Step-by-step instructions for assessing a private house

If you own a house or are planning to buy one, then this article will be of interest to you.
It will tell you everything about the features of assessing a house in different situations. Also at the end of the article there will be some useful tips on how not to overpay when appraising a house. So, assessing a private house - 7 steps.

1 What is a home appraisal and who does it
2 Main cases in which a home appraisal is necessary
3 Step-by-step instructions for assessing a private house
4 3 Tips to Save on Home Appraisal
5 Conclusion

What is a home appraisal and who does it?

Home appraisal refers to the process by which the value of a home is determined. This happens under the influence of the laws of a market economy, that is, during the purchase and sale, the amount for which a given property is ready to buy and the seller is ready to sell is established.

When the seller and buyer agree on the price, a transaction occurs. If one of the parties does not agree with the price, then the named price does not meet market conditions. However, there are often cases when a home appraisal is needed not only during the purchase and sale. It is in these cases that an independent assessment is needed.

Cases when an independent assessment may be needed:

to calculate the tax amount when selling a house;
to calculate the amount of contributions to the Pension Fund;
to calculate the amount of state duty;
for mortgage;
to calculate the amount of contribution to the authorized capital;
if the house is collateral;
if the house is seized;
in the event of property disputes;
during the division of property;
to calculate the amount of insurance payment for the house;
if construction is not completed;
to calculate the amount for an investment project.

You can order a home assessment from individuals or individuals who are members of a specialized self-regulatory organization and have a civil liability insurance policy in the amount of at least three hundred thousand rubles.

Why is the assessment carried out?

There are many cases in which an assessment procedure is required. Let's look at the most common of them:

Property disputes. For example, if several people apply for one house at once.
For a financial institution in case of obtaining a mortgage.
House pledge. To apply for a loan for a large amount, putting up property as collateral is a prerequisite for banks and private lenders.
Property division. If the property has several owners, then to allocate their shares it is necessary to determine the market value of the property.
Insurance. The maximum amount of insurance payments is equal to the value of the object.
When registering inheritance rights.
When selling a house to determine the tax deduction.

The main cases in which a home appraisal is necessary

Registration of inheritance rights

Houses for inheritance are assessed to calculate the notary fee, determine the amount of land tax and state duty, as well as to resolve property disputes between heirs. To do this, you will need documents on ownership, from the BTI, the customer’s passport and the encumbrances imposed on him.

In case of inheritance of a land plot adjacent to the house, an assessment of the land is also necessary. In this case, the documents you will need are a map of the site, documents on the status of the land, geodesy and documents on communications.

Conclusion of a purchase and sale agreement

The appraisal of the house in this case mainly occurs during preliminary negotiations. The parties can then choose an appraiser together.

It is not uncommon for a home to be appraised before being sold to third parties. Such persons may be the tax service, shareholders of the enterprise, or higher organizations. For the tax authorities, the assessment is evidence of the completeness and correctness of tax assessment.

The buyer and seller work together to find an appraiser. The cost of payment to the appraiser is immediately agreed upon and written down in the contract. The results of the appraisal have no bearing on how much a home appraisal costs.

Assessment for the provision of guardianship authorities

Such an assessment is carried out when the owner of the house or part of it is an incapacitated person or a minor child. In this case, no transactions can be made with the house without the permission of the board of trustees. This is necessary so that the rights of an incapacitated or minor person are not infringed.

The assessment of a house for guardianship authorities is carried out when selling, renting, dividing a house, registering a house as collateral, allocating a share in a house, as well as other operations. For the assessment, it is necessary to prepare documents for the property, the customer’s passport and technical passport. The result of the assessment is a conclusion that confirms the market value.

REFERENCE! If a house is sold without the permission of the guardianship authorities, the court will most likely invalidate the transaction, and the person who provided false information will be prosecuted.

Home insurance

According to the laws of the Russian Federation, an insurance contract will be considered invalid if the value of the house is higher than the market value. Then, if an insured event occurs, the amount will be partially reimbursed.

The maximum that the insurance company pays is equal to the amount of construction of a new house with the same parameters. However, the insurance amount will still not be identical to its market value. This is so because the land on which the house stands also has its own value. This gives room for different calculation options.

The way out of this situation is to insure the house without a plot, and determine the cost of insurance with the help of an appraiser. Then there should not be different interpretations.

