The Question of the Month
Because when I wonder, it’s worth… asking!
Through this column of the monthly online magazine of Synergy Real Estate, answers are provided to various questions related to properties & the real estate market in Cyprus.
The Managing Director of our company, Christodoulos Kyriacou, provides an answer to the question that was posed to him this month.
In which cases does a professional valuation of a property become necessary, and what information should be collected by the professional valuer to ensure the process is carried out correctly and the real value is derived?
From the outset, it should be emphasized that property valuation is not a simple matter but rather a complex process requiring knowledge and specialization.
A professional valuation, i.e. an official report from a certified valuer, is needed for various reasons, with the main and most common ones being:
• Loan approval
• In case of buying or selling
• For loan restructuring purposes
• Legal disputes
• Inheritance cases
• Calculation of rental value
• Compensation due to compulsory purchase
• Financial statements of companies
• Investment feasibility analysis
• General property value assessment
Depending on the nature of the property, the primary documents usually required for the completion of a comprehensive and accurate valuation include:
• Property title deed
• Search Certificate
• Architectural plans
• Planning & Building Permit or Division Permit
• Final Approval Certificate
• Lease Agreements
• Distribution Agreement in case of shares
It should be noted that property valuations must be conducted by certified valuers who are familiar with various methods and can recognize and choose the appropriate one or even more than one methods in each case.
The valuation process involves conducting a comprehensive physical inspection of the property, followed by a detailed market research, including the analysis of comparable properties sold in the recent past and market conditions affecting the market value of a property.
Additionally, the valuer must have an understanding of the legal and physical characteristics of a property and should rely on real data and facts, avoiding any misleading presentation of information.
At Synergy Real Estate, through Synergy Valuations Chartered Surveyors, the execution of valuations is carried out in accordance with the standards of the Royal Institution of Chartered Surveyors (RICS) and with the certification of the Cyprus Scientific and Technical Chamber (ETEK).”
For more information you can call us at (+357) 22 525269.