The definition of market value set out in § 194 of the German Building Code (BauGB) is at the core of our real estate appraisals.
The internationally recognized definitions of market value set out by the Royal Institution of Chartered Surveyors (published in its “Red Book” of RICS Valuation Standards), TEGoVA (The European Group of Valuers’ Associations) and in International Valuation Standards (IVS) essentially correspond with the definition of market value set out in the German Building Code, and are also used as a foundation for our appraisals.
Alongside normed appraisal methods based on German ordinance on the appraisal of real estate (ImmoWertV, which defines the Sales Comparison Approach, Asset Value Approach and Capitalized Income Approach), internationally recognized approaches such as the Investment Method and Discounted Cash Flow (DCF) method can also be used to deliver a market value. This involves the application of appraisal parameters derived from market activity.
When drawing up indications of mortgage-lending value required within the framework of financing agreements we adhere to the regulations set out in the German Pfandbrief Act (PfandBG) and German ordinance on the appraisal of mortgage-lending value (BelWertV).
In the instance of appraisals required for balancing purposes, we are careful to take the corresponding balancing regulations into consideration. Such regulations include International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS).