Residential building assessment report. Estimation of the cost of a residential building with a land plot. Independent assessment of the apartment
Under market value apartment is understood as its real price, for which the buyer ready to buy such real estate in a free market and normal competition. In addition to market value, there is also, which is somewhat less and is used as tax base to determine the amount of property tax. The market price of the specified real estate can be determined as on one's own, and with the help of a realtor or appraiser.
In the case of carrying out market value, it is necessary to prepare a series for the appraiser. Based on the results of its activities, a detailed report will be prepared. Also, do not forget that in some real estate transactions it is necessary from the bureau technical inventory (BTI), which indicates inventory value(in practice it is still less than cadastral).
What is the market value of an apartment?
The market value of the apartment is real price, for which the buyer is willing to purchase such property on the free market under normal conditions competition. That is, the market price should not be influenced by factors other than competitive ones. In this case, the price is formed based on large quantities nuances. These include:
- facility layout;
- usable area of the real estate being sold;
- physical condition of communications (heating, water supply, etc.).
It is worth mentioning separately such a factor as apartment location. The area, distance from schools, hospitals, transport interchanges, large shopping centers and so on. All of these conditions can significantly affect the real market price of real estate. It is also worth considering that good redecorating does not always increase the value of such property. You may encounter such buyers who are looking for an apartment with finished interior finishing. But more often there are buyers who intend to carry out repairs in their own way.
Thus, market price apartments are the price for which a buyer is able to purchase property in market (competitive) conditions. The market price is influenced by many different factors that need to be taken into account.
Cadastral and market value of an apartment: how they relate
The cadastral value of an apartment is the price of the property, which is determined Federal Cadastral Chamber during the assessment carried out in accordance with Federal Law dated July 29, 1998 No. 135-FZ "About appraisal activities V Russian Federation» .
Basically the cadastral value of the said property is required to pay property taxes. Exactly from cadastral value and the required tax is calculated. Relatively recently, the cadastral value was significantly increased in an attempt to bring it closer to the market value, however, two indicators not equal, market and cadastral price is still vary.
The ratio of the above price indicators is made at the level evaluation criteria, that is, what is taken as the basis for the assessment and factors influencing total price. As you know, the market value is influenced by many factors, while the cadastral value is much less affected. The cadastral value of the apartment is affected by the following nuances:
- average price per square meter(taking into account the region index);
- the year of construction of the house in which the property being valued is located.
The difference in approaches to calculating the price of real estate determines the difference between the market and cadastral value. Market price much higher cadastral
In practice, the market price is higher than the cadastral price half or one third. The above values coincide mainly in the old housing stock, the market price of apartments of which is low.
In order to sell an apartment, you first need to know its real (market) value. As is known, the cadastral value at which tax is paid is often does not reflect the real price of a home. Therefore, it is necessary to estimate the price by other means. The property owner has several of these:
- self-assessment;
- realtor assessment;
- assessment by an independent appraiser.
The first of these options involves minimum cash costs, however, the maximum of the person’s own efforts to determine . The two remaining options mean some financial costs, since the services of a realtor and appraiser are not free. Modern market Real estate purchases and sales are mostly occupied by realtors, that is, when selling or buying such property, citizens often turn to them.
However, a realtor can also be hired for simple assessment of the cost of an apartment, without further services for its implementation.
In this case, a person who wants to know the price will not have to think about determining it independently, but proceed from price offered by the realtor.
How to estimate the cost of an apartment yourself
Self-assessment of the cost of an apartment involves monitoring similar proposals for the sale of similar property. To do this, you can use popular Internet sites or relevant thematic newspaper products. You should focus on similar parameters:
- area;
- square;
- number of rooms;
- other factors that in one way or another affect the price of the specified property.
Having found similar offers, you need to pay attention to the fact that people selling their homes can inflate the price at their own discretion.
In addition, if the apartment is sold in Moscow or the Moscow region, then you can use online calculator apartment prices. In this case, you need to fill in all the fields and get the result. In the case of other regions of the country, proposals will have to be monitored on one's own. However, on various sites there are convenient services search, in which you can specify data similar to the property being sold to search for similar options.
Dergunov V.I. planned to sell one-room apartment. Considering it inappropriate to spend cash for the services of a realtor or independent appraiser. After looking at several websites, such as Avito and From Hand to Hand, and comparing similar offers for the sale of an apartment, Dergunov was able to determine the approximate market value of his home.
