REAL ESTATE VALUATION

A real estate valuation involves an expert working out how much your property is worth. The real estate appraiser has to distinguish between two different values depending on the purpose of the valuation:

• The market value:
  Market value is another word for the current value of a property on the market. This therefore gives a property's possible buying price. However, as the buying price largely depends on current developments on the real estate market (i.e. supply and demand), the market value is a very specific value that only ever relates to the day on which the valuation was performed. For instance, the market for similar properties may evolve rapidly over two months due to changes in either demand or supply. This means that, in this case, the market value may be higher or lower. If you need information about the market value of your property, a market value report or a brief report would be suitable for your purposes.
• The lending value:
  Real estate appraisers calculate the lending value particularly when companies or private individuals are interested in obtaining a loan and a property is to be used as collateral for this. In this case, the real estate appraiser has to find out the value for which a bank could sell the property in the long term, independently of volatile market fluctuations if possible. The higher the lending value, the less risky it is for a bank to lend. If you need to calculate a property's lending value, our experts would be happy to write a lending value report for you.

There may be different reasons for requesting a real estate valuation:

• Property sale: If you would like to sell your property and are intending to do so soon, a real estate valuation by an expert is worth it. This is because a professional report offers you an important basis for negotiations.
• Property purchase: If you would like to buy a property professional real estate appraisers can give you an accurate estimate of a property's value during a viewing. They provide you with reliable information about how much the object you would like to buy is actually worth.
• Disagreements on quoted prices: If buyers or sellers are unable to agree on the selling price, a professional valuation creates a transparent and fair basis.
• Inheritance and gifting of properties:
  If you inherit a property or receive one as a donation (gift), you have to pay either inheritance tax or gift tax to the tax authorities. However, in most cases you can reduce the tax payment with a market value report.
• Divorce cases:
  In the event of a divorce, a real estate valuation can provide clarity regarding the assets to be split between the two parties, as a property can increase or decrease in value over time. A real estate valuation by a professional expert creates a clear basis for negotiations relating to the equal distribution of accrued gains and enables a fair split by mutual agreement.
• Compulsory sale or partition by sale:
  If you as a borrower are bankrupt and are unable to repay your loan in any other way, your property will be sold in a compulsory sale. Furthermore, a partition by sale may also take place if a group of heirs cannot come to an agreement on how to use the property. In this case, the basis for the sale is a market value report, which provides information about the property value.
• Checking the plausibility of other reports: If you have doubts about the floor area specified for a property, for example, we recommend that you have this checked by another appraiser.
• Granting of loans and mortgaging of properties:
  If you would like to take out a loan, the credit institution needs collateral from you. This often takes the form of a property. In such cases, a real estate appraiser calculates the value that the property will be able to achieve in the long term if the loan cannot be repaid. The appraiser documents their findings in a lending value report.
• Transfer of business assets to private assets:
  If you are giving up your business and would like to transfer it to private assets, the tax payments will depend on the market value of the property. With a sound real estate valuation, you can be sure that you will not pay any more in taxes than you need to.
• Accounting for properties that are held in fixed assets:
  Properties in fixed assets are considered in companies' accounting procedures to check the book value of the fixed assets and the asset structure. This is an important indicator for investors. This is why, in such cases, it is essential to have the property reliably valued by an experienced expert.
• Calculating the insured value from 1914:
  The 1914 building insured value is decisive when granting residential building insurance. This is because this value is used by insurance companies to calculate the insured sum and the premiums. If you would like to prevent your building being underinsured, an accurate valuation of the property is indispensable.

The value of a property depends on a variety of different factors. These include whether the current value (market value) or long-term value (lending value) is to be determined.

