Hello,
I couldn’t find any information on how the entries of benchmark values for different areas in BORIS are generated. Adjacent benchmark entries are inevitably from different times, so they must differ significantly, right?
Background:
In our area (with the same quality specifications), the last plot sale was about 6 years ago, so the market must have changed a lot since then.
Does the BORIS list show the last recorded price per square meter, or is the last known value proportionally extrapolated using the average index of neighboring areas?
Unfortunately, I couldn’t find anything about this (not even on BORIS). The date of recording is not given, only the editorial cutoff date.
Does anyone know the answer?
I couldn’t find any information on how the entries of benchmark values for different areas in BORIS are generated. Adjacent benchmark entries are inevitably from different times, so they must differ significantly, right?
Background:
In our area (with the same quality specifications), the last plot sale was about 6 years ago, so the market must have changed a lot since then.
Does the BORIS list show the last recorded price per square meter, or is the last known value proportionally extrapolated using the average index of neighboring areas?
Unfortunately, I couldn’t find anything about this (not even on BORIS). The date of recording is not given, only the editorial cutoff date.
Does anyone know the answer?
N
nordanney6 Sep 2021 23:45Phew, this is a complex question since legal requirements (building code) must also be taken into account.
In general, the land value index is derived, simply put, from the collection of purchase prices available to the valuation committee. If this data is not available, but there are value-influencing trends (e.g., rising sale prices for houses, developments in the immediate and possibly comparable surroundings, etc.), these trends are incorporated into the valuation. If no trends are present, the value is merely updated.
The land value indices are published anew every year in the spring.
If you are currently checking values with Boris, these are the current values, even if the last sale was a long time ago. However, value-influencing trends may have been taken into account. All values for all areas have the same reference date—so there are no old and new values for different areas in Boris; everything you see is as of December 31, 2020.
In general, the land value index is derived, simply put, from the collection of purchase prices available to the valuation committee. If this data is not available, but there are value-influencing trends (e.g., rising sale prices for houses, developments in the immediate and possibly comparable surroundings, etc.), these trends are incorporated into the valuation. If no trends are present, the value is merely updated.
The land value indices are published anew every year in the spring.
If you are currently checking values with Boris, these are the current values, even if the last sale was a long time ago. However, value-influencing trends may have been taken into account. All values for all areas have the same reference date—so there are no old and new values for different areas in Boris; everything you see is as of December 31, 2020.
The approach described by nordanney is generally quite accurate. However, as far as I know, incorporating price trends is a relatively recent practice and is not yet applied by every appraisal committee. This was not much of an issue as long as price developments progressed slowly, but now it sometimes leads to significant differences.
What is stored with Boris are the current standard land values (BRW) for the zones (although the historical values can also be viewed). The basis for this is the collection of purchase prices and essentially the appraisers’ expertise.
What is stored with Boris are the current standard land values (BRW) for the zones (although the historical values can also be viewed). The basis for this is the collection of purchase prices and essentially the appraisers’ expertise.