Unlike the rest of Europeans, in Romania over 96% of us are homeowners, while only 2% of Romanians live in rented spaces, the rest living in houses made available for free, according to data published by Eurostat.

Lately, there have been quite a few situations in which those who buy apartments or houses are not buying them for their own use, but “for their children, because it is not known whether they will be able to buy them again.” Such an acquisition may seem risky, but if the apartments or houses bought “for their children” are located in university cities and especially in areas with easy access to universities, these properties can “transform” into an investment.

Most of these properties are purchased with bank loans, and the collateral is either the property to be purchased or another property already owned and with which the loan is guaranteed.

The value at which these properties are accepted as collateral is determined by an authorized appraiser, member of ANEVAR, taking as a reference the Asset Valuation Standards valid on the date of preparation of the valuation report.

Anuţa Stan, appraiser and Accredited ANEVAR member, specializing in EPI - Real Estate Appraisals, reveals a series of tips that help anyone find out what the true value of a property is and how appraisal reports are prepared.

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What you need for the assessment  

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The appraiser estimates the value of the property, which is why he needs the property documents (sale and purchase contract, or, in the case of houses, the land sale and purchase contract, the Building Permit and the Reception Minutes), cadastral documentation and an extract from the land register, says Anuţa Stan.
If you have decided to purchase an apartment in a new building, the last demolition deed (which gives each apartment a single cadastral number) is not enough. Ask the developer or real estate agent for the history of the documents: the deed by which the land was purchased, the Building Permit, the Minutes of the reception of the works, the tabulation agreement, and check whether there is access to the property from a legal point of view. There are some situations in which, unfortunately, there is physical access to the apartment, but, from a legal point of view, the documents are not very clear, and in order to be able to constitute a guarantee, this aspect must be clear in the documents.
"Even though we, as appraisers, are not lawyers by profession, over time we have understood the importance of these things and we know what we need to check in the documents of the properties that are to be used as collateral," says Anunţa Stan.

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What does the saleability of a property mean?

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Another aspect to consider, she believes, is the saleability of a property. You often hear the expression "there is no market" for the property, especially when you want to take out a loan and collateralize it with a property that you inherited, for example, but which is located in a rural area, where real estate is rarely traded.
The term is borrowed from the "market approach", one of the 3 approaches used by appraisers to estimate market value, the appraiser explains.
According to her, it is the approach in which the value of the property is determined by comparing the property to be assessed with identical or similar properties. "Thus, if we do not find sufficient information about sales offers of similar properties or transactions (these are harder to find), the market approach cannot be applied, the conclusion being that that property cannot be constituted as collateral, or more precisely, "it has no market"," says Anuţa Stan.

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What do you compare to when evaluating a property?

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In applying the market approach, the property is compared with similar properties and adjustments are made for certain comparables. Comparables are those characteristics that the market recognizes as differences in the prices paid. Some examples of such elements are those specific to the property: location, area, age of the property, floor on which it is located, finishes, whether it has a parking space, storage room, its own heating system.
A properly justified reasoning of the valuer, based on what the market recognizes, is what analyzes these elements. Some examples:
Location – it is obvious that an apartment near a park will be more attractive than an apartment located near a former industrial area;
Area – in recent years, interest in purchasing apartments with generous areas has increased. In the case of houses, an interesting aspect is that although after 2000 houses with very large areas were built (even over 300 sq m), in recent years interest has increased in purchasing houses with reasonable areas, as market participants realize the very high costs of heating in winter and their maintenance;

Age of the building - many young people prefer apartments in new blocks of flats, with larger usable areas, and in terms of age, the market divides buildings into: built before 1977, between 1977 - 2000 and after 2000.

Parking space – has become one of the important factors in the decision to choose between an apartment that has this parking space or not – I don't think I need to elaborate on the comfort and tranquility of having a place to leave our car overnight, especially since the number of cars is constantly increasing.
In addition to the specific elements of the property, those specific to the transaction are also analyzed, when information is found about transactions that have been made with similar properties. Among these, the motivation of the parties: one of the parties wanted to sell quickly or the other was motivated to acquire that property, aspects that can influence the price, without the market value having changed. Or maybe one of the two (the seller or the buyer) is a better negotiator. "Each of us knows that sometimes we have been faced with such situations, which can lead to a price different from the market value of the respective property," says Anuţa Stan.

According to her, the appraiser analyzes all the elements that influence the value of a property and presents them in the appraisal reports.

Published: http://adevarul.ro/economie/imobiliare/In-functie-saevaluezi-imobil-cumperi-evaluator-autorizat-1_5ae0b534df52022f7539eea3/index.html