Valuation one names the procedure of the determination of a reliable market value, market value or a loan to value ratio any Wirtschaftsgutes.Der market value (market value) in "§ 194 the building law book (BauGB) is defined.

By value one understands the aggregated price conception of a group of market participants in contrast to the price, which is the result of a concrete exchange action between two concrete market participant. Therefore one can understand the value also as objektivierten price. Between (subjective influences underlying) the price and value deviations are possible and usual: BGH judgement from 25 October 1967, AZ. VIII ZR 215/66: "The price of a thing does not have to correspond to its value."

During the valuation one tries now -- usually by application of standardized procedures -- to make as objective a statement about the value of a thing as possible. Subjective and special influences are to be if possible switched off. Valuations are accomplished therefore by particularly trained and if necessary certified expert (consultants). In Hessen and Baden-Wuerttemberg also valuations are accomplished by local courts. With agricultural objects and with sovereign interferences like road construction or mining industry the agricultural experts are e.g. recommended. Generally the publicly ordered and sworn in or the expert certified by a registered certification body of the German accreditation advice () preference should be given.

The element of the estimation plays thereby a substantial role. A value is not mathematically exactly determinable size. Thus different consultants will usually come to different results. In the iurisdiction e.g. during the market value determination with properties with a range from 20% one proceeds. Generally one can proceed however from an accuracy with approx. 10%.

Value terms, procedures

Depending upon application different value terms are used in the real estate range:

• Loan to value ratio
• Land value
• Tree value
• Unit value
• Fire insurance value
• Market value
• Market value (usually identically to market value, however standardized in the German right)
• Productive value (usually with enterprises, enterprises and rented buildings)
• Insured value
• Current value
• Original value
• Liquidation value
• common value

Apart from the term, which results usually from the use of the determined value, the appraisal procedures exist (between term and procedure thereby overlaps are possible):

• Productive value procedure
• Asset value method
• Reference value procedure
• Residualwertverfahren
• DCF analysis
• Rental value procedure

Neither value nor term are materially (i.e. in the land register) secured worth-affecting factors so mentioned:

• Line right
• Right of way
• Right of residence
• Housing right in accordance with "§1093 BGB
• Usufruct in accordance with "§1030 BGB

Articles in category "Valuation"

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