Valuation of an apartment for a mortgage in questions and answers

When applying for a mortgage loan, you will be faced with a requirement from the loan manager to evaluate the apartment for the bank. This is absolutely legitimate and is spelled out in Article 9. Law “On Mortgage” - the main regulatory act that regulates the process of issuing loans for real estate.

What's the point:

You want to take out a loan from a bank;
The amount is large, and the bank needs guarantees that this money will be returned - that is, a deposit;
In the case of mortgage loans, the collateral will be the apartment, which is purchased with the bank’s money;
If the loan is not repaid, the bank will be able to sell the property at auction and return the money.

At this point, the question arises: how much can the bank sell the apartment for? You need to know the market value of the property. The bank will only issue a loan for the same or lesser amount.

Mortgage borrowers sometimes confuse this indicator with the amount in the contract - these are different things. The amount in the contract is the price for which the apartment is sold in a specific transaction. Estimation of the average market value is a professional calculation, which depends on the area, layout, infrastructure, number of floors and other factors.

The average market value can only be assessed by qualified appraisers - this is also a legal requirement. Therefore, a professional assessment of the apartment for mortgage is carried out.

Researching the average market price is also useful for the buyer - sometimes it turns out that the market value is significantly lower than what the seller asks for. If the appraisal price turns out to be significantly lower than the desired loan amount, the bank may refuse to issue a loan.

What documents will be required for the assessment?

Please note that most of the list of documents belongs to the owner of the apartment being purchased. Therefore, order an assessment and start collecting a package of documents when you have already definitely decided to buy this particular home.

The list of documents required for the assessment includes:

Documents confirming the right to sell this apartment. For example, a certificate of ownership, a purchase and sale agreement, a gift agreement or an inheritance document. If we are talking about buying only part of the property - for example, a room - then a shared ownership agreement is suitable.
You need a copy of the cadastral passport. This document can be obtained from the BTI. The paper will be issued only to the owner.
The owner of the apartment must also provide you with BTI plans - this is a document with a complete description of the apartment. It contains a housing plan with exact dimensions. The total area and the area of individual premises are indicated. Please note that the BTI plan must indicate the area of all rooms, including the bathroom and corridor.
A copy of your passport and contact details, such as telephone number;

If the apartment has undergone redevelopment, this should be shown on the plan. Usually it looks like this - on one sheet the old layout, on the second - the new, legalized one. Or both plans are printed on one sheet.

Was the layout changed without permission? To register a mortgage, the bank is provided with a report with information about illegal redevelopment and the bank will refuse to issue a loan. The owner will have to remodel the apartment or obtain permits.

Pay attention to two subtleties:

Was the house built earlier than 1960? You need to obtain a certificate confirming the absence of wooden floors. The problem is that these ceilings have a high fire hazard class and insurance companies do not issue insurance contracts for such objects. Accordingly, it will not be possible to take out a mortgage.
You may need a certificate stating that the house will not be demolished - the object is not in the demolition plan of the local administration.

Where can I make an assessment?

When applying for a mortgage, the apartment can only be assessed by a company that has the right to engage in this type of activity. There are also special requirements. Feel free to ask if the company meets these requirements when you first contact:

The appraiser's work is insured;
The appraiser - no matter whether it is a company or a private entrepreneur - is a member of the SRO. The association is professional and does not hide its contacts and list of members;
The appraiser has a civil liability insurance policy for his work.

Please note that the bank may provide you with a list of so-called “accredited valuation agencies”. The manager, in pursuit of bonuses, may even report that the market valuation of an apartment for a mortgage can only be carried out by these organizations. Actually no - you are free to contact any independent agency.

But having an organization on an accredited list increases the chances that the organization will issue a report that meets all modern legal requirements. Before ordering a report, check the company to see how long it has been on the market and whether it has any recommendations.

We recommend contacting a company rather than an individual - in pursuit of savings, you may receive a report that a credit institution will not accept. Our organization has extensive experience in preparing appraisal company reports for obtaining mortgage loans. Documents are accepted by banks, borrowers become owners of an apartment without delays or problems.

Why do banks cooperate with appraisal companies?

The bank cooperates with appraisal companies and invites them to become partners so that borrowers do not waste time searching for an expert. Employees of the organization, taking into account all the nuances and features of the analyzed apartment, will be able to establish the exact market and liquid value of the property. At the same time, the bank will be confident that in the event of non-payment of the debt, it will be able to sell the assessed collateral at the established value.

How Sberbank works with companies or individuals not included in the list of appraisal firms

If the borrower decides to contact an appraisal company that is not accredited by Sberbank, then it is necessary to initially check the company for compliance with the established basic requirements. If any of the points are violated, the assessment report will be rejected.

