Important factors in determining the value of an old building
The acquisition of an old building, which may still need to be rehabilitated accordingly, poses several problems for both banks and borrowers. A uniform view on the part of the credit issuing banks is not given, much more likely to decide here individual factors about the valuation of the property . First, however, the mortgage lending value is decisive, because depending on the real estate value, the interest rate to be granted is determined - there are therefore differences that require a credit comparison not least because of this topic.
In this article we would like to explain to you which Valuation Methods You will be dealing with it and what is important to you as a borrower.
Two things, namely the Real Estate Value and the Building Value in itself, are of concern for the financing. For the real estate value, the bank orients itself to the statements of the expert panel of the respective city or municipality, one therefore relies on comparative values. Experts advise borrowers with building land over 1,000 square meters to identify the green areas concerned in order to obtain a realistic picture. As a rule, only 80 percent of the area is actually built, the rest is used for gardens, garages or similar types of use.
The building value, however, starts with the enclosed space of the property, ie not entirely in accordance with the living space and thus partly with unfavorable Yardsticks for the borrower. Such an approach is intended to improve the ability to make comparisons as banks approach the matter with greater care due to increased house prices. Here you set a price per cubic meter of enclosed space to calculate the value of the building without a plot. Discounts are not uncommon in old buildings, as well as the conservation plays a role and the related construction technique. Against the background of an energetic refurbishment, which usually leads to a much better energy balance in old buildings, this approach is also comprehensible.
If you take both valuations together, you get the respective property value and the for Banks significant size. As a rule, further reductions are made here, for example due to the situation, which can amount to up to 20 percent. Only then does the mortgage lending value of the property, the benchmark for your real estate financing, be calculated. Experienced experts and construction experts, who also provide analyzes on the need for refurbishment, and give you as a layman a transparent view of the matter, provide assistance.
The market value appraisal and the resale value
- A proper hiding is located behind the market value appraisal and judicious evaluation of how high the actual selling price of a property is actually. Importance of this report especially in foreclosures of the local district court, but also in financing talks with your house bank. Only recognized experts provide you with the basis for an independent and comprehensive fair value appraisal. Not to be confused, however, this report with the aforementioned lending value, because this is only for banks of importance. An independent valuation report is after & sect; 194 Building Code (BauGB)
- In clear contrast to the market value appraisal the respective resale value of the property can be seen. There is no need to overlap here, in many cases one has more to do with a larger difference. Factors in the resale of a property are always the local property taxes and the notary fees and brokerage fees of the real estate agents - costs that you have to open as a buyer and the purchase accordingly more expensive. A major role is played by the development of the surrounding area, but also the trend in the real estate market with regard to certain construction methods and room layouts. It must be pointed out that extensive renovations do not always contribute to a corresponding increase in value. Pay particular attention to the connection to the public transport, the construction projects in the immediate vicinity as well as the environmental pollution and noise pollution from industrial estates, airports and similar infrastructure projects.
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