Apartment appraisal report (example). Valuation reports Terminology used in determining market value
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And why is she needed
You are going to buy an apartment with a mortgage.
The bank approved the loan application, the agent found a suitable apartment. The next step is to collect a complete set of documents for the bank. It will include a real estate appraisal.
Elena Evstratova
sold and bought property with an appraisal
When a bank gives a borrower a mortgage loan, it automatically takes as collateral the property that is bought with this loan: “Here is the money for you, but until you return everything, the apartment is like mine.” If the borrower does not return the money, the bank has the right to take the apartment and sell it at auction.
The strength of a mortgage loan lies precisely in the fact that it is easy to sell an apartment at auction - in the language of banks, this is a liquid pledge. Banks are confident in their loans, so they can lower rates.
It is important for the bank what exactly it gives 3,000,000 rubles for: a hut or an apartment. Will he be able to sell this apartment for the same 3 million if something happens? This question must be answered by an assessment.
For the buyer, the assessment is an additional guarantee that the object is worth the money for which it is sold.
Who makes the assessment
Real estate appraisals are done by appraisers. Their activity is regulated by the federal law "On appraisal activity in the Russian Federation". It can be a company or an individual entrepreneur.
What an appraiser must have:
Profile education, membership in a self-regulatory organization and insured liability
Profile education
Membership in SRO
Liability insured
Banks are required by law to accept the valuation of any appraiser. But in reality, banks themselves accredit companies whose assessments they trust. Which appraisers are quoted by a particular bank is usually written on the website. Sberbank cooperates with 256 appraisers, Vozrozhdenie Bank - with 90.
How to choose a company for evaluation
Call the list of appraisal companies offered by the bank. Here's what you need to find out in the conversation.
How fast does the appraiser arrive? Normal time is 1-2 days.
How long does it take to prepare a report. Usually in 3-5 days.
How much is the appraisal. The average cost in St. Petersburg is 3000 rubles. In Moscow, prices start at 2500 rubles.
How much does the second copy of the report cost. Appraisal companies make one copy of the report by default. The second copy in a normal company will be printed for free. In some companies, the second copy will cost 500 rubles.
What the report looks like
The appraisal of the apartment is made in the form of a report. The report is stored in printed form along with the mortgage on the apartment.
The report must include:
- who ordered and who performed the assessment, by what method;
- what kind of apartment it is, in what condition, how it is used;
- how are things in the market where this apartment will be sold;
- for how much it can be sold usually or at auction;
- what are the attachments to the assessment in the form of photographs and copies of documents.
Without the seal and signature of the appraiser, the report is invalid. Attached to the report is a one-page document with a summary of the report. It is given to the bank along with the report.
What is the cost
Market price- the price of the apartment, if it is sold without haste and force majeure.
Liquidation value- the minimum price for which the bank will sell the apartment in a short time.
What affects the market value
The area in which the property is located. It affects the cost per square meter: in St. Petersburg, a square meter in the Moskovsky district is on average 20,000 rubles more expensive than in Nevsky. Therefore, an apartment in a new house, which was built among old panel houses, will cost less than analogues in a good area.
Appraisers use research and data from real estate portals. This is a research page from the Real Estate Bulletin website. Technical characteristics of the building: in what year the house was built, when did the overhaul and how many floors in the house. Everything is taken into account: the presence of a garbage chute, the organization of parking, the state of the front door.
The condition of the apartment. What floor, how many rooms and whether there is a repair. The appraiser even looks at whether linoleum or laminate is laid on the floor, whether there is a tile in the bathroom and how the lighting is done in the apartment.
The condition of the apartment matters: if the wallpaper is dirty, the report is marked “requires repair”.
Repair with wallpaper and for 70 thousand rubles, and for 5 thousand is equated to "European-quality repair". Therefore, it is not worth waiting for the appraiser to include the full price of designer repairs in the price of the apartment. At best, he will put a multiplying factor on repairs.
