CBI/CIP Investors and Professional Investors applying mortgage finance to leverage their investment returns share in common a couple of key challenges:

2) How to manage the process in a manner commensurate within over-all investment project constraints.

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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.

Placing a property ‘on the market'  means making it visible for sale to the buyers in the market. The Turkish market is a bit different than many countries. In Turkiye. More than 95% of all property transactions originate at ‘property portals’, not on agents websites. This means buyers and sellers find each other on property portals, not on agents’ websites or shop windows. This is a very efficient market mechanism for discovering a property’s price: it is very fast, very cost effective (cheap to do), has excellent visibility among buyers and sellers, and is very accurate. A seller placing their property for sale (a listing) on an agent’s website instead of a property portal is actually hiding their property from the general public view and buyers- because very very few buyers look at agent’s websites. And a property buyer looking for a property is actually wasting their time by searching agents’ websites for attractively priced properties because only a very very small proportion of the total number of properties are listed on agents' websites, and Turkish property owners stopped using agents over the last ten years. A buyer will never find a ‘bargain’ on an agent’s website because agents mark-up the listing prices to pocket a profit margin in addition to their commission. MyTapu Associates provides English language services to foreigners wishing to use portals to buy and to sell properties. Add the fact that English language websites in Turkiye of property agents usually have ‘foreign pricing’, which means prices are sold at a higher price tier than prices offered to local Turks, and in specific locations and agents this can be 20% higher than market prices. In conclusion, property prices shown on agents’ websites do not provide an accurate picture of ‘market value’- the property portals do. 

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