Plots
Building land
property evaluation land value
Would you like to better estimate the value of your property? The ground reference value is an important indicator, but it's not everything. Learn how to correctly interpret the ground reference value and what factors influence the actual value. We are happy to provide individual advice. Please contact us here.
The standard land value is an important guideline for property valuation, but it is not equal to the market value. It serves as an initial indicator of the value.
The calculation of the land value is carried out by multiplying the standard land value by the plot area. Conversion coefficients and individual adjustments are necessary for a more precise assessment, which can increase accuracy by up to 8%.
For a thorough property valuation, the expertise of a surveyor is essential. Use online portals and authorities to access standard land values, but do not rely solely on them.
What is the Land Reference Value and Why is it Important?
The land reference value is a crucial factor in the valuation of properties. It represents the average value per square metre of undeveloped land in a specific region, determined by valuation committees. This value serves as an important guideline for various aspects related to real estate. It not only affects buying and selling prices of plots but also the calculation of property tax. Therefore, the land reference value is an indispensable tool for anyone dealing with real estate. A detailed analysis of land reference values helps make informed decisions.
Definition and Purpose
The land reference value is the average locational value per square metre of undeveloped land, determined by valuation committees. It serves as a guideline for property valuation and influences purchase prices, selling prices, and property taxes. The land reference value is an essential factor in the valuation of real estate.
Relevance for Various Stakeholders
The land reference value is significant for a variety of stakeholders. Owners use it when selling, heirs during estate settlement, and spouses in the event of a divorce. The tax office also uses it when assessing property and inheritance/gift taxes. Buyers and sellers can refer to the land reference value to develop realistic price expectations. Investors and banks use it for risk assessment and evaluating the potential of real estate projects. Thorough knowledge of the land reference value is therefore essential for all parties to make well-informed decisions. Further information on the significance of the land reference value can be found on Homeday.
The Role of the Expert Committees
The determination of the land reference value is a complex process carried out by the expert committees. These bodies play a central role in setting the land reference value and ensure transparency and comparability in the real estate market. The expert committees are composed of specialists who possess extensive knowledge of the local real estate market and collect and analyse the necessary data. The analysis of land reference values is an important part of the work of the expert committees.
Data Collection and Market Analysis
The expert committees gather comprehensive data on land sales, including sales contracts submitted by notaries pursuant to § 196 BauGB. This data forms the foundation for market analysis and the derivation of the land reference value. The expert committees analyse the market and define assessment features to create comparable zones. The collected data is carefully examined and processed to ensure a valid basis for valuation. Further information on data collection can be found on the Frankfurt City Planning Department page.
Comparative Value Method and Derivation of Land Reference Value
The expert committees select comparable properties with transaction data and apply the comparative value method to derive the land reference value. This method is based on the principle that the value of a plot can be determined by comparing it with similar plots that have recently been sold. The selection of comparable properties is done meticulously to ensure that they are as similar as possible in terms of location, size, use, and other relevant characteristics. The comparative value method is a recognised approach for valuation of properties and is routinely used by the expert committees. Learn more about the comparative value method in our article on valuation factors.
Land Reference Value Zones and Their Significance
To ensure the most accurate valuation of plots, the expert committees establish what are known as land reference value zones. These zones combine areas with similar usage and value conditions. The creation of land reference value zones allows the land reference value to be more precisely tailored to the specific local conditions. The analysis of land reference values within the individual zones provides valuable information for property valuation.
Definition and Delimitation
Expert committees establish land reference value zones that group areas with similar usage and value characteristics. These zones can range from entire localities to individual streets. The delimitation of the land reference value zones is based on a detailed analysis of local conditions and the specific characteristics of the plots. The zones are defined to encompass as homogeneous a group of properties with similar value characteristics as possible. Further information on land reference value zones can be found on Wikipedia.
Location of the Property
The location of a property is a crucial factor that significantly influences the standard land value. A good location is characterised by a multitude of positive features that directly impact the property's value. Therefore, property valuation considers location as one of the most important factors.
Infrastructure and Connectivity
Infrastructure and connectivity to public transport are essential aspects of location. Good connectivity to the transport network, proximity to shopping facilities, schools, medical care, and cultural institutions are decisive factors that increase the standard land value. Urban areas with well-developed infrastructure generally have higher standard land values than rural areas. The analysis of standard land values clearly shows the connection between infrastructure and property value. Information about infrastructure in North Rhine-Westphalia can be found on Forum Bauland NRW.