Cadastral value of the apartment at the address
On the official website of Rosreestr there are some convenient Services. For example, by going to the “Services” tab, and then to “Reference information on real estate objects online“, you can determine the cadastral value real estate object.
To do this, you must indicate the cadastral number or correctly determine the address of the apartment. If a cadastral valuation was carried out, then such information will be indicated based on the results of the request.
However, such information will be useful only if the sale of the apartment will take place exactly at cadastral value. If the sale of such real estate is planned at market value, then it is best to use the specified service don't use and turn to other ways of determining the price of property.
Independent assessment of the apartment
Independent assessment apartments are one of the ways to determine the price such property. Today there are many companies engaged in appraisal activities. An independent assessment procedure may be necessary if it is impossible to determine the value of the property yourself. In addition, experts in this field are well aware of all the intricacies of the apartment purchase and sale market, have special skills and knowledge, which helps to establish objective market price for the housing being sold.
When conducting an independent assessment, the persons carrying it out use a number of methods, the choice of which depends on the object of assessment. So there are the following assessment methods:
- comparative;
- profitable;
- expensive.
The most common method is comparison method. It is used only when there is a real opportunity to compare the object of assessment (apartment) with analogues. For example, a number of apartments in the same area are compared, with similar years of construction of the entire building, area of the home and other factors that affect the market price.
This approach is sufficient objectively reflects market value of the specified property, and also takes into account various manifestations of current trends in the real estate purchase and sale market.
Income method mainly used when profit is made from the property. For example, if an apartment is used for business (first floors of houses, housing for daily rental, etc.), then the assessment will take into account estimated income(based on income already received). The disadvantage of this approach is a small range of applications, as well as the fact that the income taken into account in the assessment is only forecast.
Cost method used if the property being valued has no analogues. We are talking about exceptional real estate objects, which cannot be compared with other objects at the moment. In such cases, the appraiser makes a calculation funds spent for the construction of such a facility. This method may not always reflect the real market price, but this method is universal, since with its help you can evaluate absolutely any property, including an apartment.
Thus, an independent assessment is used to determine the most adequate market value apartments.
Documents for assessment
As with most processes related to the sale or other actions with real estate for appraising an apartment it is necessary to prepare a number of documents:
- certificate of state registration property rights (from July 2016 - extract from the Unified State Register);
- information (if available) about (mortgage, pledge, rent, etc.);
- passport details of the person who ordered the assessment;
- if there are redevelopments - information about them;
- object;
- explanation for the plan.
The listed documents must be provided to the appraiser for the most objective assessment procedure the cost of the apartment.
Report on the assessment of the market value of the apartment
A report on the assessment of the market value of an apartment is an official document drawn up by an appraiser. Its necessity is determined by the fact that such a document can be submit to court as evidence, use as justification for the price of the property. Like any other official document, the report must contain certain information. Thus, the assessment report includes:
- information about the customer and appraiser;
- description of the assessment method;
- description of the property being assessed (apartment);
- analysis of the market for the purchase and sale of such property;
- calculation of the market price of such property;
- photographic materials of the subject of assessment;
- information about title documents.
The report is signed, stapled and numbered, approved by seal appraiser company.
Also, along with the report, documents confirming the registration of the company conducting the assessment, certificates and other necessary documents are attached.
BTI certificate about the cost of the apartment
To complete some transactions, the apartment owner may need certificate from the BTI. It can be obtained by contacting the relevant territorial body of the specified organization. You can get such a certificate only the owner of the premises, for which a certificate is drawn up. To receive it you must provide the following: documentation:
- owner's passport;
- certificate of state registration of ownership of the apartment or an extract from the Unified State Register.
This certificate contains information about inventory value apartments, site plan and explication. The indicated inventory value consists of the following factors:
- area of the home;
- list of communications;
- year of construction of the house in which the property is located.
Inventory value much lower cadastral and market prices. Essentially it only includes construction costs apartments ( Construction Materials, internal communications) minus real wear.
Conclusion
When making any transactions with an apartment, you need to be prepared for the fact that you will have to meet with various types the value of such a property, such as market, cadastral and inventory value. The real price of the said property is its market price, this is what you need to focus on when making transactions. This price can be determined in different ways, how to do it yourself(without financial costs), and with the help of a realtor or appraiser(with payment for their services).
The cadastral value is mainly used for taxation purposes, and the inventory value for issuance necessary in some cases BTI certificates.
Question
How to determine the market value of an apartment?
