What is this all about:
1.Cost of apartment evaluation depending on the purpose of the evaluation
2. Why would you need an evaluation of the apartment?
2.1. How much does it cost to re-register an apartment at a notary
3. What do you need for evaluation of the apartment
4. How the price of the apartment is determined
4.1 Features of independent evaluation of apartments in Kyiv
4.2 What approach to choose to determine the market value of the Kyiv apartment
1. Cost of apartment evaluation depending on the purpose of the evaluation
The feature of the apartment evaluation in 2024 lies in the fact that the procedure and peculiarities of the registration of documents differ depending on the purpose for which the valuation is carried out and where its results will be presented. Therefore, the price of the service differs depending on this factor. So the cost of work to evaluate the apartment:
- For sale, gift or registration of inheritance – from 1000 UAH.
- If documents are preparing for presentation in court – from 2000 UAH.
Deadline – 1-2 days.
Period of validity of expert evaluation report for tax purposes is 6 months from the date of evaluation. In other cases, the duration is not clearly regulated by law. In the absolute majority of cases, however, the body receiving the appraiser’s report is also oriented towards a six-month period. A separate place is occupied by determining the cost of the apartment for presentation in court. In this case, it is often a task to determine the likely prices of the property at a certain date in the past (retrospective estimate), so it is not meaningful to talk about the validity of the report.
2. Why would you need an evaluation of the apartment?
Independent evaluation of apartments is necessary in such cases:
- Registration of the transaction for purchase and sale, gift, exchange of the apartment.
- Re-registration of ownership after the death of the apartment owner.
- Division of property upon divorce or other legal disputes.
- Transfer apartment to pledge.
- Registration of a contract of lifelong maintenance.
Here you need to clarify that the determination of the cost of the apartment may be necessary in a large number of other cases or situations. For example, to enter the property into the authorized fund of the enterprise. For presentation to the Tax Inspectorate or even to the Securities Commission. For all these questions we have the answers and relevant experience of such work. Even if it seems like your case is unique, we will deal with it. 🙂
In this article we consider the problems of carrying out expert evaluation of apartments in the most general terms. In this case, we find an individual approach to each individual atypical situation.
Of course, most often in 2024 we are approached to determine the estimated cost of housing when it is re-registrated by a notary. On almost identical procedure is an expert evaluation of the apartment for inheritance. But apartment evaluation for the court as during a divorce valuation of any other property has a huge number of features and subtleties. If you are going to use the appraiser’s report for presentation in court, we strongly recommend reading two articles under the links above.
A separate place is taken by the evaluation of the apartment for a contract of lifelong maintenance. The feature of this exercise is that it is actually two valuations in one. The report of the appraiser should be performed with the highest quality, as for presentation in court. After all, in the future there is a possibility of the emergence of dissatisfied heirs who will contest the contract of lifelong maintenance and look for any leads. On the other hand, the report must be entered in the state register, as is usually done when buying and selling real estate.
2.1. How much does it cost to re-register an apartment at a notary
From the estimated value of the property, a number of taxes and obligatory payments will have to be paid when signing a sales or gift contract. So, when re-registering an apartment, if all parties are citizens of Ukraine, the costs will be such:
| All parties to the agreement are citizens of Ukraine | |||
|---|---|---|---|
| Operation | Income tax | Military fee | Pension fund |
| Sell of apartment (in the ownership for more then 3 years) | — | 1,5% (seller expenses) | 1% (buyer expenses) |
| Sell of apartment (in the ownership for less then 3 years) | 5% (seller expenses) | 1,5% (seller expenses) | 1% (buyer expenses) |
| Gifting or inheritance for close relatives (spouses, children, grandchildren, siblings) | — | — | — |
| Gifting or inheritance except close relatives | 5% (new owner pays) | 1,5% (new owner pays) | — |
In general, the cost of re-registration of real estate is an important and serious issue. It is advisable to look into it at the stage of sale planning. You can explore this topic in detail by following this link. It is very important not to pay extra, because the cost of registration is usually very, very big.
3. What do you need for evaluation of the apartment
The following documents are required for the expert evaluation of the apartment:
- Title documents – documents on the basis of which the apartment belongs to its owner. This may be a contract of sale, ownership, etc..
- Technical passport of BTI.
- Passport of the owner (co-owner) of an apartment or its trustee. In the case of inheritance registration it is necessary to provide a death certificate of the owner, the passport of the heir, as well as a document linking the owner and the heir (birth certificate, marriage certificate, court decision, etc.).
