All you need to know about property valuation in Berlin

Property valuation helps to determine the market value of a property at a certain time point. It involves buying, selling, taxation, estate planning, and financing properties. As a landowner or property owner in Berlin, it is good to know the real current market value of your property.

Berlin, the capital of Germany, has rich estates and modern development and a quite dynamic real estate market. The value of a property in Berlin depends on several factors.

Property Valuation Explained

Property valuation in Berlin simply entails finding out the true market value. Property valuations and estimates are used to get the actual value with the current market conditions. Furthermore, the sale, investment analysis, insurance cost, and sale tax charges. The idea is to ensure you don’t sell or buy a property without having a precise idea about the price. 

Unfortunately, many foreigners make the mistake of buying properties in Germany above the actual value or selling below the market price. To get the actual price of any property, ensure that you get a professional property valuation in Berlin so that you don’t buy a house above its price. One of the principles of valuation is that a property vastly different from others will diminish in price over time. 

Factors that impact the market value in Berlin

The price of properties in Berlin varies and some factors that affect its market valuation. Here are main factors for a property valuation in Berlin;

  • Market Value: When buying property, mortgage rates and real estate prices matter a lot for both the buyer and the owner. Once the mortgage rate on property continues to increase, there will be a negative impact on selling price and market values. When a buyer needs high monthly mortgage settlements, you can see a property for a lower price or more affordable in Berlin.
  • Location: this is one of the crucial factors that determines the market value of a property. A very good and dynamic real estate environment makes the value of a property high. The worth of the properties around the areas and city also determine the selling price.
  • Type of property: Based on market demand, the market value of property is determined, whether it’s commercial or residential. They have different market values. The cost of building a commercial house and a residential apartment is far different, and it all depends on the landlord’s investment choice.
  • Condition of the property: The condition of a property is part of what will determine its market value. Some houses are old, and need to be renovated which makes a higher cost for the buyer and lowerproperty valuation. Renovating or upgrading before selling can increase a property’s market value. In Germany, newly built or well-maintained houses have the best market value. 
  • Property Size: the size of the property determines the market value.  The size is primarily what determines the valuation of a property in Berlin, as the sale price range depends on the standard square meter price in the area .
  • Property interior and exterior : Most people look at the interior of a property before purchasing it. The interior (living room, bedroom, and so on) and exterior (balcony, garden, and others) are very important to check to determine a property’s value. If it needs to be worked on, then the market value will reduce. But when there is nothing wrong or it’s perfect, then the vaaluation will be higher. the market value will be lower when the environment is not well-maintained or there is poor infrastructure.
  • Rent income : The value of a property appreciates if the rent paid is high. Indeed, a higher rent will increase the profitability and rate of return of a property. In this view the property valuation in Berlin of a tenanted property will be proportional to the rent income (i.e. 3%% or 4% return)
  • Legal and Regulatory consideration : Berlin has strict legal and regulatory standards, and you must comply with them. These standards determine the market value of a property. The regulations cover the rent, the renovation and the area where the valued property is located.

How to be sure of the value of a property before buying?

Acquiring a property in Berlin may look difficult, but these tips will guide you on how to go about it without stress:

  • Gather information : Before you buy a property, it is advisable to gather information about it, such as reasons for selling, prices of nearby houses, and so on. This will guide you in how you acquire property.
  • Seek professional advice : it is good to seek advice or guidance from a professional. Professionals helps in guiding and advising you properly on how to get a good property. Son considering hiring one.
  • Get a Real Estate Expert : One advantage of getting a real estate expert is that they can help you get the real market value of an apartment. Most especially, an agent with plenty of outreach will surely give you the best option.

Whether you are looking for property to buy, sell, or invest in, it is necessary to understand the factors and have a good idea on how to recognize a good property with a good market value.

Why hire a property valuation expert in Berlin ?

Hiring a property valaution expert in Berlin can help you determine with accuracy the worth of the property. An accurate property appraisal in Germany  is the first step to selling the house with the best conditions. For instance, if you are a buyer, the appraiser will tell you the actual value of the property. Read and learn about the important reasons you should hire a property appraiser and/or an estate agent.

  • An experienced appraisal expert will provide you with the right valuation of your property in Berlin
  • An appraiser will also help you with due diligence and other information you need about your property in Germany.
  • Also, a property appraiser will help you handle all the issues relating to the sale of the property such as missing documents.

It might be a better idea to choose a real estate agent thatn can complete the above-metionned tasks and help on the sale process

  • An estate agent helps you handle all the paperwork and administrative tasks related to your property valuation in Berlin.
  • A good property real estate agent in Berlin will help you to manage the sale process in Germany.
  • The real estate agnt would advertise your property to prospective buyers in Germany.
  • Some real estate agents have a wider reach and advertise the property internationally such as First Citiz Berlin.

Possible questions you need to ask during property valuations

Before selling a property, the actual value of your property needs to be evaluated and the condition of the property will be examined.
During your property valuation meeting in Berlin, check the possible questions that will be crucial to determone the market value and the sale price.

  • What is the condition of the property ?
  • How often was the property maintained ?
  • When was the property built, and what type of building material was used ?
  • How many rooms are available in the house ? Is there a possible to chnage the floorplan?
  • What is the actual square meter size of the apartment ?
  • Does the house need immediate renovation ?
  • What are the conditions of the facilities and equipment in the house such as basement, staircaise ?
  • Is the equipment or facilities in the house modern ?
  • What are the prices for similar properties listed online in the market.

In addition to this question, you need to know whether the property location is highly demanded. Meanwhile, your property valuation expert in Berlin may have more questions to ask during the valuation.

Conclusion

Having an accurate property valuation in Berlin is an important step you need to take to get the best price from the sale of your house or apartment. Unfortunately, some foreigners are not familiar with this aspect of purchasing and selling properties Germany. In this view, hiring the services of a professional expert for your  property valuation in Berlin will ease the assessment process for you and ensure a stress free sale.

It makes even more sense because many real estate agents in Germany offer a free property valuation service.