A comprehensive guide to valuing apartments for sale in Ukraine: what you need to know.

Often, people perceive their home as their most valuable material possession, which leads to inflated expectations of its value. “Expensive wood flooring, marble finishes” in the interior – for many people, this is another reason to consider their property unique and more expensive than others on the market. Unfortunately, this approach often leads to disappointment and a waste of time and resources for the seller, as buyers may have different preferences and tastes. Likely, the new owners will make redecoration according to their preferences, so they do not see the point in overpaying for what they will change. Practice has shown that the costs of renovation do not pay off at the sale.

Accordingly, the valuation of an apartment for sale is not just about setting a price, but a complex process that requires an understanding of legal norms and market realities. Here are the main points to pay attention to:

Legal necessity of valuation: Ukrainian legislation requires an expert valuation of property value for notarial acts, mortgage registration, loans, resolution of property disputes, insurance, and other purposes.

Initial valuation: For an initial valuation, legal documents such as a technical passport, documents confirming ownership rights, personal documents of the owner, and tax number are needed.

Key valuation factors:

• Location and infrastructure of the neighborhood.
• The type of building and its historical context.
• Distance to transport hubs.
• Distance from the city center.
• Total area and number of rooms.
• Number of floors in the building.
• Floor of the apartment (apartments on the first floors may be considered by investors as potential commercial premises – hairdresser’s shops, bank branches, supermarkets).
• Condition of the property – renovation, quality of construction materials.
• Parking space availability.
• Unauthorized alterations.

Assessment of the apartment’s condition: From perfect to unsatisfactory condition, taking into account the quality of utilities, repairs, and materials used.

Impact of market conditions: Calculation of the discount depending on the market condition – from zero to 15% depending on economic factors.

Specifics of valuation for inheritance: The need to consider tax norms when assessing inherited property.

When conducting an assessment, it’s important to remember that professional help can significantly simplify this process and help avoid mistakes, especially with a large number of factors affecting the price. Valuing an apartment is not just about determining a price; it’s a complex process that requires a deep understanding of the market and the specifics of the property.

The process of evaluating and selling a property becomes more complicated if the apartment is in a dilapidated or condemned building. The condition of the building, utilities – these are the key factors that make up the main price of each apartment in a condemned building, and it absolutely does not matter if the window sills are made of marble, for example. So, how should people form a price for an apartment in a dilapidated building? Sell it for next to nothing?

A new initiative has emerged in the real estate market from the business sector. The company DOMOVA offers an effective solution to the problem of resettling people from old and condemned housing by registering and selling apartments on the innovative DOMOVA platform. The uniqueness of the offer lies in the fact that it’s not just an opportunity to sell an apartment in a condemned building, which generally has no demand, but to sell it at a price above the market value. A favorable selling price for an apartment in an old building is possible thanks to the unification of apartment owners on the platform.

Selling a unified house on the DOMOVA platform allows all co-owners of the building to receive their share of the value of the total area, attic, basement, and also take into account a portion of the buyer’s profit from building a new, larger building on the site of the old one. By combining several buildings, an entire block can be sold for new construction.