It can be accepted under the following conditions:

the borrower informed in advance of his desire to cooperate with a non-accredited company;
the appraiser has provided all requested documents for verification;
the lender checked the organization for compliance with business reputation requirements;
Bank employees studied the finished report and checked it for compliance with the established parameters.

How much will the assessment cost?

The cost of an appraisal in Moscow varies on average from 3.5 to 6 thousand rubles. In the regions you can find an appraiser for 1.5-3 thousand rubles. It is best to order an assessment in advance - urgent work from an expert is more valuable.

Please note that you need to choose an appraiser not only based on the lowest price. Look at the organization's reputation and its approach to working with clients. Yes, you can find a private owner who will do everything quickly and very cheaply. But the bank may not accept such a report due to violations in the format or the assessment process itself.

What must an appraiser have?

Professional education.
Membership in SRO.
Insured liability.
Work experience of at least 2 years.

Assessing an apartment for a mortgage and drawing up a report is a process that requires qualifications, experience and knowledge. Choose an organization that has been in the market for a long time.

Selection of appraisers to work with Sberbank borrowers

Any appraisal company can become an accredited appraiser of Sberbank. To start cooperation, she just needs to present the required list of documents to the Partner Relations Division. Within 30 days, bank employees review the application and announce the result of the verification. If the answer is positive, the applicant’s company is included in the list of Sberbank accredited mortgage appraisal companies.

The absence of an agency on the list recommended by Sberbank does not deprive it of the opportunity to prepare reports for clients of this financial institution. The only thing is that for the evaluation document to be unquestioningly accepted by bank employees, it must meet all the requirements (specified on the official website) for its execution.

Conditions presented to the appraiser

Requirements for appraisers are set at the legislative level. Thus, according to the Law “On Valuation Activities in the Russian Federation” No. 135-FZ of July 29, 1998, companies carrying out valuation activities must meet the following criteria:

are members of a self-regulatory organization (SRO), as evidenced by the SRO certificate;
completed advanced training courses (training frequency – once every 3 years);
took out a liability insurance policy.

Certain conditions are also provided for experts:

the employee is a member of the SRO;
he acts on the basis of the clauses of regulatory act No. 135-FZ, complies with the requirements of the SRO of which he is a member;
fulfills the requirements of the appraisal company of which he is an employee;
ensures the safety of documents accepted from clients for the provision of services;
does not distribute confidential information obtained as a result of work.

To these lists, Sberbank added its own mandatory requirements, the fulfillment of which is mandatory for inclusion in the list of accredited lender companies:

number of appraisers in the agency – from 2 employees;
The period for conducting appraisal activities by the agency and at least 2 appraisers in the company is from 3 years.

More stringent requirements allow Sberbank to cooperate only with the most reliable and experienced appraisers.

Appraiser accreditation procedure

Accreditation of an appraiser at Sberbank begins with checking the company for compliance with the bank’s requirements. If the head of the agency assumes that all conditions for cooperation are met, he prepares and collects the necessary list of documents. Then the package of documentation is submitted to a Sberbank representative for review.

Within a month, the appraisal company is being checked for compliance with the requirements. At the end of the reconciliation procedure, the applicant is notified of the decision made. If the outcome is positive, the applicant’s company is included in the list of appraisers accredited by Sberbank.

Why do appraisers need accreditation?

Real estate appraisal companies for mortgages try to be included in the list of companies accredited by Sberbank for several reasons:

Increase in the number of clients. Every time Sberbank signs a mortgage agreement, it provides the borrower with a list of accredited appraisers - hence there is a chance that the client will choose exactly the right organization.
Loyal attitude of the bank. The lender has already carried out a comprehensive check of the appraisal company - now he trusts him and does not unnecessarily find fault with the reports compiled.
Instilling trust in a potential client (Sberbank will not accredit fraudulent companies).

Thus, agencies specializing in housing assessment are recommended to undergo the accreditation procedure with Sberbank - this will contribute to business development.

Is it possible to cooperate with non-accredited real estate appraisers?

Federal Law No. 135 “On the Protection of Competition” of July 26, 2006 allows an unambiguous answer to this question. According to the text of the document, the borrower has the right to independently choose the company that carries out the real estate assessment. Hence the conclusion: no creditor can refuse to accept a report from an appraiser not accredited by the bank.

But still, to avoid unpleasant situations in the form of refusal to accept the finished report, it is recommended to first consult with a mortgage manager to clarify some points:

what standards/requirements does the bank put forward for the work of appraisers and the reports they generate;
is it required to provide documents on the activities of the appraisal company (they may be necessary to determine the professionalism of the appraiser).

