How much does it cost to appraise a house and land?

If you own a house or are planning to buy one, then this article will be of interest to you.
It will tell you everything about the features of assessing a house in different situations. Also at the end of the article there will be some useful tips on how not to overpay when appraising a house. So, assessing a private house - 7 steps.

1 What is a home appraisal and who does it
2 Main cases in which a home appraisal is necessary
3 Step-by-step instructions for assessing a private house
4 3 Tips to Save on Home Appraisal
5 Conclusion

What is a home appraisal and who does it?

Home appraisal refers to the process by which the value of a home is determined. This happens under the influence of the laws of a market economy, that is, during the purchase and sale, the amount for which a given property is ready to buy and the seller is ready to sell is established.

When the seller and buyer agree on the price, a transaction occurs. If one of the parties does not agree with the price, then the named price does not meet market conditions. However, there are often cases when a home appraisal is needed not only during the purchase and sale. It is in these cases that an independent assessment is needed.

Cases when an independent assessment may be needed:

to calculate the tax amount when selling a house;
to calculate the amount of contributions to the Pension Fund;
to calculate the amount of state duty;
for mortgage;
to calculate the amount of contribution to the authorized capital;
if the house is collateral;
if the house is seized;
in the event of property disputes;
during the division of property;
to calculate the amount of insurance payment for the house;
if construction is not completed;
to calculate the amount for an investment project.

You can order a home assessment from individuals or individuals who are members of a specialized self-regulatory organization and have a civil liability insurance policy in the amount of at least three hundred thousand rubles.

When and who should evaluate a house and land

In most cases, property owners value their property themselves. This mostly happens when selling a home. That is, the seller himself sets the price he wants to get for the property.

But there are cases when the assessment must be carried out by a certified specialist. For example, when you apply to a bank for a mortgage, or your property acts as collateral, or maybe the property is divided between spouses in court, etc.

In any situations where issues involving the court, financial institutions and insurance firms are resolved, the assessment must be made by appraisers.

Some people cannot set an adequate price to sell a plot of land with buildings. In this case, they turn to realtors in real estate agencies. Employees of these organizations determine the market value of the house and land.

Market (real) value is an adequate price for which real estate can be sold in a relatively short time.

But remember that realtor estimates are not accurate. It is relative and is most often established on the basis of similar proposals in your locality or area. Therefore, even if a real estate agency provides you with a document indicating the value of your property, it cannot be used during legal proceedings, taking out a mortgage, etc.

The main cases in which a home appraisal is necessary

Registration of inheritance rights

Houses for inheritance are assessed to calculate the notary fee, determine the amount of land tax and state duty, as well as to resolve property disputes between heirs. To do this, you will need documents on ownership, from the BTI, the customer’s passport and the encumbrances imposed on him.

In case of inheritance of a land plot adjacent to the house, an assessment of the land is also necessary. In this case, the documents you will need are a map of the site, documents on the status of the land, geodesy and documents on communications.

Conclusion of a purchase and sale agreement

The appraisal of the house in this case mainly occurs during preliminary negotiations. The parties can then choose an appraiser together.

It is not uncommon for a home to be appraised before being sold to third parties. Such persons may be the tax service, shareholders of the enterprise, or higher organizations. For the tax authorities, the assessment is evidence of the completeness and correctness of tax assessment.

The buyer and seller work together to find an appraiser. The cost of payment to the appraiser is immediately agreed upon and written down in the contract. The results of the appraisal have no bearing on how much a home appraisal costs.

Assessment for the provision of guardianship authorities

Such an assessment is carried out when the owner of the house or part of it is an incapacitated person or a minor child. In this case, no transactions can be made with the house without the permission of the board of trustees. This is necessary so that the rights of an incapacitated or minor person are not infringed.

The assessment of a house for guardianship authorities is carried out when selling, renting, dividing a house, registering a house as collateral, allocating a share in a house, as well as other operations. For the assessment, it is necessary to prepare documents for the property, the customer’s passport and technical passport. The result of the assessment is a conclusion that confirms the market value.

REFERENCE! If a house is sold without the permission of the guardianship authorities, the court will most likely invalidate the transaction, and the person who provided false information will be prosecuted.

