How an apartment is appraised for a mortgage. Is there a validity period for real estate appraisal and what does an appraisal contract look like? Who is evaluating

Through real estate appraisal, a financial institution is able to:

• minimize risks in case of loan default;
• determine whether the estimated amount is sufficient to issue the requested mortgage.

According to the Federal Standard (clause 26 No. 3), the period of validity of the final value of the property for the transaction is considered valid for 6 months, with the exception of property drawn up upon inheritance.

By whom and at whose expense is the procedure carried out?

The appraisal of an apartment for a mortgage is carried out by professional staff, which can be:

• accredited specialists of a financial institution;
• independent appraisal firms;
• private persons.

It should be borne in mind that banks tend to underestimate the real cost of an apartment for their own safety, and borrowers - to increase it in order to get the maximum loan.

This is why an independent appraisal of an apartment for a mortgage is important to both parties.

It has an official status, therefore it provides additional opportunities for the customer:

• used in court to consider various cases, for example, to determine compensation payments for the division of property;
• is an important argument in disputes with the tax inspectorate about the size of the taxable base arising from the accrual of property tax or personal income tax.

The financial institution offers the borrower two options for finding a specialist in appraisal services:

• provide a list of trusted companies and recommend one of them;
• inform about the selection criteria (a license, a liability insurance policy of at least 300 thousand rubles, participation in an SRO, etc.), with the help of which the client can independently find an appraiser.

Formally, a credit institution does not have the right to restrict a client's choice or impose on a particular firm.

However, there are two factors to consider:

• the borrower's decision must be agreed with the financial institution;
• choosing a specialist who is a trusted partner of the bank, the process of obtaining a mortgage is much easier and faster than looking for it yourself.

Many are interested in the question of who pays for the services of appraisers.

If you look at it, a document about the real value is more needed by a person who wants to get a loan.

The owner of real estate can sell it without submitting a report to the registration authorities. Consequently, payment for appraisal activities is one of the expenses of the borrower.

How and when is the assessment made?

After confirmation of the selected specialist by the bank, the borrower pays a visit to the appraisal company.

He must provide at the disposal of photocopies of documents certified by the signature:

• apartment plan, including floor plan;
• cadastral passport from BTI;
• information on the type of floors (for residential buildings built before 1960);
• a document confirming the right to real estate (sale and purchase agreement, certificate of inheritance, etc.);
• a certificate stating that the property is not subject to demolition or reconstruction with resettlement (for buildings created before 1970);
• share participation agreement (when buying an apartment in a building under construction).

When visiting an appraisal company, the following actions are performed:

• an agreement is concluded for the transaction (it specifies the timing and purpose of the event, the cost of services);
• the date and time of the visit by the specialist of the object of assessment is assigned (you need to choose daylight hours);
• funds are deposited in cash or non-cash for the services provided.

The expert carefully analyzes all documents for the apartment, after which he visits the property appraisal object for a mortgage.

This procedure takes place in several stages:

• The premises are examined for compliance with the schemes from the BTI (takes 10-15 minutes, depending on the experience of the specialist).
• All residential and adjacent territories are photographed, possible defects are identified.
• The value of the property is calculated using various methods.
• Valuation methods are used taking into account the strengths and weaknesses of the property.
• Reporting documentation is drawn up.

During the inspection, the expert asks the customer and the seller of the apartment a number of questions. He finds out the approximate number of residents of the house, as well as positive and negative factors that can affect the market value.

The specialist must consider:

• condition and age of the property;
• availability of public transport;
• location of important infrastructures (schools, hospitals, pharmacies);
• apartment parameters (area, floor, ceiling height, the presence of a loggia or balcony, etc.).

After the inspection, the specialist tracks alternative proposals, examines the current database. Next, he prepares a final report.

The term for real estate appraisal with the participation of a mortgage loan can last for 5 days.

Basic methods for determining cost

There are different methods for determining the value of real estate.

