Which plots are suitable comparables for land value?

Define the plot before searching

Write a short search brief: valuation date, plot area with source, current permitted use, project status, infrastructure and significant rights. Also describe the target group that might actually demand this use. A small plot for a private home and a plot for a larger development may share a district yet belong to different market segments.

Separate the plot's current state from a development that is merely intended. If an additional use has not been checked, it must not become an implicit selection criterion. Otherwise, the search will favour comparables whose higher prices include precisely that already established attribute. Vienna's official planning information and the relevant documents provide a starting point; a specific project review is still additionally required.

Foundations: Stadt Wien [2]

What price was paid for what?

§ 4 of the Property Valuation Act describes comparison with purchase prices actually achieved for sufficiently similar properties. This includes proximity in time, comparable areas and consideration of differences relevant to value. Unusual or personal contractual circumstances must be identified and, where necessary, adjusted transparently. These principles are also useful when reviewing your comparison list; the Act's specific scope of application depends on the valuation brief.

For each case, record the price type, contract date, information source and scope of what was transferred. A price may cover several plots, an existing building or additional agreements. In a package purchase, an unknown allocation must not be replaced by simply dividing according to areas. Listings help explain competing offers but do not yet evidence an achieved market price. Duplicate advertisements count as one property, even if the price or advertiser's name changes.

Foundations: RIS [1]

Review every case using the same matrix

The following matrix is a working aid, not an automatic scoring system. Enter the evidenced attribute for each candidate and label missing data. A particularly important difference may rule out the entire comparison; it does not become unimportant because five other attributes match.

Foundations: RIS [1]

Which area should be used beneath the purchase price?

A price per square metre of plot area is comparable only if the area definition and economic content match. A large residual area may mathematically reduce the average price while permitting hardly any additional development. Conversely, a small area with a suitable layout is not inferior solely because of its size. Also consider the source of the area figure and unresolved boundary questions.

For development plots, prices are sometimes expressed relative to assumed achievable usable floor areas. This reference measure is useful only if the areas are based on projects examined to comparable standards. Gross floor area, residential usable floor area and saleable floor area must not be confused. Changing the denominator does not make an uncertain project assumption more reliable. Keep plot area and project floor area in separate columns.

Foundations: Bundesamt für Eich- und Vermessungswesen [3]

How do the cases lead to a justified assessment?

Classify candidates as suitable, usable after clarification or unsuitable. Give the decisive reason for each case. For a value adjustment, request a transparent derivation: which attribute is being adjusted, using what data and why by that amount? A simple rule of thumb such as 'poor shape minus ten per cent' does not explain the individual case.

If few cases remain, widen the search selectively. A slightly more distant area with a similar structure may be more informative than the next street with a different use. Larger time gaps require a justified market analysis. If the data remain insufficient, additional valuation approaches are examined professionally. Averaging several uncertain figures does not create additional evidence.

Foundations: RIS [1]