Internal bank valuations are primarily based on the Mortgage Lending Value Regulation (Beleihungswertermittlungsverordnung) and serve exclusively the credit decision, not the neutral determination of market value.
An appraisal report of court-standard quality, on the other hand, must document all calculation steps, applied methods, and data bases completely and comprehensibly, so that it can serve as a well-founded basis for decision-making even in legal disputes.
For private or legal purposes such as inheritance, divorce, or disputes, a mere bank appraisal report is therefore generally not sufficient.
For reasons of caution on the part of the bank, the mortgage lending value determination is often more conservative than the actual market value, as its primary purpose is to secure the loan against default risk.
For negotiations with third parties, for example in a sale or an estate settlement, a bank report is therefore generally not a suitable basis.
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