Evaluation of an apartment (flats) is aimed at determining the market value of ownership rights or other real rights (for example, lease rights) in relation to the object being evaluated.
Basically, the assessment of living space is resorted to in the following cases:
- lending, i.e. providing an apartment as collateral when receiving a loan;
- making a purchase and sale transaction;
- resolving property disputes;
- entering into inheritance rights.
We determine the market ownership of apartments in standard buildings and individual buildings, rooms and other residential premises.
Apartment valuation involves determining the market value of ownership of a real estate object or other real rights (for example, the right to rent) in relation to the property being evaluated. When evaluating a real estate object, all features and details are taken into account: location, area, distance from the main infrastructure facilities of the district, layout, condition, type of house, number of storeys, etc. A special place is occupied by the assessment of real estate as a result of damage to your property (as a result of fire, flooding, illegal actions of third parties) . In this case, we will determine the amount of damage and the amount of insurance compensation. If there are disagreements with your insurance company about determining the amount of insurance payment, the opinion of an independent appraiser can serve as the basis for a fair settlement of the conflict.
The advantage of independent evaluation of apartments is also that the evaluation report, which is issued to the customer, has the status of an official document of evidentiary value and can be used in court when considering cases related to determining the amount of compensation payments. The presence of an independent appraiser’s report is also a very important argument in disputes with the tax inspectorate over determining the amount of the tax base for calculating property and personal income tax.
Evaluation of an apartment for lending
If you plan to get a loan from a bank, you will have to provide property as collateral for the loan. There are cases (for example, mortgage lending) when a loan is taken out for the purchase of an apartment, which in turn is accepted to secure the loan. In this case, the bank will ask you to conduct an independent residential property valuation – get the market value of the apartment.
Evaluation of an apartment for insurance
Usually, the objects of insurance are:
- Apartments or separate rooms in an apartment of a residential building.
- Detached houses and outbuildings located on the allocated land plot to the policyholder.
- Interior decoration of residential premises.
- Engineering equipment in an apartment or residential building.
In order to make an apartment insurance, houses etc., it is necessary, in addition to other documents, to provide the insurance company with a report on the market value of your residential property – apartments, houses, or calculation of the cost of interior decoration of the premises.
Evaluation of an apartment for resolving property disputes
Unfortunately, currently, cases of property disputes occur quite often. Disputes usually arise when dividing property between spouses in case of divorce, heirs when entering into inheritance rights.
Evaluation of an apartment for inheritance acceptance
According to the tax code, a company that has a license to carry out appraisal activities has the right to evaluate an inherited apartment. The notary must provide a report on the assessment of the market value of residential real estate (apartment).
The apartment evaluation report contains the following main sections:
- general information about the appraiser and the customer;
- description of the methodology for evaluating an apartment;
- description of the evaluation object (apartments, rooms, etc.);
- analysis of the residential real estate market;
- calculation of the market value of an apartment;
- photos of the evaluation object;
- appendices (title documents).
The report must be numbered, laced and sealed with the company’s seal, and the appendices to the report must contain copies of the evaluation company’s documents:
- copy of the license with the app;
- copy of the appraiser’s civil liability insurance policy;
- certificate of education of a legal entity.
In addition to these documents, the application may also contain various certificates, certificates, and so on.
The assessment report has the status of an official document of evidentiary value and can be used in court when considering cases related to determining the amount of compensation payments.
Documents required for evaluation of residential real estate and apartments
- Certificate of state registration of the right to an apartment or a document on the basis of which such registration can be carried out (contract of sale, donation, rent, etc.).
- Floor Plan and explication for the apartment.
- Passport data of the customer (full name of the customer, contact phone number, address at the place of registration and address of actual residence).