Yuliya Byelova: Certificate of the Value of Real Estate, generated by the Automatic Real Estate Appraisal Service, is required only for real estate taxation
On August 4, Yuliya Byelova, Deputy Chairman of the State Property Fund of Ukraine, spoke about the possibilities of the new Automatic Real Estate Appraisal Service on television channel UA:Lviv.
During the broadcast, the Deputy Chairman of the State Property Fund focused on when exactly the citizens of Ukraine need to form Certificate of the Value of Real Estate.
«It is important to understand that Certificate of the Value of Real Estate is required only when there is a need to calculate the income of the taxpayer - an individual from the sale or exchange of real estate, and the income received as a result of inheritance or gift. In other cases, an appraisal is simply not needed,» Yuliya Byelova stressed.
She also said that the Service’s advantages for users are the ability to independently, quickly and free of charge create an electronic Certificate of the Value, print it from your own computer or save it on any electronic media.
In continuing, Yuliya Byelova focused on the methodology of calculating the appraised value of real estate used by the Service.
According to Yuliya Byelova, the appraised value of a real estate object is calculated automatically by a special Module, based on data from the following sources:
• open access information sources, in particular, from the search engine LUN and the online advertising platform OLX (with which the Fund has concluded the Memoranda);
• data on prices specified in the sale and purchase contracts of real estate, logged by notaries in the Unified Database;
• data on the market value of real estate, logged into the Unified Database on the basis of valuation reports.
Yuliya Byelova also spoke about the reasons for temporary inaccuracies in the calculation of the value of some real estate objects by the Service. Thus, the analysis of citizens’ complaints about the allegedly incorrect operation of the Service showed that the reason for this is incorrect data logged by users regarding real estate. In particular, the entered incorrect address, or incorrect data on the storey number of buildings, may adversely affect the quality of the evaluation result.
According to speech, there are objective circumstances that affect the accuracy of estimates of the estimated value, including small amounts of information about objects in some regions.
«Currently, inaccuracies can also arise due to the limited number of the registered sale and purchase contracts in the Unified Database, which serve as analogues for the formation of Certificates. This is especially true of the valuation of agricultural land. The market has just started, and therefore too few land purchase and sale contracts in the Unified Database of Valuation Reports have been registered so that they can provide an objective market picture of the value of land plots on average in the country,» Deputy Chairman of the Fund said.
Meanwhile, the Service is constantly self-improving by filling in the Unified Database. The more transactions and information are registered in it, the more accurate is the calculations of the Real Estate Appraisal Module.
«If the appraised value of real estate determined by the Service does not satisfy its seller, he has the right to apply for a valuation service to a professional appraiser, who, in turn, calculates for him the indicator of the market value of real estate. The Certificate is formed by the Service, and the appraisal report is made by a professional appraiser, equally accepted by notaries when drawing up real estate transactions,» Yulyia Byelova emphasized.