If the year has started with an unexpected inheritance from a relative, the down payment for a new home has finally been saved, or there is a desire to sell your apartment, it means that it is time to order a property appraisal! The assessment will be useful both when buying a property with or without credit, and when putting it up for sale or in the event of inheritance.
Although it might seem that the real estate appraisal provides information only about the market value or the sale price of the specific property, in fact it is a comprehensive analysis that fully explains the situation of property rights, encumbrances, positive and negative factors, as well as the liquidity of the object being appraised in the market. When calculating the value of a certain type of property, a certified appraiser takes into account factors such as the property’s location, encumbrances, technical condition, possible alterations and more.
How can the “Latio” rating be useful to the buyer?
Allows you to reveal hidden problems. Property acquisition does not always go smoothly. Various deficiencies are often revealed, such as disorganized ownership rights and joint property use order agreements, uncoordinated reconstruction or encumbrances. Becoming the new owner, you will have to take responsibility for all the consequences that these factors could cause, and you will have to pay for their elimination from your own funds – for example, in the case of uncoordinated reconstruction, the fine can be several hundred! The consultation of the evaluator will help to detect these problems in time and avoid the situation when a “cat in a bag” has been purchased.
Reflects price matching. The situation in the real estate market tends to be very volatile. If you don’t have experience with buying a property before, it is difficult to assess the conformity of the price with the average market prices – sometimes the price set by the seller is several times higher than the real value corresponding to the property. Certified “Latio” appraisers will calculate the current market value of the property, taking into account all the advantages and disadvantages of the particular property. Property valuation is an important argument that you will be able to use in the conversation with the seller.
How can the “Latio” rating be useful to the seller?
Helps to sell property faster. In more than 32 years of experience, “Latio” has observed: 8 out of 10 owners have difficulties in determining an adequate selling price for the market. If it is too low, the owner loses money, but asking too much reduces the pool of potential buyers and wastes time.
Allows you to avoid problems in the process of closing the transaction. Even if a buyer has been found for the property, it will be too early to say “hop” – especially if bank financing is involved. For example, if in the opinion of a certified appraiser requested by the bank, the property is valued lower than the price requested by the seller, the buyer will have to cover the difference between the transaction and the amount financed by the bank from his savings. If the property’s real, market value was known already in the first conversation with a potential buyer, it would be possible for the seller to find out in time whether the buyer will be able to purchase this property, and it would also allow to avoid the situation when the interested buyer negotiates the price below the property’s market value.
Another situation – the bank believes that the property does not meet the criteria of credit security, revealing property encumbrances, therefore does not grant a loan for the purchase of the property or grants it in a smaller amount, or the transaction process is delayed while the owner organizes the necessary documentation for issuing the loan. Also in this case, the seller can lose the buyer – not everyone is ready to wait weeks or even months until the owner solves all the problems related to the documentation.
During more than thirty years of operation, Latio’s certified experts have prepared more than 100,000 valuations for countless homes, commercial properties, specialized objects and businesses. To make the preparation of the assessment go smoothly:
State the purpose of the assessment
Is the appraisal necessary for obtaining a loan, attracting financing, selling property, arranging an inheritance, legal proceedings, dividing property or for other purposes? In each of these cases, both the range of required documents to be submitted and the estimated scope of the evaluator’s work differ.
Determine the exact work task together with the evaluator
In some cases, several objective and reasonable but different values can be determined for the same property. For example, the present value of an unfinished property in the assumed state will be one, but when a certain condition is fulfilled, for example, the house is placed in service, it will be another. As a result, both values will be objective, but used for different purposes. There could be a situation where it is necessary to determine the value of only part of the property or to determine the fair value of a transaction between specific informed and interested parties.
Prepare documents
To prepare the assessment, you will need to submit the following documents:
- current printout of the land register;
- if the property is a supposed part of joint ownership – a joint use agreement and other documents related to joint use of the property;
- cadastral survey file;
- for the house – land boundary plan;
- if a renovation or rebuilding has been carried out – a project or a conclusion of the construction board or a confirmation card or another document that shows the legalization of the rebuilding;
- information on encumbrances and other documents depending on the specifics of the particular property.
Provide the appraiser with access to survey the facility
Inspection of the property is a mandatory stage. During it, photo fixation is carried out, assessment of the condition of the property, compliance of its layout with the plan attached to the cadastral survey file. It should be remembered that the value of real estate never includes the value of furniture, appliances, interior items and other equipment (movable property). The most important determinants of value are property type, location and legal aspects.
Leave the assessment to the professionals. A qualitatively prepared assessment can protect you from unnecessary problems and unpredictable costs, as well as save your time. Each credit institution has its own “black” list of appraisers whose objectivity, quality or reputation is questionable. As a result, a situation may arise when one bank accepts such a prepared assessment, but the other does not. “Latio” ratings are recognized by all commercial banks in Latvia – you can be sure that the rating will be prepared according to the highest quality standards.
Apply for a real estate appraisal, by filling out the contact form on the “Latio” website or contact: +371 67 032 300
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2024-01-07 20:00:03
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