Quality Transparency

The following factors have a considerable influence on the pricing or potential mispricing of real estate:

  • Location
    • Macro location
    • Micro location
  • Type of use
  • Building quality
  • Yield
  • Legal validity
    • Legal validity under public law
      • Development zone
      • Planning permission status
      • Ownership restrictions under public law
      • Determination of opportunities and risks of a new use (development) /change of use (conversion)
        • Objections to planning application (building delay)
        • Revocation of planning permission, potential conditions
        • Changes to project / re-dimensioning / cancellation of project
          • Deterioration of project cash flow, to the point where it becomes unviable
          • Investors back out?
          • Impairment of resale value
    • Legal validity under civil law
      • Annotations
      • Priority notices
      • Easements
      • Land charges
      • For properties with right to build
        • Rights and obligations arising from the right-to-build contract
      • For letting
        • Rights and obligations arising from rental agreements or leases
  • Asset deal or share deal
    • Financial risks of a share deal (entry; valuation results)
    • Tax risks of a share deal (deferred taxes)

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