Quality Of Valuation - A Comparison Between Valuation And Sales Prices In Germany And Great Britain

For Great Britain are empirical data since the late 1980s available, that show the differences between valuation results and sales prices. For Germany no statistics of these kinds exists. The paperës objective is to show, if and to what level there are deviations between the results in valuation reports and the following sales prices. Futher more it should be investigated, if there is are difference between the deviations in Great Britain and Germany. The discussion about the German Valuation methods and about the valuation result of German Open Ended funds is mainly based on the assumption, that the valuation results differ from market prices. The idea of the paper is to show, if this assumption is based on market data or just on market rumour. For the valuation report and sales prices in Germany the paper will be based on data available from German Open Ended funds and some databases. For Great Britain the research will base on data published nowadays by the RICS and formerly by Drivers Jonas. Compared to the results from Great Britain it is assumed, that the German deviation between the valuation results and the sales prices of German property is more or less on the same level. If this is true, the different method of valuation seems to have little influence in the quality of the valuation reports result and that the assumptions on differences between valuation results and market prices are more market rumour than market data driven. If this is not the case, and German deviation differ form the British, the reasons for that will be elaborated.