The most common ones are the following:

• Costly - based on the calculation of the costs required to restore the property, taking into account depreciation, inflation, and reconstruction costs. It allows the buyer not to overpay for the construction of property similar to the utility of the object in question.
• Comparative method - a common type of valuation, involving the analysis of the value of similar types of property.
• Profitable - a method designed for the analysis of commercial real estate. It is based on a cost calculation that takes into account the potential profit and all benefits from the active use of the facility. The main advantage is an accurate definition of investment risk, the disadvantage is the likelihood of making a mistake with the projected income.

When evaluating residential real estate for mortgage lending, experts use the comparative method.

What is included in the report for the bank?

According to the appraisal legislation, the report must be made in writing, and also be laced, numbered and sealed.

It usually consists of 28-30 pages. You should familiarize yourself with the finished document immediately at the office of an independent company, since you can immediately resolve all issues.

The report consists of the following sections:

• General information about the appraiser and the customer.
• Information on assessment methods.
• Information about the analyzed object.
• Real estate market research.
• Determination of market and liquidation values.
• Appendices (deeds of title).

The real estate appraisal report for the bank includes:

• property documents;
• photographs taken during the inspection of the property;
• the market value of the object;
• the liquidation price at which the bank will be able to sell the apartment if the borrower fails to fulfill its financial obligations.

If the borrower was independently looking for a specialist, he must attach to the report a document on the appraiser's membership in the SRO, a liability insurance policy, a diploma of education in the field of appraisal.

What is the impact of the assessed value, and what if it is below market value?

The appraised value of the property affects the loan conditions, which include:

• the size of the mortgage issued to the borrower;
• the maximum loan term;
• rate of interest.

If the real cost is equal to or greater than the amount that the borrower is going to issue, there will be no problems.

The bank will issue a mortgage, since it has the ability to sell the property in case of default.

There are times when the price of real estate is lower than the market price or agreed with the seller, then the person will not be able to get the amount he expected.

The reasons for this situation may be as follows:

• the appraiser did not sufficiently take into account the state of the object;
• the specialist has incorrectly selected similar types of real estate.

The borrower can do the following:

• Request a re-assessment or use the services of another company (additional costs are needed) or accredited bank specialists.
• Provide additional collateral to the financial institution.
• Apply for a consumer loan for the missing amount.

In extreme cases, you will have to take a smaller mortgage. In most cases, banks come to the conclusion that the re-examination reflects a more real cost of the apartment.

The cost

The cost of real estate appraisal is formed individually, depending on the urgency of the work and the location of the apartment, since the appraiser will need to spend more time and money to travel to remote locations.

It is also influenced by the quality characteristics of the property.

The table shows the approximate prices for specialist services in some cities of Russia.

Real estate appraisal for a mortgage is a mandatory procedure that requires taking into account many nuances.

The right choice of a specialist saves time and guarantees the borrower a mortgage loan.

Video: Real estate appraisal for mortgages

Before the bank accepts the issuance of a mortgage loan, the collateral for which is an apartment owned by the borrower, the bank must know the market value of the collateral. For this it is necessary to evaluate the apartment by independent experts. The bank will not issue a mortgage loan without assessing the collateral. This is...

Today many people are faced with the question: what is the appraisal of an apartment for? Many apartment owners, in order not to fall into the scammers' networks, prefer to first carry out a process, the so-called apartment appraisal, before submitting an appropriate advertisement for the sale of an apartment. What is the purpose of this procedure? As a rule, the appraisal of the apartment is carried out before the sale. However, other factors are also analyzed if this procedure is necessary.

1. When an apartment is given to a bank on security. In such circumstances, an expert opinion is necessary, which will become the foundation for a decision by the financial institution.
2. Buying an apartment using a mortgage.
3. A certain act is required to determine the maximum compensation for insurance
4. In property and inheritance disputes.
5. When renting real estate - if the owner of the apartment wants to clarify the correspondence of the price assigned to him by the market.
6. In cases where it is impossible to divide the property into equal shares, the market value of the property is determined
7. In transactions of the buy and sell format.
8. In legal proceedings

To the question "What is the appraisal of the apartment for?" - experts answer that without appraising the apartment, all of the above transactions are considered legally illegal. Professional specialists will assess the apartment in a matter of days (usually 1-2 days). Moreover, the decision is made quite objectively, while the price of real estate will never be underestimated or significantly overestimated. What operations are performed by appraisers when they determine the cost of an apartment?

