A property valuation determines the current value of a property by an expert. Through an appraisal, the value of the property is assessed. Depending on the purpose of the valuation, different types of values need to be distinguished. The most well-known of these are:
Property Valuation by an Expert
Property Valuation – What Exactly Is It?
Market Value
This refers to the market value of the property, i.e., the possible purchase price. To determine the market value, either a full market value appraisal (Verkehrswertgutachten) or a shorter appraisal (Kurzgutachten) is suitable.
The market value is defined as the current value of a property on the open market. According to § 194 BauGB (German Building Code), the market value is the price that can be achieved when selling a property under normal business conditions, regardless of personal circumstances. The market value appraisal records the current market value of a property based on all important factors. Legal regulations for determining market value can also be found in § 6 ImmoWertV (2021).
Mortgage Lending Value
This value is required by companies or private individuals when presenting the property as collateral to banks or credit institutions. The expert must determine the value at which the bank could realistically sell the property in the long term. The higher the lending value, the more secure the bank’s credit approval will be.
An experienced expert can determine the realistic resale value of your property — a crucial figure for banks to assess the risk of a loan. Secure better loan conditions with a high lending value! Have your property valued now and use this as a solid foundation for your financial plans. Take control of your financial well-being!