According to §194 of the German Building Code (BauGB), "the market value is determined by the price that could be obtained in the ordinary course of business at the time to which the valuation relates, based on the legal circumstances and actual characteristics, other features and the location of the property or other object of the valuation, without taking into account unusual or personal circumstances".
Accordingly, the property, condition and location of the land at the time of the valuation are assessed. The market value is determined exclusively by an appraiser.
The market value and the actual sales price may differ. The reason for this is that the market value is based purely on facts about the property itself. However, the sales price is determined by other factors, such as the supply and demand for real estate in the respective region.
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