What is land reference value in SAP RE - Real Estate Management?

SAP Term: land reference value

• Component: RE

• Component Name: Real Estate Management

• Description: In Germany, the appraiser for cities and communities sets land prices annually using data collected on puchases of land in the area. The land reference value is published and can be obtained from the goverment offices at the city and county level. The land reference value provides assistance in valuating real estate.

Smart SAP Assistant

• Key Concepts: 
  Land reference value is a term used in SAP Real Estate Management (RE-FX) to refer to the value of a piece of land. It is used to calculate the value of a property, and is based on the market value of the land in the area. The land reference value is determined by taking into account factors such as location, size, and zoning. 
  
  How to use it: 
  In SAP RE-FX, the land reference value can be used to calculate the total value of a property. This is done by multiplying the land reference value by the area of the property. The resulting figure is then used to determine the total value of the property. 
  
  Tips & Tricks: 
  When calculating the land reference value, it is important to take into account any changes in market conditions that may have occurred since the last time it was calculated. This will ensure that the land reference value is accurate and up-to-date. 
  
  Related Information: 
  The land reference value can also be used to calculate rental rates for properties. This is done by dividing the total value of the property by its area, and then multiplying this figure by a factor that takes into account any additional costs associated with renting out a property.