What Should You Look for When Choosing a Valuation Firm?

Companies that provide real estate valuation services are added to the list under the rules set by the Capital Markets Board of Türkiye (SPK). For reports to be used in capital markets and loan transactions, the firm is required to be authorised. For banking transactions, the authorisation conditions set by the Banking Regulation and Supervision Agency (BDDK) also come into play.

Because the scope of the authorisation may change over time, the safest way is to confirm the current status with the firm itself and with the official sources of the relevant institution. Instead of relying only on a firm's own claim, verify the information from an independent source.

The experts who prepare the report must be licensed. A good firm shares its ownership structure, board of directors, auditors and licensed experts publicly, through publications such as the Continuous Disclosure Form. If you cannot find this information on the firm's website, do not hesitate to ask directly.

Another sign of transparency is the content of the report. In a reliable report, the valuation date, purpose, method used, comparable data, assumptions and limiting conditions are clearly included. A report made up of just a figure and a few sentences, however convincing it may look, is a document that is hard to defend later.

We recommend asking the following questions in writing and keeping the answers: Is the report suitable for my purpose? What is the estimated delivery time? Is the on-site inspection included in the fee? How is the fee determined, and could an extra item arise? Who is the expert who will prepare the report? Whom can I speak to with questions after the report?

If the bank or institution you will submit the report to works with a specific list of firms, also ask beforehand whether your preferred firm is on that list. In appraisal processes that the bank commissions itself, such as a mortgage, the bank usually chooses the firm; we explained this in our article What Is an Appraisal Report for a Home Loan, and Why Is It Required?

A very low-priced offer may mean an incomplete inspection or an unauthorised firm. A report that is later not accepted means a loss of both time and money. Weigh the price together with the firm's authorisation, experience, the scope of the report and the quality of service.

When comparing offers, make sure you are comparing the same scope: one may include an on-site inspection and a comparables table while another offers only a desk-based estimate. Do not assume that a service not written in the offer will come free later.

When you receive an offer, look not only at the total amount but at what the amount covers. The on-site inspection, the comparables study, printed and digital delivery of the report, explanation support after the report and any additional requests should be written in the offer. Items outside the scope may appear later as extra fees.

The delivery time should also be in writing. Since the timeline is linked to completing the documents and access to the property, find out under what condition the period starts and in what cases it may be extended. If you have an urgent need, state it in your application; the firm can tell you clearly whether it can meet it. It is also important that the scope is not compromised in order to meet a promised deadline.

You can also ask about the content of the report and responsibility for it. How does the process work if there is an objection to the report or a request for correction? How is a clerical error in the report fixed? Clear answers to such questions show the firm's institutional maturity. If possible, reviewing a sample report format prepared earlier lets you see the level of detail of the report.

Some signs show that you should be careful: authorisation details not being provided or being brushed aside when asked, a value being quoted without seeing the property, the result being promised in advance, no written offer being given and a price well below the market being offered. In particular, you should stay away from firms that promise to write a figure the requester wants into the report; valuation rests on impartiality, and determining the value according to the client's expectations destroys the report's credibility.

When deciding to work with a firm, also pay attention to the quality of communication. A team that gives clear and understandable answers to your questions, explains the reason when requesting documents and shares what stage the process is at can also be an indicator of the quality of the report.

Get answers to these questions before applying: Is the firm on the SPK list and among the firms accepted by the institution your reports will be submitted to? Which licensed expert will prepare the report? What is the estimated delivery time? What does the fee include; are travel, an additional inspection or a second copy charged separately? In what language and format is the report delivered?

Be careful with firms that avoid giving clear and written answers. Transparency is one of the most important signs of reliability; firms that publicly share their ownership structure, management and licensed experts are a step ahead in this respect.

The most common mistake is choosing the firm that gives only the lowest price. Another is signing an agreement without checking the firm's authorisation and the expert's licence. Settling for verbal agreements and not clarifying the scope of the report in writing can also lead to disputes later.

Another common mistake is telling the firm in advance the result you expect from the report. A valuation must be impartial; a firm that suggests or promises the figure you want is a serious warning sign. Whether a report is accepted depends not on the figure turning out to suit you but on the correctness of the method and the authorisation.

When you receive more than one offer, compare not only the total amount but whether the offers cover the same scope. If one covers an on-site inspection, a comparables analysis and additional photographs while the other offers only a desk-based study, the two prices cannot be compared directly. The offer should state the delivery time, revision terms and payment plan in writing.

With a hypothetical example: suppose two offers come in for the valuation of the same apartment. The first has a low price but is based only on title deed information; the second is slightly higher and includes an on-site inspection and comparables research. For a report to be submitted to a bank or an official body, the second is far more likely to be accepted; although the first offer looks cheap, having the report redone may increase the total cost.

Finally, look at the firm's accessibility. Do they get back to your questions within a reasonable time, and is explanation support given after the report? This makes things easier if small corrections or explanations are needed after the report is delivered. Post-report support is especially decisive when the bank or official body you submit the report to comes back with additional questions and correction requests. Ask at the offer stage whether the firm will respond to such a request and whether the response is subject to an extra fee; having the answer added to the contract or the correspondence secures your position.