There are several methods for determining the value of real estate. The most common valuation methods, which are rated according to the regulations for determining real estate valuation ((ImmowertV), are:

• method of real cost
• method of determining the value of future income from an investment activity object,
  comparative method

According to ImmoWertV, the determination of the real market value of the property is carried out by one of the above methods. The size of the real market value of the property is determined in accordance with paragraph § 194 BauGB.

Method of real cost:

The real value method is applied, as a rule, to real estate intended for personal use. As, for example, a one-apartment dwelling house, a house of ordinary development, a semi-detached house.
This is a process that is based on the cost of production.

The method of determining the value of future income from the object of investment activity (method of determining the value, according to income):

This method of determining the value focuses on the size of the projected income from real estate.
Typically, this method is used in evaluating apartment buildings, residential buildings and enterprises, office real estate, industrial real estate, hotels, nursing homes, etc.

Comparative method:

The method of comparative magnitude is based on a comparison of recently sold objects that are similar in appearance and scale of construction use, as well as position, year of construction, quality of construction work, condition, equipment, etc., by appropriate factors that can be sufficiently applied to the object of evaluation.
This method is mainly used in the evaluation of apartments of private property.

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