• Nazar Emlak

Value Analysis (Expertise)

Real estate valuation analysis offers a large variety of data before investment. Region. City and the proximity of some important points are completely dominant issues in the value analysis. Square meters or area features are taken into account in the value analysis. The value analysis presented in real estate is presented as a prediction about what the investment in question will bring to the person. It can also be a necessary and effective valuation that specifies insurance coverage when obtaining a loan. In fact, this is a process that requires hard and meticulous work. Therefore, working with an expert staff will be very important. Real estate valuation and value analysis services are available throughout Türkiye.

Real estate valuation

Before clarifying the subject of real estate valuation, or immovable valuation as it is commonly known, the question of what is valuation is among the issues that those interested in this subject should know. In the simplest meaning, valuation is the work of appraising or determining the value of a property. Valuation work is done entirely by value appraisers.

What is Real Estate Valuation?

Real estate appraisal is the realization of the probable value appraisal of the relevant property within a certain date by impartial and independent experts based on impartial, objective and independent measurements. In summary, the real estate appraisal process is defined as increasing the value of the real estate project, a real estate or the benefits and rights attached to the real estate within the framework of certain legal regulations, by choosing the most accurate and most appropriate valuation method for the property, and also preparing the valuation report clearly.

About Real Estate Valuation

People who look for information about real estate valuation are generally those who search for taking out loans or within the scope of insurance coverage. On the other hand, this subject gains great importance when creating a portfolio for companies or before processes such as selling or leasing.

The question of what is real estate valuation or why it is done is wondered by many people. In fact, before these, it will be more important to give information about the known misusage of the concepts, real estate and property. As it is known, the word real estate is actually used for assets that cannot be carried away. The word real estate is very commonly thought to mean the same thing as real estate. But in the meanings of these words there is actually a little different from each other. While property can completely cover real estate, it can also be used for other immovables as a land and a non-supporting building, agricultural area, tree, hut etc. in this land. They are called property because they cannot be moved. The house on the land is considered real estate. If there is a car on the same land, it is not called real estate. Because the car does not provide the 'immovable' principle, which is the important term here. The exception here is the ships. Since there is no separate law for those on the water, although ships can move, they are actually thought among immovables like properties.

When looking at what real estate valuation means, it can basically be defined as the determination of the direct value of a real estate or, accordingly, the value of the rights. If we look detailed, in this case, it is necessary to determine the value of a real estate itself or its project, or to determine the rights and advantages of individuals and institutions in relation to this.

Why is Real Estate Valuation Done?

Individuals can specify the values of their real estates at their own request. In addition, real estate evaluation is needed in a wide variety of areas, such as when obtaining bank loans, creating portfolios of companies or making insurance transactions. Other areas where real estate appraisals are made can be listed as below;

● People may wish to learn the value of their own real estate in cases such as leasing or selling.

● It is evaluated in case of providing collateral for the loan to be drawn by the banks.

● When a company creates a part, the situations in which the real estate values are processed are considered.

● It is checked in order to determine the insurance transactions of any real estate.

● It is checked to obtain data to be used in situations such as auctions.

● It is used to determine the value of immovables like agricultural land.

● It is done for a valuation in a company or shop partnership or transfer process.

In fact, real estate valuation is needed in a wide variety of fields. The main reason for this need is the stability of the system. In other words, it is carried out impartially by real estate appraisers or instutions. In this way, the determined value can be accepted by everyone.

Real Estate Appraiser

Real estate appraisers are experts who are employed by real estate appraisal firms on a permanent basis or who provide services with the condition of contractual arrangement. As a result of the exam, which is organized by CMB (capital markets board) and with certain training and experience requirements, they are entitled to become a property appraiser, that is, a real estate appraiser.

How to Calculate the Value of a Real Estate?

When the value of a real estate is determined, three main approaches are generally applied in IAS (International Valuation Standards) as these three; income approach, cost approach and market approach. In short, these approaches are as below;

The income approach provides that purely indicative values are determined by converting future cash flows into a single current value. In the income approach, the asset value is determined based on the present value of the revenues cash flows or cost savings actually generated by the asset. In other words, it is an approach that emerges when the potential created by the real estate income expectation is associated with the real estate. It is considered necessary to cover the subject of valuation of the income approach with the timing of all future cash inflows and outflows related to the property, with an appropriate point of view.

The Cost Approach is indicativetogether with an initial calculation of the replacement cost or reproduction cost of an asset and consideration of physical deterioration and all depreciation of other cuttings. The cost approach is divided into three methods in IAS: cost method, collection method and reproduction cost.

The market approach refers to the approach in which the indicative value is determined by comparing the price information of an asset with the same or similar assets that may be available on the market. Similar to the evaluated property, the customer takes into account data on the sale or related market. In this sense, valuation may not be made with a comparative transaction. Although it is called the Peer Comparison Approach inside the sector, IDS can also present the market approach management method as a sub-title of a comparable transaction management in the cases of 2017, 2020 and 2022.

How to Become a Real Estate Appraiser?

In order to become a real estate appraiser, some conditions and qualifications are required. These terms and features are listed as below;

● It is necessary to complete 4 years of undergraduate education.

● It is necessary to successfully pass these exams held by the CMB.

● After successful completion of the exam, it is necessary to complete the real estate appraisal specialization requirements in order to obtain and activate the license.

Apart from the features specified above, there are also some personal characteristics in order to be an valuation specialist. These personal characteristics are listed as below;

● Analytical skills are required.

● High ability to collect data is required.

● S/he should perform the analysis of the data quickly.

● The analyzes made should be reported in detail.

● Must be an expert in providing time management.

● Must have a reliable attitude.

● Must have the ability to identify and solve problems easily.

● These personal characteristics are the qualities that are highly desired and necessary within the real estate appraisal field.

How is Real Estate Valuation Made?

When making the calculatiın of a real estate valuation, it should be taken into account that real estate is handled from a wide variety of perspectives. These factors are generally examined in two separate classes, environmental and structural.

Environmental Factors

Environmental factors can include changes that are completely independent of the various real estate, such as the location of the real estate designated as immovable and the condition of other immovables around it.

Structural Factors

On the other hand, structural factors can be defined as the conditions of the real estate itself and the paperwork in general. The compatibility of the data in the documents and title deeds with the current state of the real estate, its compliance with the legislation and the status license in the land registry are included in the permits and factors.

Comparison can be made with the peers in the vicinity after examining all the qualities of the real estate and making the necessary measurements and official records,. The location and physical conditions of the real estate are also taken into consideration as they will be effective in these calculations. In fact, all these calculations are current data. It is stated what the future status of the real estate will be. At the same time, the important factors in its value are carried out by experts with various studies. All these studies are carried out and reported by experts in the most appropriate way to the legislation. Real estate valuations report are created in this way.

How does the reporting process occur?

The real estate valuation reporting process is basically presented under the headings below;

● Firstly, supplementary information on what for the report will be written should be given.

● It should contain all the detailed information of the real estate owners for whom the report is written.

● The purpose for which the report was written should be evaluated.

● All kinds of data collected during the process should be included in the report.

● The most detailed analysis of these data should be made.

● Analyzes need to be stored and interpreted.

● A separate report should be made as a result of all these. If different documents are to be added, additions such as photographs and documents should be made.