Contribution of the house to the authorized capital of the company

This contributes to the granularity of participants' decision-making rights. In addition, if the contribution is properly assessed, depreciation and property tax costs are calculated correctly. It is for this reason that the cost of the house must be assessed correctly when contributing it to the authorized capital.

House division

Houses are divided during divorce or other disputes. As a result, it is necessary for one of the parties to renounce their rights to part of the house, and the second to pay her compensation. To determine the amount of compensation, it is necessary to evaluate the house. The appraiser will evaluate the house and land. Well, knowing this amount, you can come to an agreement between the parties.

Houses are divided upon liquidation of an enterprise, upon sale of a share, divorce, upon allocation of a share, upon exit from shared owners.

Getting a loan

The loan amount is generally 80% of the price of the property pledged as collateral. Because of this, a home appraisal is a requirement if it is to be used as collateral for a mortgage. However, a home appraisal for a mortgage must be carried out by a professional appraiser. Moreover, this company must be certified by the bank.

REFERENCE! The bank should not impose any specific contractor, it only offers to consider a list of certified appraisers from which you can choose.

Valuation of a residential building with land

When inheriting real estate or taking out a mortgage loan, an appraisal 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 house and site assessment required?

An appraisal of the house and plot is required to establish the market value of the property. When concluding 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:

Registration of inheritance. It is necessary to determine the value of the home so that the notary’s office can issue a certificate confirming the right to dispose of the property.
Bank deposit. A credit institution does not issue money without formalizing an encumbrance. To do this, you need 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 amount of the amount for repair work is determined.
Drawing up a gift agreement. The amount of the state duty depends on the value of the property.
Valuation of a house for trial. In case of divorce or disputes between heirs, determining the value of real estate helps resolve property disputes.

IMPORTANT! The assessment of a residential building is carried out to calculate contributions to the authorized capital of the enterprise. The founders have the right to contribute money or transfer personal property to the company.

Who has the right to evaluate a house and land plot?

Independent specialists - persons licensed to conduct expert activities - have the right to evaluate a house. Appraisers are members 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 prices for services, reputation and other parameters. However, lending institutions refer borrowers to certain appraisers when issuing a mortgage loan.

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-registration.

The procedure for assessing a house with land

The procedure for assessing a country house consists of a number of stages. The home owner negotiates the terms of cooperation with the appraiser and sets deadlines for the examination. A corresponding agreement is 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 specialist’s visit. During the inspection process, the appraiser takes photographs of the housing and inspects the building for illegal redevelopment.

An independent assessment of the house and site is carried out based on one of the methods:

Analog. The essence of the examination is to compare prices for such transactions throughout the year. Based on the results of the analysis, the appraiser identifies the value of the current object. This technique is used in large populated areas.
Expensive. A special feature of the methodology is the assessment of expenses incurred by the homeowner during repair and construction work. Cost expertise is used to establish the cost of country cottages.
Profitable. Used to evaluate city apartments and commercial real estate. Market value is determined by assessing 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 (infrastructure development, type of settlement, etc.).
Condition of the building (year of construction, number of floors, area, type of building materials, condition of communications).
The presence of encumbrances on the site and dacha.

ATTENTION! If the property being sold 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 Unified State Register.

The validity period of the report for housing purchased with a mortgage is six months. If not only a house, but also a plot of land was purchased on credit, an additional assessment of the land is required.

What documents need to be provided

To determine the value of a home, the following documentation is required:

When purchasing housing in a building under construction, an agreement with the developer is required.

Evaluation report

The real estate inspection report is prepared in writing. The pages are numbered, the report is stapled, certified with a stamp and signature of the SRO representative. The report averages thirty pages.

The document contains the following information:

information about the expert and the customer;
information about methods for assessing housing;
information about the house being 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:

documentation for housing;
photographs taken during the examination process;
market price of real estate;
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 bank client independently chose an appraisal company, additionally the following should be attached to the report:

Diploma in Evaluation;
document confirming membership in the SRO;
civil liability insurance policy.

ADVICE! The assessment customer needs to carefully study the expert’s completed report while in the company’s office. This will help you quickly resolve possible issues and understand the nuances.

What can the assessed value affect?

