Real estate appraisal is a report issued by companies documented and commissioned by the Housing and Construction Department of the Turkish government, and it is a condition for completing the real estate ownership process for foreigners. This law was issued in 2019 and mainly aims to determine the market value of real estate according to specific criteria.

Real estate appraisal is essential for those who plan to invest in Turkish properties to protect their rights as investors. Many people, particularly foreigners, lack comprehensive experience and knowledge of Turkey’s real estate market, making it necessary to establish organized and binding laws that safeguard their interests and prevent them from being victims of real estate fraud. The Turkish government has implemented the real estate appraisal law to ensure that investors purchase properties at their actual value without being overcharged or undercharged. The law made it mandatory for all foreigners who want to buy properties in Turkey to undergo the appraisal process.

The real estate appraisal report is prepared by a trusted or licensed appraisal company approved by the Turkish government. The appraisal process is supervised by licensed experts who have passed the real estate appraisal exam, which is administered by the Capital Markets Corporation. Only accredited professionals are allowed to participate in the formal process of appraising the property and issuing the report. This ensures that the appraisal is accurate, reliable, and trustworthy. The appraisal company follows a specific set of criteria and guidelines to determine the property’s value based on factors such as location, size, condition, and market trends. The report is a crucial document in the real estate ownership process for foreigners, and it provides them with valuable information about the property’s worth before making an investment decision.

The evaluation process is easy and simple, as the specific property information is sent to the real estate appraisal company accredited by the Turkish government. A committee of specialists visits the property and prepares a report about the property, its contents, and its status, and documents that with supporting photos. Of the characteristics and specifications, it also includes the estimated price of the property in Turkish lira.

Real estate evaluation is also used in the transactions of housing loan applications and the purchase of mortgaged homes. International standards are adopted during real estate evaluation in three ways:

 

  • Comparison method for similar properties in the same area and with the same specifications.
  • The cost method includes land and construction costs.
  • The income capitalization method, and here it is used to reach the value of the property by calculating the potential net income through leasing.

 

The validity of the real estate appraisal report lasts 3 months from the date of its issuance, and it can be used more than once during this time period. It should be noted that buying and selling transactions cannot be completed unless there is a real estate appraisal document and only from accredited companies.

The cost of the real estate appraisal is considered an appropriate cost and is paid according to the current rate of the property, as is the case in calculating the tax also varies from one property to another.

One of the most important factors affecting the market value of real estate is:

  1. The location of the property, where prices vary according to the regions and the level of their services and infrastructure.
  2. The specifications of the property, such as the age of the building, the spaces, whether the property is commercial or residential, and whether it is located on main street or not.
  3. The view, as the most beautiful views change the prices of the real estate, and the prices vary within the same building according to the view
  4. Similar real estate in the same area with similar advantages and similar roles
  5. The property is free of any legal problems or reservations
  6. The vitality of the surrounding area and the provision of basic services, the most important of which are transportation, schools, hospitals or commercial centers.