For determining the value of a property, various valuation methods are available, which can lead to different results depending on the type of property and the purpose of the valuation. For example, different criteria apply to a single-family home than to an income-generating property.

The valuation depends on numerous factors: besides age and size, the standard of construction, micro- and macro-location, energy efficiency, and other property-specific characteristics play a central role. Since no property is exactly the same as another, both objective and emotional value are considered—especially for owner-occupied or family-influenced properties.

Market Value
Market value corresponds to the price that a property is likely to fetch under normal market conditions. The hedonic valuation method is usually used for the calculation. This method is based on actual sale prices of comparable properties and provides an average value for similar properties in a comparable location. However, the final market value is determined by the current balance of supply and demand. The hedonic method is particularly suitable for single-family homes and condominiums.

Real Value
Real value (also called substance value) is composed of the land value and the replacement cost of the building minus depreciation. The replacement cost is derived from the construction costs of a comparable building. This method is often used for properties without sufficient comparable data, for example in remote regions or for unique properties.

Income Value
The income approach is used exclusively for valuing income-generating properties such as apartment buildings or commercial real estate. It focuses on the sustainably achievable net rental income, which is capitalized after accounting for operating costs. The income value forms the basis for investor decisions.

Tax Value
The tax value is determined by cantonal tax authorities for the calculation of property and wealth taxes. Valuation usually occurs every 10 years. The tax value is generally significantly lower than the market value.

Insurance Value
The insurance value refers to the amount the insurance company would pay in the event of total destruction of the property (e.g., due to fire). It relates exclusively to the building’s insured value; the land value is not included.

For an initial, free, and non-binding information session, please contact us by email (kontaktanfrage@vpz.ch) or call our free VPZ hotline at 0800 822 288 to schedule an appointment directly with your consulting specialist. A holistic and forward-looking planning approach coordinates your situation, identifies opportunities for optimization, and ensures long-term success.