25 Years HypZert – A success-story?

Almost every HypZert valuer knows and appreciates him: Michael Debus, Chairman of the Committee of Valuation Experts for the area of the City of Frankfurt a.M. and a long-standing member of HypZert's Board of Examiners. In today's part of our 25 years HypZert series "HypZert Statements", he reports on his experiences from an examiner's point of view, the cooperation between committees of valuation experts, HypZert and the vdp as well as his vision for the future.

25 Years HypZert – A success-story?

When I was asked 20 years ago whether I would be willing to join the HypZert board of examiners, the BelWertV as well as the Pfandbrief Act were largely unknown quantities to me. When I looked through some of the examination questions, I had to admit that answering certain questions was not possible for me. However, it was explained to me that as a committee member, you not only get the questions, but also the answers. This reassured me.

I came out of all the exams I attended wiser. Some mistakes I might have made myself. I was impressed by the quality and neutrality of the exams. A nationwide uniform and transparent approach to examinations was not the case 20 years ago with all certification bodies and appointing authorities. I feel that the examinations are conducted in a demanding yet benevolent manner. - Hopefully, the persons to be examined feel the same way. Although the number of certified valuers has exploded, HypZert has succeeded in maintaining a high quality standard. Despite the high number of certified valuers, the personal closeness to many valuers is still given, of course not to all of them.

I wish HypZert continued stability and success. Good cooperation between HypZert and the local committees of valuation experts should also be strived for in the future. I am glad to be able to continue to support HypZert. Why should we not learn from each other? Why, for example, should a modernisation risk not be appropriate in the determination of market value?

In my opinion, the committees of valuation experts would do well to orient themselves to the needs of the valuers. Thus, I learned in conversations that the net initial yield or also a DRC adjustment factor for multi-family houses are in demand. Accordingly, these two variables were included in the Frankfurt property market report.

Nevertheless, I have not yet experienced the application of a DRC adjustment factor in any appraisal of an apartment building in Frankfurt. Other colleagues pointed out that investigations on commercial leaseholds would be helpful, which is why corresponding investigations were also carried out.

"Different perspectives can be a mutual gain if there is a willingness to cooperate."

Mr Lux and I originally aimed for much closer cooperation: Why can't the purchase price collections of the expert committees be made available to HypZert/VDP nationwide? Why does an independent transaction database have to be set up in addition to the collection of purchase prices of the expert committees? This good wish failed due to the inhomogeneity of the expert committees, the different views of the German federal states on data protection with regard to the official purchase price collection as well as banking secrecy. Nevertheless, the transaction database was never seen as a product that stood in the way of good and close cooperation. Different perspectives can be a mutual gain if there is a willingness to cooperate.

And what happens next?

One goal for the future is to eliminate the reasons for determining different market values according to BauGB (Building Code) and BelWertV/Pfandbrief Act. How many paths do we want to take? Market values without DRC adjustment factor, market values according to BauGB, market values without BauGB.... It would be nice to approach each other. It doesn't help anyone if everyone is going in different directions on separate paths. Together we can do it?!

Thank you very much!

We thank Mr. Debus for these great insights and the many years of cooperation, which will hopefully continue for a very long time!