When evaluating an apartment, there are several main stages. In order to speed up the process itself (especially with a large area of \u200b\u200bthe object), two or more appraisers can be immediately involved in the work.

In each case, the assessment of the apartment is reduced to the following points:

• visual inspection of the property to obtain the most complete information and functional characteristics;
• survey of the surroundings of the apartment, the availability of infrastructure, recreation areas and other benefits;
• researching the modern apartment market and calculating the immediate cost of the object at the time of appraisal;
• preparation of a truthful and complete assessment report. This document acquires legal force, and therefore is a help in court or any other state bodies.

Conducting an appraisal of a real estate object allows you to find out how much it will cost to acquire ownership of an apartment or other rights to an object. The content of the real estate appraisal act will include information about the location of the object, its area, remoteness, layout, state of finishing, etc.

In case of damage to property, the real estate appraisal procedure takes on special significance - it provides an opportunity to determine the amount of insurance compensation for the damage caused. In the event of a disagreement between the client and the insurer regarding the amount of insurance payments, the determination of their size is possible with the involvement of an independent appraiser.

The advantage of an independent appraisal of apartments is also the fact that the conclusion (report) of the appraisal that is issued to the customer is a sample of an official document that can be used in court proceedings as evidence in determining compensation. The appraisal expert's opinion is also an important argument in disputes with tax inspectors in determining the size of the taxable base on which income and real estate taxes will be charged.

If you have any questions about the appraisal of the apartment or the need for expert advice, the specialists of the NP "Federation of Forensic Experts" will assist you, answer all your questions. An appraisal of a residential building can be carried out by the owner himself, but the "conclusion" of such an appraisal will not be accepted by the courts.

What is an apartment appraisal for?

Independent appraisers also examine the documents of title with the subsequent issuance of a verdict, which will be used as the main document for the lender when the loan application will be studied and when it will be necessary to make a final decision on it.

There are three assessment methods used by experts in the course of work: profitable, costly, comparative. The income method allows you to estimate the income generated by real estate. This method is used when evaluating commercial real estate. The cost method takes into account all the expenses of the developer during the construction of the property: building materials, work, additional costs. The research necessarily takes into account the deterioration of buildings and the rate of inflation, but the market value is not taken into account at all. The cost method is used by BTI employees. The comparative method is the most common one, it allows you to determine prices taking into account the market situation: both prices in ads and prices used in sales transactions are considered.

When deciding to resolve issues with your real estate, first familiarize yourself with the question, why do you need an appraisal of an apartment in order to do the right thing in this situation and not become a victim of scammers and dishonest dealers.

Prices

NOTE:

The price of services for the valuation of residential and commercial real estate is indicated including taxes. Transport costs are paid separately.

The acquisition of real estate when it is paid for with a mortgage loan is associated with the collection of a fairly large number of documents, one of which is for mortgage. Is it mandatory this procedure and how it is carried out, we will consider in the article.

Necessity and legislative regulation

The requirement to carry out appraisal activities in relation to real estate, the acquisition of which is planned for a mortgage, comes from. The law stipulates that an agreement for the provision of borrowed funds by the bank must necessarily have information about the object they are going to purchase.

It is important to understand that the article describes the most basic situations and does not take into account a number of technical points. To solve your particular problem, get legal advice on housing issues by calling hot lines:

Question, what is an apartment appraisal for? with a mortgage also has a second answer. The bank itself is interested in it. The purchased housing until the moment of the complete settlement of the buyer with the bank on the loan remains with the banking organization on collateral. If a citizen does not fulfill his obligations and does not repay the amount taken from the bank, then the credit institution can sell real estate to cover its own expenses. If the purchase price was overstated for some reason, then the bank may remain at a loss.

So, assessment activities boil down to:

• independent appraisal of real estate;
• identifying the reasonable price of the apartment, on the basis of which the loan capital will be issued;
• prevention of fraudulent schemes in order to receive a larger amount from the bank on the security of less valuable housing.

What affects this event:

• on the bank's decision to issue money for the purchase of specific real estate;
• loan amount.

