Expert appraisals / property valuations
An appraisal is the well-founded representation of past experiences and the deduction of conclusions concerning the effective judgment of an occurrence or state through one or more experts.
An appraisal contains a generally trustworthy assessment of facts with regard to a posed question or a given goal.
There is a general distinction to be made with regards to ordering and carrying out an appraisal as a:
The area of those placing orders for private appraisals is unbounded and can originate from, for example:
- private persons
- insurance agencies
- organizations (administrations, unions, etc.)
A private appraisal in the form of damage assessment to determine the existing damages and deficiencies of a building has the advantage of out-of-court settlements when possible conflicts arise with building contractors, general contractors, pre-built home producers, or anyone else who has participated in the construction process.
Valid in Germany:
According to the Federal Court of Justice (“German Supreme Court”), the costs of an appraisal concerning the cause and extent of acquired defects/damages, including those expected to possibly occur, are to be counted as resulting damages. They are to compensated for according to § 13 Abs. 7 VOB/B.
According to the German VOB/B, there is no need to set a deadline as the damage arises from the outset along with the claim to subsequent improvements.
The appointment of a court ordered appraisal takes place in civil courts (district courts, state courts) within the framework of an independent proceedings for the takings of evidence and generally requires an order to take evidence, whereupon questions are answered regarding existing deficiencies.
Drawing up of appraisals to determine the market value of property and real estate
The market value describes the current value of a property or real estate. Determining the market value requires that numerous factors be taken into account- various ones lead to depreciation (such as immissions, site contamination, changes in usage due to political decisions, etc.) as well as those to an appreciation (for ex. geographic location)
The appraisal of property and real estate is a procedure governed by regulations which applies fundamental expert knowledge to determine the market value of developed and undeveloped
properties or real estate on a given day within the course of usual business transactions.
The professional fee for value assessment appraisals can be freely agreed upon or agreed upon according to the stipulations given in HOAI (professional fee ordinance for architects and engineers).
In HOAI, the minimum and maximum price charges for the appraisal of real estate and buildings is set according to the following table.
Price charges according to paragraph 34 of HOAI – Value assessments (table given only in parts)
|(Market) value in Euro||normal Level of difficulty||high level of difficulty|
|in Euro||in Euro|
Preparation of damage assessments as a court or privately engaged expert for proceedings involving securing of evidence and the necessary legal action thereafter.
Preparation of surveys on damage assessment and construction defects.