Understanding the Real Estate Valuation Report in Turkey
The real estate valuation report (Gayrimenkul Değerleme Raporu) is a crucial document in Turkey that both real estate buyers and sellers must be familiar with. This process plays a key role in determining the value of a property. Given the recent surge in the Turkish property market and the substantial influx of foreign buyers, understanding the significance of this report is essential for a smooth real estate buying process. In this article, Ideal Estates provides comprehensive insights into the real estate valuation or appraisal report in Turkey.
What is the Real Estate Valuation or Appraisal Report in Turkey?
In 2019, the Turkish government enacted a law mandating the acquisition of a valuation or appraisal report to assess the status of real estate intended for sale. Various factors, including the following, influence the value of a property:
The type of real estate.
The overall condition of the property.
Prices of surrounding properties.
Proximity to amenities.
Legal documentation, and more.
This process offers valuable insights into crucial details about a property before making an investment. For foreigners purchasing property in Turkey, obtaining a valuation report through a company licensed by the Capital Markets Board is essential. This ensures full protection against fraud or scams during the buying process.
What is the Purpose of the Real Estate Valuation or Appraisal Report in Turkey?
The primary purpose of the real estate valuation report is to guarantee that foreign buyers receive a fair price for the property they intend to purchase and to prevent any tax evasion attempts by construction companies. Additionally, this report helps determine if the property’s value qualifies for acquiring Turkish citizenship.
What Does This Report Include?
The real estate valuation or appraisal report typically includes the following details:
Pictures of the real estate.
TAPU or title deed details.
Pricing details of similar real estate in the same area.
Purchase price estimation, etc.
How is the Report Produced?
Certified appraisers, accredited by the Sermaye Piyasası Kurulu or Capital Markets Board, conduct the appraisal process. This involves visiting the property, assessing its price, and inspecting TAPU and municipality records. Appraisers may use one of three methods:
Comparing its price with similar real estate.
Value estimation based on the revenue produced by the real estate.
Taking into account the construction costs of similar properties.
What are the Documents Required For the Application?
The following documents are required to apply for the appraisal report:
The property’s title deed.
A copy of the buyer’s passport.
The property address.
How Long is the Report Valid?
The validity period of the real estate valuation report is three months. The preparation of the report can take anywhere from three to six days. Within this validity period, you must transfer the property’s TAPU. If the report expires before the transfer, you will need a new report.
How Much Does the Report Cost?
The cost of real estate appraisal reports depends on the property’s location, total area, and other details and is approximately 9000 TL. This fee is paid to the Real Estate Appraisal Department of the Land Registry and Cadastre.