The real estate market at the moment. The expert looks at similar objects on the market. For odnushki in a monolithic house, the analogues will be the same area apartments in monolithic or brick houses. Panel houses are usually not compared with brick houses or coefficients are introduced. Five similar objects are used to evaluate the apartment. Comparison of analogues is a good way to see where the price is too high.
The last floor reduces the estimated value of the apartment by 2-3%, the first floor - by 5-10%
How to calculate salvage value
The liquidation value is calculated using formulas. What matters here is the elasticity of demand and the time value of money.
An example of elasticity of demand. There is little demand for a three-room apartment in a new building on the ground floor, because large footage and a low floor scare away buyers. You can sell such an apartment in a short time only at a low price. The difference between the market and liquidation prices is up to 3 million rubles.
There is a high demand for a one-room apartment on the middle floor of a panel house within a 5-minute walk from the metro, because such apartments are always in demand on the market. The liquidation value of such an apartment is close to the market value.
An example of the time value of money. When it comes to big terms and big money, it is often said that money gets cheaper over time. That is, the ruble is now more valuable than the ruble in a year. If an apartment can be sold cheaper now, then it is better than a little more expensive later. This principle has many justifications: inflation, political risks, human mortality and world progress.
When an apartment is sold at a liquidation price, the loan is repaid first. The remaining funds are received by the borrower. Therefore, the higher the liquidation price, the more money will remain in his hands.
The liquidation value of a budget apartment is not much different from the market one. It is easiest to sell it on the market, because there is a demand for them. A luxury apartment in a new building will be sold for a long time even at a discount.
The spread of prices for three-room apartments in St. Petersburg
We have selected apartments within the same area according to the real estate portal EMLS
When inheriting real estate or applying for a mortgage loan, an assessment of the house and land is required. It is problematic to carry out the procedure on your own, the result will be approximate.
When is a property appraisal required?
An appraisal of the house and plot is required to establish the market value of the property. When making a purchase and sale transaction, the procedure is carried out on a voluntary basis.
The involvement of an appraiser is provided for by law in the following cases:
- Formation of an inheritance. It is necessary to identify the cost of the dwelling so that the notary's office issues a certificate confirming the right to dispose of the property.
- Bank deposit. A credit institution does not issue money without registration of an encumbrance. This requires an expert opinion on the value of the property.
- Real estate insurance. To calculate the amount of insurance, it is necessary to obtain data on the value of the property for which the insurance policy is issued.
- Damage assessment. The size of the amount for repair work is determined.
- Decor . The amount of the state duty depends on the value of the property.
- Appraisal of the house for the court. In case of divorce or disputes between heirs, determining the value of real estate helps to resolve property disputes.
IMPORTANT! An appraisal of a residential building is carried out to calculate contributions to the authorized capital of an enterprise. Founders have the right to contribute money or transfer personal property to the ownership of the company.
Who has the right to assess the house and land
Independent specialists, persons who have a license to conduct expert activities, have the right to conduct an assessment of the house. Appraisers are part of the SRO and have a civil liability insurance policy in the amount of at least 300 thousand rubles.
Property owners choose an expert on their own, taking into account the prices for services, reputation and other parameters. However, lending institutions, when issuing a mortgage loan, send borrowers to certain appraisers.
ADVICE! SROs that cooperate with credit institutions draw up a report in accordance with the requirements of the bank. This eliminates the risk of sending the document for revision or re-issuance.
The procedure for assessing a house with a land plot
The property appraisal process consists of a number of steps. The homeowner negotiates the terms of cooperation with the appraiser, sets the deadlines for the examination. An agreement is being drawn up.
After signing the contract, the owner of the property gives the expert the documentation for the house and agrees on the date of the visit of the specialist. During the verification process, the appraiser photographs the housing, inspects the building for illegal redevelopment.
An independent assessment of the house and the site is carried out on the basis of one of the following methods:
- Analog. The essence of the examination is to compare prices for such transactions during the year. Based on the results of the analysis, the appraiser determines the value of the current object. This technique is used in large cities.
