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Structural defects such as a roof in need of renovation, old windows or an outdated heating system lead to deductions, as a buyer would factor these costs into their purchase price expectations.
Legal encumbrances also reduce value: registered rights of residence, usufruct, rights of way in favor of third parties, or unfavorable heritable building right agreements limit the property's marketability.
Location-related factors such as traffic noise, proximity to commercial or industrial areas, and poor connections to public transport also have a dampening effect on the achievable value.
An unusual plot shape, such as a very narrow layout or a hillside plot with difficult access, can also limit the buildable usability and thus have a value-reducing effect.
Conversely, some of these defects can be partially compensated for through structural or legal measures, such as a subsequent building encumbrance or easement, which should be taken into account in the assessment.