That, market value is estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion, was known even before the adoption of the Real estate valuation law (Croatian official gazzete 8.7.2015.)
The intent of the law was to regulate, previously unregulated real estate valuation business practice (whether it succeeded we will not talk about this time), and introduced some new features compared to previous established practice. Some of these innovations are the introduction of the concept of certified valuators, establishment of the information system of the real estate market (eNekretnine data base run by Ministry of a construction) and the data than can and need to be used for the valuation of the property.
If we wanted to simplify it, we would say this:
The real estate valuation is a process that is carried out by certified valuator in order to determine the amount by which the real estate could be sold between the two parties – buyer and seller in the open market.
To make a valuation report, the valuator will use actual purchase prices and informations of rents, management costs and other data, which will be obtained from eNekretnine, from the purchase contracts that are in the archives of documents of the land registry departments and from other official sources available.
So, if you need during or prior to sale of the property, loan approval in commercial bank, solving legal matters regarding property, insurance, real estate listing into the core/basic capital of the company, or for any reason need valuation of your property, you need to pay attention that you hire an certified person who is professional, impartial and neutral – court expert for construction and real estate valuation or legal person (company) that is an authorized expert in the field of construction and real estate valuation.
You will recieve the valuation in written form of a report that must meet the prescribed conditions, and need to be done in a way that the value of your property will not be valuated on the basis of asking prices (ads that represent offers that can never be realized) but with the price for which property comparable to your property was sold.
Please contact us for all, real and unreal, questions about the valuations.