Property value assessment is one of the key stages in buying or selling a property in Germany. Whether it is a commercial or residential property, real estate agents always encourage all the parties involved to conduct a property value assessment. What is property value assessment? Why is property value assessment a vital part of real estate planning? What is the cost of property valuation and what options are available? Keep reading to find out the answers to these questions.
What is Property Value Assessment?
As the name implies, property value assessment is the process of determining the monetary value of a house. It could either be done to find the assessed value of the appraised value. The assessed value is typically used for tax purposes. It is the value placed on your house by the government authorities in that area. The appraisal is also the value of the house. However, it is the amount people are likely to pay for your house if you list it on the real estate market in Germany. It could be higher, lower, or around the same price as the assessed value.
Property Value Assessment and Real Estate Planning
Property value assessment is vital in the real estate world because it gives buyers and sellers a credible and unbiased take on the value of a property. It is not a guessing game; it is based on fact. Without an appraisal, sellers may sell their homes below-market prices and buyers may buy new homes above-market prices.
Real estate agents use property appraisal to guide their clients into making informed decisions. Whether it is for buying, selling, or taxation, value assessment is always going to be important. Some of the factors that are put into consideration during property assessment are environment, quality, proximity to city centers, prices of other houses in the environment.
Types of Property Value Assessment
In the real estate world, there are four common types of property value assessment. You have the full appraisal, exterior-only appraisal, broker price opinion, and rental analysis. If you pay for a professional on-site property appraisal in Germany, you will have to choose which type of appraisal you want. The most extensive option is the full appraisal but it costs more money.
These days, more people have been opting for online property assessment in Berlin as opposed to on-site assessment. With this option, no one has to physically visit the building. All you need to do is visit the website, and input the house address of the house you want to buy or sell. The website has an algorithm that will calculate your home value and show you the figures in a few minutes.
Cost of Property Value Assessment
The cost for property value assessment in Berlin varies from agent to agent. The size of your home and the exact location also determines how much you will be charged. You will spend around €250 to €300 for on-site property assessment. The online property assessment in Berlin is much cheaper and free in some cases.
Whether you choose the online or on-site home assessment, you will benefit significantly from doing it during real estate transactions.