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About Appraisal

About Appraisal

About Appraisal

What is Appraisal?
“Appraisal”
is the independent and impartial appreciation of the probable value of an asset or a real property, a real estate project or the rights and benefits related with a real property on a certain date.

Who is an Appraiser?
Appraiser is a person who holds minimum bachelor’s degree in the fields such as engineering, business administration & economy, architecture, and city-region planning, which are closely related with the subject activities of the company. These people are employed by the Real Estate Appraisal Companies in order to appraise the rights and interests of a property related to a real estate project.

In order to license the appraisers, minimum 3 years experience is required in the field of real estate appraisal. According to the existing legal regulations; the Appraiser may not work in more than one company, against the principles of objectivity and independence, may not act in real estate commissioning activities, and may not behave contrary to the professional dignity.

For which aims is appraisal carried out? Where is it used?

  • In order to determine the buy & sales prices during property transactions,
  • To estimate value for rentals,
  • When the properties are to be registered as guarantee for loan transactions,
  • To determine the value of the properties among the company’s interests (IAS)* for
    • Initial public offerings
    • Company mergers and acquisitions
    • Transactions subject to balance sheet keeping further to IAS
  • When fair share of properties is desired during the transfer of heritage,
  • When the best and most efficient use analyses of the properties are required,
  • For the comparison of revenues to expenditure and for the calculation of the present project value in a prospective project (in financial feasibility studies)
  • In insurance transactions,
  • For Sale & Lease Back transactions,
  • For fair value payment during eminent domain,
  • During the buy-sell, lease and re-evaluation of the properties included in Real Estate Investment Trusts (REIT), when receiving real estate mortgages, and to identify the accordance with the legal procedures during the beginning of the project,
  • When the listed companies buy or sell a property with a value higher than 5% of their paid-in capitals and when they deposit their own properties as real capital in another company,
  • During the value estimation of the credits of banks over TRY 1,000, for which the banks initiate execution proceedings.