Appraisal of real estate – service to determine the market value of apartments, houses, rooms and other objects of property which relate to real estate.
We determine the value of the property for all purposes. Including for registration of contracts of purchase and sale, gifting the residential, entering the right of inheritance on it. And also for filing claims and already in the course of legal proceedings, if the object of real estate is in dispute. A separate direction is the evaluation of real estate in municipal property for lease.
The process of preparing the documents for the registration of the contract for the purchase and sale of an apartment differs significantly from the estimation for the calculation of the rent for communal property. Therefore, we suggest you choose the most suitable solution for your tasks.
Real estate valuation for a notary
Real estate evaluation for the court
For accounting and tax purposes
Communal property for lease
Real estate valuation for notary (selling, gifting, inheritance).
Such works are the most popular of all services of appraisers. After all, for almost every transaction for the purchase and selling or gifting the residential it is necessary to carry out a real estate evaluation. In addition, this service is needed if there is a dispute around the apartment or house, for example, the division of property in the event of a divorce.
This procedure is often called «tax evaluation» and is the simplest work on valuation. The peculiarity of this work is that according to the new rules of appraisal of real estate the estimated value of the property cannot differ from the so-called registry value more than 25%. Because of this, sometimes there are situations when the result of the evaluation is more than the real transaction price. We always try to solve these situations on our own. However, it is not always 100% successfully.
Residential real estate evaluation for selling, gifting or inheritance costs 1000 грн. And we are making it in 1 day.
Do not forget that while selling a house with land, two reports have to be made: separately for building + separately for land.
The cost of rooms and buildings is determined individually depending on the characteristics of the object.
In order to evaluate the real estate for a notary, you need to get the following documents (enough copies or just a photo in electronic format):
- Ownership. A document based on which the apartment or house belongs to a person. It can be: contract of sale or gift, certificate of ownership or right to inheritance, court decision and so on. You can provide a claim from the real estate register.
- Technical passport. It should be noted that the technical passport of the object is not a mandatory document, which is required for the conclusion of a contract of purchase/sale or inheritance. However, in the initial registration of ownership of a new real estate or object, which was formed during the division of real estate, the presence of a technical passport is a prerequisite. In other words, if the notary does not require you to have a technical passport for the transaction, our appraisers will do without it.
- Customer documents. If we are talking about the conclusion of a contract of sale or gift, you need either a passport or a code of the current owner of the property (seller or donor). If you enter the right of inheritance, in addition to the passport or the code of the heir, a death certificate and a document linking the deceased and the heir are also required. Such documents may be a will or documents confirming family ties.
How much does it cost to reissue real estate from a notary?
Appraisal of real estate, such as apartments, houses and land plots, for their renewal – this is the most typical work, with which usually everything is simple and clear. As we have already noted, the notary will take taxes from the estimated value according to the table below. We recommend to find out more about, how much does it cost to reissue the property in different cases. So that large taxes and mandatory payments do not become an unpleasant surprise. Especially if one of the parties to the transaction is a foreigner.
|The seller of real estate, gifted/donor or heir/testator – Ukrainian citizens (all parties to the agreement)|
|Operation||Income tax (PIT)||Military fee||Pension fund|
|Selling of apartment or house, in ownership more than 3 years||—||1,5%|
|Selling of apartment or house, in ownership less than 3 years||5%|
|Selling of premises, buildings, garages||5%|
|Gifting of real estate or inheritance close relatives (spouses, children, grandchildren, siblings)||—||—||—|
|Gifting of real estate or inheritance except close relatives||5%|
(pays the gifted or the heir)
(pays the gifted or the heir)
Unlike the tax valuation, which described above, the preparation of documents for presentation in court has a significant number of its features. This also applies to the rules of the documents and the procedure for the work.
Real estate evaluation for court – very responsible work. It is very important to choose the right appraiser for it. Often such works are taken by colleagues who specialize in notary evaluations. It should be understood that such works are not checked and they safely go to the archive after signing the contracts.
While applying documents to the court, their fate is completely different. Your opponents with their lawyers will seek out in the documents any adultery to prove that real estate evaluation is improper and cannot be used to make a court decision.
