Wertermittlung

Wertermittlung is the process of determining the value of an asset or right, used in real estate, corporate assets, and other contexts. In German-speaking countries it combines standardized procedures with professional judgment and is conducted by qualified appraisers for purposes such as sale, financing, taxation, or litigation.

The main real estate methods are:

- Vergleichswertverfahren (comparable sales approach): value derived from prices of similar properties.

- Ertragswertverfahren (income approach): value based on expected future income, using net operating income and a capitalization rate or discount rate.

- Sachwertverfahren (cost approach): value from replacement or reproduction costs minus depreciation and obsolescence.

For business valuations, discounted cash flow and market-multiple approaches are common, depending on purpose and data availability.

Standards and regulation: In Germany, real estate valuations follow the ImmoWertV and related professional guidance; Austria and Switzerland maintain national standards. Valuation reports document the asset, market conditions, data sources, chosen method, and rationale, often with sensitivity analysis and disclosures about uncertainties.

Applications include mortgage lending, property taxation, insurance, acquisition or sale negotiations, and corporate reporting under applicable accounting standards.

Limitations: valuations depend on data quality, market liquidity, location-specific factors, and the subjective choices involved in method selection and parameter assumptions.