The most important thing for a bank is not whether the selected appraisal company is accredited. The main thing is that the assessment work is carried out as honestly, competently and correctly as possible.

How does the bank appraise an apartment?

There are several methods for valuing real estate for a mortgage loan. The main one is comparative. This is an objective method that takes into account closed transactions in the housing market and gives the most accurate market price for the property.

It is impossible to talk about all the intricacies of assessment in one article. There are a lot of special coefficients that the expert operates with during the research. Not only the condition of the apartment and its characteristics are taken into account, but also a lot of subtleties. For example, the distance from the main urban infrastructure facilities, the availability of parking, the landscaping of the yard, etc.

There are other methods. For example, expensive. Here we are talking about how much money is needed to build a similar facility. Suitable for analyzing a house rather than an apartment.

Another method is to find out how much income the owner will receive for rental use. It’s called the income method. Used extremely rarely.

Please note that the assessment is made not only based on documents or the BTI plan. The appraiser takes photographs of the premises - you will receive them in the report.

The assessment for Sberbank is calculated using the following approaches:

Comparative approach – determines the cost based on comparison of transactions for the sale of similar objects on the market;
The income approach determines development prospects and potential profitability. Using the income approach involves studying the most effective way to operate the object in question, the possible profit and based on this, bringing the real market value;
Cost approach - defines cost as the costs incurred to create an object with the repayment of all obligations. It is through this method that the liquidation value of the object is calculated - which is of interest to Sberbank.
As a result of the application of three main approaches to Sberbank valuation , an integrated approach is developed, which involves, depending on the tasks and goals of the procedure, a comprehensive study of objects, their characteristics and various types of value.
First of all, a detailed analysis of the object is carried out based on possible ways of its most efficient operation. Similar objects on the market, the price of offers and their implementation are considered. The amounts needed to recreate the property complex are being studied. The property that is separated from the whole property complex and represents only part of a single system capable of generating profit is also subject to careful study. In the process of preparing the report (assessment for Sberbank), the possibility of selling individual parts of the collateral property is being studied, and options for a gradual reduction in value due to the temporary factor are being considered.

What affects real estate valuation?

In addition to the factors listed in the section on evaluation methods, the final cost is influenced by several other parameters that a competent expert takes into account:

The prestige of the area and the environmental condition are taken into account - if the apartment is near an industrial zone, the cost will be lower.
If there are many schools, kindergartens, clinics and other important social facilities near the apartment, the cost will increase.
It is important not only the condition of the apartment’s finishing, but also the condition of the entrance and common partitions. Roughly speaking, a renovated apartment in a dilapidated building will not be valued highly.
The presence of a yard is also taken into account - an area equipped for recreation is valued higher than a “patch” for ten cars.

Let us remind you that the apartment itself is valued according to:

Squares;
Number of rooms;
General condition – finishing, ceilings, layout;
The presence or absence of defects in the repair;
The first or last floor is cheaper.

Is it possible to purchase land without a mortgage?

There are situations when the chosen land plot does not fit into the requirements of the lender; it happens that the solvent borrower himself does not fit into the rules set forth by Sber for acquiring land on collateral. In this case, you have to consider alternative options for purchasing a plot .

Experts advise taking advantage of offers such as:

A loan secured by existing real estate. Another alternative is to take out a loan for any real estate (residential, commercial) that is owned by the borrower.
Registration of a classic loan (without collateral). This procedure allows you to receive the required amount, issued as a consumer loan. Sberbank has several programs for non-targeted lending under the terms of which a borrower can receive up to 2 million rubles without collateral/guarantee. But it is worth knowing that Sber issues permission for such a loan only to financially reliable individuals with an excellent credit history.

You need to understand that the registration of any alternative method of obtaining the necessary loan for the purchase of a land plot will be carried out under the close supervision of the bank. It is important to choose the best lending option for yourself, taking into account the amount of final overpayments, the type of payments and a number of other parameters.

What does the evaluation album look like?

An assessment report is an official document that must be completed in accordance with the regulatory requirements of laws and state standards. Check if it contains the following data:

Information about the company that conducted the examination. Company contact details.
Information about the customer of the assessment - that is, about you.
Full characteristics of the apartment you are planning to buy. Check the address, area, layout, etc.
Analysis of the real estate market for your property - numerical indicators.
The amount of liquid value and market value of the apartment for purchase.
Attachments – photographs, copies of appraiser’s diplomas, etc.

The appraiser's report should have a concluding section - this is what loan officers read first. It contains information about the price of housing and how much the bank can get for this apartment at the moment - if the mortgage agreement is terminated.

There are no requirements for the appearance of the report. Usually this is a folder with at least 20 A4 sheets, usually much more. The documents are bound and numbered. The appraiser's signature is everywhere. There is a seal.