Assessment method

Assessment procedure

The question is more important: who evaluates the property? These are specialized companies that have SRO membership. Each bank has its own list of approved appraisers, whose reports it trusts. The buyer has the right to either choose a company from this list, and find a third-party organization. In the second case, it is recommended to obtain the bank's approval of the selected candidate prior to the assessment.

What you need to pay attention to when choosing an appraiser:

• the company is a member of an SRO (self-regulatory organization). This can be checked using specialized databases on the Internet;
• there is a civil liability insurance policy, the amount of which is at least 300 thousand rubles.

Order real estate appraisal should buyer. The procedure is as follows:

1. Search for an appraiser and the conclusion of an agreement with him. The contract specifies the range of services provided, terms and price.
   

   Who pays for the appraisal of an apartment for a mortgage? This mission lies with the buyer. The cost of appraising an apartment for a mortgage varies within 3-4 thousand rubles.

2. Provide an appraiser for a mortgage:
   • document on the ownership of the apartment (purchase and sale, preschool education);
   • cadastral plan of the premises (taken from the BTI);
   • explication of the apartment;
   • passport of the customer assessment.
3. Inspection of real estate. It is imperative to provide the possibility of passage to the apartment for a specialist and conditions for photography (daytime, good lighting).
4. Preparation of documentation and its transfer to the customer or directly to the bank.

Real estate appraisal appears in the form of a rather impressive document (up to 30 pages) with photographs, analytical data and conclusions regarding the liquidity value of the object in question. The report must be confirmed by the necessary seals and signatures, contain information about the specialist who performed it.

The period for preparing the report after the inspection is, as a rule, no more than 2 days... In extreme cases, it can be extended to 5. Terms of work are stipulated in the contract with the company and it is important to pay attention to this even at the moment of signing the document.

What if the report made does not satisfy the customer? The work of appraisal companies is regulated, according to which the appraiser is financially and criminally liable for errors made in the calculation.

Challenge can be made:

1. By personal agreement of the parties and repeated research.
2. Through the court.

Appraisal of an apartment in shared construction

The appraisal of real estate, which at the time of acquisition is under construction, has a number of specific nuances:

• in fact, not an apartment is acquired, but the right to it;
• the contract of shared participation in construction must be registered in the Unified State Register of Legal Entities (according to);
• when assessing, the date of delivery of the object is predicted, and risks are calculated in connection with possible violations of the term. This affects the cost, the spread of which can reach up to 40%.

In such a case, the apartment is naturally not inspected. All information about her is obtained from equity agreement... Further, information about similar objects, but in completed houses and nearby, is taken into account.

Evaluation violations

What kind errors and violations can be committed during the assessment work:

1. Formal and arithmetic. As a rule, they are quickly detected and eliminated without problems.
2. The appraiser can overestimate the estimated cost of an apartment due to incorrectly selected analytical data and sampling. This poses problems for the bank in a situation where the borrower has not paid off the debt and the apartment is sold to cover losses. A significant difference between the calculated and real prices is a reason for going to court.
3. Understatement of the object value unprofitable for the buyer. The bank will issue a smaller amount and the buyer will have to look for third-party funds to settle with the seller.

Example for appraising an apartment

The Antonov family received approval for a mortgage loan in the amount of no more than 2.5 million rubles an initial contribution in the form of maternity capital funds. Mikhail Antonov finds a suitable purchase option and orders its assessment from one of the companies listed in the bank's list.

The seller asks for a three-room apartment with an area of \u200b\u200b84 sq. m. 2.4 million rubles... Based on the assessment made, its market value is estimated at 2.1 million, and the liquid one at 2 million. The latter is associated with the fact that the apartment is located in a sufficiently large area requiring major repairs.

In words, the appraiser informs Mikhail that the price of the object is clearly overstated and connects this with the recent renovation of the apartment and the replacement of all windows with new plastic ones.

Based on the assessment, the bank decides to approve the amount of only 2 million rubles. The family is unable to find additional money and refuses this option purchases.

