The assessment report: Why it is mandatory and what it includes

You have decided to buy a house or an apartment and you are ready to take the first step towards this major investment. However, before committing to a mortgage, there is one essential step you must take: get a property appraisal report. Below we tell you in detail everything you need to know about this report:

What is the Evaluation/ Evaluation Report?

The appraisal report is a document where an appraiser's investigation of a real estate property is presented. It is drawn up according to international standards and is divided into chapters where all the key aspects of the subject, conclusions and arguments are described. Finally, it estimates a real value of the real estate.

A real estate appraisal report includes the following:

• Property description: Details of the property, including dimensions, location, structure and other relevant features.

• Real Estate Market Analysis: Evaluating sales and rental prices for similar properties in the area.

• Physical condition of the property: Assessing the overall condition of the property, including infrastructure, fixtures and other essentials.

• Legal: Checking the legality of the property, including property rights, encumbrances or other restrictions.

• Financial analysis: Estimating the value of the property according to various criteria, such as the cost method, the comparison method and the income method.

• Conclusions and Recommendations: Summary of the expert's findings and assessment, along with recommendations regarding the property's value and use.

• Other documents and attachments: May include additional documents such as photographs, maps, certificates of title, etc.

This report provides a comprehensive and objective picture of the property's value and condition and is used for various purposes such as selling, buying, renting or financing real estate.

Why is the evaluation report needed?

The evaluation report is a necessary and mandatory document for:

• Sale/procurement of a property (apartment, house, construction, land, etc.).

• Pledge of the real estate within a mortgage financing - the evaluation report is necessary for the bank to determine the market value of the property that it takes as collateral.

• Placing a property for rent (apartment, house, construction, land, etc.)

• Transfer of the real estate to the company's share capital

Why is the progress report necessary when applying for a mortgage:

The valuation report is mandatory for mortgages for several reasons:

• Determining the value of the property: The bank or lending institution needs an accurate assessment of the value of the property in order to determine the loan amount and to protect their own interests if they lend money based on the value of the property.
• Collateral for the loan: Real estate is used as collateral for the loan. The bank wants to know that the value of the property is high enough to cover the loan amount in case the lender is unable to pay back the loan.
• Risk Reduction: A professional appraisal report helps reduce the risk to the lender in the event that the property's value declines or the borrower is unable to honor its financial obligations.
• Regulatory compliance: In many countries, financial institutions are required by law or regulation to obtain a valuation report to protect the interests of the parties involved in the transaction.
• Transparency and Certainty: A valuation report provides transparency and certainty to the parties involved about the value of the property and ensures that the transaction is fair and equitable for all parties involved.

What properties can be appraised?

The following types of real estate may be subject to the evaluation process:

• Lands

• Structures and buildings

• Residential spaces (apartments, apartments, individual houses)

• Construction in progress

Evaluation procedure

The evaluation procedure is very simple and consists of the following steps:

• Placing the order of an evaluation report and paying for it. It can be done here:ORDER EVALUATION REPORT

• The customer support service returns with a sound and a convenient day and time is set for the requester

• The evaluator comes to the site and inspects the object.

• Within up to 72 hours, the applicant receives the evaluation report by e-mail in PDF format and can also approach one of the bank's branches established in advance to receive the evaluation report on paper.

Important: The mortgage financing application can also be completed in the respective branch. The appraisal report is one of the essential documents for the applicant's mortgage file, so with such a combined approach, the applicant saves a lot of time in preparing and submitting the file.

Documents required for the evaluation report

To perform an assessment, the applicant must present a set of documents to the inspector. They vary depending on the evolved object as follows:

In case of apartment evaluation:

• Property deed (Sale/purchase contract, donation, inheritance, privatization certificate, etc.)

• Extract from the Real Estate Register

• Location and delimitation plan

• Copy of applicant's identity card / Copy of Registration Certificate (commercial companies)

In case of valuation of residential, commercial and industrial properties (building + land):

• Property deed (Sale/purchase contract, donation, inheritance, privatization certificate, etc.)

• Technical passport or cadastral file

• Extract from the Real Estate Register

• Deed of authentication of the land owner's right

• Situation plan/location and delimitation of the real estate

• Survey (sketch) on each level of the construction

• Urban certificate

• Building/dismantling authorization

• Minutes of reception upon completion of the works

• Copy of applicant's identity card / Copy of Registration Certificate (commercial companies)

In the case of valuation of vacant building land

• Property deed (Deed of authentication of the land owner's right, sale/purchase contract, donation, inheritance, etc.)

• Extract from the Real Estate Register • Copy of applicant's identity card / Copy of registration certificate (commercial companies)

Now you can order and pay for the evaluation report online, without the need to go to one of the bank's branches. Place your order here:ORDER EVALUATION REPORT

Conclusion:

In conclusion, the real estate appraisal, although it may seem uncertain to many people, is an essential process in various situations, such as selling, buying or mortgaging a property. The appraisal report provides vital information about the true value of the property, helping to determine the market or restoration price.

The appraisal procedure is simple and involves requesting a report, having the inspection done by an expert appraiser, and receiving the report in a short time. This document is also required for mortgage financing files, saving the applicant time. The required documents vary depending on the type of property being assessed, and now ordering and paying for the assessment report can be done online without the need to visit a bank branch here:ORDER EVALUATION REPORT