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Real estate appraisal
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Evaluation of buildings, apartments
Evaluation of construction works
Valuation of objects in intangible form
Valuation of intellectual property rights
Assessment of integral property complexes
Evaluation of machinery and equipment
Evaluation of wheeled vehicles
Valuation of real estate - the main provisions
Real estate appraisal - one of the types of appraisal examination, which determines the objective market value of the appraised object (real estate), which usually depends on the type of real estate, location of real estate, construction cost of similar objects, the general price level, market situation, etc. This is one of the most important elements for real estate transactions, and when making a sale, the valuation of real estate is a mandatory check: from February 2014, domestic notaries do not have the right to sign the relevant documents until they find in the registers of the State Property Fund report on the examination. In fairness, it should be noted that the cost of real estate appraisal in Ukraine is an order of magnitude lower than similar services in Europe and the United States and are available even within a small budget plan.
Civil law provides for several types of transactions for the alienation of real estate: sale, exchange, gift, satisfaction of mortgage requirements, inheritance, lifetime maintenance agreement, and so on. When concluding such agreements (and all real estate agreements are subject to mandatory notarization and state registration), the parties must pay taxes, fees and other mandatory payments accrued in accordance with applicable law.
The basis for calculating such tax is the value of the object, which is specified in the relevant agreement. The higher of the values is chosen for taxation - either the contract price or the appraised value determined in the Appraiser's report. Taxes and fees for real estate transactions are calculated in accordance with the requirements of the Tax Code of Ukraine, the Law of Ukraine "On fees for mandatory state pension insurance" and the decree of the Cabinet of Ministers "On state duty".
There are three types of law, which are most common in market relations:
- Ownership is the most common, because when it comes to assessing the market value of a particular object, it means the value of ownership of this object.
- The right of possession and use is mainly obtained by the lessee at the time of drawing up the lease agreement. Estimation of the market value of the right to use the object for a certain period of time is an estimation of the market value of rent for a given period (year or month).
- The right to lease is a set of rights and obligations under the lease agreement. Both the landlord and the tenant have these rights, but the cost and composition of these rights are different for each of them. The right to lease is a property right and its market value can also be estimated.
Objects of residential real estate appraisal
Appraisal of residential real estate means the establishment of the value of the following objects:
- Apartments
- Rooms in apartments
- Households (including garden houses)
- Cottages (suburban real estate)
Evaluation of construction works
Under the assessment of construction works understand the following activities:
- determining the value of the object at all stages of construction;
- analysis of design and estimate documentation; analysis of compliance with all legal norms in the construction and commissioning of facilities;
- determination of the degree of construction readiness of objects of unfinished construction;
- investment assessment of construction objects of any complexity and completion;
- risk minimization and optimization of construction processes in general.
Valuation of residential real estate is required for:
- conducting transactions of purchase and sale, gift, exchange, inheritance, lease;
- obtaining a loan secured by residential real estate;
- resolution of property disputes (assessment of the share in residential real estate for the court);
- property privatization;
- property insurance;
- concluding a mortgage agreement;
- during executive proceedings and conducting public auctions of seized property;
- determining the amount of damage caused to real estate by third parties;
- determining the cost of unfinished construction;
- contribution to the statutory fund of companies.
The following documents are required for the valuation of residential real estate:
- Contract of sale, exchange, gift or certificate for an apartment (home ownership).
- BTI technical passport for real estate.
- Passport and identification code of the property owner.
Additional list of documents for the assessment of home ownership:
- land lease agreement or state act (certificate) on land ownership;
- extract from the technical documentation on the normative monetary valuation of the land plot (if any);
- extract from State Land Cadastre Center (if available)
* All documents are sent to us in the form of copies. The list of required documents is for reference only and can be adjusted after a detailed study of the task of independent housing assessment.
The result of real estate appraisal
Valuation of real estate is made in the form of a Valuation Report, the requirements for which are regulated by law in the field of property valuation and property rights.
Valuation of commercial real estate
Commercial real estate is real estate, the main purpose of which is commercial activity. This property belongs to the "non-residential fund" and it can be used in various forms, but the main functional purpose of such property - making a profit (benefit) from its operation.
Commercial real estate includes trade, production and storage facilities, gas station real estate, hotels, cafes and restaurants, offices, entertainment establishments, property complexes, agricultural real estate, construction sites, parking lots, garages, etc.
Valuation of commercial real estate is carried out for the following purposes:
- execution of the contract of sale;
- lease of commercial real estate;
- obtaining a loan secured by commercial real estate;
- inclusion of real estate in the authorized capital of enterprises;
- division of property (including in court);
- determination of the share of property in the authorized capital of enterprises;
- in the framework of revaluation of fixed assets of the enterprise in accordance with UAS and IFRS;
- real estate insurance;
- determination of damage caused to real estate (fire, flooding, destruction);
- determining the value of improvements made by the lessee during the lease of the property.
Documents required for the assessment of commercial real estate:
- a document certifying the right of ownership of the property;
- technical passport for real estate;
- documents certifying the legal status of the land on which the real estate is located (land lease agreement, act of permanent use or state act (certificate) of land ownership);
- certificate of book value of the property on the valuation date (for legal entities).