How Accurate are the Property Valuations provided by Expert Appraisal Reports ?  

The reasons why this situation of inaccurate valuations has arisen, is described briefly here... 

For checking the market value of a property there are fortunately alternative and better solutions …

The most common reason why Expert valuation Reports are not accurate is because the reports now use price averaging as a shortcut, which distorts the valuation…. 

The key factors can easily result in difference in value vary by more than 30%:

• Specific Location: prices may vary from one location to the next and for that reason it is very important to focus on a specific location, not just the name of a town, for example Bodrum, but also the specific district of that town and specific neighborhood, for example, Turkbuku compared with Gumbet.
• Quality of internal and external finishing and materials is another factor.
• Age of building: a building 20 years old or more in some locations will be 20-30% less than a building less than 7 years old.
• Permits: buildings without utilisation licenses also are between 5% and 30% cheaper than buildings having licences, depending on the specific location.
• Floor space: the size of internal and external built area also results in distorted the valuation.

The short-cut of using price averaging is done by taking the average price per square meter of a property in the region (not specific location) and multiplying it by the number of square meters of a property. This procedure does not accurately account for the different factors mentioned above, and produces a very misleading valuation, rarely more accurate than 20% to 30% variance, higher or lower, from a true market valuation, which is too wide a margin of error to serve meaningful purpose.

For checking the market value of a property there are fortunately alternative and better solutions …