The SRO expert’s report affects the following lending conditions:

size of the amount;
loan term;
interest rate.

If the real value of the property, as determined by the appraiser, is lower than the market value, the bank does not issue the required amount. In such a situation, the borrower needs to:

request a re-examination;
conduct an assessment in another company;
apply for a consumer loan for the missing amount.

It takes three to five days to complete an appraisal and report on real estate purchased with borrowed funds.

Source: https://ozhkh.ru/chastnyj-dom/ocenka-stoimosti-doma-s-zemelnym-uchastkom

Step-by-step instructions for assessing a private house

Selecting an appraisal company

First you need to choose a company to evaluate a private home. Keep in mind that depending on the purpose of the appraisal, you may need a certified appraiser. This is especially important if the appraisal is needed for a bank or insurance company. If the appraiser does not have certification, the company will not accept its results.

Inviting specialists to the site

Before the appraisers come to the house, it is necessary to tidy it up. It is necessary to clear all corners, as well as the basement and attic, if any. All this should be available for inspection. In addition, you must definitely check the pipes, taps, handles and other little things. All this should work fine.

IMPORTANT! The amount of cleaning and preparation you do will determine your final estimate.

Determining the prestige of the city area in which the house is located

The location of your home determines its value. In any city there are prestigious areas, and there are bedrooms or even disadvantaged ones. The final cost is influenced by the distance of the house from infrastructure and transport interchanges, noise level, environmental situation, and so on.

Calculating the cost of land

This amount is influenced by many different factors, such as:

size of the plot (if it is more than three acres, then this adds 2-3% to the cost, if less, then it reduces 2-3%);
whether it is regular or irregular in shape;
its width is more or less than 12 meters;
how close are transport interchanges;
is the road covered with asphalt or not;
natural conditions, whether high and industrial facilities are nearby;
flat terrain or with a slope;
is there a central sewerage system or not?
separate entrance (sharing an entrance with someone reduces the cost by up to 30%).

Determining the cost of the main building
To determine the cost, you need to know the net area of the house. To do this, you need to multiply the area of the foundation by the number of floors. This does not include verandas, basements, extensions, or garages.
After this, the cost of one square meter is estimated, taking into account discounts or surcharges depending on the following factors:

brick walls near the house or shell rock;
age of the house (if less than 7 years, then 5-10% is added, if the house is 8-20 years old, then 5-15% is reduced);
area of the house;
a modern house project or an old one;
the house is turnkey ready or construction is not completed;
new or old pipes in the house;
whether the house needs repairs or not;
separate or adjacent rooms;
whether there are amenities in the house or not;
high or low ceilings.

Determining the cost of additional buildings on the site

You need to find out the approximate cost of these buildings separately. We found out above how they affect the total cost. To calculate the cost of additional buildings, you simply need to calculate the cost of their construction.

REFERENCE! Unfinished construction reduces up to 60% of the cost.

Receive a report on the final cost of the house

Now it's time to determine the final cost. To do this, you need to add up the price for the house, land and additional buildings. Legal advice will be a good help in appraising a house.

How to evaluate a house and land: methods, costs, documents | Lawyer

The procedure for assessing a real estate property is a mandatory component when drawing up a contract for the sale and purchase of an apartment or house, including when it comes to mortgage lending.

In the article below we will talk about how a house with a plot of land is assessed, the price of the service, and who has the right to carry it out.

In reality, the market value of a house and land in most cases is determined by the parties to the transaction, that is, the seller assigns an amount to his property and, upon reaching an agreement with the buyer, a purchase and sale agreement is drawn up.

However, in accordance with the laws of the jurisdiction, the valuation of real estate is the official process of establishing the market value of the property, and in some cases is a prerequisite for the following actions:

to calculate the amount of tax on profit received from the sale of a house and land (paid by the seller);
to determine the amount of contributions to the Pension Fund and the amount of state duty (mandatory payments that are paid as a result of transactions related to the transfer of rights to real estate);
to calculate the mortgage amount, the amount of which will be no more than 80% of the expert assessment of the collateral;
to calculate the contribution to the authorized capital of a legal entity (the founders have the right to make contributions both in cash and through the transfer of real estate);
in order to establish the value of a house or land plot that is the subject of a pledge that falls under the arrest of the debtor’s property, as well as to resolve property disputes related to the division of property between spouses.