- Expensive. A feature of the methodology is the assessment of the costs incurred by the homeowner during repairs and. Cost expertise is used to set the cost of country cottages.
- Profitable. It is used to evaluate city apartments and commercial real estate. Market value is determined by evaluating the return on investment in real estate.
When examining a private house and plot, the appraiser pays attention to the following parameters:
- Location of the property (development of infrastructure, type of settlement, etc.).
- Condition of construction (year of construction, number of floors, area, type of building materials, state of communications).
- The presence of an encumbrance on the site and cottage.
ATTENTION! If the real estate for sale was purchased using borrowed funds and the loan is not repaid, the owner needs to remove the encumbrance from the house and order an updated extract from the USRN.
The validity of the report for housing purchased for a mortgage is six months. If not only a house, but also a plot is bought on credit, an additional assessment of the land is required.
What documents need to be provided
To determine the value of a house, the following documentation is required:
- Duplicate ID and TIN of the property owner.
- Cadastral passport and.
- A document confirming the ownership of the house.
When buying a home in a building under construction, an agreement with the developer is required.
Evaluation report
The real estate appraisal report is drawn up in writing. The pages are numbered, the report is stapled, certified with a stamp and signature of the SRO representative. The report contains an average of thirty pages.
The document contains the following information:
- data about the expert and the customer;
- information about methods of housing appraisal;
- information about the house inspected;
- real estate market analysis;
- identification of the market value of the object.
The report for the bank when applying for a mortgage loan contains:
- housing documentation;
- photographs taken during the examination;
- the market price of the property;
- liquidation value (the amount for which the bank will be able to sell the house if the borrower fails to fulfill its obligations).
If the client of the bank independently chose the appraisal company, in addition to the report, attach:
- diploma of education in the field of assessment;
- a document confirming membership in the SRO;
- civil liability insurance policy.
ADVICE! The customer of the assessment needs to carefully study the prepared report of the expert, being in the office of the company. This will help to quickly resolve possible issues and understand the nuances.
What can the appraisal cost affect?
The SRO expert report affects the following lending conditions:
- the size of the amount;
- term of the loan;
- interest rate.
If the real value of the object, indicated by the appraiser, is lower than the market value, the bank does not issue the required amount. In such a situation, the borrower must:
- require a re-examination;
- conduct an appraisal in another company;
- take out a consumer loan for the missing amount.
It takes three to five days to appraise and report on real estate purchased with borrowed funds.
Under market value apartment is understood as its real price, for which the buyer ready to buy such real estate in a free market and normal competition. In addition to the market value, there is also , which is somewhat less and is used as a tax base for determining the amount of property tax. The market price of the said property can be determined as on one's own, and with the help of a realtor or appraiser.
In the case of carrying out a market value, it is necessary to prepare a series for the appraiser. Based on the results of its activities, a detailed report will be prepared. Also, do not forget that in some real estate transactions it is necessary from the Bureau of Technical Inventory(BTI), which indicates the inventory value (in practice, it is still less than cadastral).
What is the market value of an apartment?
The market value of the apartment is real price for which the buyer is willing to purchase such property on the free market under normal competition. That is, the market price should not be influenced by factors other than competitive ones. In this case, the price is based on a lot of nuances. These include:
- object layout;
- usable area of real estate for sale;
- the physical condition of communications (heating, water supply, etc.).
It is worth noting separately such a factor as apartment location. The area, remoteness from schools, hospitals, transport interchanges, large shopping centers and so on is taken into account. All these conditions can significantly affect the real market price of real estate. It is also worth considering that good redecorating does not always increase the value of such property. You may encounter such buyers who are looking for an apartment with finished interior. But more often there are buyers who intend to carry out repairs in their own way.
Thus, market price apartments - this is the price for which the buyer is able to purchase property in market (competitive) conditions. The market price is affected by many different factors that need to be considered.
