Real Estate Appraisal in Turkey
In this article from Ebla Real Estate, we will talk about real estate appraisal.
The Real Estate Appraisal in Turkey
Evaluating the real estates in Turkey is necessary for those wishing to own properties in Turkey.
On February 15, 2019, the Turkish government issued a decree requiring foreign investors wishing to own real estates in Turkey to obtain a real estate appraisal report through accredited companies by the Real Estate Registry Department and attach it to the required papers to complete the purchase process of the property.
The real estate appraisal is also difficult because each property has special features. Such as, location, property size, property scheme, and the available amenities in the property.
It is certain that the general real estate market concepts in Turkey.. Such as supply and demand in a particular area will play an important role in the overall value of the property.
However, to own the real estate, you should get the evaluation using one of several methods to ascertain the fair value of the property according to the popular price in the property’s area.
There are many questions that many investors are looking for their answers.
This article from Ebla Group Real Estate will provide an introduction to the basic concepts and methods of evaluating the real estates in Turkey, especially with regard to the real estate ownership.
What is the period of validity of the real estate appraisal report?
The validity period of the real estate appraisal report that is related to the acquisition of real estate by foreigners is three months
Since the value of the property may change.. There is no legal regulation determines the duration of the validity of the real estate appraisal report.
However, if there is no change as regards the economic and legal status of the property.. It is possible that the valuation report will generally remain valid during a period of six months to a maximum of one year.
How important is the real estate appraisal report?
There is no doubt that the foreign investor who wants to own real estate in Turkey may be subjected to fraud in one way or another, due to his lack of knowledge of the laws and the working mechanism of government institutions and companies. Therefore, to preserve the money of investors in the real estate sector, it is necessary to have a real estate appraisal report when wanting to own real estate in Turkey.
The most important factor for those who invest in real estate is to carry out transactions at the real value, and the real estate appraisal report reveals the legal status of the property, in addition to the current value of the property.
Basic real estate valuation concepts:
Technically, the value of real estate is the current value of the future benefits. Moreover, the benefits of real estate are generally realized over a long period of time. Therefore, the appraiser must take the economic and social trends into consideration in the real estate valuation.. As well as the governmental controls or regulations and the environmental conditions that may affect the four elements of real estate valuation, which are:
- Supply and demand: desire or need for real estate ownership.
- Interest: ability to meet the demands of those wishing to own real estate.
- Scarcity: limited supply of competing properties.
- Transferability: ease of transferring property rights.
Market value vs. cost and price:
Valuation is an opinion or estimate regarding the value of a particular property as of a specific date.
Companies, government departments, individuals, investors, mortgage companies, and banks use real estate appraisal reports when they want to make decisions related to real estate transactions.
Furthermore, the objective of real estate appraisal is to determine the market value of the property.. Or the most probable price that the property will bring in its area.
The value of the property may not necessarily equal the cost or the asking price. Moreover, the cost refers to the actual expenses that the company that owns the property during construction pay. Additionally, the price is the amount that someone pays for buying the property. While the cost and price can affect the value of the property. For example, the asking price of the house may be 100,000 $, but the real estate appraisal report may show that the value much higher or lower depending on supply and demand, the popular price in the property’s area and the general specifications of the property
The real estate appraisal methods:
The accurate real estate appraisal depends on systematical collections of data. Moreover, the appraiser analyzes the specific data that covering details that related to the real estate properties and the general data related to the type of real estate, the city, the region and the neighborhood of the property to reach the market value of the property. The real estate appraisal depends on several basic methods to determine the value of real estate properties, including:
Popular price:
The popular price approach is commonly used in real estate appraisal in Turkey for residential and commercial units and lands, which is the estimation of value by comparing the property with properties sold recently with similar specifications. However, in order to provide a correct comparison and achieve the purpose of the real estate appraisal, you should make comparison with real estates that:
- located within the region.
- sold no later than 6 months.
- sold under normal market conditions.
The real estate appraisal report depends on the use of at least three or four comparisons during the real estate appraisal process. The most important factors when someone or a company wants to choose comparable items are (size, comparable features, age of construction and most of all location, which can have the greatest impact on the market value of a property).
The cost:
The costs of the construction can be estimated in several ways.. Including calculating the cost per square meter, which varies according to the specifications. The cost is multiplied by the general space of the property.
The second method is based on the cost provided by the construction implementing company and approved by the official departments.
Who makes the real estate appraisal report?
The real estate appraiser prepares the real estate appraisal report in Turkey. The appraiser is licensed and accredited by the Title Deed Department. Furthermore, the report must include a detailed explanation of the property’s condition. The company that is submitting the real estate appraisal report is the company that is responsible for any flaw in the report. So the process of preparing the real estate appraisal report starts by reviewing the legal institutions first. Appraiser collects information such as the registration of the title deed and the condition of the property. Then, he compares the current status of the property with the information obtained from the legal institutions. The real estate appraisal report is prepared. An electronic copy of the report is sent to the official departments. And a hard copy of the report is delivered to the investor to keep.
You can contact us to obtain more detailed information about the real estate appraisal service
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