Property Valuations in Turkey:

Real Estate Appraisal Reports in Türkiye...

Gayrimenkul Değerleme Eksper Raporları....

Members of mytapu.com management were on the advisory team appointed by the World Bank Institute and the OECD in the mid 1990's to assist the Turkish Government's Land Registry Modernisation Program which included the creation of the real estate appraisal system and the professional standards of certified appraisers that function today in Turkey.

Appraisal Reports are Now Mandatory for International Buyers of Property in Turkey....

Turkey’s Tapu and Cadastral Administration’s regulations now require appraisal reports for the purchase of real estate by foreigners / international buyers / buyers that do not hold a Turkish passport..


The purpose of introducing regulations requiring international buyers to obtain appraisal valuations is to REDUCE FRAUD...


There are many types of fraudulent practices that are common... artificial price mark-ups of 20%+ (agents' undisclosed profits) and deception about permits are two of the most commonly occurring.... 


A buyer is advised to apply Due Diligence at the first step of the purchase process to avoid and prevent these fraudulent practices...


A buyer must be prepared to negotiate on price to avoid and prevent paying 20-40% above market prices, and the valuation reports we provide are the most accurate available in the market, typically enabling the buyer save 20-40% on the negotiated property purchase price....


Negotiation and Due Diligence needs to be done before paying any reservation deposit or advance payment... 


The Secret to Successful Property Investing in Turkey is revealed here....

Statutory Appraisal ​Report - Now Required by Regulations for ALL Foreign / International Buyers

Several years ago a new regulations were introduced requiring seller's to provide official appraisal reports to foreigners / international buyers before completing a sale. The purpose of the regulation was to reduce fraud, ensure foreign buyers receive a fair deal, and reduce tax evasion, and serves to target the two primary malpractices: 

1) Non-disclosure or misleading information provided about the stage of permits a property has been granted, a problem that has impacted up to 95% of foreign buyers at different periods during the last 15 years.
2) Artificial price mark-ups on properties sold to foreigners: it was, and still is, common practice for prices of properties to be marked-up 30% to 40% when being offered to sale to foreign / international buyers.

At the time the regulations were introduced the officially mandated price of the report ranged from the equivalent of $800 to $1300, depending on the size of the property.. However, with the passage of time and rapid depreciation of the Turkish Lira, the US Dollar equivalent price is now in the range of $200 to $400. To continue in business, appraisal companies embarked on cost cutting measures, resulting in a decline in accuracy and reliability of the valuation and permitting information in the reports.

The information in a report about permits is obtained by data scraping from official sources. However there are an increasing number of instances where the data provided is contradictory or conflicting, and for this reason it is essential to have the reports assessed by an independent professional with experience of permit granting procedures. NOTE: The official reports do not state the property is 'safe to buy', is 'approved', or whether it is legally approved for residential dwelling. Such claims are intentionally misleading, and a buyer would be well advised to seek alternative advisors..

The information in the officially required report format about valuations and prices is no longer reliable and accurate, due to cost cutting measures by appraisal companies, resulting in the reports rarely containing accurate data nor following the correct methodology. The most common failure results from using average data, which can result in market price valuations inaccuracy often of 10% to 20%m due to the many different factors that effect the market price of the lowest priced properties in comparison to the highest price properties.

It regrettably still remains a widespread practice to artificially mark-up the price of a property being offered to sale to a foreign buyer by 30% to 40% more than the price offered to local Turkish buyers.  Sellers, developers, agents, the buyers' attorneys and others share the mark-up profits. It is possible appraisal experts have received a share as an inducement to state incorrect prices, and for this reason a new regulation is in the process of being introduced, to assign the appraisal expert without the knowledge of the seller, agent, etc but when this regulation will be implemented everywhere (at all land registries)  is uncertain..

In furthering the intended deception, It is a widespread practice of agents, sellers etc to advise the foreign buyer that the official appraisal report valuations understate the price of a property by 20% or more, which is misleading.  A bank instructing the appraisal company to apply a 10% to 20% discount off the market price to reflect 'liquidation value' in a forced sale condition to be completed over a 30-90 day period, is something entirely  different, and not an applicable comparison, of  ',market value' to 'liquidation value' 

For the reasons above, the official appraisal report must be obtained - but should NOT be relied upon as a substitute for precautions to achieve due diligence on permits OR market price.

To serve investors with solutions to the above problems, the Team at mytapu.com now provides a range of valuation reports serving specific purposes, as shown below

​A Valuation Report is Most Valuable at Which Step of the Purchasing Procedure for Property in Turkey ?


