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Home appraisal and your property value

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Market value and mortgage lending value

A real estate appraisal is always necessary when a property changes hands. This is the case when buying or selling, but also when dividing assets, foreclosures, divorce proceedings, or if the property is part of an inheritance estate. A distinction must be made here between the market value and the mortgage lending value. The market value is determined as of a specific date and serves to establish a value that can currently be achieved on the market in the form of a purchase price. This means that the market value and sales value are usually identical. The mortgage lending value takes into account fluctuations in the value of the loan collateral over the entire term of a loan for a property. This is usually lower than the market value.

Methods of determining property value

There are various recognised methods for determining the value of a condominium or calculating the value of a house. The valuation in kind method is based on the market value of a property, taking into account the production costs. The appraisal is carried out for developed properties which are marked by personal use, e.g. purchase or new construction. The calculation is based on the land value, the value of the other assets, and the value of the buildings. If the focus is not on personal use but on the yield of the investment, valuers and experts use the capitalised earnings method. This is often the case with apartment buildings, for example. In addition to the land value and the value of the buildings, the sustainable annual net rent plays an important role in the calculation. In the comparative value procedure, prices for similar properties are compared, for example with regard to the plot of land, the area or the residential location. This appraisal method is mainly used for detached or semi-detached houses, terraced houses of identical construction, or apartments.

The value of the property depends on various factors such as the condition and location of the property

A price determination by specialists is worthwhile

If you would like to determine the value of a property, we are happy to help you with real estate appraisals. On request, we will be happy to carry out a non-binding calculation to determine the value of a condominium or to calculate the value of a house. This gives you the opportunity to determine the value of your house - without having to provide any personal details. The appraisal of listed properties is also one of our services. In order to determine the value of a house, we first conduct an on-site appointment, during which our appraisers make an assessment of the property and its condition. On the basis of a market analysis, we make the price assessment and, above all, have the optimum proceeds for you as a client in mind. We also assist you in the sale of real estate, procure the necessary documents, prepare an exposé and, if desired, take care of the preparation of the property.

How to precisely determine the value of your property

In order to determine a realistic price for a property, the appropriate appraisal procedure plays a central role. It can make sense to use different assessment methods. Overall, it is not only the properties' characteristics such as location, condition, and market value that are important, but also your individual standards and requirements. As real estate experts, we provide you with professional support and place our experienced appraisers and experts at your side to assist you in determining the value of the property. In order for you to determine the price of a property in a targeted and precise manner, it is advisable to make use of expert knowledge. The property value should be determined, for example, when negotiating the price for the purchase or sale of a property, when taxing inheritances, when reviewing homeowners' insurance or when the value of a property increases due to an extension or conversion. The main factors influencing the value of a property are the condition of the building, the location, the fittings and individual criteria.

Frequently Asked Questions

Written by:

Stefanie Aust, Guest Writer

Stefanie loves to put complex topics from the real estate world into understandable and inspiring words. Whether it's about the right financing, choosing the right type of flat, or a successful property search: Stefanie is happy to inform you.

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Immowelt-Partner EVERESTATE GmbH

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