Apartment appraisal for Sberbank

Why is real estate appraisal carried out by Sberbank, what depends on it

The assessment is required not only by Sberbank, but also by the borrower himself. It is important for the client to obtain real figures regarding the cost of the loan property. He sees them in the final report from the appraisal organization. The document along with the application is then sent to the legal service of Sberbank. There the data is checked, including a report with the assessment results.

Why is it so important to get accurate figures regarding the cost of real estate that is purchased with a mortgage without a contribution or with it:

• The exact amount of the loan depends on the amount in the report. After all, it is for housing that a loan is issued for its purchase. This means that its market price is important, which is indicated in the report. The larger it is, the higher the size of the mortgage issued by the bank.
• Down payment amount. Yes, the terms and conditions indicate the minimum amount in %. But it is calculated based on the size of the loan. And it, as we wrote above, depends on the estimated value.
• Collateral price. The terms of the mortgage provide not only guarantors (sometimes), but also other guarantees. This applies specifically to collateral. In a mortgage loan, this would be the property itself. Its price is indicated in the loan agreement. Although it is purchased with a mortgage, it is also considered collateral. And its market value depends on the assessment. When the borrower is unable to pay the mortgage, the square meters are sold by auction or at the request of the client. The amount must be compared with the previously conducted appraisal examination.

As for the assessment itself, it is not just professional, but also corresponds to the market situation. That is, the expert compares all offers on the market, other factors, and draws up a report. He must provide adequate figures and not exaggerated or underestimated ones. This is important for all parties - both the bank and the borrower. To receive a professional report, clients order it from Sberbank (from partners), or from other licensed organizations. In the latter case, they are verified by the bank.

Why is an apartment appraisal necessary for a Sberbank mortgage?

Sberbank and any other credit organization consider such an event as appraising an apartment for a mortgage mandatory. The need to obtain an objective value of housing is beyond doubt, since the real price of the property is an important factor in determining the size of the mortgage loan.

In most cases, the maximum loan amount ranges from 60% to 80% of the appraised value, which allows the bank to reduce the bank’s risks from a financial transaction to a minimum, since the apartment can be sold without problems and quickly at a very liquid price. That is why almost all credit organizations are interested in reducing the cost of residential property pledged as collateral. In turn, it is more profitable for the borrower to increase the assessed value, which allows him to count on a larger loan amount or a reduction in the bank interest rate on it. As a result, buying a home will cost him significantly less.

The real price of the property is an important factor in determining the size of the mortgage loan

In any case, for both parties involved in the loan application, it is extremely important that the assessment of the apartment for a mortgage from Sberbank reflects as much as possible the real state of affairs and the current condition of the property. This is exactly what they get when contacting our company.

Apartment appraisal for Sberbank accredited companies - list

When you apply for a mortgage, they are sent to the bank's legal department along with an appraisal report. It is carefully checked, as is the organization itself that carried it out. If the company was there, which is on the list of recommended ones by the bank itself, then everything is much simpler. They have already been verified and received confirmation.

The list of appraisal organizations cooperating with Sberbank itself is easy to find. It is presented on his website. But if you have already gathered in the department, then he will be presented there too. At a minimum, they will name a list of organizations or show a list of them with a description of each. The borrower has the opportunity to choose the company independently.

He can even suggest his own appraiser if he trusts him more - an organization or a private specialist. But then he should submit his certificate given to Sberbank. After receiving confirmation, the appraiser is authorized to work on your mortgage property.

As for the partner organizations listed on the Sberbank website, they have also been verified:

1. They have confirmation status from Sberbank. The period until which it will be valid is indicated. That is, the status is assigned for some time, and not forever. Companies are audited periodically, not just once.
2. Provide a qualification certificate. Information about him is listed in Sberbank.
3. They have an insurance policy, and the date of its completion is also listed in the database.

Consequently, all organizations have been verified and have the right to conduct expert assessment activities.

Who can conduct a real estate appraisal?

Sberbank has compiled a list of accredited appraisal companies that can perform appraisals. So when choosing a company, make sure that the appraisal company is on the list so that the market value appraisal report is not rejected. This information is provided on the official website of Sberbank of Russia.

The appraisal company, included in the bank's register, operates in all regions of Russia on the basis of existing rules and laws. Order a property and real estate appraisal from professionals to complete the mortgage transaction 100%.

What is a report and assessment of housing with a Sberbank mortgage

A real estate valuation report is not a one or two page document, but a full-fledged work of experts. It contains everything - from a description of the task itself, its purpose to calculations using various methods. The document is needed not only by the client, the bank, but also by its individual service. It is Sberbank lawyers who check the report itself, the mortgage application, and the package of documents.

The assessment results are also checked by Sberbank lawyers. It doesn’t matter which organization conducted it – the one included in the recommended list or another. In any case, the report is carefully reviewed to determine whether the calculations were carried out correctly and whether they correspond to the situation on the real estate market (real prices).

The report also includes copies of documents submitted by the borrower himself. They relate to the client and the property for which the mortgage will be issued. The appraisers' calculations are presented along with references to methods, laws, assumptions and limitations. That is, the report is the result of the work of experts, which describes the process itself. What points are included in the document, read below.

List of accredited appraisal companies of Sberbank

The law obliges banks to accept property valuation reports for mortgages from any appraisal companies. However, in practice, Sberbank offers those companies that it trusts.

The borrower can find a complete list of appraisal companies at this link or get a list of organizations in their city when visiting a mortgage center.

Currently, Sberbank has accredited over 2,700 companies that have proven their reliability and legitimacy. The bank has no right to insist on choosing a specific bank, but it is logical to choose the most convenient company in terms of cost and location from the list provided. This will significantly speed up the processing time for your mortgage application, as the lender will not need to further vet the appraiser.

