The standard land value: an important reference point, but not a market value

The standard land value is only a rough guide. Blumenauer Immobilien warns against a 1:1 application and advises owners: Only professional experts can correctly assess individual property characteristics and current market data

Bad Soden/Frankfurt - When determining the value of a property, many property owners use the publicly available standard land value as their primary or even sole valuation tool. Blumenauer Immobilienberatung, which has been established in the Rhine-Main region and beyond since 1956, would like to point out that although the standard land value is an important figure, it can only provide a rough indication of the value of the property and should never be used on a one-to-one basis.

The standard land value is determined by the expert committees of the cities and municipalities on the basis of past real estate purchase contracts (purchase price collection) and is usually published every two years. It reflects the average price per square metre for a fictitious, standardized reference property within a defined zone.

The challenge in its application lies in the lack of specificity and the time delay. As a rule, the purchase agreements on which the calculation is based do not distinguish between the pure land value and the value of the building on top. A blanket allocation of the purchase price between the land and the building can significantly influence and therefore distort the calculated land value. Furthermore, the guideline value refers to an ideal reference property, the size, shape, buildability and location of which may differ considerably from the actual condition of the special property to be valued.

Particularly in times of dynamic market developments - such as those recently triggered by changes in interest rates or local development plans - the standard land value, which is set every two years, often does not adequately reflect current market changes.

Timothy Blumenauer, Managing Director of Blumenauer Immobilien in Bad Soden, advises owners and buyers to be cautious when using it on its own:

"The standard land value is a solid foundation for initial orientation, but it is not a market value and should not be treated as such. The value of a plot of land is largely determined by its individual characteristics - from its specific buildability to its micro-location. These specific criteria and the current market data must be interpreted by an expert and applied to the guide value in the form of premiums and discounts. We strongly recommend that owners always rely on the expertise of a professional estate agent or surveyor for a well-founded and successful price determination in order to accurately reflect the actual value of their property."

Blumenauer Immobilien's services include a well-founded and substantiated valuation and market strategy that goes beyond the mere use of public guide values in order to make the sales process as pleasant and successful as possible for the client.

Blumenauer Immobilien
K?nigsteiner Stra?e 6 K?nigsteiner Stra?e 6
65812 Bad 65812
Germany

https://www.blumenauer-badsoden.de

Herr Timothy Blumenauer
+49 6196 5602300

t.blumenauer@blumenauer-badsoden.de

Blumenauer - stands for decades of experience, high professionalism and a deep understanding of the real estate market. In addition to its traditional activities as an estate agent and consultant, the company supports private and commercial clients from the initial idea to the successful conclusion of a contract.

A particular focus is on establishing the BLUMENAUER brand cooperation network, which connects real estate professionals and start-ups throughout Germany. Partners benefit from the strong brand, state-of-the-art joint marketing, knowledge transfer and a close exchange of experience - with the aim of operating even more successfully on the market in a strong network.

This release was published on openPR.