Negative Influencing Factors
Poor infrastructure, lack of public transport, or proximity to unwanted sites such as landfills can negatively affect the standard land value. Noise pollution, air pollution, or other environmental burdens can also reduce a property's value. Therefore, property valuation also considers negative influencing factors that impact the attractiveness and value of the property. Our article on factors for property valuation offers further insights.
Individual Property Features
In addition to location, the individual characteristics of a property also play an important role in property valuation. These features can either increase or decrease the standard land value and must therefore be considered in value determination.
Building Land Status and Development Options
The building land status, view, third-party rights (e.g. right of way), property size, shape, and soil quality are important individual characteristics. Undeveloped properties use the standard land value as a basis, while developed properties require a more complex market value determination. Therefore, property valuation takes into account the degree of development and potential development possibilities. More information on building land status can be found on our site about building land.
Development and Future Potentials
The development and future potentials of an area can also influence the standard land value. Positive developments such as planned infrastructure projects, the establishment of new businesses, or the creation of attractive leisure facilities can increase a property's value. Therefore, property valuation also considers future developments and their impact on value.
Positive and Negative Developments
Positive urban development, an attractive location, high demand, and development increase the standard land value. Environmental burdens, low demand, lack of development, and poor soil quality decrease it. The analysis of standard land values shows that positive developments lead to an increase in value, while negative developments can reduce the value. More information on positive and negative developments can be found on Bodenrichtwerte Deutschland.
The Standard Land Value as a Guide
The standard land value serves as an important guide in the assessment of properties, but should not be confused with the market value. The standard land value is an average figure determined based on past land sales, providing an initial estimate of value. However, the valuation of properties requires an individual analysis that goes beyond the standard land value.
Average Location Value
The standard land value is an average figure and not to be equated with the market value. It serves as a guide, not as an exact property valuation. The standard land value offers an initial indication of a property's worth but does not account for the specific characteristics and condition of the property. More information about the standard land value can be found at Dr. Klein.
The Market Value as an Individual Assessment
In contrast, the market value is an individual property assessment that considers all relevant factors. It reflects the actual market value of a property and therefore forms the basis for buying and selling decisions. The valuation of market value is a complex process conducted by experts.
Consideration of Additional Factors
The market value considers additional factors such as building substance, condition, and unique characteristics. Market values are updated more frequently than standard land values. The property assessment through market value considers all relevant aspects that may influence value. Our article on calculating land costs provides further information.
The Role of the Standard Land Value in Market Valuation
Although the standard land value is not equivalent to the market value, it plays an important role in market valuation. It serves as the basis for the comparative value method, often used in property assessment. The analysis of standard land values is therefore a key component of market valuation.
Comparative Value Method
The standard land value is often used in the comparative value method. Conversion coefficients are used to tailor the general standard land value to individual property features. The property assessment in the comparative value method is based on the principle that a property's value can be determined by comparing it to similar properties. More information on the comparative value method can be found at Bodenrichtwerte Deutschland.
The Simple Formula: Standard Land Value x Plot Size
The calculation of land value is an important step in the valuation of properties. The simple formula for calculating land value is: Standard Land Value x Plot Size. This formula provides an initial indication of the property's value but does not take into account the individual characteristics and condition of the land.
Basic Calculation
Land Value (€) = Standard Land Value (€/m²) x Plot Area (m²). However, this is only a reference value and the actual value may differ. Therefore, the valuation of properties requires an individual consideration that goes beyond the simple formula. More information about the calculation of land value can be found on Haushirsch.
Conversion Coefficients and Individual Adjustments
To obtain a more accurate valuation of properties, conversion coefficients and individual adjustments must be considered. These coefficients take into account specific features of the property that can affect the value. The analysis of standard land values considering the conversion coefficients provides a more accurate picture of the actual value.
Consideration of Topography and Soil Quality
Conversion coefficients are used to adjust the Standard Land Value for individual property features such as topography, building possibilities, and soil quality. Thus, the valuation of properties takes into account the specific local conditions. More information about conversion coefficients can be found on Forum Bauland NRW.
Example Calculation and Interpretation
To illustrate the calculation of land value, here is an example: Assume the Standard Land Value is 500 €/m² and the plot area is 800 m². Then, the land value amounts to 400,000 €. However, this calculation is only a guideline and the actual value may vary. Therefore, the valuation of properties requires an individual assessment by an expert. Our article on the analysis of standard land values offers further insights.
