Glossary
The language of valuation, without the jargon.
So that you understand every report, we explain the most important terms here, briefly and clearly. If a word is missing, ask the assistant at the bottom right.
Start an analysisValue and price (11)
- Market value
- The price that can realistically be achieved in a sale under normal conditions.
- Comparable properties
- Real properties nearby used to calculate the market value, each with its origin and similarity in percent.
- Conservative value
- When buying, the market value less a fixed safety margin of ten per cent.
- Safety margin
- A fixed deduction from the market value when buying, which absorbs uncertainty and risk.
- Negotiation discount
- The difference between the asking price and the purchase price actually achieved.
- Lending value
- The durably safe value of a property as a bank sees it, usually below the market value.
- Income value
- The value of a property from the point of view of letting.
- Capitalisation rate (Liegenschaftszins)
- The rate at which future rental income is discounted to today's value.
- Standard land value (Bodenrichtwert)
- The officially determined average value of the land per square metre in a location.
- Incidental purchase costs
- Additional costs when buying, for example transfer tax, registration, notary and, where applicable, an agent.
- Market value appraisal (Verkehrswertgutachten)
- A report by a recognised expert on the market value, accepted as evidence by courts and authorities.
Letting and yield (9)
- Gross yield
- The annual net cold rent in relation to the purchase price, in per cent.
- Cash-on-cash return
- The running surplus after tax of one year divided by the equity put in. It shows the pure cash return on your capital, without appreciation and without repayment, and it can be negative if the property costs money at first.
- Return on equity
- The whole return on the equity put in during one year.
- Total return
- The return over the whole holding period, converted to one year.
- Break-even rent
- The net cold rent from which the property carries itself, that is, just covers running costs and the full loan instalment.
- Repayment period
- The number of years until the loan is fully repaid at the current instalment.
- Rent index (Mietspiegel)
- An overview of the locally customary comparative rents in a city.
- Reserve fund (Rücklage)
- The money an owners' association saves for future repairs of the common building.
- Service charges (Betriebskosten)
- The running costs of a building such as water, waste, insurance and management, on top of the net rent.
Checking and proof (7)
- Red Flag
- A concrete warning sign on the property, for example a repair backlog, damp, noise or a price above the market.
- Verification number
- The unique number of every report.
- Source register
- The numbered list of every source consulted for a report.
- Authenticity code
- A digital fingerprint of the report.
- Confidence (how much it carries)
- How solid a report is, given the data available.
- Renovation backlog
- Postponed maintenance on roof, windows, heating or pipes that has to be caught up on after the purchase.
- Official company check
- A look into the official company registers at the firms behind the property, that is the seller of the listing and the developer.
Location, condition and environment (14)
- Energy performance certificate
- A document that states the energy figures of a building, for example the heating demand.
- Zoning (Flächenwidmung)
- The officially fixed use of a plot, for example residential area, building land, green land or industry.
- Natural hazards
- Hazards from nature mapped by the authorities, for example flood, landslide, avalanche, rockfall, ground movement or earthquake.
- Radon
- A natural radioactive gas from the ground that can enter buildings depending on the geology and counts as a health risk.
- Contaminated sites (Altlasten)
- Plots with recorded or suspected contamination of the soil, often from earlier industrial use.
- Major accident risk
- The risk from a serious accident at a nearby dangerous plant such as a chemical works, a refinery or a pipeline.
- Cadastre
- The official register of all plots with their legally binding boundary and official area.
- Flood risk
- The risk that a plot will be flooded, according to the official hazard map.
- Heritage protection
- Legal protection that makes alterations and the facade subject to approval, often also for houses next to a listed building.
- Development plan (Bebauungsplan)
- The binding municipal plan for what may be built on a plot and its neighbouring plots.
- Heavy rainfall
- Very intense rain in a short time, where water runs off over the surface and collects in hollows and basements.
- Environmental noise
- The constant noise from roads, railways, airports and industry, as shown by the authorities on noise maps.
- Solar potential
- How well a roof is suited to a solar installation, based on orientation, pitch and shading.
- Broadband
- The fastest internet connection available at this address, listed separately for fixed lines and mobile.
Law and contract (7)
- Easement (Dienstbarkeit)
- A right of someone else registered against the plot, such as a right of way.
- Right of first refusal (Vorkaufsrecht)
- The right to step into a signed purchase contract and buy on the same terms.
- Liability for defects (Mängelhaftung)
- The seller's duty to answer for defects that already existed at the time of sale.
- Land register extract (Grundbuchauszug)
- The official extract from the land register with the owner, charges and mortgages of a plot.
- Condominium ownership (Wohnungseigentum)
- Ownership of a single flat with a share of the common land and building.
- Duty of disclosure (Offenlegungspflicht)
- The seller's duty to disclose known defects and important documents before the sale.
- Ground lease (Erbpacht)
- The right to own a building on someone else's land, against a running fee and for a limited period.
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