There are three different methods of valuing a property: 1. the asset value method, 2. the capitalized earnings value method and 3. the comparative value method. In the asset value method, which is often used for single-family homes, the focus is on the land value and possible construction costs. The capitalized earnings method is the most common method for rental properties and takes into account possible rental or leasing income as well as the structural condition of the building. In the comparative value method, as the name suggests, the value is determined on the basis of comparable properties. This is particularly the case for condominiums.
Almost without exception, information is obtained electronically, either by e-mail or directly via one of the many online comparison portals. On these comparison portals, data is evaluated by means of a mathematical-statistical procedure and a price is calculated. The problem in this case, however, is that there is no uniform nationwide comparison database and the existing databases of the federal states can vary widely.