Checking if the sales price of the property is at fair market value, or instead has been inflated by a mark-up, is best done with a Short Form Price Indication report(see below) during the Property Finding procedure, before any discussion of viewing appointments, contracts, reservations deposits, advance payments, etc.  Otherwise, if a buyer doesn’t check,  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 the Price Check with a Short Form Price Indication report, it is advisable to first check IF the most commonly occurring risks do exist with a property, because if risks are unacceptable, there is no point paying for the Price check and Appraisals, as these costs are un-recoverable. The most commonly occurring risks can be identified and checked in advance with Preliminary Due Diligence service (read more here)....

 

So the sequence of steps beginning in the Property Finding stage, is Preliminary Due Diligence first, and if no risk, then 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 Statutory Expert 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...!

 

Email: info@mytapu.com

Customer Reference Testimonial

“I have had a meeting with MyTapu and we would like to forward our clients to you because we think you have more knowledge about this valuation subject...”
 Developer, Mugla, Bodrum, Turkiye 

Citizenship Real Estate Investment in Turkey

Market Price Valuations for Citizenship Investment Budget Planning in Turkey...​ (Budget Planning)

Investors seeking Citizenship and Passports in Turkey by investing in property of $400,000 or more will be engaged in a planning and budgeting procedure that guides their investment decisions. For those investors that are budgeting the threshold investment of $400,000, will be intent on careful scrutiny of their budgets. If when finding a property for sale around $400,000, all their time, effort, and costs spent will be wasted if the official appraisal report does not have a valuation for the property of at least that amount.


What is the best way to manage the possibility of the property valuing for less?


The solution advised by developers, sales agents, and quite often the investor's own attorneys, is for the investor to budget investing 10% to 20% (or even 30%) more to cover the deficit between sales price and official valuation. This seems logical at first glance to novice or unsuspecting investors, until the investor becomes aware that the advisors are typically sharing the profit from marking up the price of the property by 10% to 30% !  Note: This is not a hypothetical suggestion, but is the factual experience of having advised on  specific, actual,  real-world transactions  . In reality, the advisors are suggesting the investor to budget anywhere from usually about  $20,000 to $ 120,000 or more to pay for the advisors' profit margin from hidden price mark-ups ! The unsuspecting investor will discover the result three or five years later when selling the property and receiving considerably less than was paid for it - a sharp and drastic negative return on investment and loss of capital.


The alternative, better way, is with this service provided by the Team at mytapu.com, utilising their extensive knowledge and experience of official valuation methodology and procedures. This service requires both advance planning and timely coordination with the conveyance and completion procedures required by the Land Registry and the Citizenship Investment Program. The resulting savings of $20,000 to $ 120,000 or more, make this an essential service for Citizenship Investors in Turkey that are budgeting for an investment at the $400,000 minimum investment threshold. Email info@mytapu.com for guidance on Citizenship Investment Turkiye: Budget Planning for Valuations  and  how to integrate this service into the completion of the investment process and procedures.


This is why investors say, the mytapu way is a smarter, better way..>!

Short Form Valuation Price Check - ideal for Buyers and Citizenship Investors


Checking the true market price of a property is an essential fraud-prevention first-step for buyers and citizenship investors. The common practice in Turkiye is to sell foreign buyers a property at a higher price than it would be sold to local investors. For citizenship investors, this practice has reached extremes, with the artificial price mark-ups in the 30% to 40% range. We have uncovered instances where the exact same property has been offered to foreign investors at a prices more than 40% higher than listed on websites that Turkish buyers use. It is not uncommon for the developer, seller,  agent, and buyer's lawyer to share the mark-up profit between themselves.   


Obtaining a quick idea of real market prices (not agents' fantasies) in order to be fully informed as negotiations begin.... is sensible.  If a buyer or seller want to quickly obtain a valuation price indication mytapu.com can provide a valuation price indication that utilises the most accurate methodology and data sources. . 


To obtain your short form Valuation Price Check Indication, simply state property type, location, & size (for example, 3+1; 120 m2) email to info@mytapu.com and request, 'Short Form Price Check Indicatıon'... 


Short Form Valuation Price Indication for Istanbul & Coastal Regions of Turkey

Price History Report

Market Prices - Not List Prices !

