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types of procedures for valuation of real estate


How is determined the value of a property?
market value appraisals must be prepared in accordance with statutory guidelines WertV (valuation regulation).
The derivation of the necessary data must be made according to these guidelines.

There are three different methods by which one can determine the line with the market value of real property and land. It is to the income approach, the asset value method and the comparative value method. These methods can be applied individually or supportive.

The asset value method it is usually then determining the worth, if it is the property to a self-use property (such as a condominium or a detached house).
§ 21 (1) WertV
In applying the intrinsic value method, the value of the physical structures, such as buildings, grounds and special facilities, and to determine the value of other assets, separate from land value to production values. (§ 21 WertV (1) The

income value is generally then used to determine if it is a profit-oriented property is (an example Apartment building).
§ 16 (1) WertV
In determining the profitability of the construction has to start from the sustainably achievable annual net income of the property. The net proceeds resulting from the gross profit (§ 17 WertV) less operating expenses (§ 18 WertV).

The comparison approach then applied when purchasing prices of comparable properties or real estate available in ample supply. This method is often also, and thus applied supportive.
§ 13 (1) WertV
In applying the comparative value method are purchase prices of such properties approaching draw greater in terms of their Value-influencing characteristics (§ § 4 and 5) with the property being valued sufficiently match (compared with the land). Found in the area where the property is located, not enough purchase prices can also be used comparison sites from comparable areas.