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Real Estate Appraisal

When might a real estate appraisal be necessary, how long does it take, and what documents are required?

Real estate appraisal is a crucial part of the process when buying, selling, or renting a property, where an impartial real estate appraiser determines the market value of the property. National legislation defines appraisal as the activity of estimating the value of a real estate property, documented in a report called an appraisal report, conducted in accordance with specific standards and professional ethics by an ANEVAR authorized appraiser.

Who can request a real estate appraisal? An appraisal of a property can be requested by a potential buyer, by the person interested in selling or renting the property, or by creditors in cases where a future borrower uses the property as mortgage collateral. Additionally, appraisal may be necessary for determining the taxable value of the property, as stipulated by legislation, or for insurance purposes, in which case it is requested either by the policyholder or the insurance company.

What can be the purposes of a real estate appraisal? Depending on the requester of the appraisal, the purpose can be:

  1. Knowing the estimated value of the property for buying or selling (requested by a potential buyer or property owner).
  2. Knowing the estimated value of the property for obtaining a mortgage loan (requested by the lending institution to ensure the property can fully cover the loan and can be sold).
  3. Financial reporting (appraisal needed for commercial spaces owned by companies).
  4. Estimating insurance value (may be requested by clients for insurance purposes).
  5. Tax registration (required for legal entities owning any type of properties involved in tax activities, and for individuals, but only for non-residential properties).
  6. Resolving disputes or for insolvency requests.

Real estate appraisal: what does it involve? A property appraisal involves a detailed report prepared by a real estate appraiser, including various reports and information regarding the exterior and interior condition of the property, an evaluation of amenities, identification of any health code violations, and a comparative analysis with other properties in the area. The appraisal requires the physical presence of an appraiser on-site. The comprehensive report includes formal opinions and conclusions by the appraiser.

What types of properties might require a real estate appraisal? Real estate appraisal can cover any type of property, but commonly includes appraisals for residential apartments, houses with land, or vacant land. For appraisals requested by companies, these typically involve estimating the value of commercial or industrial spaces, or office spaces.

Real estate appraisal: how long does the process take and what documents are required? The inspection of a residence by a real estate appraiser typically takes about an hour, depending on the size of the living space and outdoor areas. Following the appraisal, it generally takes between 3 to 14 days to receive the official report. The duration can vary based on the property size, the type of report, and other factors such as lender or bank review.

Regarding documents required for a real estate appraisal, these typically include:

  • Deed of ownership.
  • Copy of identification card (for individual clients or representatives of commercial entities).
  • Copy of registration certificate (for commercial entities).
  • Site and boundary plan.
  • Land registration deed and cadastral extract, not older than 3 months.
  • Property information sheet.
  • Apartment sketch (site survey plan).
  • Inspection report (completed by the appraiser and signed by the owner).

For lands, additional documents may include:

  • Zoning plan.
  • Urbanism certificate.

These documents are essential for conducting an accurate and thorough real estate appraisal process.

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