All About Real Estate Valuation or Appraisal Report in Turkey

Understanding the real estate valuation process and the resulting appraisal report is crucial knowledge for both buyers and sellers in Turkey. This document essentially determines the value of a property, making it an essential aspect of any real estate transaction.

Given the recent surge in Turkish property market, coupled with a significant increase in foreign buyers, being well-informed about this report is paramount. Having a clear understanding of its significance ensures a seamless real estate buying process, especially in a market marked by rapid growth and international interest.

In this article, The Guide Real Estate tells you everything you should know about the real estate valuation or appraisal report in Turkey.

What is the Real Estate Valuation or Appraisal Report in Turkey?

In 2019, the Turkish government enacted a law mandating the acquisition of a valuation or appraisal report before selling any real estate property. This report plays a pivotal role in determining the property's status, taking various factors into account:

• 1- The real estate type.
  
• 2- Location.
• 3- The overall condition of the property.
• 4- The price of the properties that surround the property.
• 5- Amenities available near the property.
• 6- Legal documentation, etc.
• 
  

Acquiring a valuation report is an invaluable step before investing in a property. For foreigners purchasing property in Turkey, obtaining this report from a Capital Markets Board-licensed valuation company is essential. This safeguards foreign investors, offering protection against fraud and scams during the buying process. This due diligence ensures a secure and transparent investment experience for international buyers in the Turkish real estate market.

What is the Purpose of the Real Estate Valuation or Appraisal Report in Turkey?

The real estate valuation report ensures fair pricing for foreign buyers and prevents tax evasion by construction companies. It safeguards buyer interests and maintains market integrity.

This report also helps determine if the value of real estate qualifies it for the acquisition of Turkish citizenship.

What Does This Report Include?

The real estate valuation or the appraisal report contains the following details:

• 1- Pictures of the real estate.
• 2- TAPU or title deed details.
• 3- Pricing details of similar real estate in the same area.
• 4- Purchase price estimation, etc.
• 
  

How is the Real Estate Valuation or Appraisal Report Produced?

Certified appraisers authorized by the Capital Markets Board conduct property appraisals. They visit the property, review its price, and inspect TAPU and municipality records. Appraisers use one of three methods: comparing prices with similar properties, estimating value based on revenue, or considering construction costs of similar properties. These rigorous evaluations ensure accurate property assessments in the Turkish real estate market.

What are the Documents Required For the Application?

You need the following documents to apply for the appraisal report application:

• 1- The property’s title deed.
• 2- A copy of the buyer’s passport.
• 3- The property address.

How Long is the Real Estate Valuation Report Valid?

The valuation report remains valid for three months and typically takes three to six days to prepare. During this time, the property's TAPU (title deed) must be transferred. If the report expires before the transfer, a new report is required to proceed with the transaction. Ensuring timely completion is essential to avoid any disruptions in the property buying process.

How Much Does the Real Estate Valuation Report Cost?

Real estate appraisal reports cost around 7000 TL, depending on property details. Payment is made to the Real Estate Appraisal Department of the Land Registry and Cadastre.

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