Obligatory Property Appraisal Report
It is compulsory to have an appraisal (valuation) report on each foreign property sales (soon every sale in Turkey) since 15.02.2019. The report is prepared by two authenticated and SPK validated appraisers. One of them checks the plans, the registry info at municipality and Tapu office. They visit the property if you buy the correct one which is shown to you. The controller double check whether the house price comparisons and registry is correct. Both are sworn valuation experts under oath.
The government wants to have the market value of the property rather than relying on declaration value. Previously a seller might declare much lower sales amount in order to avoid paying higher conveyance tax. Therefore a valuation report is used as an indicator of the property for tax calculation.
Q: Do I need an appraisal report?
Answer: If you purchased a property in Turkey; you should have an appraisal report at General Directorate of Land Registry and Cadastre (Tapu Office).
Q: How long does it take to prepare the appraisal report?
A: When you demand a professional appraisal report, the expert checks the property itself. It takes the photos, controls the registry at the Tapu office.(title deed) Lastly checks the registered plans at the municipality. Expert collects the comparison prices. A report contains between 20 and 35 pages. It takes 2 days to prepare.
Q: How may I find an SPK validated expert?
A: After you select a property with Pella Global, we directly arrange you an expert for fast and reliable service.
Q: How much does a report cost?
A: SPK validated appraisal report is approximately 1.000-1.500 TL + VAT depending on the city and features of the property.
Q: How much do you charge for your service fee?
A: Pella Global gives this service free of charge to its customers.
Q: How long is a valuation report valid?
A: According to the property law, Tapu office wants it not older than 3 months. In case the report validation time passes, we help our clients to renew it free of charge after 3 months.
Q: What does SPK mean?
A: SPK is an abbreviation of Capital Market Board mean Sermaye Piyasası Kurulu in Turkish. It is the highest regulation authority of financing, stock exchange and banking in Turkey.
Q: What happens if the valuation of the property is different than I buy?
A: Real Estate Valuation Department is established under the Land Registry and Cadastre according to the presidential decree dated 5.2.2019. Valuation report and property sale price statistics is very new for Turkey. We are now at a very early period. As we do not have a large database, the accuracy of the reports may differ up to %20.
If you consider buying a property in Turkey, you need to be sure about the value of the property that you will buy. There are 2 types of the appraisal report; Real Estate Valuation and Project Valuation with feasibility report.
A real estate valuation report contains;
- The title deed information,
- Location on map and location information,
- Actual photos,
- Similar property prices,
- Price prediction of the property
- Checking the debt condition, technical condition checks at the municipality and at Land Registry and Cadastre General Directorate.
A property appraisal report may contain more qualifications and conditions according to your demand and property features. Experts prepare you appraisal reports generally one of below three different methods depending on the qualification of the real estate;
Comparison of the Precedents Method - The property is compared between several similar properties
Income Method - Considering the net income flow of a property
Cost Method - Rebuilding of the same structure under present economic conditions
- House/villa valuation or apartment valuation,
- Commercial buildings, offices, stores, shopping mall valuation and shop valuation,
- Agricultural land, plots, parcels and land valuation,
- Hotel valuation,
- Urban Renewal valuation (Kentsel Dönüşüm Değerleme),
- Mine valuation, Gas Station valuation,
- A ship, Marine, Yacht valuation, Airplane, Plane valuation,
- Trade Mark valuation,
- Company valuation.
You have a project and you want to know how to achieve the most efficient manner to develop it. Project valuation is prepared again by real estate experts which supply feasibility report in Turkey.
A feasibility report contains;
- Financial analysis,
- Project expenditure cash flow,
- Project income flow,
- Legal due diligence,
- Legal permission and allowances,
- Ownership rights,
- Construction permits.
A project valuation will let you understand if your investment is feasible or not. You might need a feasibility report for below investment projects;
- Land investments,
- Hotel investments,
- Commercial and Shopping Mall investments,
- Residential and Housing Development investments,
- Agricultural investments with crop & harvest analysis,
- Industrial investments.
As an example; you may like to develop a hotel project or to buy an existing hotel in Turkey. When you order this project appraisal report, you will receive the below information;
- Land price appraisal, the title deed information and location on map and location information,
- Checking the debt condition, technical condition check at the municipality and at General Directorate of Land Registry and Cadastre,
- Project development cost,
- Construction cost and Operating cost,
- The financial report which contains income and expenditure flow,
- Suggestions to achieve most feasible investment and alternative projects
A property valuation report takes 3 days in the metropolitan cities of Turkey. Other cities may take an additional 3 days time (totally 6 days). Hotel valuation report takes approximately 15 days time depending on the city.
You may ask report delivery time for other reports like project valuation and feasibility, land price appraisal, business valuation, brand mark appraisal etc. These reports may take 2 weeks time up to 1 month time.
Please contact us directly to get a price and time quote for real estate valuation report and project feasibility report.