mytapu.com - Articles #Eksper appraisal valuation property reports Istanbul Turkeymytapu.com - Articles #Eksper appraisal valuation property reports Istanbul Turkeyhttps://www.mytapu.com/blogs/tag/eksper-appraisal-valuation-property-reports-istanbul-turkeyMon, 20 Apr 2026 23:37:57 -0700http://zoho.com/sites/<![CDATA[Turkiye Real Estate Citizenship Investment & Price Risk Analysis]]>https://www.mytapu.com/blogs/post/turkiye-real-estate-citizenship-investment-price-risk-analysisPrice Risk Analysis- ‘Premium to Market Value’… for Turkiye Real Estate & Citizenship Investment... Investment Performance is determined by Entry Pricing and Resale Exit Pricing, and the Choices may be Summarized in Three Categories…]]>

Price Risk Analysis- ‘Premium to Market Value’… for Turkiye Real Estate & Citizenship Investment... Investment Performance is determined by Entry Pricing and Resale Exit Pricing, and the Choices may be Summarized in Three Categories… 

Citizenship Investors & Price Risks


In this article...


Price Risk Analysis


  • Entry vs Exit Prices
  • Two-Tier Pricing
  • Location Limitations
  • Investment Choices
      • High-End…
      • Low-End...
      • Mid-Market…


Price Premium - Lifestyle Security vs Capital Protection

Citizenship Investors in Turkish real estate benefit from obtaining lifestyle security for travel and living. This security is not strictly measurable by simple investment return calculations, but does not mean an investor should be prepared to pay any price, if that investor intends to protect capital and preserve family wealth.

Two-Tier Pricing

Whilst entry level pricing may be at a premium for a foreign buyer, exit pricing will not be, because resales are only permitted to local Turkish buyers. Thus it is important to avoid expectations that the resale price will be at the same higher level of prices that exist for foreign buyers in Turkiye’s two-tier real estate pricing dynamics.

Location Limitations

In addition, investors should be aware that the best residential investment locations have now been excluded from CIP/ CBI application acceptance due to new regulations introduced mid- 2024

Investment Choices

Investors now typically have a choice of investment returns characterized by three types of residential real estate.

High-end…

...with prices starting above the $400,000 threshold in the $750,000 - $1,000,000 + range. These are truly elite districts where an abundance of wealthy Turks, often with multi-generational wealth, re-invest profits from older top end properties into newer top end properties. The locations are highly desirable and limited supply results in ‘compression', where green-field sites of raw land for construction are not available, and only redevelopment and reconstruction, tear down and rebuild, is available. These investment properties are never encountered by an investor scanning websites of English speaking agents, because the local demand and elite pricing precludes foreign investor participation. As in other real estate markets world wide, the long-term investment/ return profile of these assets is far better than any other market segment, through-out macro-economic cycles. Downside risk is the lowest (yes lower than slums) and upside performance is the steadiest, most liquid, and incessantly ongoing- limited supply is always less than the increasing demand, in a world where the wealthiest continue to get wealthier, faster than others. If an investor’s budget permits, MyTapu Associates are happy to assist with accurate, verifiable and reliable investment research to identify the best assets available to an investor to choose from, with the Property Search & Selection Service. To be clear, this is Independent Professional Investment Advice, and not a service where a developer pays MyTapu Investment Advisors to recommend their property to investors- unlike estate agents, etc

Low-end...

... arguably described as affordable housing, the properties are typically built on lower cost green-field sites where constructors may maximize their profits. These properties are generally not considered desirable lifestyle locations by local Turks. Furthermore, the vast supply pipeline of projects completed and in development assures no or limited exit price increases due to supply and demand. The investment profile is typically 10-15% downside and 0-5% upside over a three years CIP / CBI holding period. Entry pricing is important in order not to shift this profile further into unprofitability. Over-priced for the location, and having resale exit price expectations at best of recouping the purchase entry price, perhaps with a slight uplift, but not a commensurate return on capital available in other real estate segments, nor asset classes. The key to protecting capital is to identify the property on offer that is the smallest premium to true market value, thereby minimizing exit price risk. The Market Price Reports available from MyTapu Associates are key to measuring the entry price’s premium to true market value, which is the key determinate of investment performance, since resale exit price upside is limited to non-existent over the CIP/CBI holding period. 

