Different methods are used in the valuation of real estate. However, you do not have a real choice, because § 182 Ratingsgesetz (BewG) prescribes which evaluation procedure you must use. According to the income value method, you basically evaluate rental residential and business properties if you can determine a local rent for the latter.
The income value method is applied according to § 182 paragraph 3 BewG if you have to evaluate one of the following types of property, for example by an inheritance or a gift:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.