Contrary to what you might think, the fixtures and fittings of a property are by no means limited to the furnishings that belong to the house or condominium. The construction method and the quality of the materials used are also included in the furnishings.
These include balconies or terraces, for example. If a property has a veranda, balcony or terrace, this has a positive effect on its price. High-quality technology, for example in the form of a new heating system, also has an impact on the price that the property can achieve on the market. Especially at a time when heating costs are constantly rising, low heating costs have a strong long-term effect on the attractiveness of the property.
What is part of the equipment of a property?
As already mentioned, the furnishings and the quality of the construction are the main features of a property. But that’s not all, because the layout of an apartment or house is also counted as part of the fittings. If an apartment is not practically or aesthetically pleasing, it usually fetches a lower price on the market. It is also more difficult to market. Another problem is that it is difficult to change the layout of an apartment at a later date. Extensive renovation work is usually necessary, in which walls are torn down and raised elsewhere in order to turn an impractical apartment into an attractive layout. For this reason, the layout has a far greater influence on the price of a property than other features, such as a terrace or balcony.
What role does the property's fixtures and fittings play in its valuation?
The valuation determines the reliable market value of a property. The property’s features and fittings are also taken into account. An attempt must be made to carry out an objective analysis in order to draw up a valuation that sellers can rely on. Subjective influences may therefore understandably not be taken into account in this procedure. It is therefore irrelevant whether the valuer personally likes the property. He must be guided by objective criteria.
It is also interesting to note that the valuation of a property is very important for both the seller and the buyer. After all, the seller wants to achieve the highest possible price on the market, but at the same time wants to complete the sale quickly. The buyer, on the other hand, is keen to avoid buying a property that is not worth its high price.
In addition to the location and size of a property, other criteria also play an important role in determining its value. These include, for example, the fixtures and fittings, which can have a positive or negative effect on the price. If a good building structure comes up against outdated technology, this reduces the value of the property. If, on the other hand, investments have been made in innovative technology and the property can be controlled via a smartphone or has a new heating system, the price of the property will increase. The seller’s investment is appreciated and can be recouped when the property is sold. There are also no regrets about building a balcony or terrace. These features make the property much more attractive on the real estate market and can usually be sold within a short time.
What equipment categories are there and what are their characteristics?
The features of a property can be assigned to various categories. They are based on objective criteria and will be explained in more detail here:
A property with simple furnishings
The valuation of the property affects both the sales price and the insurance. Buildings with basic fittings are hardly ever built these days. All new-build projects have at least a standard fit-out.
Some criteria that play a role in the evaluation and speak in favor of simple equipment are:
- Cleaned sockets
- Floor coverings made of wood, linoleum, tiles or needle felt
- Windows with single glazing and wooden frames
- Heating with the help of individual stoves and hot water supply with an electric boiler
- Bathroom with surface-mounted installations and WC
- Doors with painted frames and door leaves
A property with normal standard equipment
New and old buildings differ from each other in some respects. Nowadays, it is standard for a new build to have a balcony or terrace. Old buildings often do not have this feature and in many cases it cannot be retrofitted.
The windows are single or double-glazed and there are usually no shutters or blinds. The bathroom is rather small and in most cases there is no separate guest WC. Instead, the toilet is integrated into the bathroom, which usually has either a shower or a bathtub. It is unusual to find both together in the standard category. The kitchen and bathroom are fitted with practical tiles or linoleum flooring. These are easy to lay and uncomplicated to clean on a daily basis. The fittings and sanitary objects are practical, but do not belong to the higher price category. The windows and doors are solid, but in most cases do not have burglar protection or burglar-resistant doors.
It is also important to know that even properties with high-quality fixtures and fittings are classified in the standard category if their location has a negative impact on the rating. If there are no public transport stops near the property or if it is located on a busy road, it cannot be assigned to the high-end category despite having great features.
A property with upscale furnishings
The location plays a key role in the valuation of a property and its classification in the amenities categories. A property with an upmarket fit-out may have public transport stops in the immediate vicinity. It is located on a moderately busy or quiet street. At the same time, doctors, educational institutions and shopping facilities are within walking distance. An exclusive residential area may also be an option. After all, the property should be offered to a group of buyers with a high income.
The bathroom and kitchen feature modern design elements. The tiles, for example, are large and elegant. The sanitaryware and the shower, as well as the bathtub, come from renowned designers. In addition to a modern radiator, there is also a towel dryer. Many properties with upmarket fittings also have a separate guest WC.
In the kitchen, you will find natural stone and modern tiles. A kitchen that is more than 5 years old or comes from a mass manufacturer cannot be considered upmarket. In the other living areas, high-quality laminate, natural stone or real wood parquet increase the value of the property.
