The appraisal report is an obligatory document on each international property sale before the title deed transfer since 15/02/2019, and soon every sale in Turkey. The government wants the foreigners to reach the right price while buying property in Turkey and continues to take steps in this direction.
The required document is prepared by two certified and accredited appraisers from SPK (Capital Markets Board of Turkey). One of them examines the plans, the municipality’s registry details, and the title deed (Tapu) office. They visit the property to inspect all property details and to make sure that the property purchased on paper is that one. The inspector double-checks either the measurements of property prices and register is correct. All of them are sworn valuation experts.
The government aims the property should sell at its real market value instead of depending on the seller’s declaration. Before, a seller had to chance of selling property lower price to pay less conveyance tax. Thus, a valuation estimation is used as a property measure for tax computation as well.
Different Methods of Appraisal Report
You must be assured that what is the value of the property you are going to purchase if you are thinking about buying property in Turkey. There are different kinds of valuation reports as real estate evaluation and project assessment with a feasibility study.
A real estate appraisal report includes the below information:
• Details of the title deeds,
• Location information about chart and venue,
• Real photos of the property,
• Similar property prices in the area,
• Property price predicts,
Analysis of Municipal and Land Registry and Cadastre General Directorate to show debt status and to check technical status of the property.
A valuation report can contain more requirements and conditions according to property characteristics and the market demand. Depending on the property qualifications, valuation experts usually prepare assessment reports with one of the three different approaches:
• Similarities and differences compared to other property
• Possible income by considering net income flow
• Rebuilding expenses of the same property in the current economic circumstances
Property Valuation Reports in Turkey
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Trabzon Homes works together with independent experts in valuation accepted by SPK. These experts have been approved for the valuation of projects and the valuation real estate process in Turkey.
SPK stands for main finance and banking regulatory of Turkey, named with “Sermaye Piyasası Kurulu”. We call them “certified SPK experts”, the specialized individuals on the Capital Market Board of Turkey.
Certified SPK experts are qualified and licensed to prepare some kinds of reports as are following;
• Apartment or villa&house valuation,
• Commercial developments such as commercial buildings, hotels, offices, stores, shops, and shopping mall valuation,
• Agricultural land, parcels, plots valuation,
• Urban transformation valuation (Kentsel Dönüşüm Değerleme),
• Mine, gas station valuation,
• Marine, ship, Yacht valuation, Plane and Airplane valuation,
• Trademark,
• Commercial logo valuation (Trademark),
• Company valuation.
Feasibility Reports in Turkey
Appraisal reports valid for present properties are also used for future construction projects. With this report, you can see how you can get the most profit from newly built constructions.
Thanks to the feasibility report, your project grows most productively if you have any construction idea to built it. In Turkey, the valuation report is prepared by real estate experts to have a feasibility study.
A feasibility report contains the following information:
• Financial analysis,
• Project expenditure cash flow,
• Project income flow,
• Legal due diligence,
• Legal permission and allowances,
• Ownership rights,
• Construction permits
A project evaluation will assist you to understand your construction plan is achievable or not. You may need a feasibility report for your investment project options below:
• Land investments,
• Hotel investments,
• Commercial and Shopping Mall investments,
• Residential and Housing Development investments,
• Agricultural investments with crop & harvest analysis,
• Industrial investments.
For example, you are going to build a hotel project or buy a hotel in Turkey. When you demanded the feasibility report of the project, you will receive the following details:
• The appraisal price of the land, the location on map and location information, and the title deed information,
• Examination of the debt condition, technical condition controls at the municipality and General Directorate of Land Registry and Cadastre,
• Construction and operating costs,
• The financial report which includes income and outgoings flow,
• Advice to attain most feasible investment and alternative projects
Periods of Handing Over An Appraisal Report in Turkey
We collaborate with authorized property valuation companies in our service areas in Turkey. As our sales service, we will assist you to arrange the valuation report in 2 days when you purchase a property with us.
The document is prepared generally for 3 workdays in Turkey’s metropolitan cities. But it may take another 3 days (6 days in total) to receive the report in other cities. Apart from other investment options, a hotel valuation report takes up to 15 days depending on the region. You can feel free to ask us for report delivery time for other reports such as project valuation and feasibility report, company valuation, brand mark assessment, land price appraisal, and so on. These kinds of commercial project reports could take from 2 weeks to 1 month.
FAQ
Q: Why should I apply for a property appraisal report?
A: If you are going to purchase a property in Turkey as a foreigner, you must apply to the report since it is forbidden to buy a property without the appraisal report.
Q: How much I should pay for the report?
A: Depending on the property’s city and features, the cost of a validated valuation report is changeable. To learn more detail about the costs, see our Revised Expenses page.
Q: How much I should pay as a service fee for your support to get the report?
A: Zero! We do not accept any fee, this is a free service of charge to our customers.
Q: How long would it take to prepare the appraisal report?
A: When you request an appraisal report, the property checked and verified with all the details by experts. They take the photos, controls the registry at the Tapu Office and checks the registered plans at The municipality, and finally, collect the comparison prices. The document is prepared within 2 days.
Q: How long I can use the report?
A: The Tapu office does not prefer it to be older than 3 months according to the property law. If the validity period for the report exceeds the time limit, we will help our customers to renew it after 3 months as our free service.
Q: What happens if the property value in the report is different from the one I purchase?
A: Since all the new amendments about the property purchasing and appraisal report announced as of 5.2.2019 by the presidential, the department of Real Estate Valuation is set up under SPK. The valuation report process and prices of it are pretty new in Turkey; we are at the very early phase of this process. So, we do not have a wide database yet, the report exactness may change about 20 percent.
Q: How can I find an expert-approved by SPK?
A: If you buy a property through Trabzon Homes, we arrange a fast and trustable service expert straightly.
Q: What does SPK mean?
A: SPK is shortening of Capital Market Board which means “Sermaye Piyasası Kurulu” in Turkish. It is the principal authority of financing, stock exchange, and banking in Turkey.