Middle-Market…

...these properties typically rely on misleading descriptions of various sorts, often related to their location, often referred to with a desirable upper tier location name, when in reality they are not in that location. The premium pricing they are offered at makes this segment the riskiest. The premium to true market value is usually in excess of 20%, and so the investment profile is the least favourable, simply because prices are highly unlikely to achieve that amount of uplift over the three year holding period. Instead, if the uplift is only 10%, the investor will suffer 10% loss of capital when selling at resale exit market prices.  For a longer holding period of 5-15 years, the uplift potential may typically be greater than the low-end segment, but the certainty of such an expectation is in doubt.  TheMarket Price Reports available from MyTapu Associates are key to quantifying the resale price risks.

Specific Factors

As ever, investment performance also depends on factors specific to each property, and holding periods, rental yield.supply & demand, ongoing condominium management fees, etc  and our investment reports address such issues.


Please contactinfo@MyTapu.com for further information today, about Price Risk Analysis.

 

The specialists at MyTapu associates are qualified, licensed, experienced investment advisors, The Value of Trusted Investment Advisor has never been greater, and does not include ad-hoc advice from unqualified citizenship consultants, real estate agents. property lawyers, bankers, etc - these are not qualified investment advisors.

 


Additional Reading- Articles and Web Pages...



    Read more summary overviews on web pages....






    Every property owner in Turkiye has a tapu, and that is why we named our business my tapu...

     

    At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

     

    Building Trusted Relationships is Building Our Business...!

     

    #CBITurkey #YurkiyeCIP #TurkiyeValuations #TurkeyAppraisals #mytapu mytapu #Property #Turkey #Secrets #Success #Howto #Steps #Price #Valuations #LegalHelp #DueDiligence mytapu.com #mytapu.com  #TRUST #testimonials #REFERENCES #scam #legit #reviews #complaints #checks #review #experience #customer #client  #mytapu.com #trustpilot #scamadviser #fees #corruption #my #Tapu #TurkeyProperty #PropertyTurkey #RealEstate  #Turkey  #property- #online #on-line #portals 

    ]]>    Wed, 07 Jan 2026 18:00:16 +0300    <![CDATA[Property Prices in Turkiye]]>https://www.mytapu.com/blogs/post/property-prices-in-turkiyeHow Much have Residential Real Estate / Property Prices increased in Turkey during the last Five Years 2019-2025 ?]]>

    How Much have Residential Real Estate / Property Prices increased in the last Five Years?
    ​2019-2025 

    Mis-Leading Information:

     

    The price increases of Turkish properties during the last five years, as reported by press and on the internet, are generally misleading. 


    This is because:

    1. There is no official registry or data source of property transactions in Turkiye.
    2. The data that does exist generally is for prices shown on sales listings and not factual transaction prices.
    3. The reporting provided by press usually relies on property price indexes, with methodological and statistical defects including::
    • a).The data is not accurately  ‘cleaned ‘ and adjusted for Turkish Lira currency devaluation, which drives inflation, but instead is inflation adjusted, which leads to significant material inaccuracies over a five year period.
    • b).The use of price averaging from which the idiocies are derived, does not provide an accurate reflection of pricing generally, because it is not weighted for volume, nor weighted for a variety of other qualitative factors that is necessary for accurate analysis, including age, finishing standards,  location, permitting compliance, etc

     

    Regrettably, the appraisal/valuation experts in Turkiye are neither trained nor qualified in the disciplines required to analyse and assess such issues, which generally requires additional multi-disciplinary knowledge, usually at a higher level, such as post graduate and PhD degrees in data science, statistics and price discovery analytics of econometrics.

     

    For the reason of these inaccuracies, the valuation experts that do apply a multi-disciplinary approach at MyTapu Associates, are hqppy  to share an occasional look at property price data that derives from their work as International Expert Witnesses for international courts.

     

    Property Example: Alanya, Oba 2+1 90m2. 17 yrs :

    One such example provides key insights of price performance for a two bedroom apartment in a relatively contemporary, better than average location in central Alanya, Antalya District. By applying proprietary techniques for data sourcing, retrieval, collation, and analysis, the Expert succeeded in determining with a high and more than acceptable degree of confidence, the market value price, - not listed sales price etc not average price, etc 

    Prices at June 2019:

    As at the specified date of June 2019, the market value price of properties in the 2+1 format, and 90 m2 size, was established as Eur 134,000 with the variance of properties in the range having a high Eur 147,000 of and a low of Eur 113,000. Coincidentally, the market value established independently by proprietary techniques and not statistical benchmarks, was very close to both statistical mean and median.

