To be successful in real estate investment, there’s one key factor to keep in mind: making informed, intelligent decisions. Relying on your instincts or emotions might lead to costly mistakes. Instead, always ensure you’re armed with the right information.
In this blog, we will discuss a crucial document for foreign investors in Turkey — the real estate valuation report. We will show you why this report is a must-have before purchasing property in Turkey.
What Is a Real Estate Valuation Report?
A real estate valuation report is an essential tool for anyone looking to buy property in Turkey. It provides a detailed analysis of the property’s market value, legal status, and other critical factors that affect its value.
The cost of this report typically ranges from $300 to $900, depending on the price of the apartment and the real estate valuation company you choose. While this may seem like an additional expense, it is an investment that can protect you from costly mistakes in the long run.
Why Is the Valuation Report Important?
The most important thing to note about this report is its limited validity. It is only valid for one month. This means that once you receive the report, you must complete all legal processes, such as title deed transfer, within that period. If you fail to do so, you’ll have to pay for another valuation report.
What’s Included in the Report?
The first page of the valuation report will include your personal information, the report number, and the date it was issued. This report must be obtained from government-approved real estate valuation companies in Turkey, which are accredited by the Capital Markets Board (SPK) and the Banking Regulation and Supervision Agency (BDDK).
Turkey’s Title Deed Office maintains all records related to property titles, and the valuation report will provide you with a detailed overview of any official transactions related to the title deed. This ensures that the property you are interested in is free from any legal issues.
How Does the Report Protect You?
The valuation report does more than just confirm the market value of the property. It highlights both the positive and negative aspects of the property. Additionally, the expert conducting the valuation will review local market prices to ensure that the property isn’t overpriced.
The report also examines key aspects such as:
- Municipality records
- Title Deed Office records
- Current photos of the property, including measurements
- Management plans
All of these factors ensure that you’re making a well-informed decision.
When to Pay a Developer
Many foreign investors in Turkey are eager to make an initial deposit on their property. Developers may ask for a small deposit (up to $1,000), which is often fully refundable. While this is a good way to reserve a property, it’s crucial to wait before committing to a larger down payment (typically 30% of the total cost).
Before you make any significant payments to a developer, it’s highly recommended to secure a real estate valuation report. For around $300, this report can save you from potential scams, overpricing, and other legal issues that could arise.
Conclusion
To sum up, the real estate valuation report is an invaluable tool for foreign investors in Turkey. While it may cost a few hundred dollars, the protection it offers is worth the price. By ensuring the property’s market value and legal standing, the valuation report can safeguard you from unnecessary risks. So, before you make that down payment or commit to a property purchase, don’t skip this crucial step — it’s the smartest investment you can make.
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