Turkey is home to a booming real estate industry. This increase in the demand for Turkish real estate has led to the influx of many foreigners looking to invest in the market.
One important document that many property investors (both local and foreign) need to know about is the property valuation or appraisal report.
Property valuation is the process of applying a set of methodologies to determine the actual cost of a property. It is presented as a document.
Property valuation became important in Turkish real estate in 2019 when the government made it a law for this to be done on all properties to be bought or sold. The property valuation is also called an appraisal report. The property valuer can be found with the use of several factors:
The property type
Its location
The property’s general condition
The value of the surrounding properties in the location
The amenities that can be found close to the property
The legal documents of the property, and many more.
The importance of a property valuation to buyers
Property valuation follows a process that is used to get useful insights into the crucial details of a property before the person invests in the property.
Foreigners in Turkey who want to purchase a Turkish property will need a valuation report. They can get this through any licensed evaluation company in the country. This way, `foreign investors will be protected from any potential scam or fraud when they purchase the property.
What is the property valuation used for in the Turkish valuation market?
A property valuation has several benefits. Its primary benefit is to help foreign buyers make sure that they have been offered a reasonable price for the property. In addition, a property valuation will prevent construction companies from not paying taxes.
Property valuation: What is contained in the report?
The property valuation is presented as a document which acts as an appraisal report, It contains important components of the property. Some of the contents of this document include:
An estimation of the purchase price of the property
The price details of properties within the area that have similar designs.
The details for the title deed or TAPU
Elaborate pictures and images of the properties.
How is the property valuation process executed?
The property valuation process is carried out by professional appraisers certified by the appropriate government body in Turkey. Usually, they carry out the appraisal by going to the property location.
They estimate its price by studying its elements, location, and so on. They also rely on the municipality records and TAPU of the property to come up with an elaborate valuation. Also, they usually arrive at the final property price by using three different methods such as:
Price comparison with other closely-related properties
Value estimation based on the revenue that the real estate has produced
Estimating the cost of construction of similar properties
Applying for property valuation in Turkey
Due to the importance of property valuation in Turkey, you will have to apply for the process to be done on a property. Applicants need to submit some essential documents when applying for their properties’ valuation report. The documents needed in this case include the following:
