How to appraise an apartment for a mortgage. Appraisal of the value of a residential building with a land plot Applied standards of appraisal activity
Real Estate Appraisal Report is a mandatory written part of the work of a specialist and it is this document that is handed over to the client.
But the relationship between a specialist and another person who asked for a service is also fixed in the report and in a special contract.
One way or another, but the work done and the report compiled on it indicate that the service was received. The conclusion is a document that has legal force.
If it was compiled by a professional in his field, then the report can be attached to court documents, and can also be used in litigation and litigation, attached to an inheritance case and participate in other transactions provided for by the general trade turnover in our country.
Assignment for the valuation of real estate
Assignment for the inspection of real estate is the action that precedes the evaluation procedure. Receiving an order for work, a specialist, so to speak, receives the appropriate tasks. As part of this assignment, he must establish a number of facts. These include:
- object study,
- legal description of real estate,
- exact location,
- border characterization.
In addition, getting acquainted with the task, a real estate professional should:
- study all the nuances of the object,
- get acquainted with the entries in it in the relevant register,
- obtain information from the owner,
- raise archival documents, if necessary.
These actions are required to be done by each specialist appraiser so that the report compiled at the end of the work contains only reliable information that corresponds to reality.
It is very important to pay attention to who makes the report.
A specialist appraiser who has the appropriate education has the right to draw up a report. Neither the assistant nor the secretary is authorized to draw up this document. Upon the fact of drawing up the report, the date of its compilation, the signature of the appraiser, as well as the seal, if the client has dealt with the company, are put.
But often, in practice, it happens that the specialist makes the assistant appraiser write a conclusion with all its complex nuances and rules, and the pro himself only puts his signature.
Such behavior is fraught with consequences in the form of an illiterate description of the process of assessment and conclusion on the analysis of the value of real estate due to the lack of experience of an assistant or secretary.
Who draws up the property appraisal report?
The fact is that before buying a property, future owners ask a professional to check the condition of the property. Only a person with special knowledge can accurately describe the condition. This means that it is they who should draw up a report in order to most competently reflect the current state of affairs.
Report Price
Talking about the cost of a report on the analysis of the value of real estate is not unambiguous. The cost of a real estate appraisal report depends not only on the region where the citizen lives, but also on the object itself. If we are talking about commercial real estate, and we take into account the central strip of Russia, then the cost of the assessment will start from 15,000 rubles, Accordingly, this is the cost of the report.
If we talk about real estate such as a house, a built cottage or a land plot, then the cost of the work of a narrowly specialized specialist and the subsequent preparation of the corresponding document will vary from six to 8000 rubles.
If we are talking about an ordinary apartment or a room, then the cost of the apartment appraisal report will cost you the amount not exceeding 5000 rubles.
In the regions of the far north, the value of this amount is slightly overestimated, but in the outback of the central strip of Russia, on the contrary, it is much lower. Yes, and do not worry that the cost of the above work on drawing up a conclusion is too high. In any city, you can find alternative options, because a lot depends on the experience of a particular specialist.
Conclusion on the market value of the property
Real estate appraisal report(a sample real estate valuation report can be downloaded above) is a document that is drawn up in accordance with the current law of our country, and contains all the results of the assessment of the market value of the object, as well as a listing of all the examinations carried out.
This act may include the following information:
- basic information about the object,
- description,
- grounds for carrying out the actions of a specialist,
- an overview of the existing real estate market,
- information about the methods used in the assessment,
- the possibility of transferring real estate as collateral,
- calculation of the value of the appraisal object,
- and also which documents were used by the evaluator as a source of information for the preparation of the report.
They must be provided both by the owner himself and by some bodies servicing real estate, such as a management organization.
Report on the appraisal of the purchase price of the apartment
Apartment appraisal report(we suggest looking at an example of an apartment appraisal report above) - this is a document that is drawn up on the basis of the law and aims to determine how much the purchase price corresponds to the actual state of housing.
In this case, an independent real estate appraisal should herald a buyout procedure. It is necessary to determine a fair price.
Its location, layout, ecological condition, neighbors and so on are taken into account. The cost analysis procedure is carried out on a general basis, however, the report emphasizes that the apartment is being prepared for purchase.
