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Old 28.10.2015, 10:10
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Real Estate Valuation

I'm amazed at how little information there is on real estate valuation here (or how tightly it's controlled). I'm surprised there isn't a zillow jumping in.

I've looked at the comparis and homegate (ZKB) tools and they are extremely primitive.

Basically, they seem to multiply square meters by some number. They don't even ask about other space.

So, here's my questions..

I'm looking at some places that have a lot of space outside the main living area. One has more sq meters of rooftop and balcony than interior space. Another has about 50% as much hobby room space.

What's the opinion on these rules of thumb?

Balcony and roof terrace space has 50% of the value per sq meter as interior.

Basement space is worth 25%

How does one value "private garden space" and terraces (e.g. patio blocks on the ground)?

As an aside, this values basements in Zurich at more than houses in San Diego.

Thanks for your inputs.
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Old 28.10.2015, 10:18
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Re: Real Estate Valuation

What exactly is your question??

HEV have a structure for valuing properties and goes something like:
- Size of land, usage of land
- <room>, <size>, <condition>

They then look at properties in the same area of the same size (m2) and the same #rooms. They'll then pull it all together for a valuation.

What that means in practice is that are say 3 identical properties for sale - where the difference between the 3 is that one is absolutely sparklingly refurbed, one is 10 years old and the last is 20 years old - the difference in price may be as low as 50-100k.

The property market is very different to the US and UK - and the result is that a property can be divided up into its constituent parts - values and then summed.

At least that way you know exactly what you are paying your money for.
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Old 28.10.2015, 10:30
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Re: Real Estate Valuation

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The property market is very different to the US and UK - and the result is that a property can be divided up into its constituent parts - values and then summed.
You can actually even sell the property in its individual parts.

This is why you sometimes gets ads saying things like cellar compartment for sale.

A work friend of mine bought a basement room for 30K in a new-build appartment block and uses it for his model railway. One family in the appartment block who are short on cellar space have offered him double for it but he's not interested in selling.
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Old 28.10.2015, 10:40
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Re: Real Estate Valuation

The exact question:

What's the opinion on these rules of thumb?

Balcony and roof terrace space has 50% of the value per sq meter as interior.

Basement space is worth 25%

How does one value "private garden space" and terraces (e.g. patio blocks on the ground)?
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Old 28.10.2015, 10:52
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Re: Real Estate Valuation

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The exact question:
What's the opinion on these rules of thumb?
Balcony and roof terrace space has 50% of the value per sq meter as interior.
Basement space is worth 25%
How does one value "private garden space" and terraces (e.g. patio blocks on the ground)?
1) Makes it easy to compare properties
2) 50% seems quite high - but then I wouldn't buy an apartment
3) It is "living space" so would seem fair
4) As per a terrace/balcony in a block (I'd say) and as per the land calculation for a flat

Often in blocks ground-floor apartment owners/renters behave like the whole garden is theirs - for the most part it isn't, with only a small area being included. The garden is classified as communal and maintained by the block.
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Old 28.10.2015, 11:43
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Real Estate Valuation

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The exact question:

What's the opinion on these rules of thumb?

Balcony and roof terrace space has 50% of the value per sq meter as interior.

Basement space is worth 25%

How does one value "private garden space" and terraces (e.g. patio blocks on the ground)?

A valuation is an opinion & not a bid, so can always be taken with a pinch of salt.

Non habitable space is never worth 25% IMHO, however if you can use it as an office then it could easily be worth more if you can get away using it illegally
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Old 28.10.2015, 11:56
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Re: Real Estate Valuation

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A valuation is an opinion & not a bid, so can always be taken with a pinch of salt.

Non habitable space is never worth 25% IMHO, however if you can use it as an office then it could easily be worth more if you can get away using it illegally
Why would it be illegal? Our neighbour uses the room planned for a laundry room as an office. I wouldn't as it doesn't have a window.


It can't be included in the living area calculations according to estate agents though.
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Old 28.10.2015, 12:45
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Re: Real Estate Valuation

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Why would it be illegal? Our neighbour uses the room planned for a laundry room as an office. I wouldn't as it doesn't have a window.


It can't be included in the living area calculations according to estate agents though.
Non habitable space is for storage for or washing, not office or living. A piece of land has a building factor, only habitable space is counted so the land for non habitable space is 'free'. Therefore it's worth much less.
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Old 28.10.2015, 12:51
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Re: Real Estate Valuation

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Non habitable space is for storage for or washing, not office or living. A piece of land has a building factor, only habitable space is counted so the land for non habitable space is 'free'. Therefore it's worth much less.
I thought a parcel of land had both a "useable living space" and "total volume" attached to it - basically to prevent people from building volumetrically big properties with small useable space IE high ceilings and/or oversized utility/storage areas.
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Old 28.10.2015, 13:05
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Re: Real Estate Valuation

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Non habitable space is for storage for or washing, not office or living. A piece of land has a building factor, only habitable space is counted so the land for non habitable space is 'free'. Therefore it's worth much less.
That's a different argument. You said it was illegal to use it as an office.
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Old 28.10.2015, 13:13
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Re: Real Estate Valuation

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That;s a different argument. You said it was illegal to use it ad an office.
Correct. It's not illegal. Unheated areas are not counted in the habitable floorspace of a dwelling for official and sales purposes, that's all. You can sleep every night in your cellar, if you wish.

