You too will need a property valuation
Whether voluntarily or not, each of us will, at some point in life, find ourselves in a situation where a property valuation is required.
Imagine you are selling a property — an apartment, a family house, or even an entire apartment building — and you are unsure whether you’ve set the right price. Don’t hesitate to contact us.
Are you buying a property and not sure if you’re paying a fair price? Don’t hesitate to contact us.
Are you contributing property to a company? Getting divorced? Inheriting? Looking to insure your property? Don’t hesitate to contact us.
What is the difference between a market valuation and an administrative (official) valuation?
Not all property valuations have to be prepared by a court-appointed expert as an official expert report. For market purposes, such as setting rental prices, it is sufficient to consult a certified property valuer. The profession of property valuer is regulated and requires education in a technical, legal, or economic field and a state accreditation certificate.
A court-appointed expert, on the other hand, is a person with the highest level of professional expertise in the field. They must be registered in the list of experts and interpreters and appointed by the president of a regional court or by the Minister of Justice. Court-appointed experts can prepare not only market valuations but also official expert reports for state purposes (e.g., for calculating real estate acquisition tax).
The value of a property stated in different reports can vary significantly depending on the purpose of the valuation. Administrative valuations are prepared by court-appointed experts, follow the Property Valuation Act and its implementing decree, and are primarily used for state purposes. Market valuations are not governed by any specific law or methodology.
The result of a valuation can therefore differ:
– The purchase price is the amount agreed between the buyer and the seller, for which the transaction is actually completed.
– The usual (market) price is the price that would be achieved in a standard sale of the same or similar property under normal market conditions in the Czech Republic at the valuation date, taking into account all relevant factors affecting value.
– Distressed market value, a term used for example by Komerční banka, represents the price at which a property could be sold immediately.
– The administrative (official) value is determined based on the Property Valuation Act and its implementing decree.