Conclusion on the assessment of the foundation of a residential building
Report on the assessment of the foundation of a residential building is a document that contains an expert opinion that describes the foundation of a residential building, talks about its strength, expected service life, as well as various problems that may arise in connection with the operation of the building.
In this situation, the emphasis is on the state of the object. Also, it would not be superfluous to report its width, height, materials used, as well as the year of pouring.
Residential fire damage assessment report
The fire damage assessment report contains the following data.
- First, the analysis of all submitted documents, as well as testimony. It is also the consideration of photographs and their subsequent analysis and examination.
- Description of all the necessary techniques used by specialists. An approximate justification of each of the methods used, the implementation of the necessary calculations, the preparation of an estimate plan, which includes restoration work after a fire, an approximate calculation of the building's wear and tear, a list of the available package of documents, as well as an inspection plan.
Review of the report
Review of the apartment leak assessment report is compiled in the case when, for one reason or another, the property was the initiator of flooding.
In this situation, it is necessary to assess not only the damage that was caused to the apartments below, but also the damage to the property that caused the flood.
In this situation, a specialist appraiser is also called in, who is obliged to bring all the necessary work and expertise in order to establish the cause of the leak and the damage caused, as well as in general to establish how much the property has lost in value due to this incident.
Coordination of real estate appraisal results
Coordination of the results of the inspection of real estate- This is a procedure in which two reports that were drawn up upon the fact of the appeal of the same owner are compared with each other in order to accurately establish the estimated value of a particular property.
In this case, the opinions of the two experts can either converge or diverge, but not significantly.
In this case, an additional assessment is made, and the result is submitted to the owner of the object selected for examination. A distinctive feature of this report is that it is compiled in the form of a table.
Now you know in what situation what particular report on the valuation of the property you may need, and on your own, without the help of specialists, you can choose the one you need.
However, only a competent professional can help you draw up this document, which you can find on the appropriate ad in the city itself.
14.08.17 51 741 4
And why is she needed
You are going to buy an apartment with a mortgage.
The bank approved the loan application, the agent found a suitable apartment. The next step is to collect a complete set of documents for the bank. It will include a real estate appraisal.
Elena Evstratova
sold and bought property with an appraisal
When a bank gives a borrower a mortgage loan, it automatically takes as collateral the property that is bought with this loan: “Here is the money for you, but until you return everything, the apartment is like mine.” If the borrower does not return the money, the bank has the right to take the apartment and sell it at auction.
The strength of a mortgage loan lies precisely in the fact that it is easy to sell an apartment at auction - in the language of banks, this is a liquid pledge. Banks are confident in their loans, so they can lower rates.
It is important for the bank what exactly it gives 3,000,000 rubles for: a hut or an apartment. Will he be able to sell this apartment for the same 3 million if something happens? This question must be answered by an assessment.
For the buyer, the assessment is an additional guarantee that the object is worth the money for which it is sold.
Who makes the assessment
Real estate appraisals are done by appraisers. Their activity is regulated by the federal law "On appraisal activity in the Russian Federation". It can be a company or an individual entrepreneur.
What an appraiser must have:
Profile education, membership in a self-regulatory organization and insured liability
Profile education
Membership in SRO
Liability insured
Banks are required by law to accept the valuation of any appraiser. But in reality, banks themselves accredit companies whose assessments they trust. Which appraisers are quoted by a particular bank is usually written on the website. Sberbank cooperates with 256 appraisers, Vozrozhdenie Bank - with 90.
How to choose a company for evaluation
Call the list of appraisal companies offered by the bank. Here's what you need to find out in the conversation.
How fast does the appraiser arrive? Normal time is 1-2 days.
How long does it take to prepare a report. Usually in 3-5 days.
How much is the appraisal. The average cost in St. Petersburg is 3000 rubles. In Moscow, prices start at 2500 rubles.
How much does the second copy of the report cost. Appraisal companies make one copy of the report by default. The second copy in a normal company will be printed for free. In some companies, the second copy will cost 500 rubles.
