The reason for this is because appraisal companies place a higher priority on preparing appraisal reports at the lowest production cost (see below), and not on the highest degree of valuation accuracy. Added to this circumstance, is the lack of an efficient procedural means for challenging and correcting inaccurate reports. These systemic problems will likely endure until such time in the near future when the tax authorities begin releasing transaction data on purchases/sales prices to the land registry administration, for public access, as pert of the Land Registry Modernisation Program, ongoing for many years. When that occurs, the likely effect will be a decline in perceived property prices to reflect actual transaction values. This is in contrast to the present circumstances where appraisal report property valuations reflect properties listing ‘for sale’ prices’, not actual transaction prices. A closer look at how and why property prices in specific locations are artificially highly elevated.  The change in data availability, as transaction price data is supplied by tax authorities to the the land registries, will likely result in a decline in property valuations by 15-30%, and a more accurate reflection of transaction values. At the present time, the internal data and analytical assessment of valuations provided by standard appraisal reports in Turkiye, shows a lack of uniformity in applying valuation methodology that conforms to compliance requirements, and a variation in residential property valuations 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 key reason why the price valuations provided by Expert Appraisal Reports is explained by the inappropriate use of average regional price data.   Besides valuation purposes, there are other very important purposes that involve other aspects of appraisals and appraisal reports. However, the 20-30% range of variation makes the valuations in the standard appraisal reports of limited usefulness, 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 reports for each of the most commonly required usage, described in more detail below.

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: 

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...!

Professional Market Price Intelligence (PMPI) described below, provides a comprehensive solution to prove the most accurate valuation for a property.

 For additional information about the specific details of the new regulations, procedures, and solutions, please 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.