Valuation Date

Valuation Date - The valuation date is the point in time to which the determination of a property’s market value refers. It defines which market conditions, legal circumstances, and property characteristics form the basis of the appraisal. The determination of the valuation date is mandatory under Section 3 of the Real Estate Valuation Ordinance (ImmoWertV) and has a direct impact on the valuation result.

Significance and Legal Basis

The valuation date defines the valuation framework of a real estate appraisal: All value-relevant factors-standard land values, comparable prices, property interest rates, construction costs, and market adjustment factors-are taken into account as of this date.

In legal proceedings, the court specifies the valuation date as binding:

• In inheritance cases, the date of the decedent’s death is decisive (Section 11 of the Valuation Act (BewG))
• In divorce proceedings, the date of service of the petition for divorce is considered the reference date for the equalization of accrued gains (Section 1384 BGB)
• In expropriation proceedings, the reference date is based on the date of the official expropriation decision
• In foreclosure sales, the reference date is specified by the court ordering the sale

For independent appraisals for real estate sales, the current date of the order placement or property inspection is generally selected. Market conditions may change between the reference date and the actual sale-an appraisal therefore typically loses its validity after 6-12 months and should be updated in the event of significant market changes.

Impact on Valuation

A change in the valuation date can lead to significant differences in value: During volatile market phases-such as the interest rate hike in 2022/2023-valuation results for identical properties differed by 10-20% within a few months. During this phase, the Nuremberg residential real estate market saw a decline in achievable purchase prices of up to 15%, which was directly reflected in the appraisal value as of the valuation date.

The appraiser must use all data as of the valuation date:

• Standard land values from the relevant appraisal committee (in Nuremberg: Appraisal Committee for Land Values), as of January 1 of each year
• Comparable prices from an appropriate period prior to the valuation date (typically 2-3 years, index-adjusted)
• Property interest rates from the appraisal committee as of the valuation date
• Construction cost indices from the Federal Statistical Office for determining property value

Subsequent changes to the property (e.g., a renovation after the valuation date) must not be taken into account in the appraisal. The appraisal provides a snapshot of market conditions-subsequent developments, whether positive or negative, are not taken into account.

Selection of the Reference Date for Tax Valuations

The reference date is of particular importance for tax valuations under the Valuation Act (BewG). For inheritance tax, the date of death applies; for gift tax, the date the gift is made applies. The tax office determines the real property value using the simplified valuation procedure (Sections 157 et seq. BewG) as of the respective reference date-the standard land values and comparison factors closest to the respective reference date are decisive.

Anyone wishing to prove that the actual market value is below the tax assessment (§ 198 BewG) must submit an expert appraisal dated the same reference date. An appraisal with a different reference date will not be recognized by the tax office-a common mistake in practice.

Practical Tip for Property Owners in Nuremberg

We recommend that owners in Nuremberg carefully choose the valuation reference date, provided no statutory reference date is specified. The Appraisal Committee of the City of Nuremberg publishes its standard land values on January 1 of each year-a reference date shortly after publication ensures the most up-to-date comparative data and a more precise valuation.

For properties in dynamically developing neighborhoods such as Eberhardshof, Gostenhof, or southern Nuremberg, a difference of just a few months in the valuation date can already result in noticeable price differences. We coordinate the optimal reference date with your attorney or tax advisor and ensure that the appraisal is still current at the time of the transaction-so that banks, courts, and tax authorities recognize it without reservation.

For planned gifts intended for tax optimization-such as to reuse the €400,000 tax-free allowance for children every ten years-we recommend setting the valuation date for the gift during a market phase when the appraised value is as low as possible to minimize gift tax. The current market situation should therefore always be discussed with a tax advisor.

Frequently Asked Questions

Can I choose the valuation date freely?

For private-law appraisals for sale or financing, the client can generally choose the valuation date freely-the date the order is placed or the date of the property inspection is customary. For court-ordered appraisals, the valuation date is specified by the court and is binding. In cases of inheritance, the date of the decedent’s death is legally decisive; for equalization of accrued gains, it is the date the divorce petition was served. For tax valuations, the valuation date principle under § 11 of the German Valuation Act (BewG) applies-no deviation is permitted.

How long is an appraisal valid for a specific valuation date?

A market value appraisal has no legally defined validity period. In practice, banks and authorities generally accept appraisals for 6-12 months after the valuation date, provided that market conditions have not changed significantly. In dynamic markets or in the event of significant changes to the property (renovation, division, change of use), we recommend an update or a new appraisal. Courts may reject an older appraisal and request an updated one if the time between the valuation date and the hearing date is too long.

What happens if no current comparative data is available as of the valuation date?

If there are insufficient comparative prices available for the valuation date, the appraiser relies on data from a closely adjacent time period and adjusts it to the valuation date using index series. The Appraisal Committee provides real estate price indices for this purpose, which reflect price trends. Alternatively, the appraiser may switch to other valuation methods-such as from the comparative value method to the income approach or cost approach-and validate the results. Missing data must be transparently documented in the appraisal report.

Why does the appraised value differ from the purchase price?

Appraisal values and actual purchase prices may well differ without either value being “wrong.” The appraiser determines the market value based on statistical data-the actual purchase price results from concrete negotiations between buyer and seller and can be influenced by individual willingness to pay, time pressure, or emotional valuation. Deviations of 5-10% between the appraised value and the purchase price are normal; larger deviations should be critically examined.

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