What the report looks like
The appraisal of the apartment is made in the form of a report. The report is stored in printed form along with the mortgage on the apartment.
The report must include:
- who ordered and who performed the assessment, by what method;
- what kind of apartment it is, in what condition, how it is used;
- how are things in the market where this apartment will be sold;
- for how much it can be sold usually or at auction;
- what are the attachments to the assessment in the form of photographs and copies of documents.
Without the seal and signature of the appraiser, the report is invalid. Attached to the report is a one-page document with a summary of the report. It is given to the bank along with the report.
What is the cost
Market value- the price of the apartment, if it is sold without haste and force majeure.
Liquidation value- the minimum price for which the bank will sell the apartment in a short time.
What affects the market value
The area in which the property is located. It affects the cost per square meter: in St. Petersburg, a square meter in the Moskovsky district is on average 20,000 rubles more expensive than in Nevsky. Therefore, an apartment in a new house, which was built among old panel houses, will cost less than analogues in a good area.
Appraisers use research and data from real estate portals. This is a research page from the Real Estate Bulletin website. Technical characteristics of the building: in what year the house was built, when did the overhaul and how many floors in the house. Everything is taken into account: the presence of a garbage chute, the organization of parking, the state of the front door.
The condition of the apartment. What floor, how many rooms and is there a repair. The appraiser even looks at whether linoleum or laminate is laid on the floor, whether there is a tile in the bathroom and how the lighting is done in the apartment.
The condition of the apartment matters: if the wallpaper is dirty, the report is marked “requires repair”.
Repair with wallpaper and for 70 thousand rubles, and for 5 thousand is equated to "European-quality repair". Therefore, it is not worth waiting for the appraiser to include the full price of designer repairs in the price of the apartment. At best, he will put a multiplying factor on repairs.
The real estate market at the moment. The expert looks at similar objects on the market. For odnushki in a monolithic house, the analogues will be the same area apartments in monolithic or brick houses. Panel houses are usually not compared with brick houses or coefficients are introduced. Five similar objects are used to evaluate the apartment. Comparison of analogues is a good way to see where the price is too high.
The last floor reduces the estimated value of the apartment by 2-3%, the first floor - by 5-10%
How to calculate salvage value
The liquidation value is calculated using formulas. What matters here is the elasticity of demand and the time value of money.
An example of elasticity of demand. There is little demand for a three-room apartment in a new building on the ground floor, because large footage and a low floor scare away buyers. You can sell such an apartment in a short time only at a low price. The difference between the market and liquidation prices is up to 3 million rubles.
There is a high demand for a one-room apartment on the middle floor of a panel house within a 5-minute walk from the metro, because such apartments are always in demand on the market. The liquidation value of such an apartment is close to the market value.
An example of the time value of money. When it comes to big terms and big money, it is often said that money gets cheaper over time. That is, the ruble is now more valuable than the ruble in a year. If an apartment can be sold cheaper now, then it is better than a little more expensive later. This principle has many justifications: inflation, political risks, human mortality and world progress.
When an apartment is sold at a liquidation price, the loan is repaid first. The remaining funds are received by the borrower. Therefore, the higher the liquidation price, the more money will remain in his hands.
The liquidation value of a budget apartment is not much different from the market one. It is easiest to sell it on the market, because there is a demand for them. A luxury apartment in a new building will be sold for a long time even at a discount.
The spread of prices for three-room apartments in St. Petersburg
We have selected apartments within the same area according to the real estate portal EMLS
When inheriting real estate or applying for a mortgage loan, an assessment of the house and land is required. It is problematic to carry out the procedure on your own, the result will be approximate.
When is a property appraisal required?
An appraisal of the house and plot is required to establish the market value of the property. When making a purchase and sale transaction, the procedure is carried out on a voluntary basis.
The involvement of an appraiser is provided for by law in the following cases:
- Formation of an inheritance. It is necessary to identify the value of the dwelling so that the notary's office issues a certificate confirming the right to dispose of the property.
- Bank deposit. A credit institution does not issue money without registration of an encumbrance. This requires an expert opinion on the value of the property.
- Real estate insurance. To calculate the amount of insurance, it is necessary to obtain data on the value of the property for which the insurance policy is issued.
