Lars Wismann, a Copenhagen appraiser, is stirring controversy with his high assessments of cooperative apartments, challenging the established market and facing criticism from industry peers. His assessments, which can significantly increase the value of cooperative properties on paper, are viewed by some as a threat to the stability and fairness of the market.

Critics argue that Wismann’s assessments are often much higher than those of his competitors, leading to problems with bank financing and potential losses for cooperative shareholders. The Danish Real Estate Agency Association and accounting firm BDO have expressed concerns, with BDO even refusing to work with associations that use Wismann’s services. Jan Hansen, director of the cooperative shareholders’ interest organization ABF, warns that associations using Wismann risk being “locked in” due to the difficulty of obtaining similarly high assessments from other appraisers.

Wismann, however, defends his methods, arguing that he is fighting for free market principles and uniform assessments in a system he believes is artificially suppressing cooperative apartment prices. He claims to be an “idealistic enthusiast” working to expose corruption and ensure fair pricing, advocating for cooperative shares to be sold to the highest bidder. He believes that current practices benefit insiders and prevent cooperative shareholders from realizing the true value of their properties.

The debate highlights the complexities of valuing cooperative apartments, where assessments can be subjective and significantly impact market dynamics. Marc Lund Andersen, chief economist at the Housing Economic Knowledge Center, notes that appraisers have considerable leeway in determining property values, leading to potential discrepancies. This situation raises concerns about transparency and the potential for manipulation within the cooperative housing market.

Despite the criticism, Wismann maintains a loyal customer base and insists that his assessments are accurate and legal. He accuses other appraisers of making assessments that are too low and not following the rules. He envisions a future where more appraisers adopt his approach, leading to a fairer and more transparent market.

Lise Nytoft Bergmann, chief analyst and housing economist at Nordea Kredit, explains that banks often reject loan applications for cooperative apartments with excessively high assessments, creating a barrier for potential buyers. She and others advocate for greater consistency in assessment methods to reduce risk and ensure fairer outcomes for all parties involved.

The controversy surrounding Lars Wismann raises fundamental questions about the valuation of cooperative apartments and the role of appraisers in shaping the market. Whether he is a villain or a hero depends on one’s perspective, but his actions have undoubtedly sparked a debate about fairness, transparency, and the future of cooperative housing in Copenhagen.