BORIS and Other Online Portals
Access to standard land values is easier these days than ever before. Thanks to online portals like BORIS (Standard Land Value Information System) and other providers, you can comfortably access the relevant data from home. The evaluation of properties becomes more transparent and accessible.
Standard Land Value Information Systems
BORIS (Standard Land Value Information System) provides transparent and public access to standard land values. Not all federal states participate. The analysis of standard land values is significantly simplified by BORIS. Further information about BORIS can be found on Standard Land Values Germany.
Cadastral Offices and Expert Committees
In addition to online portals, cadastral offices and expert committees are important points of contact for information on standard land values. Here you can receive official information and consultations from experts. The evaluation of properties by cadastral offices and expert committees is a reliable source of information.
Official Information
Standard Land Value Maps are available at cadastral, surveying, or building offices. Official standard land value information remains the responsibility of the expert committees. The analysis of standard land values by the expert committees is an important basis for valuation. Further information about the tasks of the expert committees can be found on Wikipedia.
Costs and Availability
The costs and availability of standard land values can vary depending on the federal state and municipality. Generally, oral inquiries are free of charge, whereas written reports may incur fees. The evaluation of properties should therefore also consider the costs of obtaining information.
Fees and Access Routes
Oral inquiries are usually free of charge, while written reports may incur fees. The analysis of standard land values should therefore also take into account the costs of obtaining information. Further information about the fees can be found on the page of the responsible cadastral office.
Diversity of Methods and Their Application
The determination of standard land values is a complex field that is continuously evolving. There is a variety of methods that can be applied, and the choice of the appropriate method depends on the specific local circumstances. Therefore, the valuation of properties requires a sound knowledge of the different methods and their areas of application.
Mathematical-statistical, Deductive and Intersubjective Methods
The study categorises valuation methods into mathematical-statistical, deductive, and intersubjective approaches. Challenges in applying mathematical-statistical methods due to limited sales data. The analysis of standard land values shows that the choice of method can significantly influence the result. Further information on the different methods can be found at Forum Bauland NRW.
Subjectivity and Regional Differences
The determination of standard land values is not always free from subjectivity. Particularly with intersubjective methods, which are based on expert opinions, differing assessments can occur. Therefore, the valuation of properties should always be critically reviewed and supplemented with additional information.
Intersubjective Methods and Their Limitations
Subjectivity in intersubjective methods and the potential for dominant individuals to influence results. Significant differences in the approaches of expert committees. The analysis of standard land values shows that results can depend on the individual assessments of experts. Further information on the limitations of intersubjective methods can be found at Forum Bauland NRW.
Data Cleansing and Indexing
To ensure a reliable determination of standard land values, careful data cleansing and indexing are required. Outliers in sales data must be identified and excluded to ensure the result is not distorted. Thus, the valuation of properties necessitates careful data preparation.
Handling Outliers and Market Fluctuations
Need to identify and exclude outliers from sales data. Use of land price index series to adjust historical sales prices. The analysis of standard land values shows that careful data cleansing and indexing lead to more reliable results. Further information on handling outliers can be found at Forum Bauland NRW.
Summary of Key Points
The standard land value is an important reference point in the valuation of properties, but it should not be equated with the market value. Individual property characteristics and regional market conditions must be taken into account. The valuation therefore requires an individual assessment by an expert.
Significance and Limitations of the Standard Land Value
The standard land value is an important reference point but should not be equated with market value. Individual property characteristics and regional market conditions must be considered. The analysis of standard land values shows that the standard land value only allows for an initial estimate of the value. Further information on the limitations of the standard land value is available at Dr. Klein.
Outlook on Future Developments
The determination of standard land values will evolve in the future. Technological advances and legal frameworks will influence methods and processes. The valuation of properties will become more precise and efficient as a result.
Technological Advances and Legal Frameworks
Innovations in technology for the determination of standard land values. Potential political changes and improvements. The analysis of standard land values is supported by technological advancements and legal frameworks. Further information on future developments can be found at Bodenrichtwerte Deutschland.
Recommendations for Owners and Buyers
Due to the complexity of the determination of standard land values, it is recommended to seek advice from an expert. An experienced surveyor can help you realistically assess the value of your property and make informed decisions. The valuation of properties should always be carried out in collaboration with an expert.
