Market Value (Verkehrswert)
Market value (Verkehrswert) of a property in Germany: definition, valuation methods, and the difference from the actual purchase price.
Financial
§ 194 BauGB, ImmoWertV 2021
Also known as: fair market value, property valuation, open market value
The market value (Verkehrswert) under German law is determined using three methods: the comparative value method (Vergleichswertverfahren, for condominiums), the income capitalization method (Ertragswertverfahren, for rented properties), and the depreciated replacement cost method (Sachwertverfahren, for owner-occupied properties). The actual purchase price may differ from the market value.