Are you faced with the task of accurately determining the value of a property, perhaps as part of an inheritance or sale? A detailed valuation report provides you with the necessary clarity and assurance. Discover the 4 key steps that lead to a reliable outcome.
Chat with ImmoGPT for free now.
With access to Google, BORIS, and Deep Research.
The topic briefly and concisely
A valuation process involves four key phases: clarifying the assignment, inspecting the property, determining the value, and drafting the report.
In the event of inheritance, a professional valuation can often reduce the inheritance tax burden by 20-50% by providing an accurate market value compared to the flat estimate from the tax office.
The cost of a market value appraisal typically ranges between 0.5% and 1.5% of the property's value, depending on scope, complexity, and availability of documents.
Do you know the true value of your property? This question often comes with uncertainty, especially when it involves complex situations like inheritances, sales decisions, or tax assessments. A professional valuation report provides clarity by determining an objective and comprehensible market value. This article guides you through the essential steps of property valuation, from the initial contact with an expert to the delivery of the final document. You will gain insights into how experts proceed and why a well-founded valuation can save you up to 20-50% in taxes.
The Essentials: The 4 Core Phases of the Valuation Report
A valuation report is a multi-stage process that requires precision. Typically, it takes 3 to 4 weeks after all documents have been submitted. It begins with the precise definition of the task and the collection of all relevant data. This is followed by a thorough inspection of the property by the expert. Then, the actual valuation is carried out using recognised methods. The process concludes with the detailed written elaboration of the report. This structured Auctoa valuation process ensures an objective result.
Phase 1: Thorough clarification of the order and comprehensive data collection
The first step to your valuation report is the clarification of the order. Here you discuss the purpose of the report with the expert – whether for a sale, inheritance, or submission to the tax office. For an accurate assessment, the expert requires a variety of documents. These typically include a current land registry excerpt, building plans, calculations of living and usable floor space, and information on modernisations from the last 15 years. An energy certificate and, for condominiums, the declaration of division are also often required. Carefully assembling these documents significantly speeds up the entire process. The expert can often obtain missing documents for you for an additional fee. This phase lays the foundation for the accuracy of the entire valuation.
Phase 2: Detailed on-site object inspection
After clarifying the assignment and reviewing the initial documents, the indispensable property inspection follows. This appointment can last from one to several hours, depending on the size and type of the property. The expert thoroughly examines the building's structure, condition of technical installations, and any defects or damages. Not only are the interiors inspected, but also the property grounds and the external condition of the property are scrutinized in detail. The micro-location, including the direct surroundings and neighborhood, is also considered in the assessment, as these factors significantly influence the market value. A thorough documentation, often supported by numerous photos, is standard practice in this context. This direct evaluation enables the expert to gain a comprehensive picture that goes beyond just the document files and is crucial for the valuation guide.
Phase 3: Comprehensive valuation using recognised methods
Based on the collected data and insights from the property inspection, the actual valuation takes place. In Germany, there are three main methods established for this, which are used depending on the type of property and the purpose of the valuation. Choosing the correct method is crucial for achieving a realistic result.
Comparative method: This method is primarily used for owner-occupied properties such as single-family houses and condominiums. It is based on the sales prices of recently sold, comparable properties in similar locations and with similar features. For this purpose, the expert committees often provide the necessary comparative data.
Income method: If the financial return of a property is the main focus, as in the case of rental houses or commercial properties, the income method is applied. Future rental income and operating costs are capitalised to determine the value. The land value is determined separately and added.
Cost method: This method is used when there are insufficient comparable properties available or it concerns special properties (e.g., industrial plants, public buildings). It determines the value based on the construction costs of the building (building value) plus the land value, taking into account depreciation and market adjustment factors.
Experts often also combine elements from different methods to determine the market value as accurately as possible. An in-depth understanding of report preparation is essential in this regard.
Phase 4: Transparent and Comprehensible Report Preparation
The final step of the appraisal process is the written preparation of the market value appraisal report. This document summarises all relevant data, analyses, and calculations in detail. A short appraisal can be 10-15 pages long, while a full market value appraisal, which is also suitable for court, often reaches 30 to 70 pages or more. The appraisal accurately describes the property being evaluated (address, land register data, etc.), states the valuation date, and explains the reason for the appraisal. The valuation methods used are detailed, and the derivation of the market value is substantiated in an understandable way. This document serves as a reliable basis for important decisions and can be presented to banks, insurance companies, or authorities if required. For an initial assessment, you can also use our ImmoGPT-Chat for quick guidance.
