Is it necessary to contact appraisers while selling real estate
A few years ago, the State Property Fund of Ukraine announced the launch of an automatic real estate valuation service. It was planned that every citizen can go to the site, enter the parameters of the property and receive a certificate in electronic form. This certificate should have indicated the automatically calculated value of the property, as well as the access password for verification by the notary. So almost any interested person can allegedly get a certificate of the value of his real estate free of charge and relatively simply and immediately go with him to re-register the right of ownership to a notary. But did it come out the way it wanted to be? Let’s find out.
We decided to apply for comments and explanations to two active participants of the evaluation market in Ukraine, who occupy the first positions in the search results for the following queries: "expert evaluation", "property evaluation", "real estate evaluation", "apartment evaluation", etc. Thus, we received comments on the work of the SPFU base from the appraisal companies of Real Expert (RealExpert.UA) and Ocenka.UA. The following is a direct speech.
The appraisal company Real Expert
Any interested person can really use the free evaluation service. In this case, only the presence of an electronic signature is decisive. The user of this automatic evaluation module may not have any relation to the real estate object for which he orders and receives a certificate.
In itself, the idea of free evaluation is very good. It aims to solve two problems at once:
- Underpayment of taxes and mandatory payments to the budget due to underestimation of market value by some appraisers. Fighting the corruption component in the field of property valuation due to the lack of automatic control.
- Simplification of the procedure for re-registration of real estate by reducing the number of required documents. Saving citizens on the services of real estate appraisers, and this is usually from 1000 to 2000 UAH depending on the type of property. Amount may seem small, especially in comparison with the cost of real estate, but in addition to financial costs, it is still a trouble.
Admittedly, there is really more order in the market. However, there is a problem with the fact that in some cases the automatic module incorrectly displays the value of the property. And then the owners are forced to contact the appraisal companies to adjust the calculations.
We also really want to draw your attention that the certificate from the register is valid only for a month from the date of its formation. However, the appraiser’s report can be used up to six months from the date of evaluation.
The appraisal company Ocenka.UA
We had the opportunity to get acquainted with the previous comment of our colleagues from Real Expert LLC. Indeed, in our opinion, the situation looks like this.
We want to pay your attention that not all customers understand that a free automatic evaluation from the State Property Fund is suitable only for re-registration of real estate with a notary:
- Selling of real estate or its gifting.
- Registration of the right to inheritance by law or testament.
- Conclusion of other types of civil law transactions at the notary, for example, lifetime maintenance or exchange.
Of course, these cases of evaluation are the most common on the market, and therefore the SPFU module solves a significant part of the problems. However, it is important to understand that when you need to evaluate the property to submit documents to the court (for example, the division of property in a divorce), automatic evaluation is not suitable. You will still need to seek help from professional appraisers.
Many people have extra trouble and problems when they submit a certificate of free valuation of real estate for trial. On our website we described in detail, why the valuation function and its purpose are very important in determining the value of the property. That is, we will repeat again. Free evaluation is valid only when re-registration of real estate at the notary! In all other cases, you still need to contact one of the appraisal companies in your city.
At the end of our comment, we want to draw the attention of the specialists of the State Property Fund, who periodically adjust the evaluation module, to the fact that in some cases the program significantly underestimates the cost of individual real estate objects. According to our observations, problems most often arise when calculating the cost of land and garages. But when conducting an automatic evaluation of apartments and residential buildings, there are usually no problems.