     

    Notable among the data points of factual transacton prices, was the 23-25% discount to sales listing prices that the properties were transacted at. This corresponds to price studies at the time in the 2017 –2020 period, that showed property prices declining significantly after the 2017 peak, despite sellers' expectations of prices maintaining upward momentum. Such lagging expectations  is a common feature, as a  psychological characteristic of residential real estate pricing dynamics.

     

    Prices at November 2025:

    A simpler, un-verified, general and fast survey of present day sales listing prices, for similar property assets as at November 2025, revealed a high of Eur 203,000 and low of Eur 158,000. This is a simple approximate estimate from a Survey of Prices – an Expert Witness Report provides very specific results using proprietary data sourcing, collating, analytical, and valuation techniques, to ascertain true market value of existing supply and demand, not averaging, indexing, nor other  statistical conveniences that produce misleading results. This is especially an important factor for properties that are uniquely advantaged, 

     

    Discounts of 15%-25% reported, are somewhat more compressed than 2019.


    Price Increase 18% - 21% in Eur

    Thus by rough general observation, Eur prices for property example, appear to have increased by approximately 18% - 21% in Eur terms during the six year and five month period June 2019 to November 2025. No other  adjustments, for qualitative factors, nor for seasonality nor other non-recurring supply demand factors were applied.

     

    Relying on a linear average annual appreciation rate of 3% is mis-leading, due to the continued decline of prices through 2020 to 2022, followed by a surge in prices there-after in periodic waves, reflecting periodic increases in demand from domestic Turkish life-cycle and metropolitan urban exodus trends, and foreign buying due to geo-political instability in other regions, notably in other countries to the north and east of Turkiye.  It would be inaccurate to conclude the Alanya experience is representative of wider Turkish property prices in general, for example in Istanbul, because Alanya is a location that has likely experienced above-average impact of these trends.

     

     

    Conclusion

    So yes, prices have increased in this specific format and location in Alanya over the last five years. The specific location and format determines specific property increases, and in general it is not accurate to say the above 18%- 21% gain is representative of Turkiye in general. In specific property profiles the gains will have been more, such as those benefitting from location compression and life-cycle demographics, as these benefit from mor5e aggressive dollarization of prices. For other property profiles the performance will have been less, considerably so where prices continued to be pressured downward by over-supply as pertains to specific regional satellite locations around Istanbul and other cities that have experienced large new-build urbanization on greenfield sites.  More reading aboutproperty prices in Turkiye...

    Which is the Best Type of Valuation Report ?

    Choosing the right type of valuation report in Turkiye depends on what the reports use will be, Learning more about the various uses, and the best type of report for each use can be learned here…. 


    The solution in 2026 for finding accurate, verifiable, reliable property valuations based on market prices is here...


    ***

    Additional Reading- Articles and Web Pages...



      Read more summary overviews on web pages....






      Every property owner in Turkiye has a tapu, and that is why we named our business my tapu...

       

      At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

       

      Building Trusted Relationships is Building Our Business...!

       

      #mytapu mytapu #Property #Turkey #Secrets #Success #Howto #Steps #Price #Valuations #LegalHelp #DueDiligence mytapu.com #mytapu.com  #TRUST #testimonials #REFERENCES #scam #legit #reviews #complaints #checks #review #experience #customer #client  #mytapu.com #trustpilot #scamadviser #fees #corruption #my #Tapu #TurkeyProperty #PropertyTurkey #RealEstate  #Turkey  #property #propertyprices - #online #on-line #portals #Tax #Property #Turkiye 

      ]]>      Fri, 12 Dec 2025 21:18:30 +0300      <![CDATA[At Which Step of the Property Purchasing Procedure is it Most Beneficial to check for the Most Commonly Occurring Risks ?]]>https://www.mytapu.com/blogs/post/at-which-step-of-the-property-purchasing-procedure-is-it-most-beneficial-to-check-for-the-most-commo… Secrets of Success: The Four Stages for Buyers Investing in Residential Real Estate Property in Turkey: Keys steps within Stage 2 of the Property Finding Procedure…]]>

      … Secrets of Success: The Four Stages for Buyers Investing in Residential Real Estate Property in Turkey:  Keys steps within Stage 2 of the Property Finding Procedure…


      Investors choosing the Property Finder service have the added advantage and benefit of integrated procedures for checking if the most commonly occurring risks are present on a property in the most effective manner....


