Valuation of real estate in Croatia
If you need a valuation report for a property in Croatia, there are a few important considerations to keep in mind before engaging a real estate Valuer/Appraiser and requesting an official proposal or offer:
1. Identification of your asset – the minimum information about the subject real estate includes the location, surface and type of property. You can obtain most of this information via land registry extract, which can be easily downloaded from Organised land portal. You can find your property on a map, click on the cadastral plot and then click on “Unofficial extract” on the left hand side to download the land registry extract. In case the map is not in English, just click on the left hand side with your right mouse button and click “translate to English”. If you only know the address of your property, this is in most cases also a sufficient information for the Valuer as he/she can then proceed to identify the asset’s cadastral plots. Make sure to check that the Valuer has gotten a full understanding of what is the subject of valuation (and what is not).
2. Purpose of the valuation – your Valuer will have to understand why you require a valuation due to the necessary content of the report and liability stemming from the purpose of the valuation. E.g. internal decision-making, financial reporting or sales/purchase of the asset have lower liability than bank financing (secured lending) or court proceedings.
3. Valuation Standards – valuers in Croatia use two valuation standards, which can be quite different depending on the property type; local valuation methodology and international valuation standards (IVS/RICS). Make sure you understand which valuation standards you would prefer your Valuer to use. For international valuation standards, ask for a copy of the Valuer’s certificate valid at the date of the valuation (e.g. RICS Registered Valuer certificate).
4. Professional Indemnity insurance policy – ask for a copy or check what is the amount of your Valuer’s Professional Indemnity insurance policy.
5. Scope of valuation / type of valuation report – depending on the purpose of the valuation, you can chose between the following types of valuation report (written form):
a. Opinion of Value – short desktop report (up to 3-5 pages) including a summarized valuation of a property.
b. Desktop Valuation report – from 30 to 100 pages, depending on the complexity of the asset.
c. Valuation report including a site visit – actual visit to the property and visual inspection. Make sure there is someone on the ground who can accompany the Valuer during inspection (in case the subject of valuation is a built property/existing objects; for site visit to the undeveloped lands, it is not necessary to accompany the Valuer during the site visit).
A valuation report that includes a site visit offers the highest level of valuation confidence and reliability, as nothing beats the in-person assessment, detailed property analysis, and thorough market research. These types of reports also vary in cost and time required for completion. Typically, an Opinion of Value can be prepared within a few days (e.g., one week), whereas Desktop and Full-valuation reports may take a few weeks to complete. The timeframe also depends if the property is located in a remote area of Croatia, such as the islands.
For further information about our valuation services please contact us at [email protected].
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