Typically, practising lawyers and attorneys work with the same appraisers all the time. Because they know that they do good work and do not raise questions during trials. If you decide to deal with court cases on your own, do not hesitate in the course of negotiations to ask more questions to the appraiser about the features and his experience of evaluating real estate for the court. Usually by conversation you can with a high probability understand, orient the specialist in the question or, as they say, «floats».
The evaluation of real estate for presentation in court costs from 2000 UAH. It is done in 2-3 working days.
Here, in contrast to the formal works for the re-registration of the property, we provide prices marked «from». This is due to the fact that in litigation often arise a variety of options and situations that often significantly complicate the work. The exact amount of work, and therefore the price of the service, becomes clear after you give us the task.
The starting point for the court appraisal of real estate is:
- Ownership. Often it happens that the customer needs evaluation, but there is no documents. For example, in divorce and division of property, one spouse does not provide documents to the other. Or is the process of inheritance on the house or apartment, all the documents for which are lost yet deceased. Each situation is not a problem and has its own solution. But it requires an individual approach. Contact us, we will help you understand everything.
- Technical passport. If you have this document in your possession, please provide it. After all, it is often quite difficult to make evaluation without it, especially if it is an old apartment building. However, there are mechanisms for determining the market value of real estate and without a technical passport. Such approaches differ depending on the circumstances of the case and characteristics of the property. You are welcome to call and we will discuss it.
- Customer documents. By law the client of the valuation of the real estate may be either its owner or at least a person who has something to do with the property. For example, a tenant or trustee. If you are the owner of the disputed property and have on hand supporting documents, then there are no problems at all. If it is not possible at this stage to document its relationship to the assets, however, there will be some peculiarities in the processing of the documents by the appraiser. In any case, the value of the real estate will be determined, the only question is how to properly document from the point of view of the law.
Evaluation for accounting and tax accounting
As a rule, the evaluation of real property for accounting purposes is done during the determination of fair or market value and other assets. We offer you an article entirely devoted to «fixed asset valuation».
We will be waiting for a list of assets to be evaluated. After studying it and understanding the scope of work we will try to make the most profitable commercial offer.
Municipal real estate rental
This is very specific work, which has a lot of its own characteristics in terms of the procedure and the harmonization. It is also worth noting the collection of documents needed to start the whole process. That is why we would like to invite you to read an other article «Valuation for municipal property rental», which is completely dedicated to this topic.
All such works are checked by the Department of municipal property of the city of Kyiv. If the appraiser does not have experience in evaluating state property, you risk losing time and money instead of concluding a lease agreement.
Engineering networks and communications
Another specific direction in the evaluation of structures is the work with engineering networks and communications. Water, heat, sewerage, lighting, gas pipeline, transformer substations, power lines, etc.
For the adoption of these networks in the municipal property of the territorial city of Kyiv and the transfer in possession and use of specialized companies: Kyivvodokanal, kyivteploenergo, Kyivmisksvitlo, DFEC (DTEK) and others. This type of evaluation has its own features. And, as in the case of communal property, agreed by the city administration. About this you can read more on the page of our website «Communication evaluation».
Evaluation of price of real estate
One of the most common questions from our new clients is: «How do you evaluate the value of real estate?» Below is a summary of the criteria that affect the various types of real estate. Also recommend to read the article «What is the market value?», where the difference between the concepts of «price» and «value» is shown.
The valuation of apartments is done by analysing and comparing the prices of similar apartments. Such factors are also considered while selecting comparison objects:
- Location. Ideally, the apartments are selected in the same neighborhood where the object of the evaluation is located. However, in some cases it is allowed to use as objects of comparison apartments located in houses of other neighbourhoods of Kyiv. These neighbourhoods should be similar in attractiveness, level of infrastructure and other parameters to the location of the apartment, which is evaluating.
- Type of house. This factor is necessarily taken into account in determining the cost. It is clear that the prices of square meters in new buildings and, for example, in panel with type «khrushchev» in the same microdistrict can differ many times. This is due not only to the parameters of the structural elements of the house (for example, the material of the walls), but also to the features of architectural and planning decisions of apartments in houses of different projects.