By the way, this is why a "Wintergarten" (conservatory), while very useful to most home-owners, is not counted in the total habitable floorspace. Very useful when planning extensions and confronted by a maximum habitable floorspace restriction.
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Old 28.10.2015, 13:15
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Re: Real Estate Valuation

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That's a different argument. You said it was illegal to use it as an office.
It's not legal to use non habitable space as an office. If it was most office space would be underground without windows as it would be cheaper, only the top brass would have windows.
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Correct. It's not illegal. Unheated areas are not counted in the habitable floorspace of a dwelling for official and sales purposes, that's all. You can sleep every night in your cellar, if you wish.
.
It's not an issue to heat non habitable space, just no windows.

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I thought a parcel of land had both a "useable living space" and "total volume" attached to it - basically to prevent people from building volumetrically big properties with small useable space IE high ceilings and/or oversized utility/storage areas.
Often there is a height restriction however you can build 100m2 or more under ground without any issue

Last edited by fatmanfilms; 28.10.2015 at 13:28. Reason: Added reply to dodgyken
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Old 28.10.2015, 13:55
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Re: Real Estate Valuation

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It's not legal to use non habitable space as an office. If it was most office space would be underground without windows as it would be cheaper, only the top brass would have windows.

It's not an issue to heat non habitable space, just no windows.

Often there is a height restriction however you can build 100m2 or more under ground without any issue
We're talking about home office space here, not commercial; and in any case, underground commercial office space does exist (at Novartis, for example).

No one said you can't heat non-habitable space. But space that is not heated by fixed heating systems (radiators, underfloor heating, etc.) is defined as not habitable and does not count towards a property's habitable floorspace. Windows are a separate issue; some habitable spaces (e.g. toilets) may have no windows.

You can indeed build underground (at vast cost) but you will need the space to be heated and probably to have windows (into a light well) if you want to count the space as habitable.
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Old 28.10.2015, 14:02
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Re: Real Estate Valuation

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You can indeed build underground (at vast cost) but you will need the space to be heated and probably to have windows (into a light well) if you want to count the space as habitable.
The whole point of an underground build is that it does not count as habitable space, if you could build a house twice the size, most people probably would not bother with a basement. In many places the land will be 80% of the finished project, so doubling the floor area is attractive even if it's not all 'habitable'.
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Old 28.10.2015, 15:09
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Re: Real Estate Valuation

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The whole point of an underground build is that it does not count as habitable space, if you could build a house twice the size, most people probably would not bother with a basement. In many places the land will be 80% of the finished project, so doubling the floor area is attractive even if it's not all 'habitable'.
Genau.
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Old 28.10.2015, 15:54
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Re: Real Estate Valuation

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No one said you can't heat non-habitable space. But space that is not heated by fixed heating systems (radiators, underfloor heating, etc.) is defined as not habitable and does not count towards a property's habitable floorspace. Windows are a separate issue; some habitable spaces (e.g. toilets) may have no windows.
The valuation we recently had included bathrooms, irrespective of whether they had windows but did not include rooms without windows which, in our case, are actually heated with underfloor heating, and aren't at cellar level.
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Old 28.10.2015, 16:46
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Re: Real Estate Valuation

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The valuation we recently had included bathrooms, irrespective of whether they had windows but did not include rooms without windows which, in our case, are actually heated with underfloor heating, and aren't at cellar level.
Thats only a valuation, which is an opinion, nothing more.
What a buyer decides to pay is up to them.
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Old 28.10.2015, 17:06
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Re: Real Estate Valuation

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Thats only a valuation, which is an opinion, nothing more.
What a buyer decides to pay is up to them.
Er, the thread title is "Real Estate Valuation...."

It's an opinion but a fairly important one if it's a bank, for example, doing the valuation as one of the factors in a financial negotiation.
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Old 28.10.2015, 17:08
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Re: Real Estate Valuation

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Er, the thread title is "Real Estate Valuation...."

It's an opinion but a fairly important one if it's a bank, for example, doing the valuation as one of the factors in a financial negotiation.
Furthermore the "valuation" includes a weighting based on the area - and includes past sales in the area and demand.
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Old 28.10.2015, 17:50
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Re: Real Estate Valuation

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Er, the thread title is "Real Estate Valuation...."

It's an opinion but a fairly important one if it's a bank, for example, doing the valuation as one of the factors in a financial negotiation.
Multiple valuations will vary, possibly by a huge factor.

The land 'value' plus cost to replace based on size don't have any reflection on what someone will pay actually pay you in cash today. Only a sale will tell you the market value on the day contracts were signed.
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