Main Points :

MatthiasKirchner | Expert office on real estate appraisal | Portfolio valuation & due diligence


Your profit

  • An appraiser clarifies questions (fair market value, rental value) of considerable asset values as well as long term payment obligations (usable for legal asset quarrels).

  • Selling real estate means the exchange of an asset value and a considerable sum of money. Being aware of the fair market value of your property, you have the possibility to negotiate more convincingly. You exclude all doubts about your ideas and do not question the value of your property. Anyhow, you have to withstand a number of arguments, only aiming at reducing the price. You have a sound position towards the tax office as far as the fixation of the death duty or gift tax is concerned which can help you to reduce taxes.

  • You are the managing director of a company being bound to the capital market. Since 2005, you have to account according to the Financial Reporting Standards (IFRS) and therefore you require the reappraisal of your fixed assets including the property asset. In order to evaluate the fair value Fair Value of the property, the know-how of an expert is needed.
  • In a community of heirs, one of your coheirs inherits property. According to your portion of inheritance, you should be paid out. A valuation report to fair market value supports your claims. Possibly, the inheritance is of greater value as originally fixed in the testament or other contracts.

  • As an institutional investor or funds manager, you will not resign due diligence analyses, as not only the success of your purchase decisions, the performance of your funds and the return of your investment are important, but also the consideration of risks. As you know, real estate engagements depend on the investors, their feeling of security and long-term references.
  • As a banker, you are interested in the conclusion of a credit agreement with an investor who wishes to convert a number of properties to a package. A portfolio evaluation, effected by a highly-qualified team of experts, helps to avoid cost-intensive single appraisals. Here, we work in accordance with international standards, especially the standard of RICS (Royal Institution of Chartered Surveyors), the so-called Red Book (RICS Appraisal and Valuation Standards), make use of “Discounted-Cash-Flow-Analyses” and object ratings. We investigate social demographic parameters and prefer a simplification by building zones or clusters. Altogether, our focus lies on the conformity to the market. We less focus on theoretical methods of analysis, which seem to be precise but do not fit the markets’ requirements.

  • You have a retail unit for rent and know from your own experience that rent reviews often are the reason for legal rent level quarrels. In order to avoid legal charges and save time, an arbitrator agreement makes sense. You save money, because of the rapidity of this process, as you generate a speeded up Cashflow, which can save interests.
  • Your neighbours rent apartments apparently more successful and at a higher price than you. Now you wish to increase the rent of your tenant who refuses the increase. He argues that other apartments in the same quarter have a higher standard and that the rents stagnated within the last years. The valuation of rental value helps you to compare your apartment with others on the market and make the increase enforceable by law. The representative list of rents (rent index), as far as available, is no guarantee for a successful rent increase.

  • As a lessor of office space, you are regularly confronted with legal procedures of your tenants in order to find agreements concerning adjustment clauses or rent indexation clauses. The contract mediation might help to avoid cost-intensive lawsuits as the mediatior offers his sound knowledge to the contracting parties by considering the market situation from a professional point of view. A lot of lawsuits come to a compromise. By mediating, a similar result can be achieved. The most important difference is that mediation is faster and less expensive.

  • You wish to purchase property. You know that banks usually only finance 60 % of the mortgage lending value. The theoretical 40 % you need as equity are bound otherwise. Anyhow, you are convinced to have found return potential which can be realized by systematic restructuring and project development. A professional situational analysis and a valuation report to fair market value with focus on the return would help to convince the bank to reconsider the mortgage lending value and to finance more than 60 %. The credit risks would become less and the mortgage lending value could be adjusted. The same is valid for construction and redevelopment projects. You receive an appraisal with all market-relevant data which helps you to decide on the purchase.