Appreciating yourself is important in every way. But how can you give an impartial assessment of your home, in the arrangement of which you have invested not only time and money, but also a piece of your soul? And how do real estate investors cope with putting price tags on their properties? The answer is simple - not at all. They don’t do this, because only an uninterested person and a true professional in their field will be able to evaluate square meters not for their home comfort and years spent in love and mutual understanding, but according to more objective parameters. Features of the procedure, its meaning and algorithm - all this is revealed in the following paragraphs.
Who needs a real estate appraisal and why?
You can live quietly in your apartment or house without knowing how much it is valued in the modern real estate market. But if unforeseen circumstances arise, the thought of investing capital or simply changing your usual place enters your mind, it is better not to take risks and turn to experts, so as not to deceive yourself in the first place. Real estate valuation is useful when it comes to one of the following operations:
✔️ real estate sales - numbers don’t come from your head, therefore, in order to advertise the sale of your property at an adequate price, you need to give it an adequate assessment that corresponds to market trends and reflects the real cost of not only square meters, but also repairs, furniture and equipment, if we are talking about the secondary market
✔️ покупка недвижимости – the buyer will be interested in the assessment not only to know what he is paying for. The procedure will allow you to plan future costs for repair work and arrangement of an apartment or house. This is especially true for those who plan to turn their new acquisition into a source of income and rent out the property
✔️ entry into inheritance - an assessment is necessary not only for the correct preparation of documents, but also for the fair distribution of property and the settlement of possible disputes between heirs
✔️ division of property - during a divorce, spouses may want to fairly divide all jointly acquired property in half. While you can still handle the furniture and appliances yourself, you won’t be able to “cut” the apartment into two equal parts. An assessment of the value of real estate will help you make the right decision and find the best way out of the situation so that both parties are as satisfied with the results of the divorce as possible.
✔️ obtaining a loan from a bank - when it comes to a large amount, the bank must understand that in case of non-repayment, it can count on decent compensation. In this situation, only a real estate valuation can prove that no matter the outcome of events, you will be solvent
An expert assessment of the value of real estate can be useful in a number of other cases, such as contacts with the State Tax Service or other authorities. As a rule, in such situations, representatives of a particular organization warn about the need for the procedure, so you will not be taken by surprise.
Price VS Estimated value VS Market value: why don’t the amounts always match?
To answer this question, it is necessary to understand the difference between all three concepts, and the difference, as it turns out, is significant.
- Price is the seller's profit; money that the buyer takes from his heart; actual amount paid per square footage.
This is not about making sure the price is fair or in line with any market trends. It may be artificially high or low due to certain circumstances.
- Estimated value is the real value of a specific object, which is calculated on the basis of objective factors.
The calculated amount objectively reflects the cost of a particular object. Materials, furniture, appliances, design services and other efforts made to ensure that the property at the time of valuation is exactly in the form in which it is are taken into account.
- Market value is the golden mean between the seller’s expectations and the buyer’s capabilities.
This value is calculated based on the estimated value and a number of objective factors, such as the potential profitability of the object (income approach), the costs of its creation (cost approach) and, of course, comparison with similar proposals (market or comparative approach). Only an experienced specialist will be able to put all the factors together and provide you with a real estate valuation result that will pleasantly please you and will not scare away potential buyers.
First steps for proper real estate valuation
Naturally with the preparation of documents! Just like any other real estate transaction. In order for an expert to evaluate your apartment, you must provide him with:
- title documents confirming your rights to real estate (sale/purchase agreement/donation/will/court decision)
- owner's passport
- technical certificate BTI
The next step is to choose an expert. Only specialists with appropriate qualifications have the right to evaluate real estate. You can always ask the agency for help THE Capital, to save yourself from unnecessary headaches and enlist the support of professionals.
💡 Bill No. 2047-d “On Amendments to the Tax Code of Ukraine” expands the capabilities of real estate owners and allows them to independently generate an assessment certificate and view the results of the procedure in private office a unified database of assessment reports.
