The Real Estate Appraisal Report, or in other words, the Housing Appraisal Report, is important for determining the real value of a property.

It's no wonder that a paradise country like Turkey is a favorite vacation spot in the eyes of many foreigners. After a few visits, some foreigners even plan to settle in our country. In previous years, our country was only selling real estate to the citizens of the countries with which it had mutual agreements, but in 2013, this limitation was removed. Anyone who wants to own a house in Turkey can now acquire a property.

However, as of February 15, 2019, foreigners who want to buy real estate in Turkey are required to submit a Real Estate Appraisal document. In this way, it becomes clear whether a foreigner has bought a property at its true value.

An evaluation is made depending on factors such as the property’s location and physical condition. Two authorized officials from SKP (Capital Market Board) prepare this report. 

Why was this report mandated and important? Prior to this rule, sellers paid lower taxes by showing a selling price below the value of a property. Therefore, this report has been made mandatory for sales to foreigners.

Types of Real Estate Valuation Reports

There are two different types: "Real Estate Valuation" and "Project Valuation with Feasibility Report". A report is only valid for 3 months.

Types of Real Estate Valuation

• House/villa or apartment valuation
• Commercial building, office, store, shopping mall and store valuation
• Agricultural land, field, parcel and land valuation
• Hotel valuation
• Urban transformation valuation
• Mine and gas station valuation
• Ship, marina, yacht and aircraft valuation
• Brand valuation
• Company valuation

The Real Estate Valuation Report includes:

• Deed information
• Map and location information
• Current real estate photos
• Precedent real estate values
• Possible value of the property
• Legal situation analyzes in the municipality / land registry and cadastre directorates to which it is affiliated

Depending on the properties of the real estate, the appraiser can prepare this report in three different ways. In addition, the content of the report may change according to the demand and the features of the property.

Here are the 3 methods:

1- Peer Comparison Method: The real estate for which the report will be prepared is compared to the real estate with similar characteristics.

2- Income Method: It is estimated how the income of the real estate for which the report is prepared may change over the years. It is compared with the revenues of similar real estates. Expenses such as operating costs, general costs, and taxes are also reduced in calculation.

3- Cost Management: Considering the existing economic situation, the reconstruction of the property for which the report is prepared is calculated.

Project Evaluation with Feasibility Report

With this report, you can understand more clearly whether a property is suitable for investment or not. You may need a feasibility report for land, hotel, commercial and shopping mall, residential and residential development, industrial, product analysis and agricultural investments. In this way, you can see whether your investment is a right step or a wrong initiative.

A feasibility report includes:

• Financial analysis
• Project expense flow
• Project revenue stream
• Legal due diligence
• Legal permits and allowances
• Property rights
• Building permit

Project Valuation Report includes:

• Determination of land price, title deed information and map-location information
• Checking the mortgage and lien status with the control of the land registry records, due diligence of the municipality and the General Directorate of Land Registry and Cadastre
• Project development cost
• Construction and operating costs
• Financial statements and reports containing income and expense cash flows
• Alternative project proposals for the most efficient and appropriate investment

How Long Does it Take to Get a Real Estate Valuation Report?

While it takes three days to get this report in metropolitan cities, it may take six days in other cities. Reports for hotels take an average of 15 days. Reports can take from 2 weeks to 1 month to be submitted.

As Art Alanya, we cooperate with licensed and independent experts audited by the CMB. We will help you find a reliable expert. After your property is checked by experts, we will deliver your report to you in a short time.

How to Get a Real Estate Valuation Report?

The appraiser visits the property to inspect. The tenant, owner, or an authorized person shows the property. The expert takes measurements to determine whether the property is compatible with the title deed and the projects in the municipality. It then compares these measures. He also takes photos of the residence from every angle, inside and outside. He then researches the market for other real estate for rent and sale in the area. After all the information is collected, he will write the report and submit it to the real estate appraisal company. This report is then checked by the supervisors of the company. Finally, the report is completed after being checked separately by the responsible appraiser.

Real Estate Valuation Report fee 2022

The cost of the appraisal report will vary according to the characteristics of your property. The cost of the service for the Real Estate Valuation Report is determined by the CMB every year and the decision taken is published in the Official Gazette. You can see the Real Estate Appraisal minimum wage tariffs for 2022 in the document published in the Official Gazette from July 21.

However, the average price for the appraisal reports used in the sale of residence, land, and workplace to foreigners is 1,500 - 2,500 TL + VAT + fees paid to the municipality and the title deed. The buyer pays this fee directly to the CMB licensed appraiser.

You can contact us for Real Estate Valuation and Project Feasibility Reports and get an estimated price and date.