How is the construction quality assessed

what is a property evaluation

With a construction loan, the dream of owning your own house or an apartment can finally come true! As part of the property valuation a reliable market value (market value) of a property is determined, which is used as the basis for calculating the mortgage lending value and as security for a real estate loan.

why is a property valuation made

the property valuation serves to determine the market value of a property. the valuation may be necessary when a property is advertised for sale or when a loan is required for a house or apartment. for the bank, property valuation is an important pillar when making decisions about the loan amount and the terms and conditions. the valuation is carried out by independent experts who, thanks to their expertise in the real estate sector and their good knowledge of the market, can provide a well-founded assessment of the value.

criteria that play a role in property evaluation

the value of a house or apartment depends on many different factors. When determining the value, the expert takes into account the following key data in particular:

three methods to determine the property value

In Germany, three main methods are used to determine the value for a possible sale or for the bank:

property valuation in mortgage lending

becomes a real estate Financed with a loan, the lender bears a risk due to the high loan amount. in order to minimize this risk, the bank protects itself by entering land charges on the property in the land register. the mortgage lending value based on the market value, the bank usually deducts a security discount of around 10% to 15%. If the borrower does not meet his payment obligations, the bank can sell the property at the time of a possible foreclosure auction.