The cost of real estate remains a very hot topic among all potential participants in the real estate market, however, it arouses the greatest interest among home sellers.
I want the most accurate numbers in the shortest possible time. Where can I get them if I have no experience and knowledge in the field of appraising apartment real estate? There are two ways: either turn to specialists, or decide to take independent action. Let's look at both. But first you need to get at least some basics of the procedure for evaluating the apartment you are going to sell.
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How is an apartment appraised?
To determine the approximate amount that you can get for a sold home, you need to identify the main factors that influence the price and which all real estate sellers focus on when they need to find out the value of their goods.
- Location of the house . The area in which the property for sale is located plays an important role in determining the price. The rule: has become universal and no one has yet dared to break it. Walking distance to prestigious shops, catering establishments, large markets, offices and government agencies costs 25-35% more. But sleeping areas are also different, and therefore the price of apartments also varies depending on the proximity of the metro or recreation area, or clinic.
- Total area . The situation on the real estate market is in favor of smaller apartments - professionals value square meters of one-room apartments more expensive than the area in two- and three-room apartments. The larger the apartment, the cheaper the square meter.
- Kitchen area . In the process of assessing housing, the area of one (the most beloved by household members) room is considered as a separate factor: the larger the kitchen, the higher the total cost of the apartment.
- Layout . The convenience of the location of the rooms (separate or adjacent), the presence or absence of a loggia or a regular balcony can play a decisive role in determining the optimal housing price.
- Quality of repair . You shouldn’t ask too much for wallpaper in the style of the 90s of the last century - the buyer will not understand you. After all, he has a huge piece of work ahead of him: after the official part (notarized registration of property rights), he rolls up his sleeves and brings the apartment to the state of modern housing. And this is not cheap, so why should he overpay when buying?
- House type . An indicator of durability and comfort, to which the buyer pays close attention. Apartments in monolithic buildings are the most expensive, slightly cheaper in brick ones, and the cheapest in panel ones.
- Infrastructure . When analyzing this factor, it is necessary to take into account both positive and negative aspects. Add the presence of a kindergarten, school, hospital, parking lot to the list of advantages (and, accordingly, increase in price), and to the list of disadvantages (lower prices) - a noisy highway or a processing plant in the neighborhood.
Market valuation of real estate for inheritance
Despite the fact that the death of a person is the basis for initiating the inheritance procedure, it is necessary to remember that you need to prepare for it.
If we turn to the legislation of our country, inheritance of real estate cannot be carried out without determining its value.
At the same time, the value should be determined not by the heir, but by a professional appraiser.
In addition, the presence of an expert document on the market value of the apartment upon completion of the assessment procedure is necessary in order to contact a notary.
If there are several heirs, but only one property, and everyone wants to divide this property equally, it is necessary to know exactly what its value is on the market through the valuation procedure.
A market valuation of real estate for inheritance may be necessary if a lawsuit and division of inherited property begins between the heirs.
To carry out this procedure, the appraiser must have the following documents::
- documents on ownership, based on which the testator disposes of real estate;
- certificate from the BTI;
- as well as documents that confirm the presence of any encumbrances on the property, if any.
Before starting a market valuation of an apartment remotely, the appraiser must also visit the property to make sure with his own eyes that he will come to the right decision.
How to do
There are four options for optimally assessing the cost of an apartment for sale or for other purposes, but our citizens use only two - it seems cheaper and faster to them. We will consider everything so that, if necessary, you have a wider choice of options.
Option #1. Official documents
Until recently, the appraisal right was solely held by the BTI, which never focused on market fluctuations and market value, which in the case of the sale of an apartment is one of the main factors of assessment.
self-regulatory organizations of appraisers operating in the country , which after a certain period of work (usually it takes a week) provide the customer with a report on several dozen sheets, in which, based on the comparative method, the price of the apartment being sold is “outlined”. The appraisers reserve the right to a small percentage of error.
The price of such a service is from 3 to 5 thousand rubles, but it is used mainly by mortgage buyers who need to prove to the bank the “market value” of the price of the housing for which they are going to take out a loan.
The disadvantages of this form of assessment for the seller are obvious:
- the validity of the document is limited - a month from the date of delivery to the customer;
- appraisers focus on offer prices, not actual transactions. If the demand for such apartments falls, then the price remains very high, despite the presence of an error; in this case, its percentage does not correspond to reality.
Option #2. Agencies and realtors
A simple call to a realtor, or better yet several at once, can direct your thoughts in the right direction.
This option is the most popular among residential real estate sellers, since the average estimate from two or three experienced realtors ends up being the real price for the apartment. In addition, one should not lose sight of such an important point as the presence of professional intuition. A realtor, who has dozens of successful transactions, will accurately tell you the price of the apartment for which you can actually sell it.
If you are going to sell your home through a real estate office, then the property will be put up for sale with some premium - do not be surprised or indignant at this, everything is done to create the possibility of bargaining.
Naturally, the main job of realtors is not to give advice over the phone; they are looking for clients with whom they can sign a transaction agreement. Therefore, be ready to cooperate.
Some agencies kindly offer to determine the real value of real estate via the Internet and offer to fill out a client questionnaire, some points of which should alert you: address, number of residents and registered persons, etc. It is possible that all such actions are aimed at the benefit of the customer and the convenience of the agency’s employees, but there are no guarantees that third parties will not gain access to your data...
