No. 1: When market value trails behind – and leads to the wrong decisions
The market values calculated for properties by appraisers are based on previous effective transactions.
The very nature of this action means that the values trail actual market events, and that is not a fault of the appraiser.
According to an analysis by MSCI (ex IPD), the effective sale prices in Switzerland in 2017 were on average 18.5% above the market values calculated by appraisers. MSCI captured the majority of the institutional market for this analysis. Based on the value found, Switzerland has the greatest discrepancy of all the countries studied.