Are you facing an important real estate decision and wondering how the value of your property is objectively determined? Uniform valuation standards are the foundation for any reliable analysis. Discover how these standards can help you avoid costly mistakes and make data-driven decisions.
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The topic briefly and concisely
The ImmoWertV is the central German regulation for property valuations, ensuring transparent and comparable market values.
European (EVS) and International (IVS) valuation standards promote harmonisation and are particularly relevant in cross-border transactions.
Certified appraisers (e.g., according to DIN EN ISO/IEC 17024) and the correct application of the three main methods (comparative, income, and asset value methods) are crucial for reliable results.
The valuation of a property is often a complex process involving many factors. Whether it's a sale, inheritance, or investment – a transparent and correct value is essential. In Germany and Europe, specific valuation standards ensure the necessary uniformity and comparability. These standards define how experts determine the market value and which methods are applied. A deep understanding of these regulations is the key to well-founded real estate decisions and protects you from unpleasant surprises. This article highlights the most important national and international valuation standards and shows you how you can benefit from them.
The ImmoWertV: Germany's Foundation for Property Values
The Property Valuation Ordinance (ImmoWertV) is the central framework for the valuation of real estate in Germany. It precisely defines the rules and permissible methods for determining the market value of land and buildings. Since 1 January 2022, a revised version has been in effect, which consolidates and modernises previous individual guidelines like the cost value, comparative value, and income value guidelines. The aim of the ImmoWertV is to significantly increase transparency and fairness in the real estate market through uniform valuation standards. For appraisers and experts, the ImmoWertV is binding when legally sound valuations are required. However, it is also indirectly relevant for you as an owner, as it ensures that the valuation of your property is conducted on a solid and recognised basis with up to three recognised methods. The ordinance defines three main methods of valuation: the comparative value, the income value, and the cost value method. The correct application of these methods, as outlined in the valuation methodology, is crucial. The ImmoWertV thus ensures that valuations are transparent and in line with the market, which is particularly advantageous for complex decisions such as an inheritance or a sale. Knowing these standards helps you better assess the quality of a valuation report.
The three pillars of valuation according to ImmoWertV
The ImmoWertV prescribes three standardised methods for determining market value, which are applied depending on the type of property and data available. The comparative value method determines the value by comparing it with recently sold, similar properties and is often used for owner-occupied houses and condominiums. For this purpose, collections of purchase prices from the expert committees are used, which should encompass at least 1,000 purchase cases. The income approach is used for income-generating properties such as rental houses or commercial real estate. It is based on the sustainable achievable rental income, from which management costs of about 15-25% of the gross income are deducted. [7_2] The cost approach is often applied to owner-occupied properties for which there are no adequate comparable prices. It determines the value from the construction costs of the building (based on standard construction costs, e.g. NHK 2010) and the land value, minus any depreciation due to age. [5_2] The professional valuation often combines several methods for validation. The choice of the right method and its correct application are crucial for a reliable result that gives you confidence.
European Harmonisation: The Role of EVS
Beyond Germany, European valuation standards are gaining significance. The European Valuation Standards (EVS), published by The European Group of Valuers' Associations (TEGoVA), aim to harmonise valuation practices across Europe. [1_2,2_2] These standards, often published in the "Blue Book," provide a framework for over 500,000 experts in around 27 countries. [1_1] The EVS 2025 is the latest edition and takes into account current market developments and EU legislation, for instance in the areas of sustainability and energy efficiency. [1_6,2_6] The European Central Bank (ECB) favours the EVS over other valuation standards for certain purposes. [2_3] For internationally active investors and banks, the EVS offers vital guidance and enhances the comparability of valuations across borders. Even though the ImmoWertV in Germany takes precedence, the EVS influences national practice and promotes uniform quality standards for appraisals. Recognition as a "Recognised European Valuer" (REV) by TEGoVA signals a high level of qualification for the valuer according to these European standards. [2_3,2_4] This is particularly relevant if your property is of interest to an international audience or if financing from a European bank is sought.