An innovative heating system that is heated with pellets, for example, is of high quality and is clearly not standard equipment. A heat pump uses energy from the earth, air or water. It is sustainable, ecologically sensible and future-proof. The heat pump can also be combined very well with an air conditioning system or underfloor heating.
Other features, such as good insulation, elegant roofing or barrier-free furnishings, increase the category of amenities. If the property has a large roof terrace with a whirlpool and pool, this also has a positive effect on the property’s rating.
A property with luxurious furnishings
Luxury properties are increasingly in demand. This is why many developers are now opting to build properties with high-quality, luxurious features. The top cities for luxury real estate are currently Berlin, Hamburg and Munich. Prices are exploding and a luxury property on Lake Starnberg can easily change hands for 25,000 euros per square meter.
Noble properties usually have a concierge and a janitor service. Fitness areas and wellness facilities are also not uncommon. Furthermore, a luxury property consists of a maximum of seven residential units. The owners appreciate the quiet and exclusive location. They don’t want to have to share their dream home with lots of other people.
Security plays a major role. The owners of a luxury condominium or villa want to feel safe in their home. They also often own valuable works of art, jewelry and other valuables. Secured windows, a modern alarm system and security doors are essential in a luxurious home.
The interior design is simple but very elegant. The floors are made of natural stone and real wood parquet. There is extensive glazing and design elements made of marble or fine stone. The air conditioning, heating and ventilation systems meet the highest standards. All technical equipment components such as the blinds, heating and air conditioning, as well as the alarm system, can be controlled via smartphone or tablet.
The location of the property also influences whether it is classified as a luxury property. One of the most popular locations is the city center. Anyone who buys a property in the center of Berlin, Munich or Hamburg is living a true luxury dream. If the property is not located in the city center, it should preferably be in a popular residential area. In Hamburg, for example, this is Uhlenhorst, in Munich Bogenhausen or Lake Starnberg and in Berlin the villa district of Berlin-Wannsee.
The standards and demands regarding the furnishing of properties are constantly changing. What was considered a luxury a few years ago is now often regarded as upmarket furnishings. You can read about how a property valuation is structured and carried out in our detailed magazine article on this topic.
Overview: The most important equipment criteria for apartments
When looking for their dream property, it is important for home buyers and tenants to consider the furnishing criteria. In this way, it is possible to determine the value of a property and how much should be paid for it. However, these criteria are also crucial for apartment owners. If a condominium is to be sold or rented out, you have a much better chance on the real estate market if you offer your property at a realistic price. At the same time, you don’t want to offer a price that is too low and risk a loss.
The fitted kitchen
For most buyers or tenants, the fitted kitchen including dishwasher is a decisive criterion for or against an apartment. If the apartment is to be purchased, potential buyers are somewhat more willing to invest in a new kitchen. After all, they want to spend many years in the property and furnish it to their taste. What’s more, there are already high costs associated with buying a property. The kitchen can often be included in the planning and implementation. What’s more, in most cases, other renovation work is also carried out so that moving in is not delayed by the long delivery time of the kitchen alone.
The situation is different for tenants. Moving is associated with high costs. The deposit for the apartment has to be paid, as does the rent, which in many cases overlaps with the last rent payment from the previous apartment. In addition to these costs, having to invest in a fitted kitchen is impractical or simply unaffordable for many tenants. In addition, it is difficult to take the kitchen with you to a new apartment at a later date. The new tenant would therefore have to agree to take over the kitchen and bear the corresponding costs. All of this means that apartments with a good, high-quality fitted kitchen achieve a higher value on the real estate market.
A balcony or garden
The global coronavirus pandemic has contributed to buyers and tenants attaching great importance to a garden, terrace or balcony when looking for the right apartment. In rural areas and suburbs, balconies and gardens are taken for granted. This is different in cities. A terrace, a balcony or a small garden are seen as a luxury. Many buyers and tenants gratefully accept the opportunity to set up their own little place to relax. For this reason, it can be observed that such a retreat has a positive effect on the valuation of a property.
One underground parking space or parking space for the car
Many people try to use public transport or walk or cycle to work on a daily basis. Nevertheless, there are many employees who have to travel a long distance every day to do their work. For this reason, they buy a private vehicle, which should of course be parked safely in the evening. Anyone who has ever tried to find a parking space near their own home in the evening traffic appreciates a private parking space or a parking space in an underground garage. This equipment criterion therefore increases the value of a property.
A cellar or storage room
In a detached house, you can often use a cellar or a storage room under the stairs to store important things. However, many owners or tenants complain that there is far too little storage space in their condominium. Apartments that have a cellar or storage room are therefore very popular. This way, you can store your Christmas decorations just as easily as your valuable bicycle or vacuum cleaner. A good apartment that is highly rated is not only aesthetically pleasing, but also practical.