      • Checking if the most commonly occurring cadastral risks are present on a property, is best done during the Property Finding procedure, before any discussion of viewing appointments, contracts, reservations deposits, advance payments, etc
      • Checking if the sales price of the property is at fair market value, or instead has been inflated by a mark-up, is also best done during the Property Finding procedure, before any discussion of viewing appointments, contracts, reservations deposits, advance payments, etc

                                      

      Otherwise, if a buyer doesn’t perform these checks for the most commonly occurring risks,  the seller or his agent will use all available means, to mislead the buyer into committing to the purchase, with one tactic or another, including real, imaginary, fictitious, and/or psychological .

                                      

      Before paying for and instructing anything for the property, it is advisable to first check IF the most commonly occurring cadastral risks do exist with a property, and if the second most commonly occurring price risk exists (artificial price mark-ups), because if risks are unacceptable, there is no point paying for anything because such costs are un-recoverable, without unexpected, additional legal costs of litigation.

      The Four Stages for Buying Property in Turkiye

      Solutions: Preliminary Due Diligence PLUS+ Short Form Price Reports..

      The most commonly occurring cadastral risks can be identified and checked in advance with Preliminary Due Diligence service (read more here)....

              

      The  ever-present risk of artificial price mark-ups, can be identified and checked with the Short Form Price Indication report.

              

      So the sequence of steps beginning in the Property Finding (Stage 2), are:

      a)        Preliminary Due Diligence first, and if no risk, then:

      b)         Short Form Price Checks next… 

              

      …followed by viewing appointments, negotiations, contracts (if desired,  but not essential IF local procedural alternatives that are better, are applied instead)  and Appraisal Reports at the end as part of Completion and Conveyance Procedures.) .

              

      Yes, it is sensible to complete the Short Form Price Check report immediately after the Preliminary Due Diligence risks have been assessed. 


      Over paying on the purchase price by 10% - 50% is the second most common risk international buyers encounter.



      One Key Insight into the Secrets of Successful Real Estate & Residential Property Investing in Turkiye… 


      ...and Why our Customers are so Happy with our Services…!

      Especially Relevant when Considering the Alternatives... ! Relying on free information on the internet can be misleading.. often it is worth less than was paid for it... Nothing !  ... worse...damaging !

      Independent Professional Advice has value and is usually not freely available...

      Where to Find Information … ?

      …the highest ranked internet search entries (those that a searcher sees at the top of the first page) contain factually incorrect and inaccurate information.

      Why do Internet Searches result in Misleading Information …?

      … because the results rely on huge volumes of free and inaccurate information, without the qualified knowledge, nor years of practical experience, of a bonafide expert .

      How does the False Information Arrive on the internet…?

      … Agents’ Practices, Social Media, Blog References & Discussion Boards, Information Created by Artificial Intelligence (AI)…

      How do Internet Search Engine AI Algos Learn which Information is Correct…?

       …they do not and can not… they rely on authors to provide gradually more accurate and correct information to protect and enhance their brand reputation………

      Why Does Factually Incorrect and Inaccurate Dominate Search … ?

      ….because the AI algos are very good at structuring the presentation of huge volumes of  information (usually freely available and often misleading)…but have no access to professional advice which is not freely provided on the internet…

      Where to Find Factually Correct and Accurate Information … ?

              … a more trusted source- word of mouth referrals from off-line communities….

      Independent Professional Advice…        

      When the world’s largest, smartest, and best performing investors want advice, where do they find it? …do they rely on agents without specific degrees, reputable experience, or professional licenses… ?

      Additional Reading:


      Customer Reviews and References for MyTapu 


      Second Passports & Wealth Economics: Maximum Benefit for Minimum Cost: Turkey's Citizenship Investment Program (CBI / CIP


      Residential Property Investors Tool-Kit for Turkey

      Property Finders Service Istanbul and Coastal Turkey,

      Citizenship Investment in Turkey 

      Conveyancing

      The One Source for Every Turkish Mortgage

      Legal Services for Property Matters in Turkey

      Advice for Property Matters in Turkey 

      Valuations

      Property Price Histories in Turkey


       Why Istanbul Lifestyle Retains its Allure for Real Estate Investors…
















      Keep informed about property matters in Turkey, with articles like this one…sign-up for our periodic Newsletter...

