Market values are tied to a specific valuation date and lose relevance over time, as standard land values, interest rate levels, and the supply-demand ratio are constantly changing.
For current occasions such as sale, financing, or legal proceedings, a new appraisal report dated to the exact day is generally required. Older appraisal reports can, at best, serve as a rough point of reference.
In the event of strong market movements, for example due to interest rate changes or local new-build projects, the value can shift noticeably within just a few months.
As a rough guideline: in stable market phases, an appraisal report often remains sufficiently meaningful for six to twelve months, while in volatile market phases this period is considerably shorter.
For ongoing proceedings, such as a court case extending over several years, it is advisable to update the appraisal report as soon as the market conditions have noticeably changed.
Please note: the content of this article is provided for general information only and does not constitute legal, tax, financial or investment advice. It is not a substitute for individual advice from a licensed lawyer, tax adviser or financial adviser. Despite careful research, we accept no liability for the accuracy, completeness or currency of the information provided. For specific legal or tax questions, please consult a qualified professional adviser.