I'm planning to sell my apartment, but I can't decide on its real price. I have information about the cadastral value. Is this price equal to the market value? If not, how can I determine the market price of my property?
Answer
The cadastral value is equal to the market value only in exceptional cases. In most cases, the market value is greater than the cadastral value by half or a third.There are several ways to determine the market price. You can conduct an independent assessment of the apartment by comparing your home with similar offers on the real estate market. If this option does not suit you, then you can contact realtors or appraisers who, for a fee, will evaluate your property and determine the market value appropriate for your apartment.
Property Valuation Report is a mandatory written part of the specialist’s work and it is this document that is handed to the client.
But the relationship between the specialist and the other person who asked for the service is also fixed in the report and in a special agreement.
One way or another, the work performed and the report compiled on it indicate that the service was received. The conclusion is a document that has legal force.
If it was compiled by a professional in his field, then the report can be attached to court documents, and can also be used in legal disputes and litigation, attached to inheritance cases and participate in other transactions provided for by the general trade turnover in our country.
Real estate appraisal assignment
Assignment to inspect real estate objects is an action that precedes the assessment procedure. Upon receiving an order to carry out work, a specialist, so to speak, receives the corresponding tasks. As part of this task, he must establish a number of facts. These include:
- study of the object,
- legal characteristics of real estate,
- exact location,
- characteristics of boundaries.
In addition, when reviewing the assignment, the real estate professional should:
- study all the nuances of the object,
- familiarize yourself with the entries in it in the appropriate register,
- find out information from the owner,
- retrieve archival documents if necessary.
Each appraiser must carry out these actions so that the report compiled based on the results of the work contains only reliable information that corresponds to reality.
It is very important to pay attention to who is writing the report.
A specialist appraiser who has the appropriate education has the right to draw up a report. Neither the assistant nor the secretary has the right to draw up this document. Upon completion of the report, the date of its preparation, the signature of the appraiser, and also a seal if the client dealt with the company are affixed.
But often, in practice, it happens that the specialist forces the appraiser’s assistant to write a conclusion with all its complex nuances and rules, and the professional himself only signs.
This behavior is fraught with consequences in the form of an illiterate description of the assessment process and conclusions on the analysis of the value of real estate due to the lack of experience of the assistant or secretary.
Who prepares the appraisal report for the property being purchased?
Conclusion on the property being purchased, or rather, on its valuation as well Only a specialist appraiser has the right to compile.
The fact is that before purchasing real estate, future owners ask a professional to check the condition of the property. Only a person with specialized knowledge can accurately describe the condition. This means that it is they who should draw up the report in order to most competently reflect the current state of affairs.
Report price
It is not worth talking about the cost of a real estate value analysis report. The cost of a report on assessing the value of a property depends not only on the region where the citizen lives, but also on the object itself. If we are talking about commercial real estate, and we take into account the central strip of Russia, then the cost of the assessment will start from 15,000 rubles, accordingly, this is the cost of the report.
If we talk about real estate such as a house, a built cottage or a plot of land, then the cost of the work of a highly specialized specialist and the subsequent preparation of the corresponding document will vary from six to 8,000 rubles.
If we are talking about ordinary apartment or a room, then the cost of the apartment assessment report will cost you the amount not exceeding 5000 rubles.
In the regions of the far north, the value of this amount is slightly overestimated, but in the outback of central Russia, on the contrary, it is much lower. And don’t worry that the cost of the work involved in drawing up a conclusion is too high. You can find it in any city alternative options, because a lot depends on the experience of a particular specialist.
Conclusion on the market value of the property
Real estate valuation report(a sample real estate valuation report can be downloaded above) is a document that is drawn up in accordance with the current law of our country and contains all the results of the assessment of the market value of the property, as well as a list of all the examinations carried out.
This act may include the following information:
- basic information about the object,
- description,
- the basis for carrying out specialist actions,
- overview of the current real estate market,
- information about what methods were used in the assessment,
- transferability real estate as collateral,
- calculation of the value of the appraisal object,
- and also, what documents were used by the appraiser as a source of information to compile the report.
They must be provided both by the owner himself and by some authorities servicing the property, such as a management organization.
Report on the assessment of the purchase price of the apartment
Apartment assessment report(we suggest looking at an example of an apartment assessment report above) - this is a document that is drawn up on the basis of the law and aims to determine how well the redemption value corresponds to the actual condition of the housing.
In this case, an independent assessment of the property should presage the redemption procedure. It is necessary to determine a fair price.
