23-09-2021 17:04

REAL ESTATE VALUATION REPORT

A real estate appraisal report is created in which the value of a building is determined and recorded by experts using scientific methods. In the real estate valuation report, the calculation takes into account all factors that influence the value of a property.

Real estate appraisal reports are prepared by appraisers licensed by the Capital Markets Board. The appraisal report contains the title deed of the property, the location of the building, the surroundings of the building, the technical characteristics of the building, the negatives that reduce the value of the building, the photos of the property, the documents and similar information.

Nowadays, some buyers declare an amount below the actual sale price in order to pay less real estate transfer tax. Because of this, the tax calculation remains at a lower level than normal. The land register directorates have started to take into account the expert opinions to solve this problem.

The appraiser who prepares a real estate appraisal report obtains the land register entry and the development status of the property from the land registries and the relevant departments of the municipalities. A regional analysis is carried out based on the findings from the institute's legal investigations and the expert on-site assessment of the building. One of the most commonly used methods for determining building value is the peer method. Houses with the same characteristics and location in the same region have the same average value. For this reason, the sales of properties offered for sale on the market are also checked when determining the property value.

EXPERT REPORT IS MANDATORY WHEN SELLING APARTMENTS TO FOREIGNERS IN TURKEY

The General Directorate of Land Registry and Cadastre, in its earlier decision, made it compulsory for foreigners to obtain a valuation report when buying and selling real estate. Therefore, from February 15, 2019, a valuation report is required for all sales and purchases. It is expected that this law will also apply to the citizens of the Republic of Turkey in the coming period, thereby avoiding tax losses.

ADVANTAGES OF THE PROPERTY VALUATION REPORT

The real estate valuation report provides very valuable information, especially for people who do not live in Turkey and do not know the real estate market in the region they have bought or sold. With the real estate appraisal report, you can obtain precise information about the current value of a property. This way people will understand if they paid the right price when buying or selling a home.

Real estate valuation reports also contain technical information about the property. Because of this, people can get all the details about the property by examining these reports. This ensures that people are informed directly by a report, not by the seller or buyer.

The environmental factors of a building are also included in the real estate appraisal report. For example, if there is a city park in front of a property, it is ensured that no building will be built in this area and that the building will not be closed. However, if there is a plot of land with a building permit around the building to be purchased, it is foreseeable that a building will be erected in this area in the coming period and the prospect will be closed. Thanks to the real estate appraisal report, information about the area and the house is obtained.

HOW LONG IS THE PROPERTY VALUATION REPORT VALID?

One of the most frequently asked questions about the real estate appraisal report is the current term of the real estate appraisal report. There is no legal regulation on the duration and timeliness of the real estate appraisal report. However, the environmental influences around the building and the building's potential for change mean that the real estate appraisal report cannot be used for very long. To all of this it can be said that the real estate appraisal report can remain valid for up to 1 year if the age and physical condition of the property does not change.

HOW IS THE PROPERTY VALUATION REPORT CALCULATED?

Prepared as part of real estate appraisal studies, the report considers many real estate-related factors. After combining and analyzing these elements, the real estate appraisal report is created. The following details are checked as part of real estate appraisal studies:

The location of the property, its physical condition, its suitability for the approved project: When preparing a property appraisal report, the location, the physical condition of the property and its suitability for the approved project are among the factors that most affect the value of the building. Many details such as the building's proximity to the city centre, the surrounding area and the value of the property add to the number in the property appraisal report.

Land register information: Another factor that must be taken into account when preparing the real estate appraisal report is the land register information. It takes into account whether there are any restrictions such as precautionary measures, endorsements and protected areas as part of the land registration, in this way the factors that reduce the value of the property are determined.

Age and lifespan of the property: Another factor that changes the value of the property in the real estate appraisal report is the age and lifespan of the property. Compliance with earthquake regulations changes the value of the property, especially in earthquake zones. The remaining useful life of the property is also part of the information that is taken into account when preparing the real estate appraisal report.

Zoning and building law: The zoning of the property and the building law are also taken into account in the property valuation report. The development status of the property is one of the factors that change the value of the property the most.

Traffic-related features: The real estate appraisal report also takes into account the distance of the property from the traffic-related features and common areas. The proximity of a property to transport points increases the value of the property. The proximity of the property to social spaces is also one of the factors that take the value of the property to the next level.

Proximity to large investment projects: The property valuation report also takes into account the proximity of a building to large investment projects. Large investment projects increase both their own value and the value of the surrounding structures. For this reason, major investments that have already been made or are under construction are among the elements that directly increase the value of the building.

Development rate of the region and environmental conditions: The fact that the region where a building is located is suitable for development and the environmental conditions are among the issues that change the real estate appraisal report. The rapid development potential of the region is one of the details that can increase the value of the property.

Transport and infrastructure problems: The real estate appraisal report also draws attention to transport and infrastructure problems. Infrastructure problems affect the value of the property and result in a lower price for the property. Transport problems are also among the factors that reduce the value of the building.

FREQUENTLY ASKED QUESTIONS ABOUT THE PROPERTY VALUATION REPORT:

Question: I am considering buying a property in Turkey. Do I have to obtain an appraisal (property appraisal)?

Answer: If you are a foreigner, you must obtain a property appraisal report to sell or buy property in Turkey. If you are a citizen of the Republic of Turkey, you do not need a real estate appraisal report.

Question: I want to get property appraisal report in Turkey, what is the average price?

Answer: The real estate appraisal report that a foreigner needs to buy or sell real estate varies depending on the size of the building to be purchased. The fee to be paid for the property appraisal report for an average living area of 90 square meters varies from 1,500 TL to 2,000 TL.

Question: I want to buy a house in Turkey. How long will it take to receive the property appraisal report?

Answer: The property appraisal report required by foreigners who are considering buying a house in Turkey can be prepared in a short time. After the required information has been submitted to the appraisal company, it is expected that the property appraisal report will be completed in an average of 1 week to 10 days and the home will be ready for sale.