Property Evaluation in Ukraine

Because under the broad term “property evaluation” may involve work on the valuation as of real estate and, for example, as of equipment or transport, general information on the evaluation of all types of objects and property rights.

Information about a specific kind of property: apartments, land, houses, other property, vehicles and others on the relevant pages of our website.

We wish to point out, that we:

1. are NOT doing evaluations of cars, which were in accident;
2. are NOT doing evaluation of objects, which have cultural value (including antiques).

Who cares what the property evaluation for?

Not everyone knows that not only the type of property, but also the purpose of the given work influence the procedure of assessment, its price and time of performance. According to the legislation, the evaluation must have a purpose and may be used solely for that purpose. The target is listed on the value inference page. But the most important thing is that depending on the purpose of the work, the procedure of property valuation and the presentation of results are very different. So, the notary will not accept the documents prepared for the court. Well, in litigation, you will not be able to use the assessment for tax purposes. The most common purposes of property valuation are:

• for selling, gifting or inheritance registration;
• for presenting in court;
• for the purpose of accounting and tax;
• to determine the rent for utilities.

Evaluation for notary

Of course, the most common property valuation in 2023 is ordered for real estate re-registration by a notary. It may be a selling, gifting or inheritance. This work is not only the most common, but also the most simple from a technical point of view.

The main feature of real estate valuation for tax purposes is the need to register the report of the valuer in a special state register. This register already contains indicative values for all types of real estate (apartments, houses with land, premises and so on). If as a result of the calculations the cost will be lower or higher than a quarter, registration will not occur.

There are occasional incidents with the operation of this State registry. This applies especially to the determination of the market value of property located in small settlements. Or for a specific non-residential real estate, which is characterized by considerable wear and tear. Also, there are problems with land. For such objects, the register often gives a significantly inflated value of the property, which can not be considered market. In turn, the evaluator has the opportunity in such cases to register an estimate only 25% lower, which also does not always remedy the situation.

We discussed all these issues and situations in more detail in the article «Evaluation of real estate in Ukraine 2023 in a new way». For anyone who is going to sell, buy or gift real estate, we highly recommend to get acquainted with this information.

Valuation of property for presentation in court

Unlike the preparation of documents for the notary, the assessment for the court requires much more responsible approach. Of course, all documents must be written flawlessly. However, in the case of trials, it becomes critical.

For example, you bring an evaluation report of real estate to a notary. His assistant enters the estimated value into the sales contract, after which the report itself safely goes into the archive. Actually, apart from the amount of the notary’s assessment, nothing more and not interested.

Appraising property for presentation in court is a completely different matter. Unless we are talking about a court decision of any «technical» or formal issue, the second party – your opponents – takes an active part in the process. And they, along with their lawyers, will be studying thoroughly all the documents that you chose to use in the process. The purpose of this study, of course, is to find a way to criticize the work of the valuer. Often simply on formal grounds to convince the court not to use evaluation as admissible evidence.

Accordingly, we understand what is fraught with the wrong choice of the appraiser. Loss of time, money and loss of business. That is why lawyers, who periodically need independent evaluation of property, try to appeal to the same «their» trusted valuers. With who working with they are having no problems.

If you want to order the evaluation of the property with a view to filing a lawsuit or in the course of the trial, please note the following. Important thing while choosing a valuation company for such work is their experience with the preparation of documents for the court. Of course, it is difficult to check the availability of such experience over the phone. But, having spoken to the evaluator for a few minutes, with a high probability you can understand whether he really orientates in the question. Do not neglect this!

Accounting valuation

Valuation of property of enterprises is the third main direction of our activity along with preparation of documents for notary and court. In most cases, if the accountant turns to the appraiser, then there is a question of determining the market (fair) value of fixed assets.

Such technical questions arise from enterprises quite often. For example, you need to sell personal gadgets to employees on their dismissal. In this way laptop, smartphone or tablet are evaluated. Or the enterprise has made a decision to modernize: evaluate office and computer equipment, that is now out of date, and sell it.

It should not be forgotten that enterprises that keep accounting records according to international standards should regularly conduct re-evaluation of fixed assets. Mostly often valuation of assets of such groups as real estate, equipment, vehicles.

We have extensive experience of cooperating with large Ukrainian and international companies on property valuation for accounting purposes. We will be glad to see you in the great company of our favourite customers! 🙂

Evaluation for renting utilities

Determination of the market value of communal property is necessary when it is leased. In 2023, this estimate is not always necessary. And, as a rule, held at the renewal of existing contracts for rental of communal real estate.

Working with communal and public property requires considerable experience on the part of the evaluator. Such documents are subject to mandatory verification and coordination in the Department of Municipal Property of Kiev or in the administration of another city. If the work is done incorrectly, the evaluator’s report simply will not pass the test. Well, for a prospective tenant, the deal will translate into a significant amount of wasted time and nerves.

As in case with documents for trial, choose an estimator preferably on the recommendations of acquaintances. Who previously applied to this firm just for the evaluation of municipal property. And which in the end successfully passed the whole procedure of approval of documents in the city administration.

By the way, there are other nuances with communal property. In case of irregularities or errors of inexperienced or irresponsible valuers, the market value of the leased property may be underestimated. And losses to the state can lead not only to loss of license of the appraiser and firm, but also to criminal case. You don’t need to participate in such stories as a customer. 🙂

In this article we often have the word «cost». Do you know how the cost differs from the price? And what is market value? And that in total there are more than ten different types of value? Read the articles under the two links given. This information may be useful for you.

You can get answers to many questions and just useful information about property valuation by looking at the rubric “Question-answer”. Or just contact us for advice.

We would be grateful if you choose us!