Property valuation is a laborious process, and sometimes it’s hard to understand the real cost of housing, even for a professional. The evaluation process is much more complicated when it comes to the share in the apartment.
The process of assessing the cost of an apartment with the advent of the Internet has been slightly simplified. Earlier, in the 90s, appraisers had to use print media. Although the error could consist only in the cost and quality of the repair, the rest of the price turned out to be quite plausible. To assess the share in the apartment, such a "grandfather" method is not suitable. You can not calculate the cost of a share by a simple arithmetic operation - take the price of the entire apartment and divide it.
Share value
To date, the residential real estate market is oversaturated. The same statement is true for a market for shared property for sale. This is not even due to the fact that there are many offers, but to the fact that non-professionals are involved in the sale and evaluation of the share in the apartment. Now it’s not difficult to become a realtor or appraiser. Earnings of a real estate agent in general directly depends on the number of properties sold and their value. Such people convince sellers that they can sell a share in housing for a higher cost, as a result, real estate is not sold for months. After 6 months or more, the seller resets the value and reaches the value that corresponds to the market, and only after that the share is sold. It is usually not possible to attract other specialists in the field of real estate sales until the contract with non-professionals ends. And sadly to admit, this happens in 99% of cases.
Factors important to determining share value
Before contacting the agency, try to evaluate your own share in the apartment. Despite the complexity of the process, an approximate cost can still be determined.
Assessment of the share in the apartment depends a lot on what it is:
- with an uncertain order of use;
- housing, where the procedure for the use of co-owners is determined.
The latter option accounts for no more than 1% of housing with shared ownership, and the assessment in this case is a little different, in other options, several factors must be taken into account.
Access to the apartment
If there are no problems with neighbors, they do not object to the change of one of the tenants, then this is already + 30% of the cost when evaluating the share in the apartment for sale. That is, the buyer does not need to worry about free access to new housing, nor does he need to contact the police or the court. Yes, and to go on the acquisition of a share in housing, where aggressive-minded residents, would agree only a desperate person or pursuing other selfish goals.
Number of shares and rooms
To increase the cost of housing allows a situation in which the number of shares is equal to the number of rooms. This fact adds to the cost of 50%.
Large total area
No one will dispute the fact that an apartment of 80 square meters is much easier to exchange for two with a smaller area. This principle also works in the case of shared ownership. If 2 co-owners decide to leave, then it’s easier for them to exchange an apartment of 100 sq.m for two, even in a remote area of the city, but at no extra cost. And this is a plus when determining the value of a share.
Empty apartment
When assessing a share in an apartment, it is of great importance whether someone lives in it. If not, then the prospect of living in empty housing even for a short time is a huge plus.
Juvenile Solicitors
The presence of interest holders under the age of majority reduces the cost by about 50%. Such residents spoil the prospect of traveling. Most likely, new residents who move in without children will have to squeeze. The same reason for reducing the cost of housing, if the apartment has incompetent people.
Queues
In some ads, realtors give the advantage of the fact that some co-owners are in the queue for housing. However, such co-owners will never agree to leave, even if the line for new housing comes only after death. So it takes about 30% of the cost.
In addition to these factors, the condition of the apartment, communications and location are of great importance. And the biggest minus, if the apartment is very expensive is in shared ownership, it is almost impossible to sell such housing.
Assessment for Trial
Very often, the division of housing between co-owners or heirs occurs through the courts. In this case, an assessment of the share in the apartment for the court will be required. An independent opinion in this case will be the main document by which the judge will be guided in the distribution of shares. In light of this, if one of the parties to the process assumes the obligation to evaluate, the selection of an appraiser should be taken seriously and not save on its services. And if you still attract two appraisers, then achieving better results is much easier.
Hereditary mass
There are different situations in life, and sometimes you don’t have to hurry with the acceptance of the inheritance, since the registration price may exceed the price of the entire acquisition. And if there are many heirs, it is better to immediately determine the size of your share. It is in these cases that it is advisable to preliminarily evaluate the share in the apartment for inheritance. It should also be remembered that the acceptance of an inheritance is not only the receipt of material wealth, but also the acceptance of obligations. If the house has an encumbrance in connection with the purchase of other property, then obligations under the loan agreement will also have to be inherited.
In cases where the heirs manage to agree, the section will require an assessment of the share in the apartment for a notary. Then the report will serve as the basis for the distribution of shares with full satisfaction of the interests of all the heirs.
In addition, it should be remembered that tax liabilities arise after a transaction is completed or an inheritance is received. The tax will be paid precisely from the cost indicated in the assessment, so if possible it is better to reduce it, although there are risks.