Do you know the true value of your property? Often, the answer lies in a detailed analysis of the standard land values, which can differ by up to 20% from the actual market value. This article explains how you can professionally interpret these values and make them work for you.
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The topic briefly and concisely
Standard land values are average values and must be adjusted for precise appraisal by property-specific factors (up to +/- 30%).
The analysis of standard land values is crucial for buying, selling, and inheritance decisions and serves as the basis for property tax.
Online tools like BORIS systems provide access to standard land values, updated every two years; however, professional interpretation remains essential.
The analysis of standard land values is a crucial step for property owners and investors. These values, determined biennially by expert committees based on § 196 BauGB, provide an initial orientation. However, the pure standard land value rarely reflects the full market value. Discover here how you can accurately determine the land value through a more in-depth analysis and consideration of individual factors, and avoid pitfalls.
Fundamentals: What Land Reference Values Really Indicate
The standard land value is an average value for the land in a specific zone, stated in euros per square metre. It is determined by independent expert committees according to § 196 of the Federal Building Code (BauGB), based on collected purchase prices from past transactions. This assessment is usually conducted every two years to reflect current market trends. For developed plots, the value is calculated as if the land were undeveloped. A solid property evaluation starts here. Understanding these basics is the first step to properly assessing the significance of standard land values.
Limits of the Standard Land Value: Why a Detailed Analysis is Essential
A standard land reference value is always an average value for a defined zone with comparable properties. It does not take into account individual characteristics of your specific property, such as a unique shape or a slight slope, which can affect the value by 5–15%. Nor do current short-term market fluctuations, which may have occurred since the last reporting date (often 1–2 years ago), get included. Therefore, simply querying the land reference value is often insufficient for precise analysis of land reference values. To determine the actual value, specific characteristics and current market conditions must be considered.
Value Drivers: Which Factors Significantly Influence the Land Value
In addition to the official land value, numerous factors determine the actual value of a plot. These can be roughly divided into location quality and plot-specific characteristics. A detailed examination of these factors for property valuation is crucial.
Location, Location, Location: The Macro and Micro Location Matters
The macro location, meaning the attractiveness of the city or region, including infrastructure and economic strength, plays a role of up to 30% in the overall value. The micro location, such as the immediate surroundings, noise pollution, or the view, can modify the value by an additional 10–20%.
Plot-Specific Characteristics in Detail
The individual characteristics of a plot are decisive for surcharges or discounts on the official land value. Here is an overview of important aspects:
Size and Shape: Optimally shaped plots can be up to 10% more valuable.
Topography: Flat terrain is often preferred; slopes can have positive or negative effects depending on view and buildability (up to 15% difference).
Soil Condition: Load-bearing capacity and any contamination are critical and can incur costs of over 50,000 EUR.
Degree of Development: Fully developed plots (water, electricity, gas, sewerage, road) are up to 25% more valuable than undeveloped ones.
Type and Extent of Building Usage: Usage specified in the development plan (e.g., residential, commercial) and the permissible floor space ratio (FSR) or site coverage ratio (SCR) are key value factors that can increase the value by over 50%.
Orientation and Sun Exposure: South-facing plots can increase the value for residential plots by 5–10%.
These factors demonstrate that a simplistic adoption of the official land value rarely reflects the true value and necessitates a detailed analysis.
Practical Guide: Professionally Analyzing and Adjusting Land Values
A professional analysis of land values goes beyond simply reading off the numbers. It requires a systematic approach to arrive at a realistic assessment of the land value. A detailed analysis of property prices is essential in this regard.
Information Sources: Where to Find Reliable Land Values
The official land values are determined and published by the committees that assess property values. They are accessible in most federal states via online portals known as BORIS systems (Land Value Information Systems). Pay close attention to the valuation date, as values are usually updated every two years.
Comparison and Adjustment: From Standard Value to Individual Value
The core of the analysis lies in comparing the standard value property with your own property. The following steps are typical:
Understand the characteristics of the standard value property: Note the features of the property for which the land value applies (size, layout, type of use).
Identify deviations: Compare your property point by point with the standard value property. Are there differences in size (e.g., over 20% deviation), shape, development status, or buildability?
Apply adjustment factors: Significant deviations require additions or deductions. For example, a smaller, better-shaped property in the same zone may be worth 5–10% more.
Consider current market developments: Is the valuation date of the land value already 1–2 years ago? Check whether market conditions have changed since then (e.g., increased demand may justify a 5% premium).
These adjustments require experience and market knowledge to avoid misjudgments.
Avoid Pitfalls: Common Mistakes in Interpreting Standard Land Values
The analysis of standard land values harbours some pitfalls that can lead to significant misjudgments of the property value. Often, figures are misjudged by 10-20%. To avoid this, you should be aware of the following common mistakes:
Blind faith in the published value: The standard land value is only an average value for a zone, not the exact price for your property.
Ignoring property characteristics: Special features such as contaminated sites, listed building regulations, or unfavourable plots are not reflected in the standard value, but they can reduce the value by over 30%.
Use of outdated values: Standard land values are usually updated only every two years. In dynamic markets, a value that is one year old can already differ by 5-10% from the current market situation.