Its location, layout, environmental condition, neighbors, and so on are taken into account. The cost analysis procedure follows a general basis, however, the report emphasizes that the apartment is being prepared for purchase.
Conclusion on the assessment of the foundation of a residential building
Residential building foundation assessment report is a document that contains expert opinion, which describes the foundation of a residential building, talks about its strength, expected service life, as well as various problems that may arise in connection with the operation of the building.
In this situation, the emphasis is on the state of the object. It would also be a good idea to indicate its width, height, materials used, as well as the year it was poured.
Residential fire damage assessment report
The damage assessment report from the fire that occurred contains the following data.
- Firstly, an analysis of all documents presented, as well as testimony. This also includes reviewing photographs and their subsequent analysis and examination.
- Description of all the necessary techniques used by specialists. An approximate justification for each of the methods used, making the necessary calculations, drawing up an estimate plan that includes restoration work after a fire, an approximate calculation of the deterioration of the building, a list of the available package of documents, as well as an inspection plan.
Review of the report
Review of the apartment leak assessment report drawn up in the case when, for one reason or another, the property was the initiator of flooding.
In this situation, it is necessary to assess not only the damage that was caused to the apartments below, but also the damage to the property that caused the flood.
In this situation, a specialist appraiser is also called, who is obliged to provide all necessary work and examinations in order to establish the cause of the leak and the damage caused, as well as generally determine how much the property lost in value due to this incident.
Coordination of real estate valuation results
Coordination of property inspection results is a procedure in which two reports that were drawn up upon the application of the same owner are compared with each other in order to accurately establish estimated value specific real estate.
In this case, the opinions of two experts can either agree or diverge, but not significantly.
In this case, an additional assessment is made, and the result is submitted to the owner of the object selected for examination. A distinctive feature of this report is that it is compiled in the form of a table.
Now you know in what situation what specific real estate valuation report you may need, and you can choose the one you need on your own, without the help of specialists.
However, only a competent professional can help you draw up this document, whom you can find through the corresponding advertisement in the city itself.
14.08.17 51 741 4
And why is it needed?
You are planning to buy an apartment with a mortgage.
The bank approved the loan application, the agent found a suitable apartment. The next step is to collect a complete set of documents for the bank. It will definitely include a real estate appraisal.
Elena Evstratova
sold and bought real estate with appraisal
When a bank gives a borrower a mortgage loan, it automatically takes as collateral the property that is being purchased with this loan: “Here’s the money for you, but until you pay everything back, the apartment is kind of mine.” If the borrower does not return the money, the bank has the right to take the apartment and sell it at auction.
Force mortgage loan precisely because the apartment is easy to sell at auction - in the language of banks, it is liquid collateral. Banks are confident in the loans they issue, so they can reduce rates.
It is important for the bank what exactly it gives 3,000,000 rubles for: for a hut or for an apartment. Will he be able to sell this apartment for the same 3 million if something happens? The assessment should answer this question for him.
For the buyer the assessment is additional guarantee that the object is worth the money for which it is sold.
Who makes the assessment
Appraisers evaluate real estate. Their activities are regulated federal law“On appraisal activities in the Russian Federation.” This could be a company or an individual entrepreneur.
What an appraiser must have:
Professional education, membership in a self-regulatory organization and insured liability
Professional education
SRO membership
Insured liability
Banks are required by law to accept any appraiser's appraisal. But in reality, banks themselves accredit companies whose assessment they trust. Which appraisers are quoted by a particular bank is usually written on the website. Sberbank cooperates with 256 appraisers, Bank Vozrozhdenie - with 90.
How to choose a company to evaluate
Call the list of appraisal companies offered by the bank. This is what you need to find out in conversation.
How quickly does the appraiser arrive? The normal period is 1-2 days.
How long does it take to prepare a report? Usually within 3-5 days.
How much does the assessment cost? The average cost in St. Petersburg is 3,000 rubles. In Moscow, prices start from 2500 rubles.
How much does a second copy of the report cost? By default, appraisal companies make one copy of the report. A normal company will print the second copy for free. In some companies, the second copy will cost 500 rubles.
What the report looks like
The apartment assessment is drawn up in the form of a report. The report is stored in printed form along with the mortgage for the apartment.
The report must include:
- who ordered and who performed the assessment, using what method;
- what kind of apartment is it, what condition is it in, how is it used;
- how are things on the market in which this apartment will be sold;
- how much it can be sold for usually or at auction;
- What appendices are there for the assessment in the form of photographs and copies of documents?
