Market value, purchase price, asking price: what is the difference? – explained

Asking price, purchase price and market value are three different figures – and that is no contradiction. In about four minutes, this video explains what the terms mean, why purchase prices deviate from the market value (§ 194 BauGB) and when a market value appraisal is worthwhile.

What you will learn in the video

• Asking price: the desired price in the listing, often with room for negotiation.
• Purchase price: the price actually agreed and notarised (§ 311b BGB).
• Market value: the price in the ordinary course of business on the valuation date, disregarding personal circumstances (§ 194 BauGB).
• Mortgage lending value: the bank’s prudent value, no higher than the market value (§ 16(2) sentence 3 PfandBG).
• Appraisal: worthwhile for inheritance, compulsory share, community of heirs, divorce, transfer within the family and disputes.

Legal basis and sources (as of 8 October 2026)

• Section 194 BauGB – market value
• § 195 BauGB – purchase price collection
• § 311b BGB – contracts concerning land
• § 16 PfandBG – mortgage lending value
• § 3 BelWertV – mortgage lending value
• § 7 ErbStG – gifts inter vivos

This video is an information and promotional video of the real estate appraisal office STRECKEL for its own services. It provides general information, is not legal, tax or financing advice and does not replace an appraisal of your property. Examples are simplified.