Make a better investment decision with market price information...request specific location, property type, etc. Understand current market prices that have transacted between buyers and sellers... NOT agent's advertised list prices...! Get specific price information: for example, a 3 + 2 villa in Olu Deniz.... Provided in TL, USD, EUR, GBP, RUB.   


To obtain your Property Price History, simply state property type, location, & size (for example, 3+1; 120 m2), and email to: info@mytapu.com and request 'Property Price History'... 

Property Price Histories for Istanbul & Turkey (Kadikoy, Besiktas, Bakirkoy, Fethye, Bodrum, Alanya)  2018 - 2019

Professional Market Price Intelligence

Professional Property Price Market Intelligence Turkey
Investment Price Intelligence for Buyers Sellers

Professional Market intelligence


Accuracy: Factual & Analytical


Property Price Intelligence - Ideal for: 

  • Checking  & Controlling  Eksper Valuations
  • Seller's Price Setting
  • Buyer's Discount Bargaining


Supply strata & segmentation, cluster identification, valuations based on multiple methodologies and multi-variable financial modelling: comparative sales, rental yield, life of asset, foreign exchange and inflation adjusted forward capitalization rates, etc A complete tool kit for supporting investment analysis, pricing, and investment decision making... 

Court Appointed Expert Report and Services

The Team at mytapu.com consists of Appraisal Experts with considerable experience preparing Expert Opinions and Valuation Appraisals for courts in foreign countries.... and the additional, specific procedures and undertakings required. The team includes international experts applying best practice as required by foreign courts. Members of the team were appointed by the World Bank to the Turkish Government for the ongoing Land Registry modernisation program. In addition, team members apply fiduciary practice, which is not common in Turkey.


Valuation of Rent Protected Properties: Protected Tenancies, Sitting Tenancies, and Usufrucht Rights

Our experts are quite likely the only team in Turkiye that understand and apply internationally accepted valuation methodology for tenant protected residential properties in Turkey.


 Quality Control of an Appraisal Report

Appraisal reports have been known to be inaccurate for the simple reason that appraisers are under pressure with heavy workloads and sometimes use shortcuts that effect the valuation accuracy. This 'Quality Control' service ensures the final output report complies with the methodology and standards of accuracy required.  The procedure that may be applied is similar to a post-report audit, but to be truly effective, the process must begin BEFORE the appraisal report (see below) is instructed. Often a Quality Control is necessary in a quiet market where prices are depressed.  Contact the experts at mytapu.com to learn more about how this process can serve your purposes, by sending an email to info@mytapu.com with the subject line   'Quality Control of an Appraisal Report.... 

Preliminary Due Diligence & Negotiations

Generally a buyer would be wise to have preliminary enquiries completed on a property before instructing an Eksper appraisal valuation property report. Doing so can avoid the unnecessary time, effort & expense of negotiating on a property that is defective in some way. An expert on the Team at mytapu.com will know what documentation to request, and by doing so, as part of the negotiation, is able to understand better the compliance issues of the property, before instructing a full report, and thus avoid Report costs, and wasting time and effort, with problematic properties.... Email: info@mytapu.com and state Negotiations & Preliminary Due Diligence..


The key points about ‘what’ it means to ‘Buy Like a Local’, and ‘why’ it is essential, are explained independently, by an outside commentator, and lifelong property investment professional, in this article discussing ‘The Guide, How to Buy Property in Turkey’…

Property Buyers' Wiki Guide for Turkey
Property Buyers' Wiki Guide for Turkey

A Caution for Buyers about Eksper Appraisal Property Reports...

An Eksper appraisal valuation property report on a property provides information and data: it is not a ‘recommendation to buy’; it does not state or ‘prove’ that the property is legally compliant; it is not a ‘certificate of approval’.

An Appraisal Report provides many types of factual information about a property. It does not state whether that factual information about the property is 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.


And just as importantly, appraisal reports must provide information about a list 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! 


And just as importantly, appraisal reports must provide information about a list 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, and can instruct the Eksper in advance about specifically how much detail about such items the Eksper should provide in the report.


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 without the full information. Contact us today for more information at info@mytapu.com and include your Telegram or Viber number to receive a call back…


 Independent Professional Advice is ESSENTIAL...

Independent Professional Advice for Eksper Appraisal Property Reports  is ESSENTIAL...

The new regulations require that foreign buyers must receive an Eksper appraisal valuation property report on a property they are buying. The report provides information and data: it is not a ‘recommendation to buy’; it does not state or ‘prove’ that the property is legally compliant; it is not a ‘certificate of approval’. The information in the report needs to be assessed by an expert, to ascertain what risks exist, and whether fully compliant legally. If the report is in Turkish and the buyer does not speak Turkish, the assurances of an agent, developer, or seller, or a verbal interpreter or translator introduced by them, should absolutely not be relied upon.  