Without the seal and signature of the appraiser, the report is invalid. The report is accompanied by a one-page document containing summary report. It is sent to the bank along with the report.
![](https://i1.wp.com/img-cdn.tinkoffjournal.ru/evaluate__alpha.ebzgyekbsaom.png)
![](https://i2.wp.com/img-cdn.tinkoffjournal.ru/evaluate__3-ots.42mzgsdzis1k.png)
![](https://i0.wp.com/img-cdn.tinkoffjournal.ru/evaluate__ots-4.nf5s5prbrymq.png)
![](https://i2.wp.com/img-cdn.tinkoffjournal.ru/evaluate__2-ots.xt6z4lzk5szy.jpg)
What is the cost
Market price- the price of the apartment if it is sold without haste and force majeure circumstances.
Liquidation value- the minimum price for which the bank will sell an apartment in short term.
What affects market value
The area in which the property is located. It affects the cost per square meter: in St. Petersburg, a square meter in the Moskovsky district is on average 20,000 rubles more expensive than in Nevsky. Therefore, an apartment in a new building, which was built among old panel houses, will cost less than its analogues in a good area.
![](https://i1.wp.com/img-cdn.tinkoffjournal.ru/evaluate__ots-6.uhzt6lpbmi5u.png)
Specifications building: what year was the house built, when was it built? major renovation and how many floors there are in the house. Everything is taken into account: the presence of a garbage chute, the organization of parking, the condition of the front door.
![](https://i1.wp.com/img-cdn.tinkoffjournal.ru/evaluate__ustarevanie.e3jprhfkwepm.png)
![](https://i2.wp.com/img-cdn.tinkoffjournal.ru/evaluate__snos.iuhagnjetjua.png)
Condition of the apartment. What floor, how many rooms and is there any renovation? The appraiser even looks at whether linoleum or laminate is laid on the floor, whether there are tiles in the bathroom and how the lighting is done in the apartment.
The condition of the apartment matters: if the wallpaper is dirty, the report is marked “needs repair.”
Repair with wallpaper for both 70 thousand rubles and 5 thousand is equivalent to “European-quality renovation”. Therefore, you should not expect the appraiser to include the full price of designer renovations in the price of the apartment. IN best case scenario he will put an increase factor on the repairs.
The real estate market at the moment. The expert looks at similar objects on the market. For a one-room apartment in a monolithic building, the analogues will be apartments of the same size in monolithic or brick houses. Panel houses are usually not compared with brick houses or coefficients are introduced. To evaluate an apartment, five similar objects are used. Comparison of analogues - good way see where the price is too high.
Top floor reduces the estimated cost of the apartment by 2-3%, the first floor - by 5-10%
![](https://i0.wp.com/img-cdn.tinkoffjournal.ru/evaluate__sravnenie.dsdr6gvyiqli.png)
How to calculate salvage value
Liquidation value is calculated using formulas. What matters here is the elasticity of demand and the time value of money.
An example of elasticity of demand. There is little demand for a three-room apartment in a new building on the ground floor, because large square footage and a low floor scare off buyers. You can sell such an apartment in a short time only at a low price. The difference between the market and liquidation price is up to 3 million rubles.
For a one-room apartment on the middle floor panel house a 5-minute walk from the metro is in high demand, because such apartments are always in demand on the market. The liquidation value of such an apartment is close to the market value.
An example of the time value of money. When it comes to long term and big money, it is often said that money becomes cheaper over time. That is, the ruble is now more valuable than the ruble in a year. If an apartment can be sold cheaper now, then it is better than a little more expensive later. This principle has many justifications: inflation, political risks, human mortality and world progress.
When an apartment is sold at the liquidation price, the loan is repaid first. The borrower receives the remaining funds. Therefore, the higher the liquidation price, the more money will remain in his hands.
The liquidation value of a budget apartment is not much different from the market value. They are easiest to sell on the market because there is a demand for them. An elite apartment in a new building will be sold for a long time even at a discount.
Price range for three-room apartments in St. Petersburg
We selected apartments within the same area according to the EMLS real estate portal
When inheriting real estate or taking out a mortgage loan, an appraisal of the house and land is required. It is problematic to carry out the procedure on your own; the result will be approximate.
When is a house and site assessment required?
An appraisal of the house and plot is required to establish the market value of the property. When concluding a purchase and sale transaction, the procedure is carried out on a voluntary basis.
