IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2019_137.html
   My bibliography  Save this paper

Requirements for technical property assessments (technical due diligence) based on different risk-reward profiles

Author

Listed:
  • Yannis Hien
  • Christian Hofstadler
  • Felix Meckmann

Abstract

Purpose: Real estate due diligence, and particularly technical due diligence as one of its sub-disciplines, is an established component of professional real estate transactions in Germany. Technical due diligence deals with the actual property risks. More generally, technical due diligence can be described as a technical property assessment. Practical experience, an empirical survey carried out in June 2017 and initial interviews with real estate experts showed that there is no general understanding of the components, depth and presentation of results of technical property assessments in property transactions. This study aims to develop a scientific understanding of the concept of technical property assessments among the different market players involved in property transactions.Methodology: The data of this study are based on the evaluation of existing scopes of services and technical due diligence exercises, as well as on a market survey (February 2019). The market survey was carried out online among 300 experts from the real estate industry working in the fields of investment management, asset management, and real estate financing.Key Findings: The key outcomes of the survey (see appendix for its design) are not yet available; they will be submitted as soon as possible after completion of the study, which is scheduled to last from 28 January 2019 to 18 February 2019, and analysed by 31 March 2019. The views of the various market players are presented and discussed as a function of their risk profiles for the purpose and quality evaluation of the technical property assessment as well as their examination components. The survey particularly focuses on the users’ need for information and the associated relevant components of the technical property assessment.Impact: This study serves as a basis for conducting expert interviews to develop a uniform scope of services for technical property assessments. It opens up the potential for presenting the first available primary data for an in-depth scientific evaluation of technical property assessments within the scientific discipline of real estate economics.

Suggested Citation

  • Yannis Hien & Christian Hofstadler & Felix Meckmann, 2019. "Requirements for technical property assessments (technical due diligence) based on different risk-reward profiles," ERES eres2019_137, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2019_137
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2019-137
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    expert survey; real estate due diligence; scope of services; technical property assessments;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2019_137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.