When you apply for a mortgage, the bank has the value of the property to be purchased determined by an independent expert before extending the loan; this is called an appraisal or valuation. The process usually begins when the bank directs an expert from an SPK-licensed valuation firm it works with to carry out an on-site inspection, and it ends a few business days later with an appraisal report. This guide explains every stage from application to report delivery, the documents needed, and how to speed the process up, step by step.
Summary: A mortgage appraisal consists of the following stages: the bank application, assignment of the appraiser, on-site inspection, title deed and zoning checks, comparable analysis, and delivery of the report to the bank. The report determines the property’s market value; the bank sets the maximum loan amount based on that value and its own lending policy. The appraisal fee is generally paid by the buyer (the loan applicant).
Why Is an Appraisal Mandatory in a Mortgage?
To secure the loan it extends, the bank places a mortgage lien on the property to be purchased. For the lien to be sound, the property’s true market value must be determined by an independent expert. For this reason, the valuation:
- Allows the bank to learn the value of the property subject to the loan in an impartial way,
- Provides the basis for relating the loan amount to the property value (the loan-to-value ratio),
- Helps identify problems in the title deed and zoning status before the loan is granted.
A valuation expert does not take sides; the report is prepared according to the property’s factual market value, not the interest of either the buyer or the bank.
The Appraisal Process Step by Step
1. Loan Application and Appraiser Request
After you submit your mortgage application and receive preliminary approval, the bank forwards the valuation request to its contracted firm. At this stage, the property’s address, title deed details, and the seller’s contact information are provided to the bank. The appraisal fee is generally collected from the buyer during the application.
2. Assignment of the Appraiser and Scheduling
The valuation firm assigns the file to an SPK-licensed valuation expert. The expert contacts the seller or property owner to arrange an appointment for the on-site inspection. Ensuring physical access to the property is critical at this stage; the process is prolonged for properties that are closed or unreachable.
3. On-Site Inspection
The expert visits the property and:
- Observes the location, surrounding land uses, and transport options,
- Documents the physical condition, age, gross and net area, floor, and frontage characteristics of the structure,
- Takes photographs and keeps inspection notes,
- Checks whether the designation in the title deed matches actual use.
4. Title Deed, Encumbrance, and Zoning Checks
The expert verifies the property’s title deed record through TKGM (the General Directorate of Land Registry and Cadastre) and identifies encumbrances such as mortgages, liens, and annotations. The zoning status is also confirmed with the relevant municipality/authority. The existence of documents such as the building registration certificate and the occupancy permit (building use permit) is examined at this stage.
5. Comparable Analysis and Value Estimation
The expert collects recent sale/asking data for properties of similar location and characteristics to the one being valued, applies reasoned adjustments to each comparable, and determines the market value. The primary method in residential valuation is comparable analysis; when needed, the cost method is also used as a supporting approach.
6. Preparing the Report and Delivering It to the Bank
All data is converted into a report in a standard format and delivered directly into the bank’s system. In most cases, a copy of the report is also provided to the loan applicant. The bank calculates the maximum loan amount to be extended based on the value in the report and its own loan-to-value ratio policy.
How Many Days Does an Appraisal Take?
The duration varies depending on access to the property, the completeness of documents, and the availability of comparable data. Quickly arranging the appointment for the on-site inspection and having the required documents ready shorten the process. The exact duration is specific to each file; your bank and the valuation firm will share the concrete timeline.
Required Documents
To speed up the process, it is useful to have the following documents ready:
- Title deed or a copy of the title deed record (block, parcel, and sheet information),
- Identity document (buyer and, where needed, seller),
- Zoning status / building permit / occupancy permit (if available),
- Building registration certificate (for structures covered by the zoning amnesty),
- Construction servitude / condominium ownership information (for independent units),
- Key/access coordination for physical access to the property.
Points to Pay Attention To
- Difference between the title designation and actual condition: If a parcel shown as “land” in the title deed actually has a building on it, or if the structure lacks an occupancy permit, this is stated in the report and may affect the loan process.
- Structures without an occupancy permit: For properties that do not have a building use permit, the bank’s lending policy may differ; clarify this with your bank in advance.
- Encumbrances: For properties with liens or a sale restriction, the purchase process may be disrupted; review the encumbrance section carefully.
- A valuation is not a negotiation tool: The report reflects the property’s factual market value; it is prepared independently of the sale price.
- Report validity period: The bank expects the report to be used within a certain period (per institutional policy); if the period expires, a new valuation may be required.
When you receive the report, you can review our article on how to read a valuation report to understand its sections and terms.
Frequently Asked Questions
Who pays the mortgage appraisal fee?
The appraisal fee is generally paid by the buyer requesting the loan, during the application process. The fee varies according to the type of property and the valuation firm’s tariff; you should consult your bank for the exact amount.
What happens if the appraisal value comes out lower than the sale price?
The valuation expert determines the property’s market value impartially; this value may differ from the declared sale price. Because the bank generally calculates the loan amount based on the appraisal value, if the report value is low, the loan available is set accordingly. The buyer covers the difference with their own funds.
Do I choose the bank’s appraiser?
In a mortgage, the valuation firm is mostly assigned from among the institutions the bank works with. However, if you want to obtain an independent valuation from an SPK-licensed expert, you can separately request an SPK valuation report for your property.
Are a bank appraisal report and an SPK valuation report the same thing?
Both are prepared by SPK-licensed experts, but their purposes and level of detail may differ. While a bank appraisal focuses on loan collateral, an independent SPK valuation report is also used for different purposes such as sale, inheritance, and litigation. For details, you can refer to the article on the difference between a bank appraisal and an SPK valuation.
Is an on-site inspection mandatory?
For a sound valuation, it is standard practice for the expert to see the property on site. The on-site inspection ensures that the structure’s physical condition, area, and environmental factors are documented accurately.
Related Pages
- Bank Appraisal Report — how valuation works in the loan process
- Bodrum Real Estate Valuation — independent SPK valuation service
- How to Read a Valuation Report — report sections and terms
- Difference Between a Bank Appraisal and an SPK Report — the distinctions between the two report types
This is general informational content; the exact value specific to each property is determined through an on-site inspection and current comparable analysis. For valuation requests and quotes, you can reach us via the contact page.