The involvement of an appraiser is provided for by law in the following cases:
- Registration of inheritance. It is necessary to determine the value of the home so that the notary’s office can issue a certificate confirming the right to dispose of the property.
- Bank deposit. A credit institution does not issue money without formalizing an encumbrance. To do this, you need an expert opinion on the value of the property.
- Real estate insurance. To calculate the amount of insurance, it is necessary to obtain data on the value of the property for which the insurance policy is issued.
- Damage assessment. The amount of the amount for repair work is determined.
- Decor . The amount of the state duty depends on the value of the property.
- Valuation of a house for trial. In case of divorce or disputes between heirs, determining the value of real estate helps resolve property disputes.
IMPORTANT! A residential building is assessed to calculate contributions to authorized capital enterprises. The founders have the right to contribute money or transfer personal property to the company.
Who has the right to evaluate a house and land plot?
Independent specialists - persons licensed to conduct expert activities - have the right to evaluate a house. Appraisers are members of the SRO and have a civil liability insurance policy in the amount of at least 300 thousand rubles.
Property owners choose an expert on their own, taking into account prices for services, reputation and other parameters. However, lending institutions refer borrowers to certain appraisers when issuing a mortgage loan.
ADVICE! SROs that cooperate with credit institutions, draw up a report in accordance with the requirements of the bank. This eliminates the risk of sending the document for revision or re-registration.
The procedure for assessing a house with land
Evaluation procedure country house consists of a number of stages. The home owner negotiates the terms of cooperation with the appraiser and sets deadlines for the examination. A corresponding agreement is drawn up.
After signing the contract, the owner of the property gives the expert the documentation for the house and agrees on the date of the specialist’s visit. During the inspection process, the appraiser takes photographs of the housing and inspects the building for illegal redevelopment.
An independent assessment of the house and site is carried out based on one of the methods:
- Analog. The essence of the examination is to compare prices for such transactions throughout the year. Based on the results of the analysis, the appraiser identifies the value of the current object. This technique is used in large populated areas.
- Expensive. A special feature of the methodology is the assessment of expenses incurred by the homeowner during repairs and renovations. Cost expertise is used to establish the cost of country cottages.
- Profitable. Used to evaluate city apartments and commercial real estate. Market value is determined by assessing the return on investment in real estate.
When examining a private house and plot, the appraiser pays attention to the following parameters:
- Location of the property (infrastructure development, type of settlement, etc.).
- Condition of the building (year of construction, number of floors, area, type of building materials, condition of communications).
- The presence of encumbrances on the site and dacha.
ATTENTION! If the property being sold was purchased using borrowed money and the loan is not repaid, the owner needs to remove the encumbrance from the house and order an updated extract from the Unified State Register of Real Estate.
The validity period of the report for housing purchased with a mortgage is six months. If not only a house, but also a plot of land was purchased on credit, an additional assessment of the land is required.
What documents need to be provided
To determine the value of a home, the following documentation is required:
- A duplicate of the identity card and TIN of the owner of the property.
- Cadastral passport and.
- A document confirming ownership of the house.
When purchasing housing in a building under construction, an agreement with the developer is required.
Evaluation report
The real estate inspection report is prepared in writing. The pages are numbered, the report is stapled, certified with a stamp and signature of the SRO representative. The report averages thirty pages.
The document contains the following information:
- information about the expert and the customer;
- information about methods for assessing housing;
- information about the house being inspected;
- real estate market analysis;
- identification of the market value of the object.
The report for the bank when applying for a mortgage loan contains:
- documentation for housing;
- photographs taken during the examination process;
- market price of real estate;
- liquidation value (the amount for which the bank will be able to sell the house if the borrower fails to fulfill its obligations).
If the bank client independently chose an appraisal company, additionally the following should be attached to the report:
- Diploma in Evaluation;
- document confirming membership in the SRO;
- civil liability insurance policy.
ADVICE! The assessment customer needs to carefully study the expert’s completed report while in the company’s office. This will help you decide quickly possible questions and understand the nuances.
What can the assessed value affect?
The report of the SRO expert influences following conditions lending:
- size of the amount;
- loan term;
- interest rate.
If real cost the property indicated by the appraiser is below market value, the bank does not issue the required amount. In such a situation, the borrower needs to:
- require a re-examination;
- conduct an assessment in another company;
- apply for a consumer loan for the missing amount.
It takes three to five days to complete an appraisal and report on real estate purchased with borrowed funds.
![Bookmark and Share](http://s7.addthis.com/static/btn/v2/lg-share-en.gif)