The value of a property is determined by a combination of various factors such as location, size, condition, features and market demand. In the case of agricultural, forestry, equestrian and related properties, other characteristics naturally play a role, for which a certain level of expertise is required.

Location:

The location of a property plays a decisive role in determining its value. Properties in sought-after locations, e.g. near urban centers, shopping facilities, schools, public transport and business centers, generally have a higher value than properties in less busy and sought-after locations. Of course, this also has an effect on agricultural and historical properties as well as equestrian facilities.

Size:

The size of a property, both in terms of plot size, square footage and the number of usable rooms, is another important factor in determining its value. In general, larger properties are more valuable than smaller ones.

In the case of farm buildings, rounded-off agricultural land (arable land and / or grassland) is a particularly value-enhancing factor, as it improves the usability for livestock farmers.

Condition:

The condition of a property is also important in determining its value. Properties that have been well maintained and modernized are generally more valuable than those that are run down and need a lot of renovation and repair work.

Features:

Certain features or unique selling points of a property, such as high-quality floor coverings, modern technology, exceptional gardens or parks, can also increase its value.

Market demand:

Finally, the current demand for real estate in the area where the property is located also affects its value. If many buyers are looking for properties in a particular area, this can increase the value of the property.

Overall, the value of a property is determined by a combination of these factors as well as other market conditions and trends (interest rate situation, etc.).

In order to be able to market a property, its market value must first be determined as precisely as possible. There are various methods for this, all of which should ideally be used to determine the market value:

1. Comparative value method:

In this procedure, the comparative value of the property is determined. This is based on the purchase prices of other comparable properties (standard land value) and real estate (standard real estate value) in the region.

Standard land value:

The standard land value is the value for one m² of undeveloped land, assuming that the area is developed. The legal basis for the valuation is the German Building Code (BauGB). The standard land value is calculated from the average of all officially collected values or purchase prices in the relevant category that are typical for the location.

The different categories of standard land values are Standard land value for forestry, agriculture (arable land), agriculture (grassland), land ready for construction in inner and outer areas and commercial building land.

The expert committees for property values are responsible for the assessment. In North Rhine-Westphalia, these are located at the surveying and land registry offices of the independent cities and districts. The standard land values are validated annually.

Asset value method:

In the complex asset value method, the production costs for a property are determined (notional new build) and adjusted according to age. In addition, the land value, which is determined using comparative values or standard land values (see above), is added.

The asset value method is defined by the ImmoWertV in conjunction with the Asset Value Directive and the German Building Code.

A large number of factors are taken into account: Type of building (use, construction method, basement, number of storeys, extension status, roof shape, fittings (...)), age, usable and gross floor area.

For a wide variety of building types - including agricultural buildings such as cattle, pig and poultry barns, multi-purpose halls, etc. - there are standard production costs defined in the Property Value Guideline, divided into various standard levels. Changes in construction costs between the valuation date and the date on which the comparative costs are derived are taken into account through indexation.

The age-related wear and tear or the remaining useful life results from the year of construction and the usual total economic useful life of the respective building, which can also be found in the Property Value Guideline. The determined remaining useful life must be adjusted upwards accordingly, taking into account any renovation measures.

The resulting current value of the property can be corrected due to special property-specific features by means of premiums or discounts (particularly high-quality fittings, maintenance backlog). The general value conditions on the land and real estate market are also taken into account.

In the case of wooded areas, the material value of the growth is determined using a complex procedure (comparison of the stock value and the output value). This requires extensive specialist knowledge.

The value of the land, which is normally determined using the comparative value method described above, is added to the value of buildings or forestry growth determined using the asset value method. This results in the total value of the developed or - in the case of forest land - the "stocked" property.

1. Income capitalization approach:

The income capitalization approach determines the income value of (investment) properties (rented or leased land and real estate). For this purpose, the net income generated by the properties is capitalized.

The income capitalization approach is defined by the ImmoWertV in conjunction with the valuation guidelines.

Land and buildings are also valued separately in this procedure (comparative value procedure).

The focus is on determining the long-term rent/lease to be generated from the rented/leased space. The amount is influenced by the location, size, facilities, quality and market demand, among other factors.

The income to be generated annually results in the gross annual income. Non-allocable costs such as operating and administration costs, maintenance costs and the risk of loss of rent must be deducted from this. In addition, the return on land value must be deducted in order to determine the net income.

To determine the land value interest rate, the land value is in turn multiplied by the property interest rate, which is also determined by the respective expert committees. The property interest rate depends on the location and use of the property. As with the asset value method, the finite usability of buildings must also be taken into account. The net income is regarded as a constant payment and can therefore be capitalized. The multiplier is derived from the remaining useful life and the property interest rate and can be found in the ImmoWertV table.

After multiplying the net income by the multiplier, the capitalized earnings value of the buildings is obtained. After any additions or deductions, the capitalized earnings value is finally calculated from the value of the buildings and the value of the land.

When determining the market value of properties, the above-mentioned methods are used, if necessary in combination with each other, in order to obtain a value that is as accurate and meaningful as possible. Thanks to our many years of expertise, we can then make a very precise market adjustment so that an appropriate value can be determined as the basis for a market approach.

We are also happy to value your property at a predetermined, manageable price. If subsequent marketing is carried out by our company, the costs for this will be offset or reimbursed. Please contact us without obligation!