Churches, chapels, parsonages and parish centres are among the most demanding valuation subjects there are. No functioning market exists for them: there are no comparable prices, no market rent and, as a rule, no use that translates directly into income. Valuing such property therefore means reasoning the value out rather than deriving it.
I prepare market value reports for church-owned property under section 194 BauGB and the requirements of the ImmoWertV — for parishes, church districts, dioceses and regional churches, as well as for religious orders, church foundations and their legal entities.
Which properties are valued
- Churches and chapels — in use, after deconsecration or with a specific plan for change of use
- Parsonages and parish halls — frequently listed, often with a considerable maintenance backlog
- Parish centres and youth centres — special-purpose buildings with limited alternative use potential
- Monastery and religious order buildings — usually large floor areas with limited marketability
- Church-owned residential and heritable building right land — often the economically most significant part of the portfolio
- Cemetery buildings, funeral chapels and ancillary facilities
Why these properties require their own line of reasoning
The comparative value approach is ruled out almost invariably for want of comparable transactions. The income capitalisation approach presupposes achievable income, which a place of worship does not generate in its intended use. What remains is asset value as the starting point — together with the decisive question of how the market adjustment is justified. That is precisely where the quality of the report is decided.
What determines value is, as a rule, not the building itself but what remains legally and structurally possible with it: the potential for change of use. This depends on land use planning, listed building status, site access and plot layout — and it is the point at which valuations of ecclesiastical property differ most sharply.
The methodology is described in detail in the article Market value of church buildings.
Typical valuation occasions
Falling membership, rising maintenance burdens and the merging of parishes are forcing church bodies to review their property holdings. Valuations are prompted above all by the merger of parishes, by deconsecration and subsequent sale, by the creation or redemption of heritable building rights, by the raising of external finance and by financial reporting requirements.
Consent requirements to bear in mind
The disposal of church assets is regularly subject to consent by the church supervisory authority. In the Catholic sphere this follows cann. 1291 et seq. of the Code of Canon Law, with value thresholds set by the bishops' conference; in the Protestant sphere it follows the property law of the respective regional church. Evidence of value is frequently required for the consent procedure. What the responsible body specifically requires should be clarified before instruction — it saves reworking later.
Fee
The basis is the fee schedule for the market value report.
For ecclesiastical property the surcharges for added complexity set out there regularly apply, for instance for listed building status or for missing building records. You receive a binding quotation before instruction; a complete overview can be found under the cost of an appraisal.
