Another aspect of our advisory services is the review of reports prepared according to relevant valuation standards. In this context, we have already provided second opinions on a variety of market value and mortgage lending value valuation reports and verified their plausibility and compliance with the respective valuation standard.
For example, we have reviewed an international market value report according to RICS standards for a landmark building in a German metropolis. We identified several technical and formal deficiencies that had resulted in a value assessment well below the actual market level. Our results were documented in an objective written statement and discussed in detail with the report’s author and our client. Subsequently, the report was extensively revised and a formally correct, comprehensible and market-oriented report was prepared for our client.
In another project, the sale of a property located in a redevelopment area was denied by the municipality. The prohibition was based on a valuation report prepared by the local valuation advisory committee that had disclosed a market value well below the negotiated price. Our review of the report showed that material circumstances were not considered in line with the market. In order to obtain approval for the sale, we provided our client with the results of our examination in a detailed statement, thereby providing him with conclusive arguments for the negotiations with the authorities.
Another example is the review of mortgage lending valuations to minimize the risk of the financing bank in an audit by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin). In this context, we have examined the compliance of a large number of mortgage lending valuations with the prevalent formal requirements as to ensure revision safety for our client.