Conclusion

1. Appraisal activities are an essential part of mortgage lending and serve as the basis for making a decision on approval of the purchase and the final amount of the loan;
2. Several assessment methodologiesthat analyze the market, liquidity value of housing and predict their growth or decline at the time of loan repayment;
3. The assessment is carried out by specialized companies;
4. Appraisal actions may be subject to objects under construction;
5. Row violations in the process the performance of evaluative actions can negatively affect the buyer or the bank, which gives them the right to sue the appraiser.

The most popular questions and answers to them on the assessment of the apartment

Question: Received bank approval for a mortgage. Made an assessment the property you like. The bank, based on the assessment, refused to give money for this purchase. Recently received approval for a mortgage loan from another bank. The apartment is still on sale. 4 months have passed since the evaluation. How long is it valid and can we provide documents to another bank?

Answer: Validity of the assessment is half a year... We recommend that you find out whether the selected bank cooperates with this company or whether it agrees to accept the appraisal opinion from this organization.

Assessment for mortgage

Among the pleasant hassle of new settlers who have received the long-awaited keys to a new apartment is appraisal of an apartment for registration of ownership... A report on the appraisal of an apartment in a new building will be needed to change the interest rate of Sberbank, if this is indicated in the loan agreement of the borrower. The mortgage on the mortgage itself is drawn up in Sberbank and signed by the main borrower.

According to the requirements of Sberbank mortgage on an apartment on a mortgage must contain an estimate of the market value of the property on which the mortgage is approved. The presence of a report on the assessment of the market and liquidation value of an apartment for registration of a mortgage is one of the mandatory requirements of the current legislation of the Russian Federation when drawing up a mortgage bond (subparagraph 9 of paragraph 1 of article 14 of the Federal Law of July 16, 1998 No. 102-FZ "On Mortgage").

Evaluation documents

Below is a list of required documents.
Each item on the list contains a sample, which can be found in more detail.

1. Contract for participation in shared construction ▼

2. Certificate of acceptance and transfer of the apartment ▼

3. Technical passport of the building or Floor plan / explication ▼

This document can be requested from the Developer or from the Management Company

4. Borrower's passport (spread with photo and registration) ▼

After receiving the certificate of acceptance and transfer of the apartment, it is also necessary to obtain from the management company or from the developer an extract from the technical passport (necessarily with a floor plan and explication).

Registration of ownership in a new building can be divided into three main parts:
- appraisal of an apartment in a new building for Sberbank;
- registration of a mortgage in Sberbank;
- registration of ownership of the apartment.

After registering the ownership of the apartment, you apply to the insurance company to insure the apartment, and then to Sberbank to change the interest rate. To register a change in the interest rate, you must also provide a set of documents specified in the "Date of change in interest rate" section of your Loan Agreement (usually clause 1.1.2).

The apartment appraisal report is an official document executed in strict accordance with the requirements of the Federal Law of July 29, 1998 No. 135-FZ On appraisal activities in the Russian Federation and the Federal Standards for Appraisal of the Federal Security Service, which are mandatory for the subjects of appraisal activities.

The apartment appraisal report is 50 to 70 pages long.

Apartment appraisal report contains the following main sections:

1. Key facts and conclusions, which provide a summary of general information identifying the subject of assessment, the results of the assessment obtained using different approaches, as well as the final apartment appraisal cost;
2. An appraisal assignment containing the following information: the appraisal object, property rights to the object, the purpose of the appraisal, the intended use of the appraisal results and related restrictions, the type of value, the appraisal date, the period of the appraisal;
3. Applied valuation standards;
4. Brief information about the Customer of the appraisal and about the Appraiser;
5. Assumptions and covenants used by the Valuer in the valuation;
6. Description of the assessed object with links to documents that establish quantitative and qualitative characteristics;
7. Color photographs of the evaluated object,
8. Analysis of the residential real estate market, and a separate analysis of the market segment to which the evaluated object belongs;
9. Description of the assessment process in terms of the application of standard approaches to assessment, including calculations;
10. Cost estimate for Sberbank mortgage on the basis of cost, income and comparative approaches (or a reasoned refusal to use one or two approaches to valuation);
11. Detailed justification of all applied methods and coefficients;
12. Assessment for registration of a mortgage - coordination of the results obtained using different approaches;
13. Appendix to the report, which contains copies of documents used by the Appraiser and establishing the quantitative and qualitative characteristics of the assessed object, incl. title documents, as well as technical inventory documents.

