What Degree of Accuracy and Type of Valuation Report is Best for Specific Purposes? 

Not all valuation reports in Turkiye are created the same, nor equally. Different types of appraisal reports serve different purposes, valuation being only one of many purposes. 

For valuations that require Expert Witness testimony for international common law courts, the standards and criteria are more stringent than for Eksper Rapor used by courts in Turkiye. The Expert Witness reports use a Real Time Market Intelligence Supply & Demand Methodology. This methodology also serves other purposes besides use in international courts- for example, determining market value for purchase or sale of a specific residential property.

Real Time Market Intelligence Supply & Demand Methodology Report  service is provided by an Expert Witness and complies with the high standards demanded of such service for legal purposes outside of Turkiye (which are more demanding than in Turkiye, requiring the Expert valuer have higher degrees, longer duration experience, broader knowledge of methodologies applied outside of Turkiye etc). This is also the only service appropriate if there is likely to be contention, dispute, or challenge to the market valuation provided, because the valuation can be established beyond doubt with irrefutable evidence of links showing current pricing of near identical specific properties. It is also important to note that anyone challenging the valuation and doing a google search for real estate property valuations in Turkiye will see this explained on our web page in the first search result entry. For that reason, using a price averaging applied in Standard Appraisal Reports or any other type of valuation report is more likely to be challenged and a new report instructed using the above-mentioned Supply & Demand Methodology. The very precise accuracy of the Real Time Market Intelligence Supply & Demand Methodology meets Expert Witness standards outside of Turkiye. 

Best Use Scenarios: In addition, there is no substitute for the Real Time Market Intelligence Valuation Report to serve two specific practical purposes:

1) Purchase Transaction: The market valuation shows the price above which a competing property is a better value choice for a buyer and likely to be purchased first;

2) Setting the Sales Price: The market valuation shows the price above which a competing property is offered and likely to be sold first.

a)not just a faster sale, but also:

b) a reduction in valuation costs of instructing a more accurate second valuation.

Alternatives:

However, the service is very labour intensive and time consuming (15-20 hours on average), and may not be the most appropriate type of report for all purposes. In the above two scenarios, the difference in valuation price can be thousands, and so the additional work is justified. In other scenarios, the difference in valuation price may be less important, for example, in the context of the over-all valuation of divorce parties’ assets, or of an estate in probate  In order to understand whether the time and work of a very precise market valuation is justified, MyTapu Associates provide an Initial Assessment Report Service, which recommends the degree of accuracy that is ‘material' for a court’s purpose, (which the court can then review to make a determination, when provided by an Expert Witness), and which type of valuation report is most appropriate for the intended purpose. The standard variance range of 40% in valuation accuracy of Standard Appraisal Reports in Turkiye is never likely to be approved for court purposes outside of Turkiye, unless and until it can be shown the degree of variance is likely to have minimal material effect in the context of the total overall valuation of all assets of the parties or in the estate.

For additional information, please reach out to info@mytapu.com requesting additional information about the Initial Assessment Report Service.