What significance do standard land values have?

2015-12-11 13:16:40

It is a guideline derived from past purchases. If there were no purchases, then an estimate is made. In addition to the guideline, the possible utilization of the property must also be taken into account, which can drive the guideline up or down (large multi-family house on the neighboring property instead of a small single-family house on your property possible = higher value of the neighboring property justified). Ultimately, however, it is a "problem" of supply and demand.

2015-12-11 13:17:45

The biggest problem is the temporal context. A currently experienceable standard land value is based at best on purchase contracts from 2014, provided there were enough contracts. It may also be based on older data. So the value is at least 1 year old today, very likely even older.

In addition, there are various factors such as buildability, size adjustment factors, etc...

This standard land value is a general statement for an unspecified plot of a certain rough location.

There are then worse or better plots. Whoever wants the cherry on the cream, must also pay for it. Standard land value or not.

I was too slow with my response

2015-12-11 13:33:13

Supply and demand and just a guideline.

Currently, demand is quite high. "Sahnestückchen" are often auctioned to the highest bidder. You can certainly try: Hey, the BRW is 200 euros/sqm, why is the bid currently at 400 euros/sqm?

Our experience from the last few months is that sqm prices are easily 20% above the BRW. But of course, that also depends on the region and the demand.

2015-12-11 16:44:19

Just one more thing: Since the standard land values always lag behind the price development, they will not be very meaningful during steep increases like we are currently seeing in some areas. You can then only add the currently usual increase to the standard value. However, that doesn't help you if another interested party is willing to pay significantly more than you.

Regards
Michael

2015-12-11 17:19:55

The reference values are determined from past sales, however exactly this is done. In any case, every notary must always make a report to a corresponding authority or office when a property is notarized, which records the sales value in the statistics. This is how these reference values are created, which are then made available to appraisers and other interested parties as maps or tables.

2015-12-14 13:48:14

Ok, thank you very much for your answers. Now I have a better understanding. @ Frank: I already suspected that it works that way. Thanks!

What significance do standard land values have?

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