 

Expert advice is essential to assess the wide range of topics covered in the report. For example, what to do if the cadastral boundaries do not correspond and match with the boundaries on record at the municipality ? Or for example, recently the Turkish government issued an ‘amnesty certificate’ for hundreds of thousands of properties that did not have the full legal utilisation licenses. So if the property you are buying has an ‘amnesty certificate’, what does this mean? What will be the consequences? What will be the obligations of the new owner? What procedures and costs are implied…? Who to ask, who knows…? The seller, agent, developer, lawyers, appraisal experts do NOT know…because it is a very specialised subject with new procedures.. Fortunately at mytapu.com there are experts that are dealing with such matters on a daily basis on behalf of dozens of existing foreign property owners, and they DO know….

 

These are two common examples of recurring issues, among many risks, and some are more serious. The remedies and consequences depend on the specific circumstances of each property. 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….  Contact us today for more information at info@mytapu.com and include your Telegram or WhatsApp or Viber number to receive a call back…


 Eksper Appraisal Valuation Property Reports...

Valuations, Appraisals, & Eksper Raporlar
Appraisal Experts are licensed by the Turkish Capital Markets Board

An essential aspect of Appraisal Reports is that the Appraisal Expert must follow a specific methodology and practices. This ensures the reports can be used as comparisons and as reference benchmarks. In some instances the application of the required methodologies and practices is subject to question. For this reason the Specialists at mytapu.com are capable of providing quality control to the process to ensure the results meet the standards required. Our Specialists are capable of doing this because of in-depth knowledge, gained from being on the World Bank team in the 1990’s that advised the Turkish Government how to establish Appraisal Methodologies in the Turkish real estate sector, and a Professional Association of Appraisers.



Valuations in Turkey take the form of Appraisal Reports. These are prepared by trained Appraisal Experts, and a report is known as an Eksper Rapor.  These experts must have received training and certification to then become licensed by the Turkish Capital Markets Board, which is the financial services regulatory agency. Appraisal Reports are the industry standard for real estate business in Turkey, and are used by banks, insurers, and government agencies. An Appraisal Report, or Eksper Rapor, establishes price valuations that are officially recognised, and by all parties. The Land Registry regulations related to appraisal reports and valuations are helpful and services are improving. Agents' valuations are misleading guesswork and unreliable.. Additional solutions are provided by the team at mytapu as shown above, and are valid and more accurate, for specific practical purposes.

Providing much more than simply market price and liquidation price valuations, Appraisal Reports also provide a great deal of other information, essential for full disclosure and transparency about a property’s particulars. An 'Eksper Rapor' is usually not less than five pages, and in addition to price information of the last 3-5 transactions of properties of similar size, quality, and location, also contains aerial photos,  pictures of the property, key permit documentation references, and essential cadastral information . For more information about Appraisal Reports, please click here.

Should you wish to confirm or verify ALL the essential official property particulars of your real estate in Turkey, please request an Appraisal Report ....


Contact us today for more information at info@mytapu.com and include your Telegram or WhatsApp or Viber number to receive a call back…

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The Professional Approach to Buying Investment Property at Reasonable Valuations in Istanbul and Turkey
Why Valuations are Essential for Property Investment and Citizenship Applications for Istanbul & Turkey
How Permits and other aspects of Due Diligence effect property valuations in Istanbul and Turkey
How a Property Finder Service uses Appraisal and Valuation Reports to Negotiate the Best Purchase Price for Investors....
Why never to pay a deposit or sign a contract until seeing an Eksper Rapor -especially when buying with a mortgage.

     

Due Diligence Mitigates Risks and Saves Thousands...Eksper Appraisal Reports are an Important Part, but Not Sufficient to be Relied Upon on Their Own..
Due Diligence Mitigates Risks and Saves Thousands...Eksper Appraisal Reports are an Important Part, but Not Sufficient to be Relied Upon on Their Own..

     

Professional Conveyance & Completion Techniques for Remote Payment & Settlements...
Professional Conveyance & Completion Techniques for Remote Payment & Settlements...

Links:

https://www.tkgm.gov.tr/

Contact Us...

Learn more by sending a email to info@mytapu.com and include your Telegram or  WhatsApp telephone number to receive a free complimentary call back.

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