A washing machine connection in the apartment or a utility room
For the washing machine connection or even a utility room, it once again becomes clear how important the practical layout of a property is. After all, luxury and pretty designer furniture are of little use if you can’t do your laundry. In some cities in the USA, it is common for all residents to do their laundry in a communal laundry room. However, this is not the case in Germany and most regions of Europe. A utility room is beyond the scope of many smaller condominiums. In this case, however, there should be a washing machine connection in the bathroom or kitchen.
A daylight bathroom
Admittedly, a daylight bathroom is not a must and cannot be offered in many apartments due to the layout. Nevertheless, it must be mentioned at this point that a daylight bathroom has a positive effect on the valuation of a property. Of course, the necessary privacy should be provided. After all, you don’t want to feel like you’re being watched when using the toilet or showering. Daylight creates a pleasant ambience in the bathroom. It is also much easier to ventilate properly. This not only displaces unpleasant odors from the bathroom, but also prevents the formation of mould.
An elevator
If the condominium is on the first floor or second floor, tenants or owners do not perceive the stairs as a disruptive factor. The situation is different if the property is on the fourth or fifth floor. Sure, climbing stairs every day keeps you slim. But if you have small children or have to lug the shopping into the apartment, you curse the countless steps. That’s why many owners and tenants see it as a clear advantage if a property has an elevator. This has a positive effect on the property valuation. If the apartment is to be rented out, suitable tenants can be found much more quickly for properties with an elevator.
Windows with electric shutters
If you live in a big city, you want to be able to shut out the glaring streetlights and noise at night. This can be achieved with the help of roller shutters. Electric shutters are not a standard feature of an apartment, but they are extremely practical and are therefore very popular with tenants. If the apartment is to be sold, prospective buyers will be delighted with this great feature. However, it can be observed that this criterion has a greater influence on the decision of tenants than on the decision of potential buyers.
High-quality floor and wall coverings
High-quality furnishings are both practical and beautiful in everyday life. If you like your floor coverings, you automatically feel comfortable in your home. However, aesthetics are not the only factor that plays an important role in the valuation of a property. New, high-quality floor coverings and wall coverings increase the value of a condominium. Buyers and tenants will be pleased not to have to invest in new floor coverings in the coming years. The materials used are easy to clean, robust and visually appealing. They round off the overall impression of the property and increase its value.
Underfloor heating
Admittedly, underfloor heating is not a must. It is by no means a standard feature, but is more likely to be found in high-end and luxury properties. Nevertheless, it is an equipment criterion that has a positive effect on the value of a property. This is because underfloor heating increases living comfort immensely in the cold winter months. Tenants or buyers do not have to worry about turning up the radiators in every room of the condominium. Instead, there is a pleasant ambience throughout the apartment.
The quality of life increases when you feel comfortable in your home. You have the opportunity to relax and look forward to your own four walls after a hard day’s work. A home is not just a roof over your head, but a way of life. That is why furnishing criteria that increase the feel-good factor of a property increase its value. When valuing a property, the furnishings of an apartment must be viewed objectively. However, this does not change the fact that comfortably and attractively furnished apartments are more successful on the real estate market.
Summary: Features as value drivers for real estate
A property valuation can be carried out for various reasons. As a rule, it is mainly used when a property is to change hands. This may involve a permanent owner and thus the sale of the condominium. However, the property valuation can also have decisive advantages for a new tenant. If an apartment has been rented out for a long period of time, it is worth having the property valued. In this way, a realistic estimate can be made of the value of the apartment on the real estate market. This has numerous advantages for both owners and potential buyers or tenants.
Owners can offer their property at a realistic value. They get the best possible price from the sale or rental without having to accept long processing times. Because for a fair price, very good buyers can be found within a very short time in such popular residential areas as Berlin and the surrounding area.
Thanks to the property valuation, tenants and potential buyers can estimate how much the property is actually worth. This can help to avoid bad investments or rental nightmares.
The valuation of a property is carried out by a professional valuer. Valuers either work independently or are part of a real estate agency. The valuation is carried out according to official criteria in order to avoid subjective assessments. In this article, you have learned which equipment categories properties are assigned to and which equipment features have a positive effect on the value of a property.
A property’s fixtures and fittings have a major impact on its value. Some features are easy to add, such as high-quality fittings or electric shutters. Other features, on the other hand, are very difficult to change at a later date. Contrary to what you might expect, the layout of a condominium, for example, is also part of its features. However, an impractical or visually unappealing layout can rarely be adapted at a reasonable price.
If owners want to sell or rent out their condominium, they should weigh up the costs and benefits of certain features in order to weigh up the potential benefits of an investment.
