Property Valuation in Cyprus

Property Valuation in Cyprus

Property Valuation is typically tries to determine fair market value, the price at which a knowledgeable seller willingly sells her property and a knowledgeable buyer will willingly purchase it. In other words, it assumes both parties have all the relevant information and neither are forced to buy or sell. Fair market value is not always equal to the sales price. For example, a short sale of real estate may not bring fair market value because the seller is distressed and must sell the property right away. Potential buyers know this so they have a bargaining advantage and usually get the property for less than market value.

Whether you are buying, selling or even renting a property (house, plot, apartment, shop), an accurate assessment of its market value can provide important insights. But more than that, you are unlikely to be able to proceed with a mortgage for purchasing a property, or a sale of a shared ownership property, without having an official property valuation from an authorized property valuer.

Authorized property valuer called the qualified professional that in combination with his experience can estimate the fair value of a property and he can support his opinion with evidence. In Cyprus the qualified property valuers are registered to the list of the authorized property surveyors of the Ministry of Commerce and every year they have to renew their license to act legally and execute official property evaluation reports.    

What is a Generally the Property Valuation?

Getting a property valuation gives you the ‘market value’ of your property, or the fair value where determined by the property market trend and it concerns the property condition on the date of the property inspection by the professional or any other date according to the instructions of the property valuation applicant.

Also, the market value it concerns the willingness of the involved parties at the property sale - how much a buyer would be happy to pay, assuming that they are willing to pay the asking price given by the property seller, plus they do not act under any pressure to buy/sell.

At the same time, it reflects the amount that a property seller would be willing to accept after their property has been promoted on the market for a reasonable period, provided that they are neither over-eager nor reluctant to sell. In some cases, the willingness of the seller affected by other circumstances or false information as a result they are expecting to sell their property more than what’s it worth at that moment.

In addition, sometimes the property vendors took in consideration property sales of similar properties in the same area where considered “Special Value”. Special Value means that a specific property has special value for a specific buyer. Example: The plot for sale where attached on my house and/ or, the shop for sale next to my business.   

The property valuations are normally valid for 3 months, but the valuation validity can be extended for a further period if the surveyor carries out an additional research before the original expiry date.

What does a residential property valuation include?

A property valuation involves a visit to the property, along with considerable property market information research. Evidence from both the visit and the property market research are combined to define the market value of the property.

The property valuer - surveyor will visit the property to collect relevant information and to inspect many essential features of the property regardless if the valuation will be for a residential or a commercial property. These can include:

To confirm that the information given on the property title deed are accurate

The property size - buildings and grounds

The property features regarding the structural condition

When and How the property was built

Whether there are any serious defects

Any alterations on the original Structure - outbuildings, garages, verandas

Recent improvements to the property, such as extensions or loft conversions

Location of the property – Sea Views, Services provided in close distance, quality of the local amenities, Green Areas, condition of neighboring buildings, marketability of the area

Comparable Sales – Properties that recently been sold in the area

 Estimation of the cost of the repairs needed to the property – or any alterations deemed necessary by law

Property Valuation Cyprus

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