When buying a property, the price of the house or apartment is specified by the broker or the seller. However, whether it is the actual value, confuses many potential buyers. You therefore ask yourself the question of how the value of a property can actually be determined. Below, we will give you an idea of what you should pay attention to.
Determining the value of a property is not possible
If you are unsure whether the required price for the desired property actually corresponds to the right value, then you want to hedge here, of course. However, as a layman, you can not do this alone. When valuing a property, many things play a role . In addition to the building fabric, modernization and the energy certificate, the location and development of the environment are also important. This can only be assessed by an independent expert or expert.
Factors for the valuation
Not only the house itself is in the foreground, when it comes to determining the value. Even if the seller likes to see it that way. Of course, restorations, quality materials and a very well-equipped energy pass are important points for the value of a property. Not to be underestimated, however, are the facts of the micro-location . Where is the house? Are shops in the area? There are three different procedures for determining the value itself.
The comparative value method
This procedure is the preferred way to investigate undeveloped land and condominiums. On the basis of land or apartments in similar location and facilities, a value is set. However, this only works if there are sufficient comparison values. Few are not enough to get a complete picture. If you would like to buy a condominium in a larger house, you can contact the neighbors and ask how high the prices per square meter for their apartments were. Mostly neighbors like to help.
The income value method
Both the property and the land are treated differently in the income approach procedure. The valuation of the property in this case is based on the comparison value method. The property is estimated with the expected income. Therefore, this process is mainly used in real estate, where yields are expected, such as in commercial buildings or even residential properties with multiple rental units.
The material value procedure
Again, the land value is determined using the comparison value method. Add to that the value of the building. This is composed on the basis of the buildings, the surrounding grounds, facilities. The tangible process is the most widely used process when it comes to the valuation of real estate, such as single-family homes.
The appraisal of real estate at a glance
If you want to buy a house or another property, it is generally advisable to include the costs for a valuation via an appraiser. Some real estate owners are of their own volition to bear the costs themselves and make it so clear that the stated value is not too high. But you have no claim to that. However, the seller may not object if a potential buyer wants to make that estimate . Even online, the valuation of a property is possible, but these are only rough estimates.