Appreciating yourself is important in all relationships. But how to give an unbiased assessment of your native home, in the arrangement of which you invested not only time and money, but also a piece of your soul? And just how do real estate investors manage to put a price tag on their property? The answer is simple - no way. They do not do this, because only a disinterested person and a true professional in his field will be able to evaluate square meters not for their home comfort and years spent in love and mutual understanding, but for more objective parameters. Features of the procedure, its content and algorithm - all this is disclosed in the following paragraphs.
Who needs a real estate appraisal and why?
You can live comfortably in your apartment or house without knowing how much they are valued in today's real estate market. But if unforeseen circumstances arise, the thought of investing capital or simply changing your usual place settles in your mind, it is better not to take risks and turn to experts, so as not to deceive yourself first of all. A real estate appraisal will be useful if one of the following operations is involved:
✔️ sale of real estate - numbers are not taken from the head, therefore, in order to advertise the sale of your property at an adequate price, it is necessary to give it an adequate assessment, which corresponds to market trends and reflects the real value not only of square meters, but also of repairs, furniture and appliances, if it is about the secondary market
✔️ purchase of real estate - 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 expenses for repair work and furnishing an apartment or house. This is especially relevant for those who plan to turn their new acquisition into a source of income and rent out the property
✔️ inheritance - assessment is necessary not only for the correct preparation of documents, but also for the fair distribution of property and settlement of possible disputes between heirs
✔️ division of property - upon divorce, spouses may want to fairly divide all jointly acquired property in half. If you can still handle the furniture and appliances on your own, then you will not be able to "split" the apartment into two equal parts. Real estate valuation will help you make the right decision and find the best way out of the situation so that both parties are satisfied with the results of the divorce as much as possible.
✔️ obtaining a loan from the bank - when it comes to a large amount, the bank must understand that in case of non-return, it can count on a decent compensation. In this situation, only a real estate appraisal can prove that you will be solvent under any outcome of events
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 one or another organization warn about the need to carry out the procedure, so you will not be taken by surprise.
Price VS Appraised 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 turned out, is significant.
- The price is the profit of the seller; money that the buyer tears from the heart; the actual amount paid per square meter.
It's not about the price being fair or following any trends in the market. It can be artificially overstated or understated due to certain circumstances.
- Appraised value is the real value of a specific object, which is calculated on the basis of objective factors.
The calculated amount objectively reflects the value of the object. Materials, furniture, appliances, design services and other efforts made to ensure that the property is exactly as it is at the time of valuation are taken into account.
- Market value is the golden mean between the seller's expectations and the buyer's capabilities.
This amount is calculated on the basis of the estimated value and a number of objective factors, such as the potential profitability of the object (profit approach), the costs of its creation (cost approach) and, of course, comparison with similar offers (market or comparative approach). Only an experienced specialist will be able to add up all the factors and provide you with such a real estate valuation result that will please you and not scare off potential buyers.
The first steps to a proper real estate appraisal
Of course, from the preparation of documents! Like any other real estate transaction. In order for the expert to assess your apartment, you must provide him with:
- legal documents confirming your rights to the real estate object (purchase agreement/donation/will/court decision)
- owner's passport
- technical passport BTI
Next, the next step is to choose an expert. Only specialists with appropriate qualifications have the right to engage in real estate appraisal. You can always turn to the agency for help T.H.E. Capital, to save yourself an unnecessary headache and enlist the support of professionals.
💡 Draft Law No. 2047-d "On Amendments to the Tax Code of Ukraine" expands the possibilities of real estate owners and allows them to independently form a certificate of assessment and view the results of the procedure in personal office a single database of evaluation reports. >