Alongside the type of value, some other factors play an important role for each property, including the following:

• The living space: This is a crucial factor in a real estate valuation. A larger living space will increase the price of a property. A large living space is an advantage if you are planning to have children, you often need room for overnight guests or you work from home.
• die plot size: The larger the associated plot, the higher the value of the property. A large plot offers room for an extension, a carport, a garden or space for your children to play.
• The age of the building: FBuyers have to pay a higher price for relatively new properties compared to older ones. This is because the energy standards of residential properties have continuously improved in recent years. Older houses are often less well insulated and the structural fabric may contain harmful materials.
• The condition of the building: A residential property in as-new condition significantly increases its selling price. A house can be said to be in "as-new" condition if it has a new roof, a new heating system, new windows, sanitary installations and floorings and modern thermal insulation. An older building usually requires refurbishment and therefore additional investment that the potential buyer would have to pay for. This reduces the value of the property. You should carefully check the building's level of refurbishment before purchasing.
• The interior decoration: Aspects of the interior decoration, such as tiles, walls and sanitary installations, affect the selling price. With regular maintenance and any refurbishment that is required, owners can counteract the property's loss of value.
• The presence of a basement: A basement notably increases the value of a house. If it is well insulated and lit, it makes a practical addition to the living space. Its purposes are not limited to a room for building services or as storage space for garden tools, bikes, etc., as it can also be used as a home gym or as a space for parties or for band practice.
• The type of house (terraced or detached house): Terraced houses are usually more affordable than detached houses. In a modern terraced house, you don't need to worry about hearing the neighbours. Double-partition walls prevent sound transmission between the individual units.
• The macro and micro location of the property: The value of a property varies depending on where it is located. As a result, the local property market must also be considered in the valuation. For example, if the plot is located in a rural region with little infrastructure or at a busy junction, the value of the property will be lower. In contrast, having nurseries, car parking and a good connection to public transport nearby increases the property value.

The titles "real estate appraiser" and "real estate expert" are not protected in Germany. This means that in Germany, anyone can give themselves these titles. If you would like to commission a serious expert to professionally implement your real estate valuation, you should note the following titles when making your choice:

• Independent real estate appraisers and experts:
  These appraisers give themselves the title of "independent real estate appraisers" due to their particular expertise in real estate. But in this case, there is no requirement to prove any specific qualifications. A report by one of these experts does not stand up in court or with the authorities, making it invalid.
• Publicly appointed and sworn real estate appraisers and experts:
  These experts are examined and appointed by the German Chamber of Commerce and Industry (IHK). Their reports are officially recognised and are therefore also permissible in court.
• Government-approved real estate appraisers and experts:
  These are publicly appointed appraisers and experts who have a certificate from the German Chamber of Commerce and Industry (IHK). However, they are additionally responsible for the federal state authorities. This means that these experts are also permitted to produce reports for public authorities and institutions.

You generally have different options for arranging a valuation: You can commission a qualified expert to create a property valuation or use a suitable Internet portal for an online valuation.

An online real estate valuation is usually sufficient:

• As a rough guide that you need at short notice.
• To check the insured sum of your property.
• If you, as the owner, would like to assess the value of your home for planning your retirement.
• To present an up-to-date statement of assets for your credit institution.
• For residential properties that are standard for the market without special features or fittings.
• If you would like to roughly check whether the tax authorities' calculation of inheritance tax is plausible.
• If you require the owner's consent for a property's buying price to be checked.
• If a major change in value is to be recorded, for example due to refurbishments.

In all other cases, a professional valuation from an experienced real estate appraiser is indispensable.

In other words: An online valuation is a fast, straightforward and affordable option, but it does not provide in-depth expertise that you can rely on. Ultimately, only a professional appraiser can offer this. Especially in situations where the property value has legal relevance (for example in a legal dispute or court proceedings), the report of a sworn expert is necessary.

To provide you with the most accurate result possible, our real estate appraisers take various measures when valuing your property:

• Our appraisers document the condition of your property on site. While doing so, they take a detailed note of the features of the property and also record damage and defects in your building which could reduce its value.
• Our appraisers also incorporate information from committees of appraisers as well as data relating to your property into the valuation and analyse this.
• The analysis also considers the market situation, in other words the current ratio between supply and demand.
• We then have each report double-checked by another expert to give you the greatest possible certainty for your valuation.