Cadastral and market value of the apartment: how they relate
The cadastral value of an apartment is the price of a property, which is determined Federal Cadastral Chamber in the course of an assessment carried out in accordance with Federal Law No. 135-FZ of July 29, 1998 "On valuation activities in the Russian Federation".
Basically the cadastral value of said property is needed to pay property tax. It is from the cadastral value that the mandatory tax is calculated. Relatively recently, the cadastral value was significantly increased in an attempt to bring it closer to the market, however, two indicators did not equal, the market and cadastral price is still differ.
The ratio of the above price indicators is made at the level evaluation criteria, that is, what is taken as the basis for the assessment and the factors affecting the total price. As you know, the market value is influenced by many factors, while the cadastral value is much less. The cadastral value of an apartment is affected by the following nuances:
- average price per square meter (including the index of the region);
- year of construction of the house in which the appraised property is located.
The difference in approaches to calculating the price of real estate determines between themselves and the difference between the market and cadastral value. Market price much higher cadastral.
In practice, the market price is higher than the cadastral one. half or one third. The above values coincide mainly in the old housing stock, the market price of apartments of which is low.
In order to sell an apartment, you first need to know its real (market) value. As you know, the cadastral value at which the tax is paid is often does not reflect the real price of a home. Therefore, it is necessary to estimate the price in other ways. The property owner has several such:
- self-assessment;
- real estate appraisal;
- appraisal by an independent appraiser.
The first of these options is minimum cash outlay, however, the maximum of the person's own efforts to determine . The two remaining options are some financial costs, since the services of a realtor and an appraiser are not free. The modern real estate purchase and sale market is mostly occupied by realtors, that is, when selling or buying such property, citizens often turn to them.
However, a realtor can also be hired for a simple appraisal of the value of an apartment, without further services for its implementation.
In this case, a person who wants to know the price will not have to think about determining it on his own, but proceed from the price offered by the realtor.
How to estimate the value of an apartment yourself
Self-assessment of the cost of an apartment involves monitoring similar proposals for the sale of such property. To do this, you can use popular sites on the Internet or the corresponding thematic newspaper products. Should focus on similar parameters:
- area;
- square;
- number of rooms;
- other factors that in one way or another affect the price of said property.
Having found similar offers, you need to pay attention to the fact that persons selling their homes may inflate the price at their own discretion.
In addition, if the apartment is being sold in Moscow or the Moscow region, then you can use online calculator apartment prices. In this case, you must fill in all the columns and get the result. In the case of other regions of the country, it will be necessary to monitor proposals on one's own. However, various sites have convenient search services, where you can enter data that is similar to the property being sold, to search for similar options.
Dergunov V.I. planned to sell a one-room apartment. Considering it inappropriate to spend money on the services of a realtor or an independent appraiser. After reviewing several sites, such as Avito and From Hand to Hand, and comparing similar offers for the sale of an apartment, Dergunov was able to determine the approximate market value of his home.
The cadastral value of the apartment at
On the official website of Rosreestr, there are some convenient Services. For example, by going to the "Services" tab, and then to "Reference information on real estate objects online", you can determine the cadastral value real estate object.
To do this, you must specify the cadastral number or correctly determine the address of the apartment. If a cadastral valuation was carried out, then such information will be specified as a result of the query.
However, such information is useful only if the sale of the apartment will take place precisely by cadastral value. If the sale of such real estate is planned for the market, then it is best to use the specified service not to use and turn to other methods of determining the value of property.
Independent appraisal of the apartment
An independent appraisal of an apartment is one way to determine the price such property. Today, there are many companies involved in appraisal activities. An independent appraisal procedure may be necessary if it is impossible to determine the value of the property on your own. In addition, experts in this field are well aware of all the intricacies of the apartment purchase and sale market, have special skills and knowledge, which helps to establish objective market price for the housing being sold.
