What is a Real Estate Appraisal Report?

A real estate valuation report is needed to measure the material value of a property and determine its market value. These reports, prepared by experts subject to the regulations of the Capital Markets Board, are used in transactions such as real estate purchase and sale, rental, investment or loan applications. For these reasons, it is very important for a property to be handled by professionals. It is a must for those who are considering both acquiring property and making financial gains from their existing property. We will examine the details of the real estate valuation report in the rest of the article.

Where to Get a Real Estate Valuation Report?

Real Estate A valuation report is an official document prepared by a company with experience and the necessary authority in the sector, such as Anadolu Properties, or by an independent valuation expert. Thanks to this report, the market value of the real estate to be traded is determined impartially by taking into account many parameters. The current status of the real estate market, the physical characteristics of the relevant real estate, the geographical location of the real estate and other economic factors affecting the market are taken into consideration during the preparation of the report.

How to Prepare a Real Estate Valuation Report?

While determining the value of a property objectively, a number of critical headings such as the physical, locational, economic conditions of the property and the current status of the market are checked. Some of the basic criteria used in the preparation of real estate appraisal reports are as follows:

Physical Features of the Property: A detailed examination focusing on the material structures of buildings, residences, etc. properties. It may include:

• Area: The size of the area covered by the property affects its value.
• Structure Type: Type of building; whether it is industrial, residential or commercial property has an effect on determining its value.
• Age: How old the building is, whether it has any risks and the need for maintenance and renovation processes are factors that can change the value of the property.
• Number of Rooms: The number of usable rooms, their adequacy and their arrangement may be decisive in the preference of the property.

Location of the Real Estate: The location of a real estate, the reputation of the district or neighborhood it is located in, ease of access to transportation networks, and access to infrastructure services play an important role in the preparation of the valuation report of that real estate.

Current Market Conditions:It is quite common to use credit in any real estate purchase or sale transaction. Therefore, the current conditions provided by the market for housing purchase transactions play a major role in the preparation of valuation reports. When considered together with other features, the physical condition of the real estate, the balance of demand and supply for real estate in the location, the level of interest rate to be provided in loans and general economic conditions are the factors that change the value of the real estate.

Price Comparison of Similar Properties:When trying to determine the price of the relevant property, appraisers examine the recent sales prices of similar properties comparatively. In this way, the value of similar real estate is determined. These can be houses in the same neighborhood, similarly sized residences or commercial properties.

Economic Factors:Economic factors such as general economic functioning, local economic growth, inflation rate, employment level, bank interest rates are taken into consideration in real estate valuation.

Needs Analysis: Real estate may have different needs depending on its intended use. If it is to be used for a workplace, suitability may be sought according to the requirements of the job and its value may increase accordingly.

Where is a Real Estate Appraisal Report Used?

Decision-making processes are critical in any real estate transaction. For example, a person who wants to sell their real estate will rightfully experience stress. Because it is difficult to control many factors on their own. Professional consulting services make the seller’s hand easier by reducing this stress load. A real estate appraisal report is useful for use in situations such as the following:

Pricing Correctly: Pricing a property below or above its value can lead to various problems. The need for correct pricing, which is especially critical for the seller, is met with a real estate appraisal report. By determining the real market value of the property, both a possible loss is avoided and a possible delay in the sale is prevented.

Making Investment Decisions: For real estate investors, a correct property evaluation provides an understanding of the current status of the relevant property and an idea of ​​its future sales or rental potential. Thus, it makes it easier for the investor to make the right choice.

Using in Loan Applications: Those who will purchase a residential or commercial property will need a real estate valuation report if they want to use a bank loan. The real market value of the relevant real estate affects the limit and approval status of the institution that will provide the loan.

Usage in Insurance Transactions: It is important to have insurance against natural disasters, which have been on the country’s agenda recently, and various problems that may occur in buildings along with them. It is also necessary to have an accurate valuation report in order to determine the scope and cost of insurance.

Usage in Legal Transactions: It may be necessary to determine the value of real estate for various legal processes such as inheritance and divorce. In such cases, a real estate valuation report can be used to avoid any grievances.

Real Estate Valuation Report Reduces Risks

Any commercial transaction related to real estate brings with it a difficult decision-making process. It is very important for property owners, investors and financial institutions to manage this process correctly. At this point, having a professionally prepared property valuation report provides great convenience. It would be best to obtain a property valuation report to minimize risks in all kinds of transactions related to real estate.