       

      Every property owner in Turkiye has a tapu, and that is why we named our business my tapu...

       

      At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

       

      Building Trusted Relationships is Building Our Business...!

       

      #mytapu #TRUST #testimonials #complaints #REFERENCES #scam #legit #reviews #checks #review #experience #customer #client  #mytapu.com #trustpilot #scamadviser #fees #corruption #my #Tapu  #TurkeyProperty #PropertyTurkey #RealEstate  #Turkey  #property #Sell #Property-for-Sale-by-Owner-in-Turkey #Turkey #Property #Sale #online #on-line #portals 
      ]]>      Mon, 18 Dec 2023 15:23:09 +0300      <![CDATA[Buying Turkish Property- Why use an Eksper Rapor ?]]>https://www.mytapu.com/blogs/post/Precautions-for-Eksper-Appraisal-Property-Reports6Precautions for Property Valuations in Turkey]]>
      Valuation &amp; Appraisal Reports for Turkish Property- Eksper Rapor


      At mytapu.com, business for foreign buyers is done a new and better way. 


      A way that is much safer for buyers.


      How? 


      Simply by requiring the seller to provide an expert appraisal report from a licensed and certified appraiser, called an Eksper Rapor, before the property purchase transaction begins, and  not at the end  of the transaction - which means before discussing or negotiating the price, advance payments, etc. 


      Step1: The Eksper Rapor provides all the essential information required in a standard legal search. With this report in hand, buyer’s rest assured all essential, information about permits, ownership, cadastral, and structural details have been checked. 


      Step 2: Next step is then to  obtain confirmation that the checked information is what is required to qualify the property as being safe and secure for investment, and for this a independent professional specialist and expert (not the agent or lawyer  referred) should be relied upon, because the report itself provides information but does NOT guarantee that information is acceptable and meets requirements - for example about permits. An experienced independent expert will need to perform the due diligence on the information provided in the report to determine the acceptable status of the various detailed information provided in the report- and there are many surprising aspects where this is essential (legal, cadastral, planning permits, flood plains, construction conformity with regulations, etc.) Due Diligence by an independent expert is essential.


      The experts at mytapu have been advising foreign investors to obtain expert appraisal reports since 2007, and recently the Turkish authorities also adapted the practice, by introducing a new regulation requiring international non-Turkish buyers to be provided with a report for their property purchases. 


      This is why Turkish buyers from Istanbul and Ankara use mytapu.com when buying property in Turkey, and retirement homes on the Turkish Riviera….So if you have found a property, and want to make sure it’s safe to buy, tell the experts at mytapu.com, and they will do the rest.…


      Keep informed about property matters in Turkey, with articles like this one…sign-up for our periodic Newsletter here…or here…

       

      At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

       

      Suggested Reading:

      Residential Property Investors Tool-Kit for Turkey

      Property Finders Service Istanbul and Coastal Turkey,

      Valuations and Appraisal Reports

      Due Diligence and Legal Checks

      Citizenship Investment in Turkey 

      Conveyancing

      The One Source for Every Turkish Mortgage

      Legal Services for Property Matters in Turkey

      Advice for Property Matters in Turkey
      All Articles

       

      Building Trusted Relationships is Building Our Business...!

      See What Our Clients Say About Us...




      ]]>      Sat, 12 Aug 2023 01:27:00 +0300      <![CDATA[Precautions for Eksper Appraisal Property Reports...]]>https://www.mytapu.com/blogs/post/Precautions-for-Eksper-Appraisal-Property-ReportsPrecautions for Property Valuations in Turkey]]>
      An Eksper appraisal valuation property report ensures only that these issues are identified and made known to the buyer. What the buyer chooses to do with that information is entirely their responsibility. Independent professional advice is essential….

      Updated Oct 5 2023  An Appraisal Report provides many types of factual information about a property, including a valuation.. The report does not state whether that factual information about the property is legally acceptable for buying the property. To understand what is acceptable, and what is not acceptable and likely to cause problems in the future, the advice of an experienced professional is ESSENTIAL. And if the report is in Turkish and the buyer does not speak Turkish, then it would be very risky for a buyer to believe what an agent, developer, or seller, translates the report as saying.


