Direct market price comparison
The sales comparison approach is based on the simplest valuation principle: a property is worth as much as comparable properties have actually achieved. It is based on the purchase price records of the expert committees (Gutachterausschuss) and real estate transaction databases. The method is standardised in the ImmoWertV 2022 (§§ 24–26) and delivers the most reliable results when a sufficient comparative data basis is available. It is the primary method for condominiums, terraced houses, semi-detached houses and undeveloped plots in well-comparable locations.Sales comparison approach — procedure:
- 1. Selection of suitable comparable properties from purchase price records
- 2. Adjustment for value-influencing characteristics (location, size, fittings, age)
- 3. Derivation of the adjusted comparison value from the average of comparable prices
Sales comparison approach in the full appraisal report
- Purchase price records of the expert committee (Gutachterausschuss)
- Market-adjusted comparable prices
- All value-influencing characteristics
- Court-recognized & bank-approved
- Delivery in 10–15 business days
Typical use cases
Condominiums
For condominiums, the sales comparison approach is the preferred primary method. In all regions with active purchase price records, it delivers the most market-accurate results.
Terraced houses & semi-detached houses
Mid-terrace houses, end-terrace houses and semi-detached houses usually have sufficient comparable prices in the region, so the sales comparison approach can be applied reliably.
Building plots
For undeveloped plots, the sales comparison approach forms the basis for deriving standard land values (Bodenrichtwerte) — and provides the most reliable land value determination.
Inheritance & equalisation of accrued gains
For residential properties with a good comparative data basis, the sales comparison approach enables a precise and court-standard valuation for family and inheritance law purposes.
Process of the sales comparison valuation
Recording of characteristics at the property
Personal inspection and complete recording of all value-influencing characteristics: location, size, year of construction, fittings standard, condition, floor plan, orientation, parking space, basement.
Research of comparable prices
Analysis of the purchase price records of the local expert committee (Gutachterausschuss) as well as supplementary transaction databases for the relevant sub-market and valuation date.
Characteristic adjustments
Adjustment of the comparable prices for differences in location, size, year of construction, condition and fittings. Each adjustment is comprehensibly justified.
Derivation of the sales comparison value
The comparison value is derived from the adjusted price range of the comparable properties. Outliers are excluded or weighted with justification.
Frequently asked questions
What happens if no comparable prices are available?+
In regions with low purchase price density, we resort to supplementary data sources (supra-regional purchase price records, applicant databases, published transactions). If the sales comparison approach cannot be applied due to a lack of data, we fall back on the cost approach or income approach and justify this in the appraisal report.
Are asking prices used as comparable values?+
No. The sales comparison approach is based exclusively on actual purchase prices from notarised purchase transactions — not on asking prices from real estate portals. Asking prices may be used supplementarily for plausibility review, but they are not standardised comparable values.
Request a sales comparison appraisal report
A comparison value is only as good as its data basis — and I obtain that directly from the expert committee (Gutachterausschuss).
