How much is your property worth?

In Germany, there are three legally prescribed methods for valuing property (under the Property Valuation Ordinance, ImmoWertV): the comparative value method, the cost approach and the income approach. The aim of the valuation is to determine the market value of the property. As the results of these valuation methods can ultimately only be assessed and, where necessary, adjusted in the context of the market, it is advisable to entrust the valuation to an expert.

The valuation of the property is carried out here on the basis of comparable sales, i.e. properties that are as similar as possible and located near the property being valued. In practice, this involves determining the price per square metre at which the comparable properties were sold and multiplying this figure by the property’s floor area. This method only works if there is a sufficient number of comparable transaction prices available. Please note that asking prices are unsuitable for this method, as they often differ significantly from the actual sale prices. The sales comparison approach is used in particular for plots of land, flats and similar houses (terraced houses or housing estate properties).

In this method, the value of the land is determined separately from the value of the building, and the two are then added together. The value of the land is determined using the standard land value. The value of the building is determined using tables based on so-called standard construction costs (NHK). These relate to one square metre of gross floor area (GFA) and are multiplied by the property’s GFA. Special features such as swimming pools, fitted fixtures or elaborate gardens are taken into account separately, as is the age of the building. Together with the land value, this building value constitutes the calculated real value of the property being valued. In Munich in particular, however, supply is often significantly lower than demand. Consequently, this real value often needs to be adjusted considerably to reflect the market price. This requires the expertise of valuers.

Here, the returns expected in line with market conditions form the basis for the valuation. Put simply, the market rent that the property is expected to generate is first calculated, without taking actual rents into account. This market rent is then reduced by the costs normally incurred by the owner (e.g. loss of rent, maintenance) to arrive at the net yield. Market participants are now assumed to have certain return expectations: high returns for high-risk investments and low returns for low-risk investments. As Munich is regarded as a very safe location, returns in central Munich are currently estimated at 2.5 to 3.0 per cent. Given the long lifespan of property, the net income is then capitalised at this rate of return (simplified, without any time limit). This gives the formula: net income / rate of return = capitalised value. After taking special factors into account (e.g. a rent that is currently higher or lower than the market rate), valuers use this method to determine the market value.

Following your enquiry, we will arrange an on-site appointment. Our valuers will inspect the property, review the documentation and compare it with our market data.

It is helpful to have a land registry extract, floor plans, a calculation of living space and an energy performance certificate; for flats, the declaration of division is also required. If anything is missing, we will help you to obtain it.

A free property valuation is a well-founded assessment of the market value, for example to serve as a basis for a sale. A market value report is a detailed, written report, for example for the tax authorities in the event of an inheritance or gift. The fee depends on the type and value of the property, as well as the scope of the report.

No. The assessment is non-binding and does not commit you to anything. We will treat your personal data confidentially.