Are you facing the challenge of precisely determining the value of your private building plot? An accurate valuation often comes with uncertainties but can influence up to 15% of the sale proceeds. This guide will show you the crucial steps for a thorough plot valuation.
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The topic briefly and concisely
An accurate property valuation for private construction requires more than just the standard land value; it can influence the sale proceeds by up to 15%.
The asset value and comparative value methods are central approaches, with factors such as location, size, and buildability potentially altering the value by over 50%.
A professional assessment that takes all steps and documents into account minimizes risks and creates a solid foundation for financial decisions.
The valuation of a plot for private construction is a multi-step process that goes beyond the pure standard land value. Many property owners underestimate the complexity and thus risk financial disadvantages averaging around 10%. An accurate appraisal ensures you have a solid foundation for sales negotiations or financing discussions. Discover how to proceed systematically and consider all value-relevant factors to realise the optimal value of your plot. This article guides you through the necessary steps.
Laying the Foundations: The Basis of Every Property Valuation
Before you begin with the actual private property valuation, a solid data foundation is essential. Gathering all relevant documents can speed up the valuation process by up to 30%. First and foremost, this includes a current land register extract, which provides information about ownership and encumbrances.
In addition, you need the cadastral map and, if available, the development plan. These documents define the exact location, size, and permissible development of your plot. Differences in buildability can already influence the value by 10-20%. Knowing these documents is the first step towards a realistic assessment.
Understanding and Applying the Standard Land Value Correctly
A key pillar of the Private Property Valuation Steps is the standard land value. This is determined and published by valuation committees at least every two years. It represents an average value for properties in a specific area. You can find the standard land values, for example, in the Land Value Information System (BORIS-D).
However, the standard land value alone is often insufficient, as it does not take into account the unique characteristics of your property. Deviations from the actual market value can often be around 15-25%. It serves as an initial guidance and needs to be refined in the next step. A professional valuation strategy is crucial here.
The Comparative Value Method: Market Prices as an Indicator
For undeveloped plots, the comparative value method is often the method of choice. This involves analysing the actual realised purchase prices of comparable plots in the nearby area. Ideally, at least 3-5 directly comparable properties should be available. The challenge lies in finding genuinely similar plots whose sale did not occur more than 6-12 months ago.
Important comparison criteria are:
Quality of location (e.g. infrastructure, noise pollution)
Plot size and layout (variations of +/- 10% are often still acceptable)
Buildability and utilisation rate (e.g. floor area ratio)
State of development (fully developed vs. land awaiting development)
If there are not enough direct comparable values, experts can resort to indirect comparable values or index series. A careful market analysis of the plot is indispensable here to correctly adjust discrepancies of up to 20%.
The asset value method: Evaluating the substance of developed properties
If the property is developed or a development is planned, the cost approach is often used, especially for owner-occupied properties. This method determines the value based on production costs. The first step here is also determining the land value (plot area x standard land value). This can already account for 50% of the total value.
The further steps include:
Calculation of building production costs (based on standard production costs and gross floor area).
Determining the building value, taking into account depreciation (e.g., 1.25% per year over a total useful life of 80 years).
Add the land value and building value to the preliminary net asset value.
Adjust the preliminary net asset value using market adjustment factors (value factors) that reflect regional market conditions and can adjust the value by +/- 15%.
The correct application of the factors for property valuation is crucial for an accurate result. For a detailed analysis, our ImmoGPT chat can provide initial assessments.
Analyse value-impacting factors in detail
Regardless of the chosen method, there are numerous factors that significantly influence the value of your private building plot. The location is often the most important factor and can cause price differences of over 50% within the same city. This includes the macro location (region, district) and the micro location (immediate surroundings, infrastructure, noise). A plot in a quiet side street with a southern aspect is typically worth 10-15% more than a comparable one on a main road.
Other important aspects are the size and layout of the plot. Poorly shaped or very small plots can experience value deductions of up to 20%. The soil condition (e.g., slope, contamination) can increase construction costs by 5-15% and thus reduce the plot's value. The degree of development also plays a role: A fully developed plot is generally 10-25% more expensive than undeveloped land. An accurate planning and legal evaluation is therefore essential.
Interpret the result and use it for decision-making
After completing the Private Construction Plot Assessment Steps, you will receive one or more value indicators. It's important to view these values in context. A single value, such as from an online calculator, often has an accuracy of only +/- 20%. Professional appraisals that combine multiple methods achieve significantly higher precision of +/- 5-10%.
The determined market value serves as a solid basis for various decisions:
Setting a realistic asking price when selling (often allowing a negotiation margin of 5-10%).
Negotiations with potential buyers or banks when financing.
Asset assessment, e.g., in the case of inheritance or divorce.
Evaluating the viability of a construction project.
Consider the valuation as a tool that helps you avoid financial missteps. An Auctoa valuation provides you with a data-driven and neutral basis for this. Contact us now without obligation to learn more.
privatbau-grundstucksbewertung-schritte
The Private Property Valuation is a complex process that requires expertise and a careful analysis. By systematically following the outlined steps and considering all value-relevant factors, you can accurately determine the value of your property. This protects you from misjudgments that can quickly lead to losses of 10% or more.
A well-founded valuation is the basis for successful negotiations and informed decisions. Whether selling, buying, or mortgaging – having a clear picture of your property's value ensures you're optimally prepared. Leverage the expertise of Auctoa and the opportunities provided by our ImmoGPT chat to gain clarity and maximise the benefits of your property. Your informed decision starts with an accurate valuation.
Additional useful links
Statistisches Bundesamt offers data on construction prices and residential property price indices.
BORIS is a portal providing land value information for Germany.
Deutsche Bundesbank publishes statistics on real estate and construction performance prices.
Deutscher Städtetag offers a publication on the residential property market 2024.
FAQ
What are the first steps in assessing a private construction plot?
The initial steps include obtaining important documents such as the land register extract and cadastral map, followed by determining the standard land value as a basis.
What methods of property valuation are available for private construction?
For private building plots, the comparison value method (for undeveloped land) and the intrinsic value method (often for developed or developable land) are mainly applied.
How does the location affect the value of my private residential plot?
The location is one of the most important factors and can cause price differences of over 50%. Both macro-location (region, infrastructure) and micro-location (immediate surroundings, orientation) are crucial.
Why is the standard land value alone not sufficient for the evaluation?
The standard land value is an average value and does not take into account individual property characteristics such as exact layout, soil condition, or specific buildability, which can lead to significant deviations from the market value.
What role does buildability play in property appraisal?
The developability (what and how much can be built according to the development plan) is a very important value factor. It can influence the value of a property by 20% or more.
How can Auctoa help me with property valuation?
Auctoa offers AI-powered real estate appraisals and strategic consulting. Our ImmoGPT chat can answer initial questions, and our experts provide data-driven, unbiased evaluations for your informed decisions.