Professional Advice
Due to the complexity, it is recommended to seek advice from an expert. The valuation of properties should always be conducted in collaboration with an expert. We are gladly at your disposal for professional advice.
Do you want to have the value of your property precisely determined? Our experts support you with informed expertise and the latest technology. Whether you are selling, buying, or making an informed decision – we offer you the right solution. We at Auctoa are revolutionising the valuation of real estate and properties by using the latest automation and AI-driven human expertise to provide precise, certified, and market-appropriate valuations. Take advantage of our expertise and receive a detailed analysis of your property. Contact us today to learn more about our services and to receive a personalised offer. Visit our real estate page for more information. We look forward to supporting you with your real estate decisions. Contact us here!
Summary of Key Insights
The standard land value is an important factor in property valuation, but it should not be the sole basis for decision-making. It serves as a guideline and foundation for further evaluations, where individual factors and market conditions must be taken into account. A comprehensive evaluation leads to a more realistic assessment of the property value. The Dr. Klein website provides further information on the topic of standard land value.
The Importance of the Standard Land Value
Its role as a guideline and foundation for further evaluations.
The necessity of considering individual factors and market conditions.
Future Outlook
The digitisation of standard land value information is advancing, enabling easier and faster access to the data. The importance of transparency and timeliness will continue to increase in the future. It is therefore expected that the standard land values will be updated more frequently, and online portals will play an even larger role. The Homeday website offers additional insights into the future of standard land value information.
Trends and Developments
The digitisation of standard land value information.
The importance of transparency and timeliness.
Recommendations for Owners and Interested Parties
Owners and interested parties are encouraged to seek professional advice and involve experts and estate agents. A comprehensive valuation is essential to properly assess the value of a property and make informed decisions. The standard land value is an important, but not the only factor in property valuation. The factors for property valuation provide additional insights. Government subsidies for heat pumps offer an excellent opportunity to invest in a sustainable and efficient heating solution. Whether it's a new build or the renovation of an existing property, the available funding programs and tax advantages make switching to a heat pump attractive and financially viable. With a variety of funding programs and tax incentives, there are numerous ways to reduce the costs of installing a heat pump. We provide comprehensive advice and support in choosing the right heat pump, fulfilling technical requirements, navigating the application process, and avoiding potential problems. By opting for a heat pump, you are investing in the future of your home. You not only reduce your energy costs and ensure consistent warmth, but also make an important contribution to environmental protection. Now is the perfect time to explore funding options for your project. Contact us today to start your individual consultation and submit your funding application quickly and easily. Register for free and receive an instant initial estimate of your property's renovation needs.
Professional Advice
Calling on experts and estate agents.
The importance of comprehensive valuation.
The Stadtplanungsamt Frankfurt offers information on data collection and market analysis as part of the land value determination.
Forum Bauland NRW provides information on infrastructure in North Rhine-Westphalia as well as on conversion coefficients and evaluation methods.
What exactly is the standard land value and what is its purpose?
The standard land value is the average value per square metre of undeveloped land in a particular region. It serves as a guideline for land valuation, affecting purchase prices, selling prices, and the calculation of property tax.
Who determines the standard land value and how often is it updated?
The standard land value is set by the committees of experts in each local authority. These committees typically update the value every two years, at a minimum, to reflect market developments.
How do you calculate the land value of a property?
The land value is calculated by multiplying the standard land value (€/m²) by the plot size (m²): Land Value (€) = Standard Land Value (€/m²) x Plot Size (m²). However, this is just a reference value.
What is the difference between standard land value and market value?
The standard land value is an average locational value, whereas the market value reflects the actual market worth of a property while considering all individual factors. The market value is more precise and takes into account building condition and state.
Where can I find the standard land values for my property?
Standard land values can be obtained from the land registry offices, surveying offices, or building authorities. Many municipalities also offer this information online via BORIS (Standard Land Value Information System).
What factors influence the standard land value?
The standard land value is influenced by various factors including the location of the land (infrastructure, connectivity), development possibilities, soil conditions, and overall market development.
Can the actual property price differ from the standard land value?
Yes, the actual property price can significantly differ from the standard land value as the standard land value is only an average value. Individual characteristics of the property and the current market situation play an important role.
Why is a professional land valuation advisable despite the standard land value?
A professional land valuation considers all individual factors and the current market situation to determine a realistic market value. This is especially important for buying and selling decisions as well as for the financing of real estate projects.
