It is a common misconception that investing in property in Turkey, a developing country, is risky due to potential negative issues. However, this is not necessarily the case. Having a thorough understanding of the specific property you wish to purchase and being familiar with the market and market value of the property can eliminate any surprises that might arise. The market value of a property is the fair market price it would sell for, the highest price a buyer would be willing to pay, and the lowest price a seller would accept. To protect both sides valuation report in Turkey is an important point before purchasing the property. 

A variety of factors, including the property’s location, the property, the size and condition of the property, the quality of local amenities and schools, and the real estate market’s overall state, determine the property’s market value. To determine the market value of a property, a real estate appraiser will typically perform a comparative market analysis, in which the property is compared to similar properties recently sold in the area. The appraiser will also consider other factors, such as the condition of the property and any improvements that have been made, to arrive at an accurate market value. The Royal Institution of Chartered Surveyors (RICS) Red Book is a professional standard and guidance manual for members of RICS. It explained the meaning of market value as “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Valuation Report in Turkey? 

Valuation is the process of determining the value of a property. This can be done for a variety of purposes, such as setting a selling-buying price for a house, apartment, or complex building or determining the amount of money that should be insured on a property by a bank or creditors. 

Many different methods can be used to value a property, including the comparative market analysis method, the cost approach, and the income approach. The comparative market analysis method involves comparing the property in question to similar properties recently sold in the area to determine its value. The cost approach involves estimating the cost to rebuild the property if it were destroyed and then subtracting any physical depreciation. The income approach involves estimating the property’s potential income and then discounting that income to present value. These methods to make a valuation for the property needs to be done by professional companies such as Smart Citizenship. 

Feasibility Analysis in Turkey

Feasibility analysis is a process used to evaluate the potential of a proposed project or venture to determine whether it is viable and worth pursuing. Feasibility analysis is important because it helps businesses and organizations make informed decisions about whether to invest time, money and other resources into a project. It allows them to assess the potential risks and benefits of the project and to determine whether it aligns with their goals and objectives.

Several types of feasibility analyses can be conducted, including financial feasibility, technical feasibility, and market feasibility. Financial feasibility involves analyzing the projected costs and benefits of the project to determine whether it is financially viable. Technical feasibility involves evaluating whether the project can be completed using the available resources and technology. Market feasibility involves analyzing the potential demand for the product or service being offered. Overall, a feasibility analysis is an important tool for businesses and organizations to use when evaluating new projects or ventures, as it helps them to make informed and strategic decisions about how to allocate their resources. 

Besides consultancy, the firms’ ethics section of the RICS Red Book covers the ethical principles that RICS members must adhere to when acting on behalf of clients or employers. These principles include:

• Integrity: The surveyors must act with integrity and honesty in all their professional dealings.
• Objectivity: The surveyors must be objective and unbiased in their professional work.
• Professional competence and due care: The surveyors must maintain their professional competence and must take due care to ensure that their work is of a high standard.
• Confidentiality: The surveyors must respect the confidentiality of information acquired in the course of their professional work.
• Professional behavior: The surveyors must act with professionalism and respect towards clients, colleagues, and other stakeholders.

Consultancy firms must conduct themselves professionally when advising clients on the purchase of properties in Turkey, including highlighting both the positive and negative aspects of potential properties in accordance with ethical guidelines.

Why is the valuation or making feasibility analysis important before purchasing any property in Turkey?

The valuation of a property is an important factor to consider when purchasing a house, apartment, or complex building because it determines the property’s market value in Turkey. This can help you ensure that you are not overpaying for the house and that the price you are paying is in line with similar properties in the area. A valuation can also be used as a negotiating tool when making an offer on a property especially if you’re a foreign buyer. It can also be useful in determining how much money you will need to borrow to finance the purchase of the house and what your monthly mortgage payments will be. Additionally, the valuation can be used to determine the amount of property taxes or commissions you will need to pay on the house.

What are the advantages and disadvantages of having a consultancy from a certificated surveyor or professional company before investing in Turkey? 

There are several pros and cons to consider when deciding whether to obtain a valuation consultancy before purchasing a property.

Pros:

1. A consultancy firm can provide an independent and objective assessment of the value of the property, which can be useful in making informed decisions about whether to invest.
2. A consultancy firm can identify any potential issues with the property that may affect its value, such as structural problems or legal issues.
3. A consultancy firm can provide reassurance to the buyer that they are paying a fair price for the property.

Cons:

1. Obtaining a consultancy can be costly, especially if the property is large or complex.
2. For big and complex unites, it may take more time than you expected.