International Perspective: Die IVS und ihre globale Reichweite
On a global level, the International Valuation Standards (IVS), issued by the International Valuation Standards Council (IVSC), set the benchmarks. [3_3] The IVSC brings together professionals from over 130 countries and aims to develop globally recognised valuation standards and harmonise valuation practices. [3_3] The IVS cover various valuation purposes and assets, including real estate. The latest edition of the IVS takes into account developments such as Big Data, automated valuation models (AVM), and ESG factors (Environmental, Social, Governance). [3_4] The IVS emphasise the need for the measurability of ESG factors and the professional judgement of the valuer. [3_4] Similar to the ImmoWertV, the IVS also recognise the three main approaches: Sales Comparison Approach (Vergleichswertverfahren), Income Capitalisation (Ertragswertverfahren), and Cost Approach (Sachwertverfahren). [3_2,3_5] For internationally active companies, funds, and investors, valuations according to IVS are often a prerequisite to ensure global comparability and acceptance. The legal frameworks may vary nationally, but the IVS offer an overarching consensus. The increasing globalisation of real estate markets makes knowledge of these international valuation standards increasingly important, even for players in the German market.
The importance of certified appraisers for reliable valuations
Adhering to valuation standards alone does not guarantee an accurate appraisal; the expertise of the expert is equally crucial. A recognised qualification is certification according to DIN EN ISO/IEC 17024. [4_1,4_2] This standard sets requirements for the competence of individuals and is globally valid. [4_1] An expert certified according to ISO 17024 demonstrates that they possess comprehensive expertise and practical experience and engage in continuous professional development. [4_1,4_3] This certification enjoys international recognition and is regarded in professional circles as forward-looking, potentially even supplanting public appointments in some years. [4_1] For you as a client, choosing a certified appraiser means a higher level of security and confidence in the quality of the appraisal. [4_3] Especially for complex valuations or when the appraisal is needed for legal disputes, financing with over 20 banks, or tax purposes, a certified appraisal is often indispensable. Therefore, ensure you verify the respective qualification credentials of the appraiser. For instance, Auctoa collaborates with experts who meet the highest qualification standards to guarantee you an objective and precise appraisal.
From individual guidelines to the consolidated ImmoWertV 2022: What has changed?
Before the amendment of the ImmoWertV on 1 January 2022, there were separate guidelines for the various valuation methods in Germany. These included the Standard Value Directive (SW-RL), the Comparative Value Directive (VW-RL), and the Income Value Directive (EW-RL). [5_1,6_1,7_1] These guidelines specified the application of the respective methods. The SW-RL, for example, set out details on the application of the cost method and the use of normal production costs (e.g., NHK 2010). [5_1,5_2] The VW-RL provided guidance on determining the comparative and land value, including the use of conversion factors. [6_2,6_4] The EW-RL regulated the income approach, particularly the handling of management costs and property yield rates. [7_2,7_3] With the new ImmoWertV 2022, these individual guidelines were replaced, and their contents were consolidated and modernised into a single regulation. [5_1,6_1,7_1] The aim was to simplify, standardise, and adapt to current market conditions, such as a stronger emphasis on energy parameters. In practice, this means a consolidated legal basis that further enhances reliability in valuation. The federal government is also required to revise the NHK 2010 by the end of 2024. [3_3_] This consolidation makes it easier for all involved to understand the applicable valuation standards.
evaluation standards
For you as a property owner or investor, it's important to understand how valuation standards protect your interests. An appraisal prepared according to ImmoWertV and taking into account recognised standards provides a transparent basis for your decisions. Ensure that the report clearly documents the methods used and the data adopted. For example, when applying the comparative value method, at least 3-5 comparable properties should be listed. For yield properties, the correct determination of the sustainably achievable rent and management costs, which often make up 15-30% of the gross income, is crucial. [7_2] Demand transparency regarding the data basis and the model assumptions. A qualified appraiser will be able to explain the valuation to you clearly. Take the opportunity to ask questions, for example, about the choice of property yield rate, which can often vary between 3% and 7%. The fundamentals of property valuation are complex, but understanding the standards helps you assess the quality of the valuation. In case of uncertainties or the desire for a quick, data-driven assessment, digital tools like the ImmoGPT chat from Auctoa can offer an initial orientation before commissioning a comprehensive appraisal for perhaps €2,000 or more.
Here are some points that a high-quality appraisal should include:
Transparent presentation of valuation steps.