Appraisal of an apartment for Sberbank mortgage It is carried out by the main approach when conducting an assessment. The comparative approach is an analysis of market offers with adjustments to the cost of each of the comparison objects, taking into account its individual characteristics. Appraisal of an apartment for mortgage in New Moscow or Valuation of an apartment for a mortgage in the Moscow region produced according to uniform standards and requirements, regardless of the location of the appraised apartment. Nevertheless, the selection of analogous objects within the framework of the comparative approach is made directly taking into account individual parameters, including the district or city in which the apartment is located.

We give you 2 copies of the apartment appraisal report - one of them you give to your credit manager for registration of the mortgage, the second is transferred to the registration chamber for registration of ownership of the apartment.

Appraisal of an apartment for a mortgage to a bank issued in the form of an evaluation album. For each appraisal report, we obligatorily attach copies of our documents confirming the right to appraisal activities in the territory of the Russian Federation (licenses, SRO certificates, permits, certificates, diplomas of appraisal education, insurance certificates of appraisers, as well as a copy of Sberbank's official accreditation).

Appraisal of an apartment for a mortgage is a mandatory requirement, without which the signing of an agreement is impossible. It is the expert's conclusion that will be fundamental in determining the amount of the amount that the bank will give to the borrower.

Why do you need a real estate appraisal for a mortgage

Real estate appraisal is necessary to determine the amount that the bank is ready to issue to the borrower as a mortgage loan. For the bank, a report on the appraisal of an apartment for a mortgage is necessary to determine the amount that it can collect in case of debt and the need to sell the mortgaged property. Since the price of secondary housing can fluctuate very strongly (the final cost is influenced by many factors: from the need to make capital repairs to the location of the apartment), the appraiser's conclusion will determine what amount is needed to purchase this property and what the loan amount should be.

Based on the expert conclusion, the bank decides on the amount of the mortgage to be issued.

Sometimes potential borrowers ask why they need an appraisal of an apartment in a new building with a mortgage, because the cost of apartments is determined by the developer. Evaluation of a new apartment is carried out after registration of ownership of the object, for registration of a mortgage. The need to provide the appraiser's report at this stage, the bank, as a rule, prescribes as one of the obligations of the borrower in the loan agreement.

Where to order an appraisal of an apartment for a mortgage?

The requirement to assess the apartment is provided for in paragraph 1 of Art. 9 of the Federal Law "On Mortgage (Pledge of Real Estate)". This provision stipulates that the subject of the mortgage (that is, the property), its value, the term of the loan and the total amount must be prescribed in the contract. Also, the contract may specify the procedure for collecting debt.

The borrower can choose an appraiser himself, but usually the bank has its own list of specialists whom he can recommend to contact. A banking organization does not have the right to insist on a specific appraiser, but contacting an expert approved by a financial organization will speed up the process of considering a mortgage application, since the bank does not have to check the qualifications of an unknown specialist.

The bank has no right to prohibit or specify which specialist to contact. If the borrower categorically does not want to contact the company indicated by the bank, and the banking organization refuses to accept the conclusion of another expert, then the borrower needs to demand a written refusal with justified reasons.

The appraisal of real estate objects in mortgage lending has the right to be carried out by an accredited specialist who meets a number of requirements:

• is a representative of a registered organization of real estate appraisers;
• have a civil liability policy in the amount of at least 300,000 rubles. This policy is a guarantee that in the event of an accidental or special error in the appraisal of real estate, third parties will not suffer. In case of incorrect determination of the value of the object, the damage will be covered by this policy. The requirement for an appraiser to have a civil liability policy is regulated by Art. 24.7 of the Federal Law "On appraisal activities in the Russian Federation".

Only accredited specialists can conduct the assessment.

What documents are needed to evaluate an apartment for a mortgage?

To assess real estate for a mortgage, you must provide the following documents:

• title documents. Most often, such a document is a sales contract;
• technical passport from BTI.

All provided documents are certified by the customer with his signature.

How much does it cost to appraise a property for a mortgage?

