PROFESSIONAL PROPERTY VALUATION IN HAMBURG AND SPAIN

The actual value of a house, apartment or land is always individual and depends on a variety of factors. These include:

• Year of construction
• Building condition (for example in need of renovation, well maintained or as new)
• Building features (e.g., number of floors, balcony, underground parking, basement, extension options, etc.)
• Plot size
• Living area
• Surroundings and location

In many regions enormous increases in value are apparent, which are mainly related to the growth in metropolitan areas. Recent statistics show that over the past 15 years, there has been a huge growth in square metre prices. Therefore, the value of a property is always in relation to the current market developments. For example, comparative prices from current sales are also included in addition to the official ground reference value.

In a professionally conducted property valuation, owners learn about the potential of their property. An estate agent takes all relevant data into account and determines a realistic selling price, which could hardly be determined by non-professionals. A professional property valuation always targets the current market value and the more precisely this is done, the more likely a timely sale can be achieved. Furthermore, potential buyers can rule out the risk of a property being over priced. That in turn would lead to a lengthy sales process.

There are various ways to create a market value assessment for a property. Compared to a free property valuation, a market value assessment is a fee-based valuation that has significantly higher requirements. The creation of a market value assessment is more extensive than a property valuation and often takes up to four weeks. Depending on what the assessment is needed for, different assessments are drawn up:

• Sales comparison approach
  A sales comparison approach is mainly used in the valuation of owner-occupied properties and land. In this market value assessment, the purchase price group of the regional expert committee forms the basis for the valuation.
• Income approach
  This report is used for rented properties. In this method, the market value is determined based on the value of the land and the value of the building. This results from the rental income and costs for the management of the property.
• Asset value approach
  Banks use this valuation regularly to determine the value of a property. The asset value approach determines the market value based on the asset value of land and buildings. The basis is the local ground reference value and the building asset value.

The market value and the ground reference value often get mixed up. The latter is an officially determined value that applies to a certain marketing area. It is an average for certain zones subject to similar or equal usage. Here, differences are made between agricultural and forestry land, other commercial land and plots of land with residential buildings on them. The ground reference value itself serves as a basic orientation, especially for undeveloped land, and therefore enters into the calculation of a valuation. The determination takes place once a year by the responsible Federal State and is a guideline or reference value, as the name already suggests.

The market value is however considerably more significant. This is determined according to § 194 of the Building Code on the basis of location, equipment, the structural condition and comparison prices. The market value is therefore the most important basis for a professional price determination, since all relevant parameters are taken into account and the ground reference value also plays an important role.

If you want to sell a house or apartment, as a rule no state-certified assessment is necessary. It is different, however, when an inheritance is to be shared among several parties. In the end, each individual receives a certain share, to which a value has to be assigned. Whether it is a comparison, a consensual solution regarding the division or part of a legal process: With an assessment, you will be on the safe side when it comes to determining specific value shares. The same applies to divorces and the division of assets associated with them. However, assessments also provide detailed information about necessary refurbishment work and help to specify the extent and investment costs.

When pricing, sellers and estate agents have some room for manoeuvre. The higher the selling price, the greater the profit margins for both parties. However, a reputable estate agent will always focus on the price that was determined, in order to meet its own target requirements. On the one hand, a fair and market adjusted value in favour of the owners must be given and on the other hand an achievable object value, which serves as the basis for a successful sale.

A sale, however, only comes about when interested parties not only come to view, but also express a serious interest in buying. If the price established is clearly above the market value, a stop will soon be put to the conveyance transaction, at the latest when banks and other lenders get involved. In a minor range, however, it sometimes makes sense to establish an increased price if this value will be reached in the next one to two years anyway. Especially in regions with high demand, such an approach is common practice.

This question is asked above all by owners who want to sell their property. So it is not surprising that opinions differ widely regarding this point. One thing is for sure: Only few and really valid reasons cause a decrease in value. An unkempt appearance or old furniture, for example, are not included. Rather, serious defects in the structure of the building which are clearly recognisable such as an old, leaky roof, penetrating moisture in façade components, an outdated, defective heating system or urgently needed refurbishment work. Reductions in value can also be caused by monument protection restrictions, which do not allow any reconstruction measures and only allow substance-preserving work by specialised companies. If the property is located in the area of river floodplains / water conservation areas, in flight paths or near busy motorways, the location often causes a reduction in value.

Many estate agents offer a free valuation by means of online tools, but you can trust them? Local estate agents know the property market in detail and are also familiar with the specifics. They build on many years of experience in the sector, which guarantees a sound and professional property valuation. So you can be sure that they will establish a realistic price for your property.