Real estate appraisals
Services that we provide
As described by federal and local legislation, the term real estate includes apartments, residential houses, buildings, structures, and construction that is in progress, that is, all properties that are inseparably connected to a foundation, located on an occupied plot of land. Additionally, real estate describes the land and subsoil plots themselves.
At our company, the established cost of an independent real estate appraisal depends on the type of property (apartment, house, industrial buildings or premises, land, etc.) as well as on its technical characteristics, specifically, the area of the estimated object and the type of permitted use.
We are aware of our professional responsibility to our customers, therefore, the real estate appraisal performed by our company is carried out only by certified appraisers that specialize in this particular field of the appraisal industry.
Property appraisal is required for any type of transaction that is made with it. Thus, a clause in the contract, regarding the value of the property, is a legal prerequisite of any real estate transaction. The absence of or unclear wording in this clause makes the sales contract (purchase/sale, deposit, insurance, mortgage) invalid.
Independently appraising real estate and determining its current market value by the owner is practically impossible. This requires an analysis of the property's market segment, analyzing similar properties, in a similar location, analysis of the area and other technical characteristics. The total value of the property is influenced by various pricing factors, whose aggregate influence and impact on the value of the property can only be determined by a specialist, using specialized approaches and calculation methods.
Stage 1. Inspection and identification of the object
During the appraisal, the specialist verifies the appraisal properties existence, compares its technical characteristics with the submitted documents and takes photos (20 to 100) of the property.
Stage 2. Market analysis
The appraiser conducts an analysis of the market, which the property belongs to, using open-source data sources, and evaluates trends and sales dynamics in that particular segment. This may be the market analysis of similar plots of land, apartments, country houses, industrial buildings and other real estate segments. Market analysis determines the price range, in which the estimated fair value of the subject property will fall.
Stage 3. Selection of similar properties
This stage is necessary to obtain statistically reliable information about the average cost of the property that is being appraised. Open sources are examined for the purpose of finding and selecting proposals with characteristics that are as similar as possible to the appraisal property. During the selection, the offers in the highest and lowest price range are excluded, that is, only the average cost is taken into account.
Step 4 Determining the value of the appraisal property
At this stage, all information that may affect the final value of real estate property is entered into a spreadsheet and a calculation is made, while taking into account all the correcting factors for each significant characteristic.
Step 5. Preparation of the appraisal report
When all the calculations are completed, the specialist generates a report that determines the market value of real estate. The document contains information about the client, the appraisal property and all applicable standards. The report also points out assumptions and limitations used by the appraiser while conducting the assessment. Finally, it provides a detailed market analysis of the property, the most efficient use, as well as the contents and scope of work implemented in making the assessment.
The appraisal report is an official document and is valid for 6 months from the appraisal date. It has legal power sufficient to be submitted to state, tax and judicial authorities of the Russian Federation.