What is included in the apartment assessment report in Sberbank - points

A report is understood as a finished document with the results, which describes the process itself, the calculation methods used, and the laws and standards used. It includes the following sub-items:

1. Terms of reference from Sberbank, which indicate the purposes of the assessment. For example, it is indicated that it is required to obtain the market value of the property in numbers in order to issue a mortgage to the client based on these data.
2. Final estimated value.
3. Qualitative and quantitative indicators, results.
4. Calculation methods, approaches used. Why was a particular one chosen in the end?
5. What betrothals and assumptions were used.
6. Standardization - list.
7. Name of the parties - appraiser, customer.
8. Documents from the bank and its client relating to the mortgage, the subject of assessment, including title papers (copies).
9. Application, real estate photos.
10. Characteristics.
11. All calculations made, and in different ways and methods.
12. Analytics of the market - that part of it to which housing is related.
13. Explanations from the appraiser.
14. Other points.

You see that the report is a large-scale work that allows you to make a thorough analysis and assessment of mortgage real estate. It is unlikely that a realtor or other specialist would be able to carry it out. That is why specialized organizations with a certificate are involved.

How does the assessment process work?

Housing assessment begins with specialists visiting to conduct an inspection. This event is necessarily accompanied by photographing the apartment for the report. Specialists must make sure that the layout of the apartment corresponds to the technical plan. Detected inconsistencies can become a serious reason for refusing to issue a mortgage loan.

Calculation of the cost of the apartment:

After collecting all the information and conducting an inspection, a representative of the appraisal company begins to analyze the market - considers suitable apartments in the surrounding area. The calculation of market value is determined not only by the age of the building, but also by its technical condition. The building materials used in the construction of the building are also taken into account.

The appraiser determines not only the market value of the apartment, but also the liquidation price. Determining the liquidation value is insurance in case the borrower refuses to repay the loan. In this case, the bank has every reason to terminate the contract, and has the full right to sell the apartment to compensate for losses.

Mortgage and property valuation under mortgage Sberbank

Sometimes you need to get a loan not for the real estate itself, but simply for an impressive amount. A consumer loan can be large, but often not that much is actually issued. Then a mortgage loan is suitable, even from Sberbank. In order for him to give out as much money as possible, guarantees should be provided to him. These include your real estate, which will be the collateral. A large loan is issued against it. It is called mortgage, less often - consumer.

But even if you have a house, apartment, or other housing, no one will just give you money for them. They need to be assessed correctly so that the bank receives an accurate final market value. It is indicated on the mortgage itself. This document is attached to the loan agreement. In it you will see that your home is temporarily listed as collateral. Its value is indicated based on the appraisal report.

In order for Sberbank to issue a loan, it needs grounds. First, it requires not only to hand over documents, but to write a statement. It is important to order an assessment for a future mortgage from Sberbank. For this purpose, organizations are offered either by the bank itself, or by third parties (an offer from an applicant for a loan). Borrowers often choose the first option.

Mortgage appraisals are carried out by specialized organizations that are supported by Sberbank itself. They will give you an appraisal report for the mortgage. More precisely, you need to select one company or private expert on the bank’s list. After their work, all that remains is to wait for the final result. When the borrower is satisfied with the price indicated in the report, he gives a final agreement. Sberbank draws up an agreement for him and issues loan money. The mortgage is terminated and becomes void once the entire debt is paid.

What is subject to assessment for Sberbank?

Sberbank makes clear demands on its potential borrowers; they must provide Sberbank with a report on the valuation of the property that Sberbank receives as collateral. Sberbank is primarily interested in assessing the value of an apartment (room, house, land) for mortgage purposes (assessment of property for collateral in Sberbank).

Sberbank appraisal , carried out by specialists of our appraisal company, is carried out in strict accordance with all Sberbank requirements for a report on the assessment of the value of property for a mortgage. Our appraisers know the nuances of decision-making in the credit department of Sberbank, and, in the case of a business loan, the report also indicates information about previously concluded transactions: the number of rented and purchased premises, the level of profitability and technical characteristics. Our company prepares the report so that bank employees do not have any doubts or questions.

If you receive a business loan from Sberbank, it is very important for Sberbank that the client provides them with a business concept and an understanding of how and in what ways profit is made. This issue will also be resolved by the appraisers of our appraisal company.

In the case of a mortgage with Sberbank, the assessment for Sberbank becomes a mandatory procedure. The cost is studied based on factors such as layout, number of rooms, number of floors, location of the house, neighborhood infrastructure, proximity to transport infrastructure, etc. In this case, the work of our appraisers in preparing an appraisal report for Sberbank serves as the basis, the foundation for a successful and favorable receipt of a mortgage loan.

conclusions

A mortgage is issued after checking a whole package of documents by the bank’s legal service. It also includes a property assessment report. It indicates the price of housing purchased with a loan from Sberbank. The same applies to those who receive money thanks to a mortgage. Then you also need an assessment. It is carried out by individual organizations with a certificate. Sberbank already has a list of those who are confirmed by it.

Documents required to evaluate an apartment for Sberbank to obtain a mortgage

To create a package of documents for a Sberbank mortgage, you must provide the appraisal company agent with copies of documents, the lists of which for real estate in new buildings and the secondary market will differ significantly. To evaluate an apartment in a new building you will need:

• equity participation agreement (co-investment or assignment of rights, depending on your specific situation); • act of acceptance and transfer of residential premises; • technical passport • cadastral passport

To evaluate real estate on the secondary market, you need to provide:

• certificate of state registration of property rights and documents evidencing their basis (sale and purchase agreement, right of inheritance, etc.); • cadastral and technical passports; • copies of the floor plan and explication.

For both cases, you will also need a copy of the first two pages of the borrower’s passport.