Special Case Inheritance: Why a Neutral Valuation Report Can Save Real Money
In the event of inheritance, the market value of a property plays a central role in calculating inheritance tax. The tax office often sets the property value arbitrarily, which frequently leads to an unfavourable, i.e., too high, tax burden for the heirs. A market value appraisal prepared by a certified expert can remedy this situation. It provides a precise, market-compliant value, which is generally recognised by the tax office. In many cases, such an appraisal can reduce the tax burden by 20% to 50%. Additionally, a neutral appraisal is essential when it comes to the fair distribution of the estate among co-heirs or if a sale of the property from the community of heirs is being considered. The costs for such an appraisal, which usually range between 0.5% and 1.5% of the property's value, are therefore often a worthwhile investment. Learn more about what the first step in an appraisal is.
wertgutachten-schritte
The costs for a valuation report are not fixed, but depend on various factors. Since the abolition of the fee scale for architects and engineers (HOAI) in this area in 2009, experts can negotiate their fees freely. Key factors influencing the price include:
Type and scope of the report: A brief report for private purposes is less expensive (starting from around 500 euros) than a comprehensive market value report for legal or tax purposes.
Complexity of the property: A standard single-family home is generally easier to assess than a multi-family property with commercial units or a specialised property. This affects the time required and thus the cost.
Availability of documentation: If you provide the expert with all necessary documents in full, it reduces their workload and can lower the costs.
Property value: The fee often corresponds to a percentage of the determined market value, typically between 0.5% and 1.5%. For a property valued at 300,000 euros, the costs can therefore range from 1,500 to 4,500 euros.
It is advisable to obtain several quotes in advance and clearly define the scope of services. In certain cases, such as rental or sale, the costs for a valuation report may even be tax-deductible. A clear overview of the valuation steps helps you understand the process.
Conclusion: A valuation report provides clarity and security in 4 steps
Why is a valuation report useful in an inheritance?
In the case of an inheritance, a valuation report serves to determine the correct market value of the property for the tax office. This can help to reduce inheritance tax, as the tax office's estimates are often higher. Additionally, it provides clarity when dividing the estate among co-heirs.
Can I deduct the cost of a valuation report for tax purposes?
Yes, in certain cases, the costs are deductible. For landlords, it can be used to assess earnings prospects; in inheritance matters, it's part of the inheritance tax, or in sales, to reduce speculation tax.
What is the difference between a short appraisal and a market value appraisal?
A short appraisal (approx. 10-15 pages) is less comprehensive and more affordable, often for private purposes. A market value appraisal (30-70+ pages) is detailed, legally sound, and necessary for official occasions such as tax office dealings or legal disputes.
What role does the property inspection play in the valuation process?
The property inspection is a crucial step. The appraiser examines the building’s structure, condition, amenities, and any potential defects directly on-site, which is essential for a realistic assessment.
How can Auctoa assist me with property valuation?
Auctoa offers AI-assisted property valuations and strategy advice. Our ImmoGPT chat can provide you with a quick initial assessment, and our experts create detailed valuation reports to meet your specific needs.
How long until I receive my valuation report from Certa?
Certa states that you can receive your report within 10 business days after submitting all necessary documents.
Additional useful links
Gesetze im Internet offers the official Immobilienwertermittlungsverordnung 2022 (ImmoWertV 2022), which governs the legal basis for property valuation in Germany.
Gesetze im Internet guides you to § 194 of the Baugesetzbuch (BauGB), which defines the fair value (market value) of a property.
The Federal Statistical Office (Destatis) provides comprehensive information on construction prices and the real estate price index in Germany.
Through BORIS, you receive central access to the official standard land values in Germany, which are relevant for property valuation.
The Deutsche Bundesbank offers an indicator system for the residential property market that delivers important data on market developments.
The Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) provides extensive information and research findings on housing and real estate topics.
The BBSR offers an interactive dashboard for the property market report, visualising current data and analyses.
The Federal Association of Independent Experts e.V. (BVS) provides information and standards for property valuation by independent experts.
FAQ
Why is a valuation report sensible for an inheritance?
In the case of an inheritance, a valuation report is used to determine the correct market value of the property for the tax office. This can help to reduce inheritance tax, as the tax office's estimates are often higher. Additionally, it provides clarity when dividing the estate among co-heirs.
Can I deduct the cost of an appraisal for tax purposes?
Yes, in certain cases, the costs are deductible. As a landlord to determine the profitability prospects, in the case of inheritance as part of the inheritance tax, or upon sale to reduce the speculation tax.
What is the difference between a short appraisal and a market value appraisal?
A short appraisal (approx. 10-15 pages) is less extensive and more cost-effective, often for private purposes. A market value appraisal (30-70+ pages) is detailed, court-proof, and necessary for official occasions such as the tax office or legal disputes.
What role does the inspection of the property play in the appraisal process?
The property inspection is an essential step. The surveyor examines the structural condition, state, features, and potential defects directly on-site, which is crucial for a realistic assessment.
How can Auctoa help me with property valuation?
Auctoa offers AI-powered real estate evaluations and strategic consulting. Our ImmoGPT chat can give you an initial quick assessment, and our experts provide detailed appraisals tailored to your specific needs.
How long does it take to receive my valuation report from Certa?
Certa states that you can receive your report just 10 working days after submitting all documents.
