Comparison Of German And Anglo Saxon Real Estate Appraisal Methods

There is a continuing discussion whether there is a superior appraisal method and which one it is. The often expected need for a standardized appraisal method for the merging real estate market with its international cross border investments intensifies this discussion. There are some remarkable differences in the appraisal methods in the UK and in Germany. In the past the Anglo Saxon DCF method was considered to be more accurate. Several German surveyors disagree and claim that the German appraisal method with its gross rental value fulfills its purpose. The paper compares the appraisal methods in its bases and shows the remarkable differences. It also analyzes the differences in context of importance for the different markets where the appraisal methods are used. The paper shows that the discussed appraisal methods are comparable if they are used correctly. It is important that the appraisal methods are used in the field they were developed for. For now there is no superior appraisal method. In the end the surveyor has to work with great diligence and he needs transparent data for the valuation.