Who has the right to evaluate a house and land? What is the cost of the service?

The official right to evaluate objects is vested in independent experts - persons who have an appropriate license permitting the conduct of this type of activity, are members of the relevant SRO and have a civil liability insurance policy in the amount of at least 300 thousand rubles.

As practice shows, property owners choose an appraiser on their own, taking into account the cost of services, the specialist’s reputation and other criteria.

However, many banking organizations, when processing mortgage lending, refer borrowers to certain experts who collaborate with specific SROs who interact with financial organizations, allowing them to have no doubt about the objectivity of the property assessment.

The cost of the services of an independent appraiser is calculated individually, based on the recommendations of the SRO and depending on the distance of the property from the city (if this is an appraisal of suburban real estate).

What is the procedure for assessing a house with land?

The real estate valuation process includes several stages. First of all, the owner of the property stipulates all the conditions of cooperation with the expert, in particular, the deadlines for completing the order and the cost of the service are established.

In the case of an agreement, a contract for the provision of services is concluded between the owner and the expert, which must contain the type of assessment, the goals and objectives of its implementation, as well as the deadlines for completion.

After concluding the contract, the owner transfers a package of documents for the real estate to an independent expert, with whom he agrees on the date of arrival at the property for assessment.

During the assessment of real estate, an independent appraiser takes photographs identifying the property and checks the house for the absence of illegal layouts. The assessment of the house and land plot is carried out by an expert in a comprehensive manner based on certain methods:

Analog method. It is an analysis of the comparison of transaction prices during the current year, based on the results of which the value of the present transaction is determined. As a rule, this method is used to evaluate houses located within the boundaries of large settlements. The presence of connected engineering and communication networks, access roads and other factors are taken into account.
Costly method. The main distinctive feature of this method is the assessment of all costs incurred as a result of construction or reconstruction of the facility. The cost method is primarily applicable to the assessment of new country houses built on the territory of cottage villages.
Income method. It is most often used to evaluate apartments and commercial real estate, the market value of which can be predicted as accurately as possible by assessing the profitability of investment, including from bank deposits.

When assessing a house and land, details such as:

location of the object (in particular, settlement, availability of infrastructure, transport accessibility, distance from commercial and industrial facilities);
condition of the house (year of construction, number of floors, materials and condition of walls and ceilings, technical features of the structure, presence and condition of communication networks, type of layout, presence of visible defects);
the presence of encumbrances on the house and land.

Important! If the property being sold was previously purchased with a mortgage and the debt for it has been fully repaid, the seller must remove the encumbrance from it and obtain a new extract from the Unified State Register.

As a result of the assessment procedure, the object is assigned a general condition assessment as:

excellent
good
satisfactory
unsatisfactory
unsuitable

The validity period of the appraisal examination for objects purchased with a mortgage is 6 months. If a house with a plot of land is purchased with a mortgage, it is also necessary to analyze the market value of the plot of land, for which the expert also uses a comprehensive valuation method. It is worth noting that experts use two types of land assessment:

to determine the real market value of land in operations related to generating income, in particular when drawing up a purchase and sale agreement;
to determine the amount of land tax, as well as state duty, which is paid upon the transfer of property rights due to inheritance or gift.

What documents must be provided to evaluate a house and land?

The package of documents that must be provided to the appraiser includes:

a copy of the passport and TIN certificate of the owner of the property (seller);
original cadastral passport and land plot plan (if available);
a document confirming ownership of the property (purchase and sale agreement, gift agreement, agreement to purchase a house at auction, certificate of inheritance, etc.).

House and land valuation report

In accordance with the requirements of valuation legislation, a report on the valuation of a house and land plot is drawn up in writing, all pages are numbered, stitched, certified by the seal and signature of an authorized representative of the appraiser company. The total number of pages in the report is usually about 30, which include:

General information about the appraiser and the customer.
Information about assessment methods.
Information about the analyzed object.
Real estate market research.
Determination of market and liquidation value.
Applications (legal acts).

A report on the assessment of a house and land for a banking organization, in the case of a mortgage loan, includes:

documents for real estate;
photographs taken during the inspection of the property;
market value of the property;
liquidation price at which the bank will be able to sell the apartment if the borrower fails to fulfill financial obligations.

