A real estate appraisal report shows the market value of a property. It is compulsory for foreigners, who want to buy a property in Turkey as of February 15, 2019. The government wants to ensure that foreign buyers purchase real estate in Turkey at actual prices.
What is a Real Estate Appraisal Report in Turkey?
A home appraisal report outlines the value of the real estate based on its features, condition, location, etc. It is prepared by two appraisers who are authenticated and validated by the SPK. Both are chartered appraisers.
One of them checks the plans and the registration information in the municipality and the Land Registry office. The controller double checks that the home price comparisons and registry are correct. They visit the real estate to make sure you buy what is shown to you.
Why Home Appraisal Report is Important in Turkey?
The government has made this report mandatory in house sales to foreigners. This is because the government wants to learn the real market value of the property rather than rely on the declared one.
Previously, a seller would declare a much lower sales amount to avoid paying higher conveyance tax. Therefore, the valuation report is used as an indicator of real estate in tax calculation.
What are the Types of Real Estate Appraisal Reports in Turkey?
There are 2 types of appraisal reports. They are real estate valuation and project valuation with a feasibility report.
Real Estate Valuation
Property Appraisal Report in TurkeyThe subtypes of real estate valuation are:
- House/villa or apartment valuation
- Commercial buildings, offices, stores, shopping malls, and shop valuation
- Agricultural land, plots, parcels, and land valuation
- Hotel valuation
- Urban renewal valuation (Kentsel Dönüşüm Değerleme in Turkish)
- Mine and gas station valuation
- Ship, marine, yacht, airplane, plane valuation
- Trademark valuation
- Company valuation
A real estate valuation report consists of:
- Deed information
- Location on map and location information
- Real photographs
- Similar real estate prices
- Sales price estimation of the real estate
- Control of debt situation and the technical situation at the municipality and General Directorate of Land Registry and Cadastre
The real estate valuation report may contain more qualifications and conditions according to your request and the features of the real estate.
The appraisal reports are prepared by one of the following 3 different methods, depending on the features of the real estate:
– The Comparison Between Precedents: Property is compared between several similar properties.
– The Income Approach: It uses the income generated by the property to estimate fair value.
– The Cost Approach: It is based on the cost of building a similar property from scratch.
FAQ About Real Estate Appraisal Report in Turkey
Q: Do I need an appraisal report?
A: Foreigners must have an appraisal report to get their title deed at the General Directorate of Land Registry and Cadastre (Tapu Office).
Q: How long does it take to prepare the appraisal report?
A: It takes 2 days. A report contains between 20 and 35 pages. The experts check a property themselves.
They take the photos, control the registry at the Land Registry office, and then check the registered plans in the municipality. They analyze the prices of similar properties for comparison.
Q: How may I find an SPK validated expert?
A: We arrange an expert directly for you for fast and reliable service if you work with us to find your dream home.
Q: How much does a report cost?
A: It varies depending on the city and features of the property. You can visit our up-to-date purchase expenses page for detailed information.
Q: How much do you charge for your service fee?
A: Nothing. Turkish Home Office gives this service free of charge to its customers.
Q: How long is a valuation report valid?
A: According to the real estate law, it must not be older than 3 months. In case of expiry of the report, we help our clients renew it free of charge after 3 months.
Q: What does SPK mean?
A: SPK is an abbreviation of Capital Market Board. It is Sermaye Piyasası Kurulu in Turkish. It is the highest regulation authority of financing, stock exchange, and banking in Turkey.