Sales comparison, income, cost: the three valuation approaches – simply explained

The market value of a property is the price that could be obtained in the ordinary course of business on the valuation date (§ 194 BauGB). It is determined using the approaches of the German Property Valuation Ordinance: sales comparison, income and cost. In about four minutes, this video explains how they work and when each approach fits.

What you will learn in the video

• Sales comparison approach: what was paid for comparable properties? Typical for condominiums and building land (§§ 24–26 ImmoWertV).
• Income approach: what income does the property generate sustainably? Typical for apartment buildings and commercial property (§§ 27–34 ImmoWertV).
• Cost approach: construction costs less age-related depreciation plus land value, with market adjustment. Often used for owner-occupied single-family houses (§§ 35–39 ImmoWertV).
• Recurring building blocks: land value, market adjustment and special property-specific features such as structural damage or rights.
• Market value: the choice of approach is justified, and the market value is derived by weighing the significance of the results (§ 6 ImmoWertV).

Legal basis and sources (as of 8 October 2026)

• Section 194 BauGB – market value
• § 6 ImmoWertV – valuation approaches
• § 8 ImmoWertV – special property-specific characteristics
• §§ 24–26 ImmoWertV – sales comparison approach
• §§ 27–34 ImmoWertV – income approach
• §§ 35–39 ImmoWertV – cost approach
• § 40 ImmoWertV – land value

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not legal or tax advice and does not replace an appraisal of your property. Examples are simplified.