      In the last couple of years many, many agents have added webpages about valuations to their websites and these are designed to show in search results. The vast majority of the information provided is inaccurate, incorrect and misleading. In some cases the web pages offer insights into the correct valuation methodology, but the information provided usually refers to short cuts that are acceptable in specific circumstances, but are generally not applicable in 90-95% of circumstances. In specific cases it appears the agent has added ad-hoc comments about a specific case provided by a valuation expert and then applied these comments in general to the webpage, unable to understand their error, due to their limited knowledge of the subject. To be clear, valuations are based on 'market value', and this is a definition derived from theoretical economics and applied to appraisal practice with various guidelines - simply applying a specific guideline to all situations is incorrect and misleading. This same type of error is frequently made by appraisal and valuation experts, having retained a specific guideline from memory, but unable to apply it correctly due to their lack of knowledge of theoretical economics. 


      And just as importantly, appraisal reports must provide information about a list of items. However, the information provided may not always be consistently clear: it may be phrased to be a little unclear, or ambiguous, general, and subject to interpretation. In other words, it is possible to communicate information in ways that comply with reporting requirements, but are not 100% clear, and require further clarification. In the Turkish language, there is an entire grammatical tense that provides this way of expressing things !


      An experienced advisor will know in advance which issues are likely to be a problem, for specific types of properties, in specific locations, with specific types of sellers; and can instruct the Eksper in advance about specifically how much detail about such items the Eksper should provide in the report.


      An Eksper appraisal valuation property report ensures only that data and information is made known to the buyer. What the buyer chooses to do with that information is entirely their responsibility. Independent professional advice is essential…. For these reasons it is important to request an Eksper rapor directly from the appraisal experts at mytapu. If mytapu has instructed the licensed Eksper that is making the report, then mytapu can request clarification, alterations, etc, to the report. If mytapu has NOT instructed, mytapu can NOT. So it’s important to have mytapu instruct the Eksper company, and apply oversight to the methodology they apply: this is what is meant by ‘quality control’. That way if anything things need checking out or clarifying, the Team at mytapu can take care of it for you, before you stumble into buying a property which isn't what you thought it was....


       

      Find out more about the mytapu.com way today. 

      A Safer, Smarter, Better Way to Buy Property in Turkey.

       

      Additional Reading for Buyers:


      What is mytapu.com ?
      Buy Property in Turkey? But why?
      Why Istanbul Lifestyle Retains its Allure for Real Estate Investors…

      Istanbul Life is the Choice for Turkish Citizenship Property Buyers…

      What a Good Property Investment in Turkey Looks Like...
      How to Find Property to Buy in Turkey?
      Mytapu.com: Why is it ‘The Safe Way to Buy’ Property in Turkey?
      The Smart Way to Find the Best Property Deals in Turkey
      How to Buy Property in Turkey for a Bargain...
      Buy from an Agent or with a Property Finder?
      Three Simple Reasons to use a Property Finder....
      Buying Turkish Property- Why use an Eksper Rapor ?
      Are Appraisal Valuations in Turkey Understating Property Prices?
      Independent Legal Advice for Property Purchases in Turkey
      ‘Reservation Deposits’ for Property Purchases in Turkey…
      Property Purchase Disputes in Turkey- Re-claiming Reservation Deposits
      What is 'Conveyancing' and why is it essential?
      When or When Not to use a Solicitor for Property Matters in Turkey

      All Articles


       

      Keep informed about property matters in Turkey, with articles like this one… sign-up for our periodic Newsletter here…or here…

       

      At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

       

      Building Trusted Relationships is Building Our Business...!

      See What Our Clients Say About Us...

      ]]>      Sat, 12 Aug 2023 01:27:00 +0300      <![CDATA[Are Appraisal Valuations in Turkey Understating Property Prices?]]>https://www.mytapu.com/blogs/post/Are-Appraisal-Valuations-in-Turkey-Understating-Property-Prices


      Non-Turkish property purchasing investor in Turkey: ' We were recently told by an estate agent in Turkey that the valuations of property provided in appraisal reports are 30% less than market prices….  That means if our family want to make a property investment of $250,000 to obtain citizenship and passports, we need to be paying about $350,000 because the valuation will be 70% of 350,000, which meets the minimum requirement $250,000. Can this be true? 


      Fortunately we found local experts to help us with this, and what they told us is ... '


      This is NOT true, and many agents will say such things because they know very little about professional real estate practices, and focus instead on saying what-ever is necessary to maximise their commissions and profits - and the 30% often reflects their hidden marked-up profit margin. . The reason it is not true is very simple: the valuations provided in appraisal reports are based on real world market price comparisons of three property sales  in the last 90 days paid for property in similar location, size, and finishing quality, to the property being valued.


