When a real estate enters the sales process, the main reasons for the real estate appraisal report may be the use of a bank loan, the buyer being a foreign national or the buyer candidate wanting to learn the market value of the real estate .
The subject we will focus on will be the appraisal report process that the bank needs in the use of bank loans , since the results of other reporting processes are less controversial .
First of all, the experts sent by the bank for real estate are not bank employees, but an employee of the appraisal company or a self-employed appraiser.
Therefore, rumors such as “the expert did not approve the loan” do not reflect the truth. The appraisers are only responsible for reporting the property requested from them and reporting to the bank. Experts do not make loan approval!
On the last page of the appraisal report they prepared, experts make two types of price valuation, namely the official value and market value of the property .
Official value and market value
Official value ; It is a report created on the basis of only the official area and legal data in the project file in the title deed of the real estate and the municipality, and without taking into account the values that the property owner adds to the house later.
For example, if an apartment within the site is 100m² in size according to the information in the title deed, the areas that the property owner later included in the house from the common use area with the renovation, or the expenses such as a luxury kitchen purchased by the owner for the apartment or the balcony included in the apartment by closing, official value they are not taken into account in expertise reports. The expertise report value of the real estate, which banks and official institutions primarily consider, will be the official value of the real estate .
For such reasons, the sales price agreed by the property owner and the buyer is usually higher than the appraisal value.
Market value is the pricing in the appraisal report, which is prepared by evaluating the current situation of the real estate, taking into account the renovation, maintenance and fixtures on the property, showing the estimated sales price of the real estate determined by the current expertise.
Although the market value of the real estate in the appraisal report is generally close to the sales price, it is not taken into account by the banks and institutions and this value is only reported to the person / institution who has commissioned the report. Another issue frequently seen in appraisal reports is the total square meter of the house; For example, the house that the buyer wants to buy as 100m² is 80m² as measured by the expert, the appraisal makes the appraisal on this square meter.
Why is there a value difference in the expertise reports made by more than one expert?
Although the appraisal experts evaluate the real estate objectively, not subjectively, there may be differences of opinion or differences of opinion on some issues. Valuation differences between experts are not professional mistakes, but only interpretations. Although these differences are very small in the apartments in the same site, they may increase in detached houses.
When the full narrative report prepared by the experts objectively is sent to the bank headquarters requesting the expertise, an expert employee of the Bank examines this report, if there is an overlooked point, it requests a renewal to be corrected or the final version of the expert report is approved and sent to the bank branch where the loan application is made.