If the borrower independently finds an appraiser, the following additional documents are attached to the report for the bank: a document confirming the appraiser’s membership in the SRO, a civil liability insurance policy, and a diploma of education in the field of appraisal (license).

Important! You must review the completed assessment report at the office of an independent company to resolve all issues.

What does the assessed value affect?

The appraised value of the property has a direct bearing on the application of certain lending conditions, in particular, it may affect the amount of the mortgage loan, the maximum term of the mortgage and the interest rate. If the real value, according to the assessment, turns out to be lower than the market value, the borrower will most likely not be able to receive the amount he expected. However, in this situation you can try to do the following:

make a request for a re-evaluation;
make a second expert assessment in another company (but this will entail additional costs);
provide the credit institution with additional collateral;
apply for a consumer loan for the missing amount.

The period for assessing and drawing up a report on real estate purchased with a mortgage is 3-5 working days.

Source: https://pravovedus.ru/practical-law/land/kak-sdelat-otsenku-doma-i-zemelnogo-uchastka-metodyi-stoimost-dokumentyi/

What is real estate valuation, and in what cases is this procedure carried out?

Almost everything in our life has its price. We live and don’t think about how much this or that thing that we already have costs. But there are completely different situations when we have to determine the value of not only the objects that surround us, but also real estate, namely a house and a plot of land that adjoins it.

To evaluate a residential building and land plot means to establish the value of this property.
The price of a house with a land plot is the sum of the cost of residential buildings, adjacent land plots, all existing buildings, including fences, gates, etc.

There can be many reasons for assessing property.

It is produced:

To calculate the amount of tax that is levied when making a real estate purchase and sale transaction;
To calculate the amount of payments for the Pension Fund;
To determine the amount of state duty;
For the bank if you are applying for a mortgage;
To determine the amount that is part of the authorized capital;
In the case where the house acts as collateral;
When it is necessary to determine the amount of insurance payments for real estate;
When a house is seized;
In case of property disputes;
During divorce proceedings, when all property is divided between spouses;
If the construction of residential properties is incomplete;
When are project investments calculated?

Depending on the purpose of the appraisal, you can set the price yourself or hire professional appraisers.

Valuation of a country house or plot

An expert independent assessment of a country house with a plot can be carried out with or without a site visit. The second option is 20-40% cheaper, but before ordering this service, it is important to clarify whether the document received is suitable in a particular case. Since the opinion is usually requested by some organization or court, it is important to comply with the requirements.

There are situations when ordering an assessment from a specialist is not mandatory. For example, if this procedure is needed only for a sale or purchase transaction. In this case, by agreement of the parties, the cost analysis can be carried out independently. But there is one “but”.

If urban real estate is relatively easy to evaluate, since there are thousands of similar advertisements on the Internet, then with suburban real estate it is not so simple. It is difficult to compare because there are usually few houses and lots for sale in the neighborhood. There are even fewer objects that would correspond to the other factors:

If we are talking about a site - by the presence of buildings, a fence (including the material for its manufacture), a water source; on soil quality, transport accessibility.
If an assessment of the house is necessary - according to repairs, year of construction, materials, condition of housing, availability of a bathroom and water supply, type of heating, condition of roads.

This is not a complete list of what can be compared when assessing. And even if there is one house or plot very close in description, it is unknown how the owner calculated the cost.

If the appraisal of suburban real estate is carried out with an error, one of two problems may arise:

The price will be set too low. Then the seller, having a chance to get more, will lose some money.
The price will be too high. This will lead to the fact that the property will take a long time to sell, if a buyer can be found at all.

Therefore, you should not evaluate country real estate yourself. This is a truly complex process that is best left to specialists.

Assessment of the market value of a residential building (cottage) in Moscow and the Moscow region

Appraising a residential building is a rather complicated procedure.
If in the case of apartments it is relatively easy to select similar objects for calculations, then with cottages and country real estate everything is different. In addition, when assessing such objects, one should take into account not only the building, but also the land around it. The exact market value of a private home can only be calculated by an experienced specialist with solid practical experience and a wealth of theoretical knowledge. In addition, according to Russian legislation, the appraiser must have a qualification certificate, have access to an SRO and professional liability insurance. All these requirements are met by expert appraisers working in the group.