Market value (property)
The market value is the current value of properties in the property market .
General
The market value of real estate is a specific subspecies of the market value that is assigned to an economic object in a market by the market price by market participants . Economic objects are residential or commercial real estate , the market is generally the real estate market, specifically the housing market and market participants are the providers and buyers of real estate.
The amendment to the Building Code (the Building Code) in July 2004, especially in the legal definition clear that the concept of market value as a synonym for market value ( § 194 is the Building Code). The budgetary term “full value” is also synonymous ( Section 63 (3 ) BHO ). The market value or market value is determined as part of the valuation .
definition
The following definitions are used for property , building and real estate valuations:
- Construction law : "The market value (market value) is determined by the price at the time to which the determination relates, in normal business transactions according to the legal circumstances and actual properties, the other nature and location of the property or the other object of the valuation could be achieved regardless of unusual or personal circumstances ”( § 194 BauGB).
- Banking law : market value is "the estimated amount for which a loan object could be sold on the valuation date between a seller who is ready to sell and an acquirer who is willing to buy, after a reasonable marketing period, in a transaction in the ordinary course of business, whereby each party acts with expertise, prudence and without compulsion" ( Section 16 PfandBG ).
- Tax law : The market value can be determined according to the ordinance on the determination of the market values of real estate (Wertermittlungsverordnung - WertV) and the additional information in the guidelines for determining the market values (market values) of real estate ( Valuation Guidelines - WertR 2006).
"Ordinary business dealings" are trading on a free market, whereby neither buyer nor seller are under time pressure (as with emergency sales ) or other constraints (as with foreclosure auction ) and only objective standards are applied (no lover value ). In the German-speaking area, instead of the legal definition of "market value", the term "market value", which is also permissible, has established itself in the language of real estate. The experts and the evaluation teams will therefore invariably the market value terms, according to reports for property valuation referred to as "market value appraisal."
There is controversial debate as to whether the German and European concepts of market value are identical. The reason is the sale of agricultural and forestry land by BVVG Bodenverwertungs- und -verwaltungs GmbH . The question is particularly relevant in the case of property sales by the public sector to companies , because property sales below the market value can constitute aid that is inadmissible under European law . In a decision on a complaint by BVVG Bodenverwertungs- und -verwaltungs GmbH against the non-admission of the appeal , the Federal Court of Justice (BGH) took the view that there was no difference between the market value within the meaning of § 194 BauGB and the market value within the meaning of European law . It remains to be seen whether this decision has the final say, as the European Commission is dealing with this issue.
detection
The value is assumed to be the average of the prices achieved or safely achievable in normal business transactions at the time of the valuation (valuation date) . Deviating prices, which are caused by special features that are not generally applicable, such as personal circumstances, are not taken into account when calculating the average. The expert committees for property values provide essential data , in particular through the publication of standard land values .
Pursuant to Section 16 (2) of the PfandBG , the mortgage lending value must not exceed a market value determined in a transparent manner and using a recognized valuation method. The terms unit value and insurance value must also be distinguished from the market value / market value . In the case of inheritance and gift tax , according to the requirement of the Federal Constitutional Court, values are to be applied for all types of assets that are based on the common value (= market value) as a measure of value.
Value conventions of the market value are either the real value or the income value , which are determined with the help of the real value method or the income value method . In the lending of real estate by credit institutions which are financed properties because of their function as collateral a first-time and permanent security rating subjected. For the determination of the mortgage lending value , the credit institutions orientate themselves on the Vereihungswertermittlungsverordnung (BelWertV), which actually only applies to real estate credit institutions ( Pfandbrief banks and mortgage banks ). In § 4 BelWertV it stipulates that, in order to determine the lending value, the earnings value (§ 8 to § 13 BelWertV) and the material value ( § 14 to § 18 BelWertV) must be determined separately for an object to be lent. In the case of owner-occupied single and two-family houses and condominiums ( residential properties ), they can be based on the real value according to Section 4 (4) BelWertV, otherwise on the capitalized value of commercial properties . The acquisition or production costs ( purchase price ) can be used as the basis for the material value , of which - depending on marketability - a discount of at least 10% is made, which is considered the lending value. According to Section 5 (1) BelWertV, the mortgage lending value must be determined by means of an expert opinion .
