What is a land value
If you want to buy or sell a piece of land, you ask yourself what it might be worth. But the standard land value is also important for gifts, inheritance, divorce, statistics and taxation.
What is the standard land value?
The standard land value provides a good starting point for assessing the value of a property. It is based on regional purchase prices and is an average of the property prices in a municipality, an area, a district or a street. The municipalities record the purchase prices of the property transactions over a certain period of time, which can vary according to federal states. At the latest every two years, the purchase prices are collected on a key date and stated per m². In addition, area-specific features and individual characteristics of the location of the property are taken into account. It is always assumed that the property is undeveloped. The standard land value is published for properties with the same use and the land value may differ due to different types of use. It is not about the market value of the property, but merely a non-binding property value from the past.
How is the standard land value determined?
The building code (BauGB) forms the legal basis for the valuation. The expert committee for property values is responsible for this. At the end of every second calendar year, unless shorter deadlines have been decided by the municipality, the authorities evaluate all notarized copies of the purchase contract received from notaries of the municipality. From the addition of the purchase prices, an average is determined and recorded in land value tables or land value maps for the corresponding land value zones.
The guideline value serves as the basis for determining the land value if a direct comparison value method in real estate valuation does not lead to the goal. The land value of a property is calculated according to the following formula: land value = standard land value x area in m². The standard land value is in fact only a reference value, because in addition to the actual, previous sales prices, estimates are also included in its determination.
Which factors play a role in determining the standard land value?
The factors influencing the value are taken into account by appraisers when the real property value is to be assessed. The location of the property plays an important role. Factors such as the degree of development, the development possibilities, the shape and size of the property and its intended use have a major influence on the valuation. A house in the countryside on the outskirts in a developed residential area is rated higher than one near a motorway.
The land value maps and tables can be viewed free of charge on the Internet or in the offices of the expert committees, usually in the land registry or surveying office. Written requests for the standard land value are subject to a fee. Online information can be obtained for a fee in the standard land value information system of the expert committees for each federal state. A version of the networked standard land value system (VBORIS) of the working group of the surveying administrations of the federal states was developed with the aim of making standard land values of the administrations available nationwide as official geospatial reference data online in a standardized and comprehensive manner.
How should the standard land value be observed when buying or selling?
For undeveloped land, the standard land value is the basis of the valuation. Only the special factors of the location and the nature of the soil lead to a decrease in value or an increase in value through surcharges or discounts. In the case of built-up properties, more evaluation factors have to be taken into account, which is why a complex market value determination is necessary for them. Influencing factors are, for example, the property interest rates, material value, building and income factors such as the building standard, the year of construction, the total useful life, production costs of the construction, gross rental income, etc. Even if the standard land value has no binding effect, it still gives a reliable overview of the development of Property values in Germany and individual regions.
Standard land values are an important source of information for business, science and administration as well as for property buyers and providers. They provide information on how expensive properties are in an area, town or district. Anyone interested can access the values in the soil information system online or by sending a written request. Transparent, but without guarantee, buyers and sellers learn what value their property could have. This is a guide to what owners can ask for or whether buyers are not paying too much. The standard land value is an average property value within predefined zones. It is determined by regional appraisal committees from the purchase prices of previous real estate contracts, taking into account local peculiarities in the location and condition of the property.
- Standard land value provides a non-binding orientation for the value of land
- Average value of all land prices in a municipality, an area or a street in euros per m²
- At the latest every two years, standard land values are updated by expert committees of the federal states - the deadline is December 31
- Basis: purchase prices of past property transactions and estimates of the effects of regional influences from the condition and location of the property
- Individual characteristics of the property such as degree of development, property size, existing buildings and plants are taken into account by experts
- The assessment is based on the assumption that the land is undeveloped
- published online in the land value information system and in land value maps or tables at land registry and surveying offices
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