5 features that really increase the value of your property

Property owners often misjudge the value of their property, and many underestimate which factors actually increase the value. Here are five key features that can sustainably increase the value of your property:

Berlin's most expensive villa: exclusive luxury and hidden costs

Berlin's most expensive villa is located in the Grunewald district and costs 13.5 million euros. This magnificent property offers numerous luxurious amenities, including direct access to the Hubertussee lake and indoor and outdoor pools. Built in 1906, the property has eight bedrooms and ten bathrooms spread over an impressive 1210 square meters of living space. The spacious plot on the lake extends over 2720 square meters and offers plenty of space for exclusive outdoor activities.

A pool conveys exclusivity and is a popular status symbol. Celebrities like to present themselves with a cocktail in hand in front of their swimming pool. As with yachts, the bigger the better. But this decadence has its price, which goes beyond the high purchase price. British billionaire Nick Candy recently lamented the annual service charges of 190,000 euros for his penthouse in London, with the apartment complex's 21-metre-long pool contributing significantly to the costs.

Pool: luxury with hidden costs

A pool does not automatically increase the property value - but it does mean higher running costs for the owner. Sebastian Drießen, Head of Market Research at Sprengnetter, explains: "In practice, you often see that former swimming pools in the basement are dry and a floor has been laid over them instead so that the space can be used for other purposes." This shows that maintaining a pool can not only be expensive, but often also impractical.

Conclusion

Luxurious amenities such as pools can increase the appeal and value of a property, but the running costs and maintenance requirements should not be underestimated. When deciding to make such an investment, the long-term financial burden should be carefully weighed up.

According to the internet platform ImmoScout24, the average asking price for houses with a pool is 3923 euros per square meter. This price is 28 percent higher than the average price in the market as a whole, which is 3060 euros per square meter. However, ImmoScout24 explains that this difference is not solely due to the pool. The higher prices are mainly due to the location and other features of the properties.

Investing in pools: High costs, low returns

Many property owners find that investing in pools rarely pays off. Due to the high operating costs, many owners want to sell these properties again. According to the internet platform ImmoScout24, most of the offers to buy houses with pools are in the Bad Dürkheim district: 32 percent of listings include swimming pools. In second place is the Saale-Holzland district in Thuringia with 19 percent. On average across Germany, 5.4 percent of houses have a pool.

Offer prices vs. purchase prices

It is important to note that offer prices are not purchase prices. Buyers of homes with pools consider not only the purchase price, but also the ongoing costs of maintaining and refurbishing the pool. Upon resale, many owners find that the investment in a pool rarely pays for itself - unless they are extremely expensive luxury properties like the Villa am Wannsee.

The market value of a property

Many homeowners find it painful, but the real estate market does not take into account how much has been invested in a property. While every buyer has individual preferences, there are general factors that increase or decrease the value of a home. Both owners and buyers should be aware of these criteria:

Standard is the new luxury: How neutral design increases property value

Home ownership offers the advantage that owners can design their property according to their own ideas. However, an overly individual design can be detrimental when selling the property. Property buyers often already calculate the costs of necessary conversions during the viewing in order to design the property according to their own wishes. Therefore, the more outlandish the design, the less attractive the home is to potential buyers.

Why standard is better

A luxury bathroom in bright orange or pink may be appealing to the current owner, but for most buyers it is more likely to represent an expensive building site. The likelihood of finding a buyer with a similarly unusual taste is low. In contrast, a neutrally designed bathroom with standard white tiles raises the purchase price as it is timeless and appealing to the majority of prospective buyers.

Room layout and property value: why standard layouts are advantageous

The layout of the rooms has a significant influence on the value of a property. A layout that is too individual can significantly reduce the value, as potential buyers often factor in costs for conversions and adaptations. Rooms that are neither too large nor too small and allow for flexible use without the need for extensive structural alterations are ideal.

Why a well thought-out room layout is crucial

Every unconventional wall that a buyer would have to move or remove can depress the purchase price. Therefore, owners who are thinking about reselling in the long term should already take into account possible price reductions due to overly individual room ideas when renovating.

Optimizing property costs for higher value

Owning your own home doesn't mean renting, but it doesn't mean free use either. Areas of the home that incur above-average maintenance costs, such as a pool or sauna, can reduce the value of the property, especially in segments that are intended to be affordable for average earners. In the luxury segment, on the other hand, such features are often standard.

A large plot of land usually increases the value of a property, but too much space can also lead to price reductions. Potential buyers take into account the cost of maintaining large lawns, tree care, hedge trimming and leaf removal. If the owner cannot do this work themselves, there may be additional costs for a gardener.