Misinterpretation of the standard land value zone: Is your property at the edge of a zone or does it have characteristics resembling the neighbouring zone? This can affect the value by up to 15%.
Inadequate consideration of development status: The value for raw land differs significantly from that of land ready for construction (differences of over 50% are possible).
An online value analysis from Auctoa or direct chat with our ImmoGPT can help you avoid these mistakes and gain an initial informed assessment. This will lead you to a more precise evaluation.
Overview: The Role of Land Value Analysis in Real Estate Valuation
The analysis of standard land values is a fundamental component in the comprehensive valuation of real estate. The land value determined this way is incorporated as one of several components in common valuation methods. For example, it serves as a starting point in the cost approach, where it combines with the value of the buildings to form the total value. The land value also plays a role in the income approach through land value interest. The standard land value is also relevant for determining property tax; our property tax calculator provides initial indications here. A precise land value assessment, which goes beyond the mere standard land value, can improve the accuracy of the entire real estate valuation by up to 15%. This underscores the necessity of careful analysis for well-informed decisions.
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At Auctoa, detailed analysis of standard land values is an integral part of our AI-driven real estate valuations and strategic consulting. We use current market data and over 100 valuation factors to precisely adjust the pure land value to your specific property. Our algorithms also consider subtle influencing factors that are often overlooked, allowing us to determine value up to 20% more accurately than a mere value consideration. This enables heirs, owners, and professional investors to make data-driven decisions—whether for sale, purchase, or portfolio optimisation. A sound market analysis for properties is essential for this. Benefit from a quick, neutral, and precise assessment. Contact us now without obligation or chat for free with our ImmoGPT to gain initial insights.
Conclusion: Properly use land reference values for maximum value creation
How accurate is the standard land value?
The standard land value is an average value and serves as a guideline. For a precise valuation, individual characteristics of the property (e.g. size, layout, developability, micro-location) must be taken into account, which can lead to deviations of +/- 20% or more.
What should I do if my property significantly differs from the reference property?
In cases of significant differences (e.g. different size, shape, development status, developability), the standard land value must be adjusted by surcharges or discounts. This requires expertise. A professional valuation by Auctoa can provide clarity and accurately determine the value.
What role does the standard land value play in property tax?
The standard land value is an important basis for calculating the new property tax. Tax offices use it to determine the property tax value. Therefore, a correct analysis and, if necessary, adjustment can be relevant. Our property tax calculator provides an initial guide.
How does Auctoa assist in analysing standard land values?
Auctoa uses AI-supported methods to analyse standard land values precisely and adjust them to the specific features of your property and the current market situation. This way, you receive a well-founded, data-driven valuation that goes beyond the mere standard value. Try our online value analysis.
Are standard land values binding for the sales price?
No, standard land values are not binding for the sales price. They are average values and serve as orientation. The actual achievable sales price (market value) depends on supply and demand as well as the specific characteristics of the property and can differ significantly.
Where is the legal basis for standard land values anchored?
The legal basis for standard land values is primarily found in § 196 of the Building Code (BauGB). Further details on determination and the required data are regulated in the real estate valuation ordinance (ImmoWertV). [2,3]
Additional useful links
The Federal Statistical Office (Destatis) provides comprehensive tables on residential property prices.
The BORIS system offers nationwide access to the official standard land values in Germany.
The Federal Statistical Office (Destatis) publishes detailed tables on land purchase values.
The Deutsche Bundesbank provides information on key indicators and developments in the residential property market.
On gesetze-im-internet.de you can find the Ordinance on Property Valuation (ImmoWertV 2022), which sets out the legal framework for property valuation.
FAQ
How accurate is the standard land value?
The standard land value is an average value and serves as a guideline. For an accurate valuation, the specific characteristics of the property (e.g., size, layout, buildability, micro-location) must be taken into account, which can lead to deviations of +/- 20% or more.
What should I do if my property significantly differs from the benchmark property?
In the case of significant deviations (e.g., different size, shape, development status, buildability), the standard land value must be adjusted through surcharges or deductions. This requires expertise. A professional assessment by Auctoa can provide clarity here and determine the value precisely.
What role does the standard land value play in property tax?
The standard land value is an important basis for calculating the new property tax. The tax offices use it to determine the property tax value. Therefore, a correct analysis and adjustment, if necessary, can be relevant. Our <a href="/solutions/subsolutions/grundsteuer-rechner">property tax calculator</a> provides an initial orientation.
How does Auctoa help with the analysis of standard land values?
Auctoa uses AI-supported methods to precisely analyse standard land values and adjust them to the specific characteristics of your property as well as the current market situation. This provides you with a sound, data-based evaluation that goes beyond the mere standard value. Try our <a href="/solutions/subsolutions/online-wertanalyse">online value analysis</a>.
Are standard land values binding for the selling price?
No, standard land values are not binding for the sale price. They are average values and serve as a guide. The actual achievable sale price (market value) depends on supply and demand as well as the specific characteristics of the property and can differ significantly.
Where is the legal basis for standard land values anchored?
The legal basis for land value guidelines is primarily found in § 196 of the Federal Building Code (BauGB). Further details on the assessment and the necessary data are governed by the Property Valuation Ordinance (ImmoWertV). [2,3]
