, that a short appraisal is not legally binding, but rather represents a professional estimate that does not offer the depth of the real estate value.

Of course, you can also get a first price overview and carry out a first property valuation online free of charge. Various online calculators and comparison tools are available for this purpose.

Which agencies provide support in the valuation of real estate?

There are various contact points that can assist you with the valuation or directly evaluate your property. You can consider the following agencies:

  • Real estate agents who offer property valuation as a service.
  • Comparison portals, which allow a free online property valuation.
  • Qualified appraisers and experts (e.g. architects, engineers and estate agents) who perform a complete property valuation.

With Flexmakler, you can use the online calculator to value your property free of charge in order to obtain an initial price estimate and also take advantage of comprehensive advice, property inspection and property valuation by our experts.

What online tools are available for property valuation?

Anyone who is still at the very beginning of a real estate sale might want to get a rough overview of the price comparison and the offer before a concrete marketing strategy is made.

There are an increasing number of online tools that offer a property valuation free of charge and in just a few minutes. When using an online comparison calculator, however, you must be aware that this is not the valuation of experts.

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

A first impression of possible sales prices will first provide you with a first basis for negotiations when evaluating and pricing your property. However, trained experts cannot be replaced by online tools in any way.

Among the many online providers, there are only a few that provide truly reliable values. Among the most popular and trustworthy online tools are the following providers for a valuation:

  • Real Estate Scout24
  • Immobilienscout24
  • Blasting Nets
  • Flex broker

Is a free real estate valuation trustworthy?

Not every provider who offers a free online property valuation is trustworthy. As with 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. These focus primarily on the fact that a property sale should often be carried out promptly and without much effort. However, an evaluation of your property that takes all aspects and factors into account and creates a marketdriven, individual offer is not possible if the property evaluation is free of charge and online.

In addition, there is the danger that a free house evaluation for less trustworthy offerers serves only to receive mediation orders on fast way without taking over the adhesion for the sales at the end. The attractive price estimate in these cases rarely corresponds to the true market value.

So make sure that you stick to reliable and tested providers such as flex brokers when searching. Immowelt, Immobilienscout24 and Sprengnetter are also reputable providers. Above all, don't make any economic decisions based on incomplete analyses, because free and fast services cannot replace the expertise of experts.

With Flexmakler you not only have the possibility to get a first orientation based on wellfounded analyses by an online real estate evaluation free of charge. You can also contact our experts directly afterwards to determine a concrete and trustworthy market value for your property and develop a marketing strategy.

Can the market value also be determined anonymously?

If you decide to determine the market value of your own property online and free of charge, you probably want one thing: an anonymous preliminary estimate and the best data protection. With a service such as real estate valuation, however, it is unavoidable to provide essential data on the location and condition of a house or apartment. The more data is available on the property, the more concrete the valuation will be. The less data you want to provide, the less precise the result will be.

If you choose Flexmakler, you can be sure that personal data will be handled securely and confidentially. In addition, you are in direct contact with our personal advisors, who will help you determine a reliable and concrete market value.

What distinguishes a serious expert opinion?

Not every property 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 sound real estate valuation in the form of a well-founded and legally admissible market value appraisal.

A reputable expert opinion is a full expert report that is only issued by officially recognized experts and qualified appraisers. The experts should in any case 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 industrial properties. It must comply with Section 194 of the German Building Code and the valuation must be based on the regulations of the ImmoWertV and the guidelines of the Federal Ministry of Transport, Building and Urban Affairs.

The following are the minimum contents a serious appraisal must include:

  • Legal conditions of the valuation
  • Concrete characteristics and condition of the property
  • Property situation and other valuation factors that increase or decrease in value

The value of the real estate is determined and recorded in the expert opinion on the basis of pricing mechanisms on the real estate market and under conditions of normal business transactions. Unusual and personal circumstances of the real estate owners are not taken into account.

Which software can be used to evaluate a property?

Professional software for real estate valuation is especially important for experts and real estate agents. Here it must be emphasized that even a sophisticated valuation software cannot replace the experience and knowledge of experts, but can only supplement it.

An automation of comparable standards and real estate properties is quite common and hardly conceivable on the current real estate market without digital support. Complex analyses, however, require the expertise and experience of real estate agents and experts.

There is a whole range of established and reliable software available to help real estate valuers with their analyses. The following software products are among the most wellknown and popular applications:

  • RIWI (Regional Real Estate Information System)
  • Real Estate Value Check
  • Asset Check
  • QUIS
  • Springnetter AVM (Automated Valuation Model)

Promising newcomers under evaluation software products are:

  • STmate
  • Price Hubble
  • RELAS
  • IMBAS
  • IMBAS

What role does IFRS play in the valuation?

At the beginning it has to be clarified: What does IFRS actually mean? IFRS stands for International Financial Reporting Standards. 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 the cross-border standardization of real estate valuation.

Two principles are central to the IRFS:

1. the principle of accrual accounting:

Balance sheet items are allocated and considered over time.

2. principle of continuation:

The valuation of balance sheet items is based on the assumption that the company is a going concern.

The IFRS play a role in real estate valuation insofar as the market for international real estate transactions is becoming more and more dynamic and flexible, and experts must therefore keep an eye not only on national performance but also on international market value trends.

Internationally, the IFRS also have a significant impact on German valuation standards. This makes it all the more important to be able to rely on a reliable valuation and to rely on experts who can prepare fair value 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 depends essentially on the year of construction, the current condition and the need for renovation. Completed or still pending modernization and renovation work can increase or decrease the value. Equipment, building type and materials are also important. When it comes to furnishings, a distinction is made between simple, medium, upscale and very upscale furnishings.

2. energy standard:

The energy standard is part of every evaluation. An energy certificate must be available with every house sale. Energy consumption or demand certificates again depend on the year of construction and the type of property.

3. location analysis:

The location and the supply-demand situation on site have a great influence on the value. A distinction is made between macro and micro location. 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 street proximity, neighborhood, quarter, shopping and childcare facilities, immission loads and connection to public transport.

4. living and usable area:

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

Is there a valuation difference between houses and apartments?

For the valuation, it makes basically no difference whether you want to have an apartment or a house valued. For valuers, the first thing that matters is whether the property is a condominium or an owner-occupied house or whether a commercial property is to be sold. Further details and factors are then determined when the property is inspected and the necessary property documents and information are evaluated.

What specialist literature is available on the subject of real estate valuation?

One of the central readings on real estate valuation is the ImmoWertV (Immobilienwerteermittlungsverordnung). It explains the decisive legal regulations and criteria for current real estate valuation standards.

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 - Das neue Wertermittlungsrecht - Commentary on the real estate determination regulation by Hans-Otto Sprengnetter
  • Property valuation for practitioners by Klaus Bernhard Gablenz
  • ImmoWertV. Comment by Peter Zimmermann

What should be considered when choosing experts?

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

The choice of a suitable expert is of great importance, because a wrong valuation can lead to the fact that you have to sell a property under value if it remains on the market too long. It is therefore all the more important to have an expert at your side who assumes the liability for a market value assessment and explains the valuation to you in a transparent and comprehensible manner.

At 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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