- Damage assessment. The size of the amount for repair work is determined.
- Registration . The amount of the state duty depends on the value of the property.
- Appraisal of the house for the court. When a marriage is dissolved or disputes arise between heirs, determining the value of real estate helps to resolve property disputes.
IMPORTANT! An appraisal of a residential building is carried out to calculate contributions to the authorized capital of an enterprise. Founders have the right to contribute money or transfer personal property to the ownership of the company.
Who has the right to assess the house and land
Independent specialists, persons who have a license to conduct expert activities, have the right to conduct an assessment of the house. Appraisers are part of the SRO and have a civil liability insurance policy in the amount of at least 300 thousand rubles.
Property owners choose an expert on their own, taking into account the prices for services, reputation and other parameters. However, lending institutions, when issuing a mortgage loan, send borrowers to certain appraisers.
ADVICE! SROs that cooperate with credit institutions draw up a report in accordance with the requirements of the bank. This eliminates the risk of sending the document for revision or re-issuance.
The procedure for assessing a house with a land plot
The property appraisal process consists of a number of steps. The homeowner negotiates the terms of cooperation with the appraiser, sets the deadlines for the examination. An agreement is being drawn up.
After signing the contract, the owner of the property gives the expert the documentation for the house and agrees on the date of the visit of the specialist. During the verification process, the appraiser photographs the housing, inspects the building for illegal redevelopment.
An independent assessment of the house and the site is carried out on the basis of one of the following methods:
- Analog. The essence of the examination is to compare prices for such transactions during the year. Based on the results of the analysis, the appraiser determines the value of the current object. This technique is used in large cities.
- Expensive. A feature of the methodology is the assessment of the costs incurred by the homeowner during repairs and. Cost expertise is used to set the cost of country cottages.
- Profitable. It is used to evaluate city apartments and commercial real estate. Market value is determined by evaluating the return on investment in real estate.
When examining a private house and plot, the appraiser pays attention to the following parameters:
- Location of the property (development of infrastructure, type of settlement, etc.).
- Condition of construction (year of construction, number of floors, area, type of building materials, state of communications).
- The presence of an encumbrance on the site and cottage.
ATTENTION! If the real estate for sale was purchased using borrowed funds and the loan is not repaid, the owner needs to remove the encumbrance from the house and order an updated extract from the USRN.
The validity of the report for housing purchased for a mortgage is six months. If not only a house, but also a plot is bought on credit, an additional assessment of the land is required.
What documents need to be provided
To determine the value of a house, the following documentation is required:
- Duplicate of the identity card and TIN of the owner of the property.
- Cadastral passport and.
- A document confirming the ownership of the house.
When buying a home in a building under construction, an agreement with the developer is required.
Evaluation report
The real estate appraisal report is drawn up in writing. The pages are numbered, the report is stapled, certified with a stamp and signature of the SRO representative. The report contains an average of thirty pages.
The document contains the following information:
- data about the expert and the customer;
- information about methods of housing appraisal;
- information about the house inspected;
- real estate market analysis;
- identification of the market value of the object.
The report for the bank when applying for a mortgage loan contains:
- housing documentation;
- photographs taken during the examination;
- the market price of the property;
- liquidation value (the amount for which the bank will be able to sell the house if the borrower fails to fulfill its obligations).
If the client of the bank independently chose the appraisal company, in addition to the report, attach:
- diploma of education in the field of assessment;
- a document confirming membership in the SRO;
- civil liability insurance policy.
ADVICE! The customer of the assessment needs to carefully study the prepared report of the expert, being in the office of the company. This will help to quickly resolve possible issues and understand the nuances.
What can the appraisal cost affect?
The report of the SRO expert affects the following lending conditions:
- the size of the amount;
- term of the loan;
- interest rate.
If the real value of the object, indicated by the appraiser, is lower than the market value, the bank does not issue the required amount. In such a situation, the borrower must:
- require a re-examination;
- conduct an appraisal in another company;
- take out a consumer loan for the missing amount.
It takes three to five days to appraise and report on real estate purchased with borrowed funds.