The commissioned service of the State Property Fund for electronic determination of the appraised value caused a flurry of emotions both in discussions at various meetings and in the media.
In most of the discussions, and in particular in the seminar "New service for automatic real estate appraisal", which was held on July 16 by the SPF leadership, I took an active part.
What do we see in media publications - ... real estate sale transactions are thwarted, appraisers have been left without work, and the State Property Fund Service is “to blame” for all this. And since I have repeatedly responded to the request of journalists to express my opinion on this issue and comment on the situation, and now I read my comments in publications, but in a distorted context, I consider it necessary to once again express my opinion about the Service itself, and the reactions to it introduction.
So, about the breakdown of deals. Firstly, the participants in the real estate purchase and sale transaction are not limited by the opportunity to use only the so-called e-certificate on the value of real estate, which can be obtained free of charge using the service of the State Property Fund. If you disagree with the result of the service, please contact the appraiser. All this is detailed in the instructions for using the service on the foundation's website. Let's take a civilized approach to the problem, and at least get acquainted with the available information support of the service. These are instructions not only for sellers and buyers, but also for appraisers and notaries.
Secondly, you need to understand that the service is designed for TYPICAL objects and determines not the market, but the estimated value based on the minimum number of characteristics of the object of sale. The program will never give market value values, especially for specific, atypical for the market objects, as well as for objects in regions with an undeveloped market. It must be understood that appraised value and market value are inherently different things, although outwardly it may seem that they are defined in a fairly similar way. In fact, these are two independent branches, two independent ways to achieve the amount of the tax base for transactions. Nobody promised that the appraised value determined by the service of the State Property Fund should be close to the market value of the object. And the owner has the right to choose which way he will go. Together with an appraiser - or without one. In my opinion, the realtor who accompanies the transaction may well advise and advise his client which algorithm to choose - a service or an appraiser. I can also recommend using the Uvekon SIMPLE calculator to optimize your choice.
Now regarding the panic that the Service will leave the appraisal business out of work. Let's clarify who is shouting the loudest about this. For the most part, those for whom the assessment is the stamping of documents that cannot be called a report from the point of view of the existing regulatory framework for the assessment. As a result, both society and the state perceive all appraisers as a kind of unified mass of unscrupulous professionals. If the appraisal business finally gets rid of this ballast of pseudo-specialists that have infiltrated its ranks with the start of the once infamous Maidanchiks, it will be better for everyone, and, first of all, for consumers of appraisal business services. If we talk about errors in the results of the assessment, then the Service began to receive complaints from the very first days of work, and what some assessors have been doing for years is known mainly by reviewers and members of the examination committee, who deprive them of their certificates ... I would strongly recommend real estate companies to check the qualification the level of evaluators they recommend to their clients.
Well, and about the "harmfulness" of the Service. I have already noted the reason why the assessment for taxation was largely taken out of the legal field of independent assessment. I emphasize once again - the Service was created to determine the estimated value of typical real estate objects and implement the provisions of Article 172 of the Tax Code of Ukraine. Of course, the State Property Fund should still make efforts to improve the system, especially in terms of the used initial data on the objects of comparison. The Foundation's management admits this, the process is underway, it will be seen further ...
Vladimir Shalaev. General Director of the Uvekon Group of Companies