The Turkish government has paid great attention to foreign real estate investors, due to the importance of real estate investment and the great benefit that the Turkish government achieves from it.
Therefore, it issued the Real Estate Valuation Law.
To secure a safe investment away from any risk of real estate fraud.
What is real estate valuation?
- Real estate appraisal is the determination of the value of the property according to its type (residential apartment, villa, agricultural land, residential land, commercial building, commercial office) and the space in the real estate market.
- The value of the property is determined based on a set of factors related to the property.
- Real estate valuation needs significant experience in the real estate market.
- The real estate appraisal is determined by a real estate expert holding a real estate appraisal license.
- The final decision regarding the value of the property is made by the expert licensed to evaluate the value of the property.
International Standards for Real Estate Valuation:
The internationally known methods of real estate valuation are three ways:
Market Comparison Method:
The expert responsible for the evaluation of the property shall evaluate it with other properties similar to it in the specifications and its location, price and other specifications shall be taken into account.
The way in which the value of a property is estimated based on its costs.
Costs are the cost of purchasing land and the cost of construction, without any other costs.
This method is also called the “Contractor Method”.
Income Charge Method:
It is the method in which the expert responsible for assessing the real estate value of the property relies on estimating the potential net value of renting or operating the property in the future several times.
This method of valuation is the most commonly used” in the case of commercial properties.
The importance of real estate appraisal law:
The main objective of the real estate appraisal decision in Turkey is to protect foreign investors, from any real estate fraud, such as exposure to buying real estate at high prices.
It is possible that foreign investors do not have enough experience with real estate prices in a country that is foreign to their country, or that they are not fully aware of all the information related to all the laws related to real estate in Turkey, and as a result of their lack of knowledge, they are exposed to many problems that can lead to the loss of real estate or the loss of a lot of money.
Thus, the Turkish government aims through the real estate appraisal decision to protect investors and the real estate investment market in Turkey, and to ensure a safe investment environment.
Real estate appraisal broker
Real estate appraisal is concerned with several tasks, namely:
- Determine the price of the property that must be requested by the seller, in proportion to the property specifications of the location, area, services and other factors controlling the price of the property.
- Helping the investor by determining the price due for the property.
- Determine the value required to secure the property.
- Determining the due value of a property or part of a property in case of heirs or partnership between several parties.
- In case of exchange of property between multiple parties, the real estate appraisal task is to evaluate the property to ensure fair exchange.
- Determine the value of mortgage financing as a percentage from the value due for the property in the Turkish real estate market.
- Determine the rental value due to the property, based on the multiple factors controlling the rental value of the property’s specifications, location and services.
- Identify property losses caused by fires, storms or earthquakes.
- Evaluation of taxes due to the property, taxes are calculated as a percentage of the value of the property.
- Evaluate the value of defects in the property and the cost of repairing it in the event of any error in the property or construction, in order to be compensated by the responsible parties.
- Determine the proportionality of the consumption of real estate to its value in the real estate market.
- Determine the value of real estate taxes in the event of selling the property.
- Determine the demolitionability of the building, although the demolition option is the best.
Factors Affecting Real Estate Valuation:
The location of the property plays a big role in determining its price, as some Turkish cities and regions are of high importance compared to others.
Therefore, real estate prices are higher.
Real estate attributes
All the area and modernity related to the property and the type of commercial, residential or agricultural property.
Each has a proportionate price.
Modern real estate is more expensive than old real estate.
The view plays a big role in the importance of the property, and largely residential properties.
The beautiful view increases the investment importance of the property, and increases its importance for housing.
Availability of services in the vicinity of the property:
Various educational, health and recreational services.
The availability of these services increases the price of the property.
Legal procedures related to the property:
such as procedures for the transfer of ownership from the seller to the buyer.
- Comparing the property with the surrounding or nearby properties:
Real estate prices in the region, next to the property, play a role in controlling the pricing of real estate.
All these factors together control the real estate valuation of real estate in Turkey.
Real Estate Appraisal Specialists in Turkey:
Real estate is valued by real estate valuation professionals holding a real estate valuation license by the Money Markets Foundation spk.
Their evaluation is presented to the department responsible for real estate appraisal of the Turkish Land Registry Directorate.
The real estate appraisal specialist is required to be a graduate of the University of 4 years, contracted with a real estate appraisal company licensed by the spk to perform its work in real estate appraisal.
The real estate specialist shall perform the following tasks:
- Provides written assessments of real estate to customers or to the government real estate appraisal department.
- The competent expert collects all information related to the real estate appraisal process and analyzes it according to the Turkish real estate market.
- Analyzing the Turkish real estate market and all the reasons leading to all the changes within it.
- In order to complete the evaluation process of the property, the real estate appraisal specialist needs to visit, inspect and photograph the property from inside and outside.
- Analyze all factors affecting the decision making of the appraisal, from a diverse area, location and services within the property and in its surroundings.
- Draw property plans to support the results of the real estate appraisal.
- Collecting information related to the prices of real estate surrounding the property to be evaluated from residential and other lands and properties.
The work of the appraisal real estate expert includes all the details that ensure that the right decision is chosen according to the Turkish real estate market.
Documents required in order to buy a property in Turkey:
The process of completing the purchase of the property in Turkey requires many documents, we mention them:
- A real estate appraisal document issued by an approved appraisal expert and licensed by spk
The evaluation date should not be more than three months old.
- The buyer’s passport or it is possible for the passport to represent the identity of the person who will buy the property
- Property title.
- Securing earthquakes for buildings, which is a mandatory document.
- A real estate permit certificate for the property, obtained from the municipality.
- Personal photos for both the seller and the buyer.
Provided that it has not been taken for more than six months.
- A sworn translator for foreigners.
- Two witnesses to the sale.
- The buyer can be represented by a legal agent, if he is not in Turkey.
The Agency’s contract must be duly translated and certified. “
Notes on Real Estate Valuation:
- The period required for the role of the real estate appraisal document is 6 days for Istanbul and three days for the rest of the Turkish cities.
- The validity period of the real estate appraisal extends to three months.
- In the case of real estate appraisal of a property and then the buyer cancels the purchase, the seller is entitled to benefit from the same appraisal of the property in another sale.
- In the event that additional services are added to the property in excess of the agreed services, the real estate appraisal team will estimate the value after completion.
- Details regarding the property and the sale process mentioned in the real estate appraisal document must match the details mentioned in the property title deed.
The real estate appraisal decision increased the importance of real estate investment in Turkey.
Supporting the investment environment with greater security and reassurance.
For more details about what is related to the laws in Turkey and the regulations, you can follow our website because the editorial team at Hana Real Estate Company is keen to monitor you everything you care about.
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