For this purpose, we draw on purchase price collections from the local expert committees (Gutachterausschuss) and select properties with the most similar location, size, year of construction, and features possible.
Deviations between the subject property and the comparable cases are offset by appropriate upward or downward adjustments, for instance for differences in living space, balconies, parking spaces, or the degree of modernization.
The method is considered particularly market-oriented, as it is based directly on actually achieved prices – provided that sufficiently current and comparable transactions are available.
For the sales comparison approach to deliver robust results, at least a few genuinely comparable, recent transactions from a similar location should be available.
For very individual or rare properties, such as unusual architect-designed houses, the sales comparison approach often reaches its limits due to insufficient data and is supplemented by the cost approach.
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