When conducting an independent assessment, the persons carrying it out use a number of methods, the choice of which depends on the object of assessment. Thus, there are the following assessment methods:
- comparative;
- profitable;
- costly.
The most common method is comparison method. It is used only when there is a real opportunity to compare the object of assessment (apartment) with analogues. For example, a number of apartments in the same area are compared, with similar years of construction of the entire house, dwelling area and other factors that affect the market price.
This approach is enough objectively reflects the market value of the said property, and also takes into account various manifestations of current trends in the real estate purchase and sale market.
income method it is mainly used when profit is made from property. For example, if the apartment is used for business (ground floors of houses, housing for daily rent, etc.), then the assessment will take into account estimated income(based on income already received). The downside of this approach is a small range of applications, as well as the fact that the income taken into account in the assessment is only predicted.
Cost method is used in the event that the property being valued has no analogues. We are talking about exceptional properties, which cannot be compared with other properties at the moment. In such cases, the appraiser calculates funds spent for the construction of such a facility. This method may not always reflect the real market price, however, this method is universal, since with its help you can evaluate absolutely any property, including an apartment.
Thus, an independent assessment is used to determine the most adequate market value apartments.
Documents for evaluation
As for most processes related to the sale or other actions with real estate for apartment appraisal it is necessary to prepare a number of documents:
- certificate of state registration of the right to property (from July 2016 - an extract from the USRR);
- information (if any) about (mortgage, pledge, rent, and so on);
- passport details of the person who ordered the assessment;
- if there are redevelopments - information about them;
- object;
- explication to the plan.
The listed documents must be provided to the appraiser for carrying out the most objective evaluation procedure the cost of the apartment.
Report on appraisal of the market value of the apartment
The report on appraisal of the market value of an apartment is an official document that is compiled by an appraiser. Its necessity is due to the fact that such a document can be submit to court as evidence, use as substantiation of the property price. Like any other official documents, the report must contain certain information. Thus, the evaluation report includes:
- information about the customer and appraiser;
- description of the assessment method;
- description of the appraisal object (apartment);
- analysis of the market for the sale of such property;
- calculation of the market price of such property;
- photographic materials of the object of assessment;
- information about legal documents.
The report is signed, stapled and numbered, approved by the seal appraiser company.
Also, together with the report, documents on the registration of the company conducting the assessment, certificates and other necessary documents are attached.
Help BTI on the cost of the apartment
For processing some transactions, the owner of the apartment may need certificate from BTI. It can be obtained by contacting the relevant territorial body of the specified organization. You can get such a certificate only homeowner, for which a reference is made. To receive, you must present the following documentation:
- owner's passport;
- certificate of state registration of ownership of the apartment or an extract from the USRR.
This reference contains inventory value information apartments, object plan and explication. The specified inventory value is the sum of the following factors:
- dwelling area;
- list of communications;
- year of construction of the house in which the property is located.
Inventory cost much lower cadastral and market price. In fact, it only includes building costs apartments (construction materials, internal communications) minus real wear.
Conclusion
In any transactions with an apartment, you need to be prepared for the fact that you will have to meet with various types of value of such a property, such as market, cadastral and inventory value. The real value of said property is its market price, it is necessary to focus on it when making transactions. This price can be determined in different ways. like yourself(without financial costs), and with the help of a realtor or appraiser(with payment for their services).
The cadastral value is mainly used for tax purposes, while the inventory value for issuance necessary in some cases BTI certificates.
Question
How to determine the market value of an apartment?
I plan to sell my apartment, but I can't decide on its real price. I have information about the cadastral value. Is this value equal to the market value? If not, how do I determine the market price of my property?
Answer
The cadastral value is equal to the market value only in exceptional cases. In most cases, the market value is more than the cadastral value by half or a third.There are several ways to determine the market price. You can conduct an independent assessment of the apartment by comparing your housing with similar offers on the real estate market. If this option does not suit you, then you can contact realtors or appraisers who, for a fee, will evaluate your property and determine the market value corresponding to your apartment.