Justification for the choice of valuation method or methods.
Disclosure of data sources used (e.g. purchase price collections, standard land values).
Detailed description of the property being valued with all relevant features.
Consideration of all value-influencing circumstances, including special property-specific land characteristics.
Plausible derivation of key figures such as property yield rates or asset value factors.
Clear explanation of the results.
These aspects are crucial for making informed decisions.
Conclusion: Evaluation standards as your compass in the real estate market
What valuation methods are available according to ImmoWertV?
The ImmoWertV lists three standardised methods: the sales comparison approach (comparison with similar sales), the income approach (based on rental income), and the cost approach (based on construction costs and land value).
Are the European Valuation Standards (EVS) binding in Germany?
In Germany, the ImmoWertV is primarily binding. However, the EVS serve as an important reference framework, especially for cross-border valuations, and influence national practices. The ECB prefers them for certain purposes. [2_3]
What has changed with the ImmoWertV 2022?
The ImmoWertV 2022 consolidated previous individual directives (cost, sales comparison, income directives) into one regulation, modernised, and adapted them to current market conditions, e.g., with greater consideration of energy aspects. [5_1,2]
How can I assess the quality of a property valuation?
Check whether the report is comprehensible, the choice of methods is justified, data sources are disclosed, and all value-influencing characteristics have been considered. The certification of the appraiser (e.g., ISO 17024) is an important quality feature. [4_1]
When is each valuation method typically applied?
The sales comparison approach is suitable for owner-occupied houses and flats with good data availability. The income approach is used for investment properties (e.g., rental houses). The cost approach is often applied to owner-occupied properties without direct comparables.
What are Normal Construction Costs (NHK)?
Normal construction costs (e.g., NHK 2010) are statistically determined average costs for new construction of buildings of certain standards. They are an important basis in the cost approach for determining the construction costs of building structures. [5_2]
Additional useful links
Gesetze im Internet offers the full text of the Immobilienwertermittlungsverordnung 2022 (ImmoWertV 2022), the central German law on property valuation.
The Statistisches Bundesamt (Destatis) provides comprehensive information on construction prices and real estate price indices.
Tables on house and land prices are also available from the Statistisches Bundesamt (Destatis) for detailed tracking of price developments.
The Deutsche Bundesbank offers an indicator system for the residential property market, providing valuable insights into market trends.
Comprehensive statistics on real estate and construction service prices can also be found on the Deutsche Bundesbank website.
The Hessische Verwaltung für Bodenmanagement und Geoinformation provides information on the organization of the committees of experts for real estate values in Hesse.
The Immobilienverband Deutschland (IVD) offers information on the European Valuation Standards (EVS) 2025, which are relevant for European valuation practices.
FAQ
What valuation methods are there according to ImmoWertV?
The ImmoWertV refers to three standardised procedures: the comparative value method (comparison with similar sales), the income value method (based on rental income), and the tangible value method (based on construction costs and land value).
Are the European Valuation Standards (EVS) binding in Germany?
In Germany, the ImmoWertV is primarily binding. However, the EVS serve as an important reference framework, particularly for cross-border assessments, and they influence national practice. The ECB prefers them for certain purposes. [2_3]
What has the ImmoWertV 2022 changed?
The ImmoWertV 2022 has consolidated previous individual guidelines (real value, comparative value, earnings value guidelines) into one regulation, modernized them, and adjusted them to current market conditions, for example by giving greater consideration to energy aspects. [5_1,2]
How can I assess the quality of a property valuation?
Check whether the report is comprehensible, the choice of methods is justified, data sources are disclosed, and all value-affecting characteristics have been considered. The certification of the expert (e.g., ISO 17024) is an important quality feature. [4_1]
When is which evaluation method typically applied?
The comparative value method is suitable for owner-occupied houses and apartments when there is good data availability. The income approach is used for income-generating properties (e.g. rental houses). The cost approach is often applied to owner-occupied properties without direct comparable objects.
What are normal manufacturing costs (NHK)?
Normal manufacturing costs (e.g., NHK 2010) are statistically determined average costs for the new construction of buildings of certain standards. They are an important basis in the real value method for determining the construction costs of building facilities. [5_2]
