Do I need a market value appraisal for the sale?

Generally not for a normal sale. A well-founded estate agent's valuation is sufficient. An appraisal is particularly useful in court, for the tax office (Finanzamt), or in disputes between co-owners.

What is the difference between market value and property value?

The market value is the current market value. The property value is a tax value that the tax office calculates according to fixed rules.

Can I challenge the tax office's valuation?

Yes. If the actual value is lower, it can be proven within the objection period. For this, please seek tax advice.

Market value of a property

The market value (Verkehrswert) – also known as the fair market value – is the price that would be achievable for a property in ordinary business transactions on a specific key date. It plays a central role in sales, inheritance and gifts, as well as in divorce.

Definition and significance

The market value (Verkehrswert) is legally defined in § 194 of the German Building Code (Baugesetzbuch). It takes into account the legal circumstances, the actual characteristics, the other qualities and the location of the property – without regard to unusual or personal circumstances.

How the market value is determined

The basis is the Real Estate Valuation Ordinance (Immobilienwertermittlungsverordnung). Depending on the property, the comparative value, asset value or income capitalisation methods are used. A publicly appointed or certified expert summarises the result in an expert valuation report (Verkehrswertgutachten).

Market value and the Tax Office

For inheritance and gift tax, the tax office (Finanzamt) determines a property value (Grundbesitzwert) according to the Valuation Act (Bewertungsgesetz). This standardised value can be higher than the actual market value. Owners can then prove a lower market value (Verkehrswert) – usually through an appraisal or a timely sales price.

Market Value and Sale Price

When selling, what a buyer actually pays is what counts. The asking price is based on the market value, but also takes into account demand, marketing strategy and negotiation scope. We help you to align both perfectly.