What is Appraisal?
“Appraisal” is determining the value of a real estate, real estate project or the benefits and rights of a real estate on a certain date with an independent and neutral view.

Who is an Appraiser?
Appraiser is a person who will determine the value of a real estate, real estate project or the benefits and rights of a real estate. Appraisers work for Real Estate Appraisal Companies. They should have a graduate degree of related departments such as engineering, marketing-economy, architecture, urban and regional planning from a 4 year university.

Appraisers need 3 years of work experience in real estate appraisal in order to have certificates. Existing legal regulations draw attention to some points. These are; appraisers can not work for two companies, can not act against objectivity and independence principles, can not work as a real estate agent and can not act against their profession ethics.

Why are Appraisal and Appraisal Reports Important?The development in real estate sector resulted in increasing value of real estates in economy. Capital Markets Board of Turkey (CMB) wants to protect investors when “real value” is trying to be determined. Companies need to determine the value in purchase and sale, restructuring and clearing of companies' real estates. All these factors effect the development of this sector. Thus, new needs have taken shape; demand to appraisers and appraisal companies have increased, appraisal reports gained a lot of importance in economical life.

Where is Appraisal Report Used?
A correct and reliable appraisal report plays a very important role in the revaluation of real estates , using foreign sources, merger and acquisition valuations, collaterals, debt restructuring, debt to asset swap, project valuation, the analysis of high and best use, and Real Estate Investment Trusts‘ transactions.

Legal Regulations in Turkey:
Legal regulations are being shaped recently in Turkey. Capital Markets Board of Turkey (CMB) needs to regulate the system because of the stock exchange quoted Real Estate Investment Trusts. For this reason the regulatory body on Appraiser and other terms related to Appraiser is Capital Markets Board of Turkey (CMB). Turkey needs very serious regulations on this subject, and the shifting focus to this area is a very important beginning.

CMB prepared two regulations about appraisers and appraiser companies (Certifying and Appraiser Companies) and these regulations were validated and published in the Official Gazette on August 2001.

“Certifying Regulation” is not only about the exams to test the knowledge and skills of the personnel and managers working in the capital markets but also of the appraisers working for appraisal companies. This regulation also gives information about certifying principles, arranging education programs and recording systems. CMB has organized certifying exams according to this regulation and started to give certificates. There are nearly 50 certified real estate appraisers in Turkey now.
The second regulation defines “Appraisal Companies”, appraisals and working principles of the companies. The quality of appraisers, the definition of independence concept and the studies that an appraisal company can work on and cannot work on, are clearly explained in these regulations.