Appraisal procedure
The market value is the value that would most likely arise in general business dealings (so-called “everyone's value ”). The legal basis for determining the market value of a property is the Real Estate Valuation Ordinance (ImmoWertV).
In principle, brokers and appraisers can determine the market value of a property. A market value appraisal recognized by authorities and courts, on the other hand, may only be prepared by publicly appointed experts.
Various valuation methods are used to determine the market value . The market value is determined by the conditions prevailing on the real estate market on the valuation date and is therefore a value that is only valid on this date (reference date). During the valuation - taking into account all value-influencing factors - the valuation will be carried out according to at least two of the customary valuation methods and the market value will be derived from this.
The comparative value method is used for properties of the same type (especially for undeveloped land), possibly also for owner-occupied apartments in the same location . Investors use the residual value method for their calculations .
International
In Austria , the market value of a property is to be seen as the price that can usually be achieved for you when selling an object in fair business dealings. The particular preference and other ideal appraisals of individual persons have to be disregarded when determining the market value (§ 2 LGB).
In Switzerland , the official value is primarily a tax value that is determined by the cantonal tax administration and serves as the basis for levying property and wealth taxes. The real estate appraisal covers both buildings and land and is carried out by appraising the property according to a certain point system. The official value is redefined after structural changes. The “absolute land value” is based on the effective floor area in square meters and the price per square meter. It includes the land costs with or without costs for parceling and development. The absolute land value is mostly determined by statistical surveys and comparison with other properties. The “relative land value” is often used in the real estate valuation of built-up land. According to a certain key, the location class is determined, which includes the location-specific factors of the property such as orientation, view, infrastructure, shopping, public transport, etc. The relative land value is a percentage that represents the property value regardless of the property area in relation to the rental value (direct method) or to the total investment value (indirect method) of the property and property.
In the European Union , market value is to be understood as "the price that can be achieved at the time of the valuation on the basis of a private law contract for buildings or land between a seller willing to sell and a buyer who is not connected to him through personal relationships under the conditions that the property it was offered openly on the market that the market conditions do not stand in the way of a proper sale and that negotiation time appropriate to the importance of the property is available ”.
The TEGoVA as European association of associations of real estate appraisers defines the market value as "the estimated amount for which an asset could be sold in a functioning market date of valuation between a willing seller and an in-market buyer after proper marketing in a transaction based on market prices, each party acting with expertise, prudence and without coercion ”.
See also
literature
- Thomas H. Garthe: The valuation reform. With all changes. Haufe Publishing Group 2010, ISBN 978-3-648-00852-2 .
- Wolfgang Kleiber , Roland Fischer, Ullrich Werling: Determination of the market value of real estate. Commentary and manual for determining market values (market values) and lending values as well as for tax assessment taking into account the ImmoWertV. 7th edition. Bundesanzeiger-Verlagsgesellschaft. 2014, ISBN 978-3-8462-0218-0 .
- HO Sprengnetter: BauGB 2009 - Commentary on the legal basis of the valuation , Sprengnetter GmbH, 1st edition 2009, ISBN 978-3-937513-48-5 .
Individual evidence
- ^ Christian Koenig : Agricultural Law
- ↑ BGH, decision of April 28, 2011, Az.:. V ZR 192/10, full text .
- ↑ BVerfG, decision of November 7, 2006, Az. 1 BvL 10/02, full text .
- ↑ Wolfgang Kuckertz / Daniel Ziska / Frank Rottenbacher / Ronald Perschke, specialist for real estate loan brokerage IHK , 2016, p. 274
- ↑ The market value - your property is worth it. Accessed April 4, 2019 (German).
- ↑ Property Valuation Act LBG at RIS , requested on March 21, 2018
- ↑ Communication from the Commission on elements of state aid in sales of buildings or land by the public sector (97 / C 209/03), Official Journal of the European Communities of 10 July 1997, No. C 209/3; EUR-Lex
- ↑ TEGoVA, European Assessment Standards, 2012, EVS1
