In a professional building appraisal, the comparative value method is often used if there are a certain number of comparable properties for the type of property in question. This usually includes owner-occupied flats, undeveloped plots of land and terraced houses.
From a big city flat, you can sometimes find similarly sized and comparably cut residential units in the same house or street. This makes it easy to compare prices. If there is not a sufficient number of similar properties in terms of location, size, fixtures and fittings, age, etc., this method should be dispensed with and the asset value method applied.
The purchase price collections of the local expert committee are used as the basis of a comparative methodology. Here, all notarised property transactions are collected and analysed anonymously.
However, a qualitatively reliable assessment is only possible with a sufficiently large number of comparable sales cases. Alternatively, the standard land value map can be used, which is also maintained by the expert committees. The overview is derived from the collection of purchase prices. Here, among other things, the building use and the land value in the respective locations of the municipality are listed. With such a comparison, the property value can also be fixed.
In addition, the building expert will include surcharges and discounts in the valuation. If the property is exposed to environmental influences or is located on a busy road, these are malus points that reduce its value.
It is important to know that the value of a rented flat that is to be sold as an investment is about 20 percent lower than that of a vacant flat. This is because most prospective buyers are looking for a new place to live themselves. If they want to move into a rented flat, they have to give notice to the tenants of their own need. This type of notice is complicated and often lengthy.
You don't know whether the comparative value method is suitable for your property? We will be happy to advise you.
Photo: AndreyPopov