Please note that the report is only valid for 6 months. If the contract for the apartment was not concluded, or refinancing is planned, a new assessment will have to be made. The reason is constant changes in the real estate market.

List of accredited appraisers

The list of appraisal companies accredited by Sberbank is presented on the bank’s official website. The register is made in Excel and includes the following data: name of the appraisal company, region of its location, contact information.

The list of Sberbank appraisal companies for mortgages is constantly changing: new companies are regularly added to it. Therefore, it is recommended that you familiarize yourself with the current list of accredited appraisers on the lender’s official website.

Register of accredited appraisers of Sberbank

The list of appraisers presented on the bank’s website is quite extensive. It is quite difficult to find companies suitable for the region/city. Therefore, at the time of signing the mortgage agreement, you should request from the credit manager a sheet with a list of agencies operating in the required area. This will make the task of finding a suitable appraiser much easier.

What is the validity period of the assessment report?

The assessment report is valid for six months. But it is better to check with the bank manager - in some cases, the requirements of credit institutions may differ from this period. In reviews of mortgage products, you can find complaints from citizens who were denied a loan or mortgage refinancing a month after the assessment.

Ask the bank manager if the report will be valid if the mortgage application expires - some banks can take up to 2-3 months to review a new one.
Check to see if the bank has any other requirements for the appraisal report.

Registration procedure

The entire process of taking out a land mortgage consists of the following stages:

Selection of a site that meets all conditions.
A preliminary agreement between the borrower and the seller of the land.
Collection and preparation of a portfolio of documents, submitting them to the bank.
Filling out an application and questionnaire when visiting Sberbank.
Registration of a future transaction.
Bank approval and transfer of the loan to the borrower's account.

The time for reviewing the submitted application and making a decision from the bank is up to 5 days. Upon approval of the banking structure of a future transaction, the bank representative, together with the client, finalizes the agreement (credit, mortgage, insurance) and seals the paper with signatures.

At the same time, the borrower receives, reviews and signs a schedule of regular payments. Afterwards, the procedure for encumbering the mortgaged land against bank collateral takes place. The document is registered in Rosreestr. The last step is making the initial mandatory contribution.

Based on many years of practice, we can say that Sberbank’s legal representatives are distinguished by their professionalism. Therefore, the entire procedure for obtaining a land mortgage is not delayed.

Who orders a real estate appraisal, the seller or the buyer?

The buyer pays for the appraisal of the seller's property. This is logical - the buyer is interested in obtaining a mortgage, and accordingly, the buyer is interested in the assessment procedure. There is no point in the seller spending his money - it is easier to wait for a buyer in cash.

Therefore, we recommend ordering an appraisal only when you are already sure that the purchase and sale transaction will be completed without problems.

Once again, the buyer pays for the appraisal, so first collect all the documents, make sure the apartment is clean, and only then apply to set the appraisal amount so as not to waste money and time.

Cost of work, and who pays for it?

Real estate appraisal work is paid for by the interested party, that is, the future borrower. Disputes often arise on this topic between the seller and the buyer, but the law is on the side of the seller, because it is the borrower who needs to achieve the conclusion of a mortgage agreement on the loan.

How much an apartment appraisal will cost depends on the relevant qualifications of the independent appraiser and the degree of complexity of the work being carried out. The average cost of appraisal work for standard apartments is 10 thousand rubles.

Luxury real estate will require special valuation methods and a high-level specialist, so the cost of such work can reach about thirty thousand rubles.

The cost is set by the company itself, which is involved in the real estate valuation process. If you turn to an accredited appraiser who cooperates with a bank, then the cost of appraising an apartment will be one and a half, and sometimes two times lower than when ordering from third-party companies offering similar services.

Is a re-evaluation of an apartment necessary when refinancing?

If you are planning to refinance your mortgage - i.e. renew the mortgage loan agreement; a re-assessment will be required if the first report is more than six months old.

In fact, refinancing is a new agreement. Accordingly, the bank carries out all operations again. This includes finding out how much money he will receive if your deal is broken and the apartment has to be put up for auction. To do this, he needs data on the liquid value of housing.

If you decide to refinance less than six months after drawing up the appraisal report, then in theory there is no need to re-do it. In practice, you need to check with managers - judging by customer reviews, some managers still require you to redo the document.

Do you need an appraisal for a mortgage on a new building?

Judging by the reviews, some bank managers require such an assessment. In fact, this is not necessary - the amount for the apartment is set by the developer and indicated in the share participation agreement.

If you are planning to take out a mortgage loan, you will have to order an appraisal report in any case. Choose an organization that is responsible for hiring appraisers. Only high qualifications and responsibility guarantee an independent study and report that will be accepted by any bank.