This article is for general information purposes only and does not constitute legal, tax, or financial advice, nor a valuation in an individual case. Despite careful research, we assume no liability for accuracy, completeness, and timeliness. For specific questions, please consult a lawyer or tax advisor. Older content may be outdated due to changes in legislation or case law.
The starting point is the total economic useful life of the respective building type, from which the actual age as well as completed or omitted modernizations are deducted or added.
Comprehensive modernizations, such as new windows, roof, or heating system, can significantly extend the remaining useful life compared to the purely calendar year of construction.
Since a shorter remaining useful life leads to a lower value in both the cost approach and the income approach, its careful assessment is a key component of every appraisal report.
Maintenance backlogs, such as neglected servicing or postponed repairs, also have a reducing effect on the remaining useful life, even if the calendar year of construction does not initially suggest this.
For the assessment, we draw on recognized models from the Standard Construction Cost Guideline (Normalherstellungskosten-Richtlinie), which specify typical useful lives for different building types.