      So the price the valuation price is based on actual sales prices in the market - it is a market price.  Most agent do not know this, just as they know very little about other aspects of real estate business, unlike the surveying profession which receive years of education and a degree, and unlike the valuation experts themselves, that receive training, pass exams, and receive licenses from the Capital Markets Regulatory Board of Turkey.


      In their ignorance agents also confuse matters. An appraisal report prepared for a bank for mortgage financing purposes will have more than one valuation reported: the market value; the forced sale value; and liquidation value.  In some instances a bank lender may stipulate the liquidation value to be set at a 20% discount from the market value. And an estate agent may become confused by this.


      In some cases it is also possible that an official appraiser is under pressure to complete reports quickly. The appraisal eksper may not research the local market adequately, with the time necessary, to find the most recent and best three property sales comparisons.  And so the valuation price reported may not be the most accurate. Often times this is because there is no simple fast way, or place, to find a record of the most recent sales transactions. This situation happens more often in quiet, small, coastal communities.


      Fortunately again, there is a solution available, for a property seller that wants to ensure his property receives an accurate valuation, and thus receives an optimal, and  accurate bid from a buyer. The experts at mytapu.com provide a ‘quality control’ service to address this shortcoming in appraisal reports. A seller that wishes to maximise the valuation of their property, is advised  to instruct this ‘quality control’ work BEFORE a buyer requests an appraisal report, as having the ‘quality control’ performed after the appraisal report is completed, is far more difficult and expensive. This is especially important if the property owner is hoping to sell to a foreign buyer, because as of March 2019, it is a mandatory regulatory requirement that all foreign buyers must be presented with an appraisal report ( Gayrimenkul degerleme eksper raporlar ) before completing the purchase of a Turkish property.


      Simply by requiring the seller to provide an expert appraisal report from a licensed and certified appraiser, called an Eksper Rapor, before the property purchase transaction begins, and not at the end of the transaction - which means before discussing or negotiating the price, advance payments, etc. 


      Step1: The Eksper Rapor provides all the essential information required in a standard legal search. With this report in hand, buyer’s rest assured all essential, information about permits, ownership, cadastral, and structural details have been revealed and disclosed.. 


      Step 2: Next step is then to  obtain confirmation that the checked information is what is required to qualify the property as being safe and secure for investment, and for this a independent professional specialist and expert (not the agent or lawyer  referred) should be relied upon, because caution is required...  the report itself provides information but does NOT guarantee that information is acceptable and meets requirements - for example about permits. An experienced independent expert will need to perform the due diligence on the information provided in the report to determine the acceptable status of the various detailed information provided in the report- and there are many surprising aspects where this is essential (legal, cadastral, planning permits, flood plains, construction conformity with regulations, etc.) Due Diligence by an independent expert is essential.


      The experts at mytapu have been advising foreign investors to obtain expert appraisal reports since 2007, and recently the Turkish authorities also adapted the practice, by introducing a new regulation requiring international non-Turkish buyers to be provided with a report for their property purchases. 


      Don’t believe agents, ask an expert… 


      Keep informed about property matters in Turkey, with articles like this one…sign-up for our periodic Newsletter here…or here…

       

      At mytapu.com our policy is to ensure our clients are fully informed, so that they may make fully informed decisions- this helps to ensure better outcomes all around. 

       

       

      Building Trusted Relationships is Building Our Business...!

      See What Our Clients Say About Us...




      Additional Reading for Buyers:

      Residential Property Investors Tool-Kit for Turkey

      Property Finders Service Istanbul and Coastal Turkey,

      Citizenship Investment in Turkey 

      Valuations

      Due Diligence

      Conveyancing

      The One Source for Every Turkish Mortgage

      Legal Services for Property Matters in Turkey

      Advice for Property Matters in Turkey
      All Articles



      Additional Reading for Sellers:

      Legal Work on Property Matters

      Property Selller’s  Tool-Kit for Turkey

      ShowCase Solutions

      Digital On-Line Sales Distribution

      Peer-to-Peer On-Line Exchanges

      Conveyancing & Completion

      Advice for Property Matters in Turkey

      All Articles





      ]]>      Fri, 12 Apr 2019 05:57:41 +0300