According to the Immobilienwertermittlungsverordnung (German Real Estate Valuation Ordinance, ImmoWertV) for short, a total of three different methods are approved in Germany for valuing a property:

• The actual value method: This involves the expert valuing a property with a focus on its material value. The actual value relates to the structural fabric.
• The comparative value method: With this method, the real estate appraiser makes their valuation based on actual selling prices which are used as comparative values. These were achieved with comparable properties.
• The income value method: With this method, the expert values your property according to the income it would bring in as a rental property.

As market indicators, real estate indices are a useful instrument in real estate valuation because they illustrate the current development of property prices in a specific city or community. Various providers (such as regional building societies or real estate industry associations) analyse market data and publish it in a real estate index. These are mean values from regional property sales, which make it easier to understand the market.

Not only are these reports used by estate agents as a guide, they can also provide interested parties with information about rent and buying prices. An advantage is that the reports also illustrate trends in addition to the latest data, making it possible to predict market developments.

However, the valuation should not be made on the basis of these documents alone, as the stated regional mean values are not applicable to all properties. Specific aspects such as the condition and location of the building play an important part in a real estate valuation. This is why an individual analysis of the property in question is always necessary.

There are various reasons why a real estate valuation by the experts at Heid Immobilien GmbH is worth it:

• Free and non-binding initial consultation: We would like to provide you with the exact support that you need. This is why, during a free initial meeting, we work out the most useful measures for you and draw up a quote based on these.
• Tailored solutions: Different customers need different solutions. We are aware of this, which is why we always tailor our quote to your individual requirements.
• Fixed-price guarantee: When we give you our word, you can count on it. This is why we offer you our services transparently and with no hidden costs under our fixed-price guarantee.
• Independent: Unlike estate agents, our experts are independent and calculate the value of a property impartially and without profit in the form of commission.
• Local: With more than 115 real estate appraisers across Germany, we can operate locally. We always perform our assessments on site, guaranteeing accurate valuations.
• Appointments possible at short notice: With our numerous branches across Germany, it is possible for us to take on jobs at short notice.
• Highly regarded certification: Our real estate appraisers have real estate valuation certification from various institutions such as TÜV, DEKRA and DIA, among others.
• Legally compliant: You can be sure that our valuations comply with legal requirements.
• Double-checks: This means that each report is carefully reviewed by a second expert.
• Sound knowledge of the regional market: To carry out professional real estate valuations, we require our appraisers to have accurate knowledge of the regional market.
• Adherence to codes of honour: All of our appraisers are obligated to adhere to codes of honour of various associations and institutions in order to maintain professional standards for your benefit.

A professional appraiser usually charges an hourly rate of around 130 Euro/hour for a real estate valuation:

• As a guide, you can expect a brief report to cost upwards of 800 euros.
• The cost of a market value report usually starts at 1400 euros.

The costs incurred for a real estate valuation depend on the property being valued. It also depends which type of report you ask for. This is why we always calculate the costs individually for each job.

Our real estate appraisers operate throughout Germany and travel to wherever you need our support. No matter whether you are in a major city, small town or rural community.

✓ Benefit for you: When choosing our experts, we place particular emphasis on knowledge of the regional market. Depending on the location, we ascertain which of our experts would be the best choice for your property.

Before we can value your property, there are just five steps we have to go through together:

1. Get in touch: You can contact us via our contact form or by calling us on +49 (0) 800 - 9090282 erreichen. We will get back to you as soon as possible and will arrange a free initial meeting.
2. Free and non-binding initial consultation for you: During a free initial meeting, we will clarify your specific needs with you and work out the most useful measures for you.
3. Sending a quote: You will then receive a quote from us that is individually tailored to you and your property – including a cost proposal covered by our fixed-price guarantee.
4. Return: If you agree with our quote, sign it and return it to us by post.
5. We value your property immediately: As soon as we receive the signed document from you, we will arrange all of the details for a viewing at the premises with you.

Because our more than 76 real estate appraisers can perform real estate valuations throughout Germany, it is possible for us to take on jobs at short notice. You can let us know by phone or in our contact form that you need a valuation at short notice. Our experts will get back to you as soon as possible.