This article deals with who are the appraisers, what services do they offer and under what regulations do they carry out their professional activities – independent evaluation of real estate and various other types of property.
Tariffs and deadlines for work on expert evaluation you can find in the relevant sections of our site.
What is that topic about:
1. Appraiser’s area of activity
2. Expert, appraiser or expert appraiser – what is the differences
2.1. What does a real estate appraiser do
3. How to choose the appraiser
3.1. On what criterias you should choose
1. Appraiser’s area of activity
In the Web you can find whole excursions in the history of the profession of appraiser, starting almost from ancient Greece. However, we will not go into historical details and events, note only that property valuation as an industry in Ukraine began to develop actively along with the development of market relations, beginning in the late 1990s. At the same time, in the developed Western countries the profession of appraiser long ago, also long developed approaches, methods and techniques for the expert evaluation of real estate and other property. As a matter of fact, these methodologies, called “International Valuation Standards”, formed the basis of Ukrainian national legislation on valuation.
The most common cases when you need the evaluation are:
- Notarized real estate transactions. For example, when selling, gifting, renting an apartment or giving it to a mortgage notary requires including a report on the evaluation of the real estate.
- Evaluation of real estate in state or municipal property when renting it.
- Presentation of property evaluation in court. For example, in the case of divorce, the lawyers of the parties often turn to the appraisers to determine the market value of real estate and other property that is jointly owned by the spouses.
- Accounting and tax accounting in enterprises. For proper conducting reporting, an accountant hires a appraisal company to evaluate the fixed assets. The appraiser who is engaged to carry out this type of work must have the authorization qualification documents to determine the value of various types of fixed assets: real estate, equipment, cars.
- Stock assessment is often needed by joint-stock companies for such operations as increase of the authorized capital of an enterprise (additional emission) or purchase of stocks from shareholders. While this type of work is one of the most difficult areas in the evaluation, our appraisers not only have all the approvals for the valuation of shares, but also have accumulated quite a lot of experience in determining the value of different types of securities.
1.1. Permit documents
To learn about the authorizations the appraiser uses to conduct their professional activities and how to verify the authenticity of these documents, you should read this article: «appraisal company».
2. Expert, appraiser or expert appraiser – what is the differences?
Many, or even almost all, clients confuse the concepts of expertise and evaluation. Let’s understand what are the different professions of expert and appraiser. Who is the appraiser and who is the expert? What is the difference between an evaluation and an examination? And can the appraiser be an expert and the expert be an appraiser?
Most students while studying at the Institute are considering promising for themselves employment options. At the same time, they not only think about them, but also emphasize the study of a number of subjects and the acquisition of those practical knowledge that will be needed first of all when applying for work. One of the interesting options for employment of a civil engineer, which is not widely known and thought about, is such a profession as an expert at the Forensic Institute or real estate appraiser in one of the many private appraisal companies.
2.1. What does a real estate appraiser do
Let’s look at what work experts and appraisers do, how they differ from each other, and why we pay attention to these professions is students of engineering and construction institutes. The profession of real estate appraiser involves work to determine the value of real estate of various types: from apartments and individual residential houses with household buildings to specialized structures, for example, gas and oil pipelines. In a market economy, such services are in demand in many situations, for example:
- selling the property;
- evaluation for court of matrimonial property division after divorce;
- real estate valuation when transfer it to the pledge to bank;
- accounting at enterprises of all forms of ownership, etc.
Many methods of real estate valuation involve the analysis of the state of its structural elements, exterior and interior decoration and engineering communications. It is clear that without special knowledge, which can be acquired only in a specialized higher educational institution, it is simply impossible to perform such work qualitatively.
2.2. How does the valuation differ from the construction expertise, and the appraiser from the expert?
The question arises: if with the appraiser is more or less clear what is that, then who are such experts, and what is the peculiarity of their work? As can be understood from the names of professions, appraisers conduct evaluation, and experts – expertise.
Evaluation, being a special case of expertise, answers only the question: «How much is the property?» A wide range of issues can be put to the expertise, from the condition of the structural elements of the building to, say, the possibility of further exploitation of utilities under certain conditions.
Expertise is divided into a large number of classes and types, for example, criminalistic, medical, engineering, which includes both construction and technical expertise, and so on. Interested persons can get more detailed information by studying the relevant legislation. This article is not written to describe in detail the assessment of real estate and various types of expertise, but only to give an overview of their key features and differences.
3. How to choose the appraiser
If the valuation of an enterprise, securities or real estate is required, it is advisable to select an appraisal company that is not only qualified, but also has the necessary experience and reputation. In addition, it is essential that the appraiser, according to Ukrainian law, can issue an independent expert report on the value of the asset being valued.
This article will cover all aspects related to the process of finding the evaluator and checking his activity. And also considered the main points that need to pay special attention in the process of selection of the appraisal company.
3.1. On what criterias you should choose
It doesn’t matter which asset you need to value. Only licensed appraisers and appraisers who issue an expert opinion that meets all requirements of the current legislation have the right to engage in such activities. When searching for the appraiser you need to pay attention to several important criteria.
3.2. Specialization
If you need the evaluation of the business or real estate, it should be clarify with the appraiser his qualification, which should be confirmed by the relevant document. It should be borne in mind that appraisers and valuation companies can be both highly specialized, valuing only certain assets, and valuation a property of a variety of types.
3.3. Appraisal company website
Now there are many ways to find an appraisal company. However, perhaps the most convenient is to search through the Internet. Through the search engine it is easy to find many specialized sites where you can get a detailed view of the activities of a company. In addition, the quality of the content can be inferred about the quality of the company’s work: from the direct assessment to the attitude to the client. Based on the materials presented on the site, you can get information about the reputation of the appraiser, and in the end to decide whether to cooperate with him.
3.4. Necessary documents
The appraiser should have documentation to support the examination and regular refresher courses for appraisers in a particular narrow professional area, for example:
- appraisal of real estate;
- valuation of movable property;
- valuation of securities and business.
It is necessary to draw your attention on the fact that every 2 years the appraiser must attend courses of advanced training with the receipt of the relevant certificate, which is issued by the State Property Fund of Ukraine.
Also, the appraisal company must have a valid Certificate of the subject of evaluation activity, confirming its right to engage in professional activity.
3.5. Reputation
In the process of selecting an appraiser is also important to know his business reputation. To do this, you can take the advice of friends who already have a positive experience of cooperation with a company. For example, these acquaintances could order the valuation for a notary when selling or buying a property.
Furthermore, please take a look at appraisal company portfolio.Specifically, a list of her clients and partners.
4. How to check the appraisal company
Considering all the criteria outlined above, it is possible to form an opinion on whether to cooperate with a certain appraiser.
To check the activity of the appraiser, you should open the page of our website «Appraisal company», which provides links to the registers of the State Property Fund of Ukraine. You will also find detailed information on how to check the appraisal company and its appraisers.
