Real Estate Valuation
Real estate valuation is an important process in the real estate industry and is used to determine the value of a property. Valuations are made when real estate is sold, leased, mortgaged, or shared ownership. At the same time, accurate reflection in financial statements is important for supporting investment decisions and risk management. Real estate valuation is done taking into account various factors.
First, physical properties are one of the key elements of real estate valuation. These include location, size, structural condition, usable areas, building materials and technical specifications. Location is one of the factors that greatly affects the value of a property. In addition, factors such as building age, condition, interior and exterior construction quality also affect valuation.
Second, market trends and demands are important factors influencing valuation. Data such as regional market conditions, real estate demand, sales and rental rates of similar real estates are taken into account in the valuation process. The balance of supply and demand in the market is among the determining factors affecting the value of real estate. In addition, demographic, economic and social factors in the region where the real estate is located are also factors affecting the valuation.
Third, economic factors play an important role in real estate valuation. Factors such as interest rates, inflation, economic growth and unemployment can be effective in determining the value of real estate. Economic stability and growth potential can increase the value of a property, while adverse economic conditions can lower the valuation.
Finally, real estate valuations performed by independent appraisers are generally made in accordance with internationally accepted valuation standards. These standards ensure that the valuation is done objectively and accurately. Valuations are important to determine the true value of the property, to be reflected in the financial statements, and to guide investment and sales decisions.
As a result, real estate valuation is an important process in the real estate industry and is used to determine the value of a property. Valuations are made taking into account various factors such as physical characteristics, market trends, economic factors and independent valuation standards. Real estate valuation is an important source of information for property owners, investors and financial institutions in strategic decision-making processes.