ImmoWertV (Real Estate Valuation Regulation)

The Real Estate Valuation Ordinance (ImmoWertV) is the federal legal basis for determining the market values of real estate in Germany. It sets forth principles, definitions, and procedures for valuation and is intended for appraisal committees, appraisers, and all those who professionally determine real estate values. The current version came into effect in 2022 and replaced the previous ordinance from 2010. It is based on Section 194 of the German Building Code (BauGB), which defines market value as the price achievable in ordinary business transactions.

The Three Valuation Methods of the ImmoWertV

The ImmoWertV prescribes three methods that experts apply depending on the type of property and the available data:

The comparable sales method is based on the purchase prices of actual transactions involving comparable properties and is particularly suitable for condominiums and townhouses. It requires a sufficiently large number of comparable sales, which the expert committee provides from its collection of purchase prices. If there are too few direct comparables, comparative value factors (e.g., for land value, floor level, or year of construction) are applied to compensate for the differences between the comparable property and the property being appraised.

The income approach capitalizes the sustainable annual rental income at a market-standard property interest rate and is used for rental residential buildings, office, and commercial properties. The property interest rate is derived by the Appraisal Committee based on market data and reflects the typical yield profile of a property type. In Nuremberg, the Appraisal Committee publishes annually updated property interest rates for various property categories.

The asset value method adds the land value (based on standard land values) to the building construction cost minus depreciation and is suitable for custom-built single-family homes without sufficient comparable prices, as well as for special properties without rental income. A market adjustment factor (asset value factor) adjusts the purely mathematical result to actual market conditions. Without this factor, asset value appraisals would systematically be too high or too low.

Standard Land Values and Appraisal Committees

A central element of the ImmoWertV is the use of standard land values, which are determined by the appraisal committees of cities and municipalities based on actual sales transactions. In Nuremberg, the Appraisal Committee of the City of Nuremberg is responsible; it regularly publishes the real estate market report and the current standard land values. These are publicly accessible via the Bavarian State Office for Digitalization, Broadband, and Surveying (LDBV) and the BORIS Bayern portal. They form the basis for every professional valuation and are also relevant for property tax calculations according to the Bavarian area model.

Appraisal committees compile all notarized purchase prices in their purchase price database. This data is not directly accessible to the public but is incorporated into the published standard land values, property interest rates, and real value factors. Appraisers can access this data for appraisal purposes under certain conditions.

Changes in the ImmoWertV 2022

The revised version of the ImmoWertV 2022 introduced several important changes. For the first time, the regulation was supplemented by separate valuation guidelines (ImmoWertA), which contain detailed methodological specifications. In addition, the consideration of market adjustment factors was formalized more strictly, and the requirements for the documentation of appraisals were tightened. The market reference-that is, the question of how the market value can actually be realized-is even more central than in the old version.

For owners and investors, this means: Appraisals prepared under the old regulation from 2010 may be outdated for current valuation purposes. For tax purposes (inheritance, gifts) and financing discussions with banks, a current appraisal based on the ImmoWertV 2022 should always be submitted.

ImmoWertV in Practice: What Owners Should Know

The ImmoWertV ensures that real estate appraisals are prepared using uniform, transparent methods. This is relevant for owners when it comes to determining a fair price for their property-whether for sale, for tax purposes (inheritance, gifting), or for financing discussions with banks. An appraisal prepared in accordance with the ImmoWertV is recognized by courts, tax authorities, and banks and is therefore legally sound.

Even without a full appraisal, the ImmoWertV methodology is present in everyday practice: real estate agents use the same methods-comparative prices, standard land values, and income-based valuation considerations-to estimate market value, even when no formal appraisal under ImmoWertV is conducted. A well-founded market value assessment by an experienced agent therefore often serves as a preliminary step toward a formal appraisal.

Practical Tip for Property Owners in Nuremberg and Franconia

Anyone looking to sell or have a property appraised in Nuremberg or the metropolitan region benefits from the regularly updated standard land values and market reports published by the Nuremberg Appraisal Committee. We use this data in our marketing efforts to provide owners with a realistic, market-based price recommendation. If needed, we can connect you with publicly appointed experts who prepare full appraisals in accordance with the ImmoWertV.

For inheritances and gifts, it is worthwhile to commission an appraisal that documents the market value below the tax office’s standard value: The tax office determines property values for inheritance and gift tax purposes using simplified procedures, which in many cases result in inflated values. A full appraisal in accordance with ImmoWertV can demonstrably correct this value and result in significant tax savings.

Frequently Asked Questions

Is an ImmoWertV appraisal mandatory when selling real estate?

No, a mandatory appraisal is not required for private real estate sales. However, for legal proceedings (inheritance disputes, divorce), for tax authorities, or for banks to determine the mortgage lending value, an appraisal in accordance with ImmoWertV is regularly required or at least strongly recommended.

What is the difference between fair market value and market value?

Both terms are synonymous and refer to the price that could be achieved in ordinary business transactions under general conditions, without regard to unusual or personal circumstances (Section 194 of the German Building Code (BauGB)). The term “market value” is preferred in German legal texts, while “fair market value” is preferred in the European context (TEGoVA, RICS).

Who prepares an ImmoWertV appraisal?

Publicly appointed and sworn experts, as well as certified experts in accordance with ISO 17024 (e.g., HypZert), are the recognized preparers. Appraisal committees also prepare official appraisals (supervisory appraisals) upon request. The Nuremberg Chamber of Industry and Commerce for Middle Franconia appoints and supervises publicly appointed experts in the region.

What are the costs for a full appraisal under ImmoWertV?

The cost of a full appraisal depends on the market value of the property and the amount of work involved. Typical costs range from 0.5-1.0% of the market value, with a minimum of 1,500-2,500 euros for a single-family home. Short appraisals (not admissible in court) are less expensive but are usually insufficient for tax or legal purposes. For properties that are complex to appraise-such as commercial real estate, special-use properties, or homes in serious need of renovation-the costs can be significantly higher.

Can a real estate agent determine the market value according to ImmoWertV?

A real estate agent can prepare a market value estimate based on the ImmoWertV methodology, which is ideally suited for marketing purposes. However, for legally binding purposes-such as court proceedings, tax office filings, or mortgage lending-a publicly appointed appraiser is required. We work closely with qualified appraisers in Nuremberg and can arrange this quickly and easily.

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