On average, the appraisal price of an apartment for a mortgage ranges from 2000 to 3000 rubles. In Moscow and St. Petersburg, the price of an expert's services is slightly higher and amounts to about 4000-5000 rubles. Against the background of the cost of an apartment, these expenses are not too large.

The cost of the service depends not only on the qualification level of the specialist, but also on some other factors:

• location of the apartment. It is one thing if the apartment is located in a city, and quite another if the appraiser needs to go to some remote village;
• urgency. The sooner the borrower needs to get the expert's conclusion, the more expensive the service will be.

How much is the appraisal of an apartment for a mortgage in Sberbank? On average, the cost of the service is 3000-3500 rubles.

Speaking about who pays for the appraisal of an apartment with a mortgage, all expenses are borne by the borrower.

How is an apartment appraised for a mortgage?

The procedure for appraising the market value of an apartment for a mortgage does not differ from the appraisal of real estate for a regular purchase and sale transaction. The client must conclude a contract with an expert. After that, the date is determined when the specialist must come and inspect the object of sale. Without fail, the appraiser personally takes similar photos of the apartment, which he subsequently attaches to the report.

There are several ways to independently evaluate real estate for a mortgage:

• market (comparative) - comparison of already completed transactions with similar real estate objects;
• profitable - an assessment of the prospects of a given object in the future in terms of generating income;
• costly - estimating the costs that will be required for the construction of a similar object.

In addition to the apartment itself, the appraiser studies the following factors, which ultimately affect the final cost:

• year of construction of the building, whether it was overhauled, in what condition are the communications;
• how far is the public transport stop;
• availability of social infrastructure;
• safety of the area.

If the area is new, then the perspective of its development is assessed.

After studying and analyzing all the factors, the expert prepares a final detailed report with an informed decision. Typically a report is about 25-30 pages long. It indicates two prices, which may differ: market and liquid.

The estimated cost is influenced by many factors.

What is market and liquidity value?

Market value is the price at which a home can normally be sold. The liquidity value is the cost at which the seller can urgently sell the property in the event of a forced sale. Typically, the liquidity value is around 80% of the market price.

Banks pay attention to the liquidity value, that is, the price for which they can sell the pledged property.

The lower the liquidity value, the lower the amount of the mortgage loan the bank will issue.

How long is the appraisal of an apartment for a mortgage?

According to the Federal Law “On appraisal activities in the Russian Federation”, the report is valid for six months from the date it is drawn up.

However, the date of the assessment and the date of the report are different. As a rule, these are several days, but sometimes the difference between the date of the actual inspection of the object and the date of signing the expert opinion may differ by one or two weeks.

The Expert Advisor's conclusion is valid for six months.

Appraisal of an apartment with illegal redevelopment for a mortgage

At the moment, more than half of the apartments on the real estate market have some changes. By law, redevelopment is even considered to be a change in the shape of doorways or the abandonment of a storage room in a hallway or bedroom.

From the bank's point of view, all illegal changes are disadvantages that negatively affect the cost of the apartment. Accordingly, the liquidity value of the apartment decreases, and the borrower can count on a smaller amount of the mortgage loan.

Each redevelopment case is considered separately. It is difficult or almost impossible to legitimize the following types of redevelopment:

• dismantling of all partitions inside the apartment;
• demolition or partial dismantling of load-bearing walls;
• installation of a "warm floor" system powered by a common centralized heating system;
• placing a kitchen, bath or toilet above the living rooms of neighbors;
• dismantling the wall between the room and the balcony with the installation of a heating radiator powered by a centralized system;
• dismantling ventilation systems or closing fire hatches, if any.

Sometimes customers are asked not to indicate the fact of redevelopment in the expert report. Hiding such information is fraught for the expert himself with deprivation of accreditation in the bank, and for the borrower - the bank's requirement to repay the loan ahead of schedule. In the worst case, the bank can sue for all damages caused to it. Given the severity of the consequences, bona fide appraisers never commit such a serious violation.

Unlawful redevelopment can be a serious hindrance when applying for a mortgage.

Outcome

So, an appraisal of an apartment is necessary to get a mortgage. The choice of a specialist, the conclusion of an agreement with him and payment for his services lies entirely with the borrower, but the bank may recommend contacting one or another company.