4. How the price of the apartment is determined
Please draw your attention that according to the legislation, in all cases, the evaluation of an apartment means the definition of market value of an apartment (it is also the estimated value for tax purposes).
According to the resolution of the KMU from 21.08.2014. №358 estimated values for taxation and other statutory charges are market values calculated in accordance with national standards and other regulationsLegal instruments on property valuation and property rights.
Market value – value, for which it is possible to dispose of the object of valuation in the market of such property on the date of valuation under the contract concluded between the buyer and the seller, after conducting appropriate marketing, provided that each party acted knowingly, judiciously and without coercion. (Resolution of the KMU 10 of September 2003 № 1440 «About approval of the National Standard №1 «General provisions for the valuation of property and property rights»).
In other words: Your apartment costs as much as a similar apartment:
- in your neighborhood;
- with the same number of rooms;
- in a house of the same type
taking into account characteristics like:
- floor (first, last);
- condition (level of finishing, repair);
- bargaining.
4.1. Features of independent evaluation of apartments in Kyiv
Perhaps the easiest job in determining the cost is to estimate an apartment in Kyiv, especially if we are talking about standard housing in a standard high-rise building. However, as you know, there are exceptions to any rule. Sometimes the house is in such an area, where nothing similar simply is not offered for sale. And you can not make a mistake in the cost, because the documents can go to court…
When there is a really rapid rise in real estate prices, the price of apartments in cities (especially in the capital) is increasing at an accelerated rate. Today, the average price of an apartment in Kyiv was equal to this indicator with developed countries. And you can already say that any living space in Kyiv has a high value. Given this fact, the evaluation of real estate in the capital, without which it is impossible to do in preparation for its sale, becomes an important component of transactions with it.
Evaluation can only be carried out according to the general rules of real estate valuation, the consideration of which this article does not provide. Here it is necessary to note the features that the appraiser has to deal with when determining the market value of Kyiv apartments. The main feature of the capital’s real estate market is that its objects are desirable for many citizens of the country who want to move here permanently. They thus increase the pressure on current demand. This situation is explained by the historical features associated with the long-term centralized development of Ukraine. This, in turn, creates a shortage in the housing supply. Hence the rise in prices of apartments. It should be noted that the main motivating factor that affects the desire of consumers to buy in Kyiv residential space, is the desire to live in the capital. Of course, there are investments in this sector of the economy, but they do not have a special impact on the price situation. Similarly, do not create any significant pressure on the prices of apartments those people who can afford to buy a land plot for construction or a ready-made house for living in Kyiv.
4.2. What approach to choose to determine the market value of the Kyiv apartment
Appraiser has to understand this situation correctly, as the cost of renting a square metre of living space in the current circumstances is unable to reflect their true market value according to market realities. Therefore, by evaluating an apartment in Kyiv and using a profitable approach, it is possible to significantly underestimate the market value. Those appraisers who are aware of this feature of the capital market, exclude such an approach when evaluating apartments, as it can lead to distortion of the final result of the cost.
Another situation in the capital’s market is related to land. According to the law, the owner of the apartment has the right to the land on which the house is built. But in practice, such requirements are not often imposed on the developer-seller. Usually owners of apartments have certificates of ownership, and they do not register the rights to a part of the land. The difficulty in this case is also that many of the plots allocated for the construction of the apartment building are urban property and the authorities have entered into a lease agreement with the building developer. It follows that the apartment, which is in possession, is located on a leased land plot.
Such conditions create some difficulties for the valuer, who has chosen a cost-based approach, since the latter assumes that the value of the land or the rights to it should be taken into account in the relevant activities. It turns out that the appraiser can not use this approach, as he is not able to obtain reliable information about the land plot, as well as the size of the share of the apartment owner on him.
When evaluating apartments in Kyiv, the specialist has to take into account these factors. Therefore, most capital’s appraisers choose a comparative or market approach (the direct comparison method) as the main approach. This approach in the prevailing Kyiv conditions allows to achieve the most accurate results in determining the value of apartments.
5. Who will evaluate the apartment in 2024
We have all the necessary documents for independent evaluation of apartments, namely:
- certificate of the State Property Fund of Ukraine with open specialization «real estate valuation, including land valuation»;
- qualification certificates of appraisers, qualification certificates, extracts from the State Register of Appraisers.
You are welcome to contact with us! We approach the work of any level of complexity responsibly and perform it qualitatively and in the shortest, clearly defined in advance. The right choice of real estate appraiser is especially important when preparing documents for presentation in court!