The advantages of this method: the appraiser operates with real figures of completed transactions. Disadvantages: possible overpricing.
Option No. 3. Your own appraiser
As a popular aphorism goes today: the Internet can help you. Fortunately, now you can find more than one independent website that allows you to independently determine the approximate valuation of the home you are going to put up for sale.
The scheme is simple: you enter the details of your apartment and the system automatically calculates how much such a property might cost. You can also make a selection of similar apartments and evaluate your own based on a comparative analysis.
Advantages of the method: very quick results. Disadvantages: approximate results. This method is only suitable in cases of idle curiosity: “I wonder how much my apartment might cost,” and is completely unsuitable for business.
Option number 4. Your own price
This method is often called authoritarian and futile, but surprisingly, it works. True, to get results, you need to have sufficient reserves of time and patience.
The scheme is as old as the world: set your price, the so-called “from the lantern”, and just wait for your buyer.
This type of valuation can work great during a rising market . No one can accurately predict how long you need to wait for your client, so patience is the main partner in this assessment method. There are cases when apartments waited for buyers for years, and then they were sold easily, quickly and without haggling.
Advantages of this method: you feel like you are in control and set the price that suits you. Disadvantages: waiting too long for a deal.
Features of report preparation
Based on the assessment, a special report is generated.
This is what banks focus on when approving a loan or determining the maximum amount that will be issued as a loan.
The report has legal force and must also meet certain requirements. It serves as evidence of why an object has a particular price.
It can only be created by specialists who have permission to do this process.
On the bank's website there is a list of appraisal companies with which the bank works.
How to prepare a report correctly
In order for a document to be accepted by the bank, certain requirements must be taken into account during its execution:
- the requirements of AHML and ARB are being studied;
- the document is made in printed form;
- information can be presented in text or table;
- it must contain the data that was used for the calculation;
- the number of pages should not be more than 30.
Important! Organizations accredited by the bank take into account the above requirements, so usually there are no problems with documents received from them.
What data is contained in the document?
The report must contain certain information:
- information about the customer and the company that carried out the assessment;
- information about the object that was analyzed;
- assessment objectives;
- methods used while working as a specialist;
- the address of the apartment and the existing infrastructure are indicated;
- there must certainly be photographs of the house, apartment and entrance;
- all features of housing are described in detail;
- a direct calculation of the cost is provided, and it must take into account different coefficients, which can be decreasing or increasing.
Important! The report must contain the liquidation value and the market value, and usually there are various attachments, copies of documents and photographs.
For what period of time is a report made and sent to the customer?
Formation of the document may take a different amount of time, which depends on the complexity of the work and the qualifications of the appraiser.
Usually the process does not last longer than two days, but the contract often stipulates 5 working days.
The customer is notified that the report is ready in various ways, after which he can pick it up and transfer it to the bank.
How is an apartment valued by a bank when taking out a mortgage? Watch the video:
Document validity period
The cost of any object is constantly changing under the influence of various factors, so it can increase or decrease. Therefore, after receiving the report, you must immediately use it for its intended purpose.
Important! The document is valid only for six months.
If you cannot obtain a mortgage within this time, you will have to re-appraise.
What to do if the price of the apartment in the report differs from the mortgage loan amount
Often the assessed value is lower than the price of the apartment required by the owner. In this case, the difference is usually covered by buyers using personal funds, and an additional consumer loan can also be obtained.
Important! If an additional consumer loan is issued, it will be issued only at high interest rates, which is not always suitable for potential mortgage borrowers.
You can also contact another expert, since the previous appraiser may not have taken into account some important details that affect the cost, for example, high-quality repairs in residential premises, optimal location near schools, shops and bus stops.
How to get a mortgage at Sberbank? Tips and features here.
It is impossible to raise the price...
There are several reasons that can greatly prevent you from selling your apartment at a “good” price. There are not many of them, but they spoil the price offer very significantly.
- An apartment that has constantly changed hands over the past few years (that is, a frequent change of owner) or its owners have divorced and married several times is considered a very risky purchase on the market. It will be impossible to sell it at the same price as a similar property, which has been owned by one person continuously for a decade.
- The fact that you are selling an apartment that you bought under a power of attorney may reduce the chances of it selling at market price. You will have to sell much cheaper, especially if three years have not passed since the previous transaction - due to the risk of heirs whose existence you could not know, but, nevertheless, they have the legal right to own their part of the inheritance.
- The buyer is also deterred by the fact that minor children are registered in the apartment or are even the owners of the property. In order to sell such real estate, prices must be significantly reduced.
Rent an apartment: the risks can be very high! This depends on many factors, each of which we consider.
Renting an apartment on your own is attractive to many, but are you prepared enough? Read more about this here.
Valuation for Sberbank mortgage program
The method for appraising an apartment with a mortgage from Sberbank is no different from what was described above. On the official website you can find a list of companies performing independent assessments. Naturally, they all have official accreditation. When assessing new buildings from a developer at Sberbank, appraisers carry out activities according to the following assessment program:
- you need to undergo an inspection of the facility;
- draw up a report with photographs and photocopies of documents;
- justify the assessment made;
- submit a report to a credit institution.
The procedure is carried out in accordance with the requirements of Sberbank. Therefore, as a rule, there are no problems with issuing a mortgage loan in this case. Similar steps must be taken when conducting an assessment for VTB 24 Bank or other credit institutions.