Home insurance

According to the laws of the Russian Federation, an insurance contract will be considered invalid if the value of the house is higher than the market value. Then, if an insured event occurs, the amount will be partially reimbursed.

The maximum that the insurance company pays is equal to the amount of construction of a new house with the same parameters. However, the insurance amount will still not be identical to its market value. This is so because the land on which the house stands also has its own value. This gives room for different calculation options.

The way out of this situation is to insure the house without a plot, and determine the cost of insurance with the help of an appraiser. Then there should not be different interpretations.

Contribution of the house to the authorized capital of the company

This contributes to the granularity of participants' decision-making rights. In addition, if the contribution is properly assessed, depreciation and property tax costs are calculated correctly. It is for this reason that the cost of the house must be assessed correctly when contributing it to the authorized capital.

House division

Houses are divided during divorce or other disputes. As a result, it is necessary for one of the parties to renounce their rights to part of the house, and the second to pay her compensation. To determine the amount of compensation, it is necessary to evaluate the house. The appraiser will evaluate the house and land. Well, knowing this amount, you can come to an agreement between the parties.

Houses are divided upon liquidation of an enterprise, upon sale of a share, divorce, upon allocation of a share, upon exit from shared owners.

Getting a loan

The loan amount is generally 80% of the price of the property pledged as collateral. Because of this, a home appraisal is a requirement if it is to be used as collateral for a mortgage. However, a home appraisal for a mortgage must be carried out by a professional appraiser. Moreover, this company must be certified by the bank.

REFERENCE! The bank should not impose any specific contractor, it only offers to consider a list of certified appraisers from which you can choose.

What determines the cost of services?

The valuation price of a land plot is influenced by the following factors:

The distance of the object from the city.
Cost of specialist services.
The area of the house and the size of the land plot.
The uniqueness of the building.
Type of permit issued for the land.
The authority for which the report is being prepared.

All these points have an impact on the final cost of the specialist’s services, but it must be taken into account that each appraiser calculates the cost of his services individually. In doing so, he takes into account the recommendations of the SRO.

In order to find an appraiser with the most favorable conditions, the client needs to study all the offers existing in the city. Building owners can choose any expert based on the cost of services. The reputation of a specialist is important.

But in reality, financial institutions recommend that clients applying for a mortgage loan work with carefully selected experts. Experts have been verified by banks, so you can be sure that the property will be assessed objectively.

Step-by-step instructions for assessing a private house

Selecting an appraisal company

First you need to choose a company to evaluate a private home. Keep in mind that depending on the purpose of the appraisal, you may need a certified appraiser. This is especially important if the appraisal is needed for a bank or insurance company. If the appraiser does not have certification, the company will not accept its results.

Inviting specialists to the site

Before the appraisers come to the house, it is necessary to tidy it up. It is necessary to clear all corners, as well as the basement and attic, if any. All this should be available for inspection. In addition, you must definitely check the pipes, taps, handles and other little things. All this should work fine.

IMPORTANT! The amount of cleaning and preparation you do will determine your final estimate.

Determining the prestige of the city area in which the house is located

The location of your home determines its value. In any city there are prestigious areas, and there are bedrooms or even disadvantaged ones. The final cost is influenced by the distance of the house from infrastructure and transport interchanges, noise level, environmental situation, and so on.

Calculating the cost of land

This amount is influenced by many different factors, such as:

size of the plot (if it is more than three acres, then this adds 2-3% to the cost, if less, then it reduces 2-3%);
whether it is regular or irregular in shape;
its width is more or less than 12 meters;
how close are transport interchanges;
is the road covered with asphalt or not;
natural conditions, whether high and industrial facilities are nearby;
flat terrain or with a slope;
is there a central sewerage system or not?
separate entrance (sharing an entrance with someone reduces the cost by up to 30%).

Determining the cost of the main building
To determine the cost, you need to know the net area of the house. To do this, you need to multiply the area of the foundation by the number of floors. This does not include verandas, basements, extensions, or garages.
After this, the cost of one square meter is estimated, taking into account discounts or surcharges depending on the following factors:

brick walls near the house or shell rock;
age of the house (if less than 7 years, then 5-10% is added, if the house is 8-20 years old, then 5-15% is reduced);
area of the house;
a modern house project or an old one;
the house is turnkey ready or construction is not completed;
new or old pipes in the house;
whether the house needs repairs or not;
separate or adjacent rooms;
whether there are amenities in the house or not;
high or low ceilings.

