Are Property Prices in Turkiye Artificially High ?

In specific locations, property prices in Turkiye are artificially inflated. The reason for this is because appraisal companies place a higher priority on preparing appraisal reports at the lowest production cost, and not on the highest degree of valuation accuracy. Transaction data is not readily nor easily available, so appraisal companies do not do the extra work required, and instead use an easier method, of relying on sales listing prices. In the present circumstances appraisal report property valuations reflect property listing ‘for sale’ prices’. The result is that optimistic sellers base their sales listing prices on the overly ambitious expectations of other property sellers- a common phenomenon that artificially inflates sales listing prices to unrealistically high levels, which is revealed by the length of time properties remain unsold (and why sellers constantly change and update the date of their listings shown on portals to the most recent month, from the original listing date, which is usually many months prior. In specific locations, primarily those where the majority of sellers are non-Turkish, this results in listing prices and the prices shown on appraisal reports being so high as to be described as ‘pure fantasy’. The artificially high prices are exacerbated by the practice of agents inflating their listing prices 10-20% above a sellers intended listing price, so that the agent gains a hidden profit margin mark-up. This will change when transaction price data is supplied by tax authorities to the the land registries, and will likely result in a decline in property valuations by 15-30%, and a more accurate reflection of transaction values. In specific locations, the variation in residential property valuations is in a 20-30% range, depending on the urban density and other characteristics of specific locations (and not due to the common practice of intentional understating transaction values to reduce taxes).  A 20-30% range of variation makes the valuations in the standard appraisal reports of limited usefulness, for the other very important purposes that involve other aspects of appraisals, but not for the specific valuation purpose and use. The experts at mytapu.com have addressed these market inefficiencies by applying specific solutions for the preparation of valuation reports for each of the most commonly required uses..For example, the same previous link provides reports for a seller that wants to be sure of being 'first in line' to sell a property in less than a year, or a buyer that wants to find the most reasonably priced property of a specific type, size, quality, location, etc