The market value (also: market value) is the price that could be achieved in the ordinary course of business, based on the legal circumstances and actual characteristics of a property — without regard to unusual or personal circumstances.
A market value appraisal in accordance with § 194 BauGB is the most comprehensive and legally robust valuation instrument in Germany. It is prepared to court-standard quality and is therefore the instrument of choice for all official purposes at courts, tax offices, banks and authorities.
"The market value is determined by the price that could be achieved at the point in time to which the valuation relates, in the ordinary course of business, based on the legal circumstances and actual characteristics, the other properties and the location of the property, without regard to unusual or personal circumstances."
— § 194 Sentence 1 German Building Code (BauGB)
Which of the statutory approaches applies depends on the type of property and the available data. For flats and terraced houses it is usually the sales comparison approach.
For let investment properties this is replaced by the Income approach.
For owner-occupied dwellings and special-purpose properties, by contrast, the applicable method is the Cost approach.
Where only a private assessment is needed, with no evidence required for third parties, the more economical option is often the short-form appraisal.
Standard land values and local value factors across the catchment area can be found under local property valuation.
