# Fitted kitchen - what loss of value must be expected?

As with all objects, a kitchen loses a not inconsiderable part of its value after a short time. This is particularly important if you want to sell a used kitchen or if you want to have a damaged kitchen replaced. You can read here how the current value is calculated and the depreciation you can calculate with.

## Fair value as sales value

If you want to have a new tenant replace a kitchen, you can theoretically set the price yourself - but only the current value of the kitchen is legally acceptable.

• Also read - Attach skirting board to fitted kitchen
• Also read - Renovating built-in kitchens - what is possible?
• Also read - converting the built-in kitchen - everything that is possible

However, it is always difficult to judge whether a transfer fee is realistic. Many other factors also play a role:

• the state of the kitchen
• the equipment of the kitchen (existing devices, functions of the kitchen)
• the device status and the device age
• the new device price

## Calculate time value correctly

A loss of value of 10% per year is often rumored to be realistic. It is calculated in such a way that 10% is deducted from the remaining value every year. In fact, this calculation method also leads to a reasonably appropriate target price - but this is not an officially valid calculation method.

In the case of furniture, the fair value is officially calculated from a complicated formula consisting of replacement value, loss of value in the first year and loss of value in the following years. The average service life of fitted kitchens is given as 20 years or 25 years, depending on the calculation method.

The decrease in value in the first year is 24% of the replacement value, in the following years 4%. The discounts can then be calculated based on the service life. This current value calculation is generally used for furniture.

## Replacement value as insurance value

If the kitchen is destroyed by a damaging event, the insurance must replace the kitchen. It is important how the insurance replaces the value of the kitchen under the terms of the contract. With insurance in particular, there are several options here - the current market value is only one of them, and generally the rarely used.

Here the household insurance pays the new value for the kitchen as so-called "new value insurance " - that is the value at which one "can get an item of the same type and quality ". That is the essential value for the replacement of the kitchen.

However, if liability insurance pays, the current value of the kitchen counts as the basis for calculating the compensation paid. You only pay for that damage that occurred during the day So you have to calculate differently in both cases - and you will most likely also come to quite different amounts for both insurance benefits, even though the kitchen is the same.

Tips & Tricks The 10% rule gives a simple point of reference which often leads to realistic prices. If in doubt, simply recalculate with the more precise formula and simply correct your estimate accordingly.

",