Determining the cost of additional buildings on the site

You need to find out the approximate cost of these buildings separately. We found out above how they affect the total cost. To calculate the cost of additional buildings, you simply need to calculate the cost of their construction.

REFERENCE! Unfinished construction reduces up to 60% of the cost.

Receive a report on the final cost of the house

Now it's time to determine the final cost. To do this, you need to add up the price for the house, land and additional buildings. Legal advice will be a good help in appraising a house.

What affects the value of a home

The procedure for appraising a house is somewhat different from appraising other real estate, such as an apartment. Along with the house, a plot of land is often also sold, as well as various additional buildings. And all this is taken into account when determining the cost.

There are many factors that affect the value of an object. A very important factor is the location of the house, transport links and infrastructure. In any city there are expensive and cheaper areas. And the area where the property is located plays an important role in determining the price. In addition, the cost of the object is influenced by: the total area of the main building and the land plot, the situation on the real estate market, the thickness and length of the walls, the presence of communications on the site, the presence and condition of other buildings, number of floors, quality of repairs, etc. Thus, the cost of a home is influenced by various factors, which only competent specialists can fully take into account.

What criteria are used to evaluate?

The main factors influencing the cost of a building can be divided into three large groups.

First of all, we are talking about the landscape and architecture of the building. Evaluation of a cottage built according to an individual project, taking into account the tastes and wishes of the owner, excludes the use of the comparative method, since it is quite difficult to find similar objects. It is much easier to carry out the assessment procedure in relation to a house located on the territory of a cottage community, where all buildings are being built according to the same projects. In any case, the appearance, originality of the project, layout features, construction and finishing materials used will significantly affect the final values.

When making calculations, no less attention is paid to the presence or absence of engineering systems - sewerage, cold and hot water supply, electricity, gas, type of heating. The better the equipment of the house, the higher the cost of the property.

Finally, the location of the cottage or house also makes a contribution. The market value of an object can be increased by:

forest plantings on the site or nearby (a house in an open field will be cheaper than on a forest edge);
the presence of a body of water nearby;
transport accessibility;
presence of security on the territory of the village, checkpoint;
infrastructure nearby.

There are other factors that reduce or increase the actual cost of a building. To take them into account, the appraiser must have the appropriate knowledge, have practical experience in assessing private houses and cottages, have up-to-date information on prices, fluctuations in supply and demand in the market, etc.

Where to go for a professional assessment

If you want to entrust the assessment to specialists, then you will have to contact organizations that specialize in property assessment.

All appraisers are subject to strict requirements:

They must be members of the SRO.

SROs (self-regulatory organizations) are non-profit associations whose activities are regulated by the state.

Have the appropriate certification.
Have a civil liability insurance policy in the amount of 30 thousand rubles. and more.
Have a good reputation.

If you need to appraise property to resolve issues in which banking institutions are involved, they can suggest a specific appraiser. This is because financial institutions cooperate with appraisers on mutually beneficial terms.

What documents are required to assess the cost of a residential building in Moscow

To determine the value of a building, the following documentation is required:

owner's passport;
certificate of ownership:
extract from the Unified State Register of Real Estate;
registration certificate;

If you need an assessment of a country or city house in Moscow along with a plot of land, you will also need:

cadastral plan;
information about buildings on the site;
purchase and sale or construction agreement.

This is a complete list of documents. A consultant will create a package for your specific case.

How is a house and plot assessed?

You contact the appraisal company and draw up an agreement
Agree on the time when a specialist will come to inspect the property. It is worth noting that when assessing a house with a plot, a specialist visit is required.
At the appointed time, the appraiser arrives for an inspection. The specialist evaluates the internal and external condition of the house, the quality of the land, and the size of the plot.
After this, the specialist draws up an assessment report, taking into account market fluctuations, and calculates the value of the property using formulas and methods.
When the assessment report is ready, it is handed over to the customer.