Real estate valuation report in Turkey… a necessary step
The real estate valuation report in Turkey is drawn up by the work and calculations of real estate experts in Turkey.
It is a report that contains detailed information about the properties, specifications and price of the property.
The validity of the real estate valuation report obtained from the competent companies is 3 months, starting from the date of the report’s issuance, and if the property is sold during this period, it is possible to use the report more than once.
A circular was issued by the General Directorate of Land Registry and Real Estate Records of the Ministry of Environment and Cities in the Republic of Turkey on February 15, 2019 that foreigners must obtain a real estate valuation report, not only for those who apply for Turkish citizenship by purchasing properties, but also for Those foreigners who buy real estate experts in Turkeyin general.
According to the real estate law in Turkey, professionals who conduct the valuation must hold an appraisal experience license in order to be able to carry out the valuation.
The license can be obtained as a result of a test conducted within the framework of the Capital Markets Board’s regulations.
The process of preparing a real estate valuation report in Turkey
The process of preparing the valuation report begins with the review of the legal institution. Information such as title deed registration and zoning status is collected from relevant departments of title deeds and municipalities.
Next, the information obtained in the reports of the legal institution and the appraisal site is compared by the appraiser with the current state of the property and a regional analysis is carried out.
The real estate valuation report in Turkey must include the following information:
Land registry information.
Location, transportation and surrounding information.
Real estate legal audits.
Technical and structural specifications of the property.
Factors affecting the evaluation.
Approach to assessing specific information.
Real estate market investigation and research.
Restrictions and limits.
Advance real estate valuation report
The method most used by appraisal professionals nowadays is the pre-assessment technique. The Advance Real Estate valuation technique is based on the assumption that the buyer can pay to purchase a property at its base price which is not higher than properties with similar characteristics in the market. In this way, sales of similar properties that have been sold in the market are examined to determine the value of the property.
The basics of preparing a real estate valuation report in Turkey
From a technical point of view, the market value of a property is actually the value of the future profit at a specific point in time and accumulates with the ownership of the property. Unlike other consumer goods that get old quickly, real estate profits are usually measured over a long period of time.
This is why not only the property itself, but many other factors, must be taken into consideration when preparing a property valuation report. As all of these factors can have an impact on the value a buyer pays for a particular property in Turkey:
Demand (the desire or need to purchase, linked to the ability to finance the project)
Utility (the ability to satisfy the wants and needs of future buyers)
Availability (limited number of similar features)
Transferability (the ease with which property rights can be transferred).
Real estate criteria:
Property type (house or apartment)
Habitable area in square metres
Number of floors (building or house)
Quality level (eg material quality)
General Status (When was the last renewal?)
Is there an outside deck (balcony, balcony, etc)
Does it have a private garage/parking?
Is there a swimming pool?
Additional facilities (eg elevator, etc.)
Lighting, safety, etc.