The asset value method is a procedure for the valuation of real estates and is regulated in "§"§ the 21 to 25 WertV.

Application and principles

This kind of the valuation is usually used with real estates not acted at the renting market (e.g. special manufacturing plants, living real estates even used, infrastructure facilities such as stations, cultural real estates and military mechanisms). Background is the fact that the value of the real estate is measured not after the attainable incomes, but after the costs of the production and/or replacement. Traditionally the asset value method was used also with own used objects such as in/two-family houses and free-hold flats. This is not adequate however, since itself the value here also at subjective decision parameters of the Eigennutzner oriented (see also definition of value and price with market value, so that for such objects as primary procedure the reference value procedure is recommended.

In principle in the asset value method one determines, which costs would arise with a new building (replacement) of the object which can be evaluated. In the connection the wear is evaluated and taken off. The moreover one other worth-affecting circumstances are to be considered. The asset value method refers usually to the structural facilities, which value reason and soil as a rule in the reference value procedure determined.

Subspecies of the asset value method

German asset value method

The German asset value method is strongly standardized by the WertV in connection with the WertR and the building law book. In the first step the type of the structural facilities which can be evaluated (use, building method, Geschossigkeit, making a cellar under, roof form, equipment, Unterhaltungszustand, etc.) and their using and gross floor area is to be determined. The different building types among other things in the normal manufacturing costs 2000 defined, supplementing also the construction costs information of the architectural associations and more precisely the construction costs lists of Dr. Mittag. Due to the assigned building type is appropriate a value from the suggested price margin for selecting. Subsequently, the Korrekturfaktoren for Land of the Federal Republic and local size are to be used. Further the change of the construction costses between deadline and/or time of the derivative of the comparison costs and the evaluation deadline must be made by indexation (see to Zahlenreihen Federal Statistical Office). The arising value are the re-establishment costs as pure construction costses of the kg of 300 and 400 according to DIN 276 (the kg of 100 and 200 refer to property and its development).

To consider furthermore is the value added tax: For purely commercial objects can be usually assumed without the release of the rents from the value added tax one does, so that the owner takes the vat off. In this case net costs are to be set. Differently it behaves with living objects, objects in public property or with objects with letting to not value added tax-requiring enterprises (e.g. Banks) to count with those gross actual the actual use is crucial. To these costs of the kg 300 and 400 building additional expenses are to be included in particular the kg 700 (subordinated also kg of 500 and 600). For this the NHK holds 2000 depending upon building type proportional beginnings ready. The complete price of the replacement in the original value results.

Since the object is however not new as a rule, the ageconditioned wear must be considered. From the year of construction and the usual economic (not technical) total service life (GND) of a building, which is to be again e.g. taken the NHK from 2000, the remainder of the useful life (RND) results. The computationally determined RND is to be adapted in case of of appropriate measures of reorganization. The replacement value is during a subordinated linear wear by RND/GND to multiply (value anticipated payment is 1-RND/GND) and results in the current value. Alternatively to the linear wear a nonlinear wear can be set also from appropriate tables, if e.g. the building use-causes already at the beginning becomes superproportionally strongly worn out (e.g. after ROSS). The determined current value is to be corrected now around other worth-affecting circumstances. These e.g. are. Maintenance back-up or contamination of the building. Supplementing the WertV plans also at market voltage standing-wave ratio: As far as the result does not cover itself for attainable prices also at the market, an expert adjustment can be made. Their derivative is however on the one hand a system break (worth vs. market value) and on the other hand as a rule few transparency and comprehensible. Therefore is as far as evenly sufficiently market data are available (i.e. the object at the renting or purchase market is acted evenly nevertheless), the yield of the reference value procedures attached.

For the value of the structural facilities determined in the asset value method is to be added (as a rule in the reference value procedure determined) the value reason and soil, so that the value of cultivated property results.

Note: In former times the costs of the re-establishment were usually determined on basis changes of the area (uR) on the basis the 1913/1914er in such a way specified of characteristic cost values. Here it acts over out of prices at that time updated values. This proceeding is to be rejected as old-fashioned, since the indexation of prices is hardly justifiable over two world wars plus hyperinflation. Besides the building types defined at that time do not correspond any longer to today's cuts. To that extent the derivative of the NHK is more adequate 2000 on basis of the empirical determinations of Dr. Mittag. Supplementing the information of the institute for construction costs of the German architects can be used.

International procedures

The internationally common anglo-saxon procedure of the Replacement Cost covers itself methodically to a large extent with the German approaches, whereby less standardized data are present to the construction costses and the service life.

See also productive value procedure, reference value procedure, land value, normal manufacturing costs, building additional expenses, real value market voltage standing-wave ratios

Articles in category "Asset value method"

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