- Level of interior trim. While selecting comparison objects the real estate appraiser tries to focus on apartments with the same «repair» as the evaluated. However, this is not a critical factor, as the difference in finishing quality can be accounted for by introducing certain coefficients.
- Floor. Apartments that are located on the ground floor, in most cases, are cheaper than similar housing on the middle floors. The same, though to a lesser extent, applies to the apartments located on the last floors (especially in old houses). Therefore, if the value of residential real estate on the first floor is determined, objects are selected as objects of comparison, also located on the ground floor. Conversely, the apartments of the middle floors are not correctly compared with the apartments on the first floors.
- Amendment to the trade. While doing an evaluation of property of any type appraisers use the so-called bid amendment to the trade. Usually it is about 10% and shows the value of the average discount that the seller is willing to provide. This ratio is most common in all real estate valuation procedures and also while doing a vehicle evaluation.
The basic principles of valuation given above are characteristic not only for apartments, but also for all types of real estate. Therefore, next we will only note features specific to a particular type of real estate.
While carrying out the evaluation of the parking lots as objects of comparison it is correct to use only parking, and not garage boxes in garage building cooperatives. If it is a garage box, the appraiser has to pay attention to the material of the walls (whether the garage is capital), the total area, the number of floors and the availability of additional rooms (pit, cellar).
While choosing objects of comparison for determining the cost of residential buildings, it is necessary to take into account the period of construction of the object (old houses are incorrectly compared with new), as well as the material and type of structural elements of the building – first of all wall material. The peculiarity of carrying out the evaluation of houses is that in the offer of selling similar objects «hides» also the value of the land, and the task in most cases is to determine separately the value of the house, separately – land. Therefore, after the appraiser has selected a sufficient number of proposals for the sale of households, he must determine the value of the land under each of them. The cost of land is deducted from the price of the offer for each household, after which the appraiser has the opportunity to determine the cost of a square meter of the house – the object of comparison.
A characteristic feature of land parcels is that they have such a characteristic as a purpose. The most common targeted land uses are such functions:
- for the construction and maintenance of residential houses and outbuildings;
- for gardening (summer cottages);
- for maintain personal farm (vegetable gardens, personal farming);
- for commercial farming (shares);
- for commercial purposes (for example, a location where gas stations can be located).
How is the value of non-residential real estate determined
Considering that each non-residential real estate is unique in its own way, it is quite difficult to disclose all the features and details of the process in one page of the website. It is known that typical apartments have only a few essential characteristics that affect their cost – location, area, floor, condition. The evaluation of the apartments comes down to the fact that you need to determine how much is sold similar housing in neighboring houses.
This approach is not always possible for real estate valuations that are non-residential, especially in the case of stand-alone buildings or production facilities. Rather, a comparative approach is, of course, possible for such facilities, moreover, it is widely applied in practice, but often results that can hardly be accepted as a market value.
This is due to the fact that non-residential real estate has too many criterias that directly affect its value, so it is often impossible to find a sufficient number of offers to sell similar property with exactly the same characteristics.
Therefore, such calculations often focus on the so-called income approach, which determines the market value of the property through the amount of income it can bring to its owner.
Expert evaluation of real estate
The process of expert evaluation of a real estate is the determination of the market value of an object or individual rights in its relation. In fact, the appraiser determines the value of a possible alienation of an object at the time of the evaluation. Subject to open competition and reasonable action of the parties to the transaction. That is, when the terms of the transaction are not affected by extraordinary circumstances.
There are basic methods for evaluating real estate:
- Profitable reflects the value of the property, depending on the amount of future cash flows generated by the property. The level of risk, quality and quantity of income are projected and considered. If you are interested in an overview of how real estate value is evaluated using a cost-effective approach, we recommend that you refer to this article.
- Expensive determines the cost of land and the estimated cost of building the facility, taking into account the accumulated wear and tear.
- Comparative the approach to date is the most common in the practice of expert evaluation of real estate. Based on a comparison of similar properties similar to those sought by main economic, technical, material and other characteristics.
How does the real estate appraisal report looks like
We made an overview video on the example of the report on the valuation of municipal property. It gives a general idea of what an appraiser’s output is.
We will be glad to answer on all your questions. You are welcome to call!