The Advisory Committee for Property Values (in German: “Gutachterausschuss für Grundstückswerte”) was created as an institution in the Federal Republic of Germany with the Federal Building Act in 1960. The aim was and is to ensure transparency on the property market through an independent body of property experts.
The legislator particularly obliges the expert committees in Germany to collect purchase prices. Based on the building code, all contracts relating to land are to be sent in copy to the expert committee (e.g. purchase / sale, exchange, justification of heritable building right). The contracts are evaluated by the office of the expert committee taking into account data protection regulations and included in the purchase price collection. Therefore, the expert committees in Germany have a practical insight into all actual transactions on the real estate market, for example with regard to high-rise apartment buildings in Frankfurt.
In the state of Hesse (one of the 16 states of Germany, where Frankfurt is located in) there are a total of 18 expert committees for real estate values for the areas of the districts, the independent cities and individual cities belonging to the district. They are independent and independent institutions of the State of Hesse.
An expert committee consists of a chairman and other members. The members work on a voluntary basis. You are professionally qualified and particularly experienced in determining real estate values. They belong to different professional groups (experts from the fields of surveying, architecture, civil engineering and banking, financial management, agriculture, real estate market).
The advisory committees and their offices ensure transparency in the real estate market. You have the legal mandate to fulfill the following tasks:
- Management and evaluation of a purchase price collection on property transactions
- Determination of standard land values
- Determination of generalized soil values
- Provision of information (purchase price collection, standard land values)
- Preparation of real estate market reports in your area of responsibility
- Deriving the data required for the valuation such as property interest rates, index series, conversion coefficients, comparison factors and rental value overviews
- Reimbursement of market value appraisals
The seven state offices that are responsible for the districts are set up at the respective office for land management, while the remaining eleven offices are integrated within a city administration.
In Frankfurt, the Advisory Committee for Real Estate values is based at the City Survey Office.