Modern homes often rely on open-plan designs, for example by having no walls between the kitchen and living area, which creates more light and transparency. However, this openness also increases heating costs, as adjacent rooms also have to be heated. High operating costs can have a negative impact on the sales price. An efficient floor plan that minimizes heating costs, on the other hand, can increase the value of the property.

These general principles cannot fully take into account the individual preferences and needs of individual buyers, who may be willing to accept higher operating costs for their dream property. Nevertheless, they serve as a guide for the objective valuation of a property.

Freedom in real estate: unencumbered usability increases the value

The value of a property is not only determined by its physical characteristics, but also by intangible factors such as the freedom of its use. Prospective buyers also value a house according to how unrestrictedly they can use it. Restrictions can usually reduce the value.

Practical example: Right of way

An illustrative example of these restrictions is the right of way: A plot of land on which a property stands borders a road, behind which is another plot of land that only has access to the road via the first plot. The owners have therefore agreed a right of way that allows the owner of the rear property to drive across the front property. Typically, the user of the right of way pays compensation to the owner of the other property.

A potential buyer will take this agreement into account and, depending on the importance of the right of way, will consider a reduction in value if they have concerns or inconvenience with it.

Influence of rights of way and residential rights on property value

The restrictions imposed by rights of way and residential rights can significantly affect the value of a property. Potential buyers often take these factors into account when making their purchase decisions and can demand corresponding discounts on the purchase price.

Example of a right of way

To illustrate the impact of a right of way, let's take two sample properties of 650 square meters each. The owner of the rear property uses a three-meter-wide and 20-meter-long strip on the front property to get to the road.

Assume the front property would be worth 91,000 euros without the right of way. The right of way could reduce the value by an estimated 15 percent, i.e. by 13,650 euros. If the present value of the compensation paid by the neighbor is 10,000 euros, the value of the property could fall by a total of 3,650 euros to 87,350 euros. In order to make the right of way value-neutral, the compensation would have to be adjusted accordingly.

Example: residential rights

Many families agree residential rights for relatives, such as the right of parents to live in the property for life, even if they give it to their children. As long as the family stays together, this is usually not a problem. However, it becomes difficult if the children want to sell the house and the parents' right of residence still exists. The discount on the property value here depends on the statistical life expectancy of the parents and their share of the living space.

Optimizing the use of space to increase value

Property owners are restricted in the development of their properties by the development plan. It is therefore advisable to use the available space as efficiently as possible, as every additional buildable square meter increases the value of the property.

Meaning of the development plan

The development plan determines how much of a property may be built on, based on two main factors. The floor area ratio (GRZ) indicates what proportion of the plot can be built over. A GRZ of 0.5, for example, means that a maximum of half of the total area may be built on.

Optimal use of the floor area ratio (GFZ) to increase value

The development plan uses the floor area ratio (GFZ) to regulate the ratio of the total area of all full storeys of a property to the plot area. For example, if a plot of land is 500 square meters in size and the development plan stipulates a maximum GFZ of 0.8, the total area of all full storeys may be up to 500 times 0.8, i.e. 400 square meters. The GFZ therefore determines how many full storeys a developer may build on the buildable area.

Practical application

Potential buyers check the remaining space potential according to the development plan, including possible reserves in the basement or attic for additional living space. Owners looking to sell can have an independent surveyor calculate what added value these building reserves can add to the property and present it to prospective buyers accordingly.

Importance of micro-location for property value

The exact location of a property within a city or neighborhood, also known as its micro-location, can have a significant impact on its value. Even within a block of houses, prices can vary greatly, often due to the specifics of the micro-location.

A real-life example

Suppose that in a street of single-family homes, the properties on the left side are adjacent to farms, while the houses on the right side are surrounded exclusively by residential buildings. Although the entire street is basically assigned to the same residential area, the owners on the left-hand side may be confronted with immissions from agriculture, such as noise from tractors or smells from freshly fertilized fields.

Practical effects

According to the property market report of the Düsseldorf expert committee, such immissions often lead to a five percent discount on the property value. This illustrates how important it is to consider not only the general residential location, but also the specific surrounding conditions when valuing a property.

Influence of the slope on the property value

The slope of a property is a decisive factor in its value and can have both a positive and negative effect. This aspect is part of the micro-location of a property and significantly influences its attractiveness.

Positive potential of the slope

If a property is located on a slope that offers an unobstructed and beautiful view, this can significantly increase the value of the house. The view is often appreciated by buyers and has a positive effect on the property value.

Negative potential of the slope

However, if the slope is too steep, it can limit the scope for using the property, which can reduce the value of the property. In general, a slope of more than ten percent is considered to reduce the value.

Practical considerations

When valuing a property, both the potential benefits of a beautiful view and the limitations of a steep slope should be taken into account. This is particularly important in order to determine the realistic market value of the property and assess it appropriately.

Source: WiWo online