A.PAZ REAL ESTATE

Real estate appraisal details the characteristics of the property and determines the value of the real estate. Buyers and sellers engage real estate appraiser services to perform various valuation assessments. The field of real estate appraisal is significant and has a substantial impact on the economy. A real estate appraiser is required to have extensive knowledge in areas such as economics, law, engineering, planning and construction, and more. Therefore, a professional real estate appraisal report should include chapters specifying the property description, physical characteristics of the property, the legal basis of the property, building rights, expected taxation, and the estimated value of the real estate property.

In the market, there are many real estate appraisers. A specialized real estate appraiser possesses a deep understanding and comprehensive insight in various fields such as engineering, law, and economics. A specialized real estate appraiser can provide numerous and creative solutions in areas like real estate taxation and the exploitation of building rights. A specialized real estate appraiser knows how to assess commercial projects such as hotels, gas stations, industrial buildings, and agricultural lands. This specialized appraiser is someone who has the knowledge and experience required to submit real estate appraisal reports to the court as part of various legal proceedings.

Real estate appraisal can serve a different purpose. Some appraisals determine market value, some relate to compensation for diminished value, and others estimate land taxation. Generally, an appraisal for evaluating a regular apartment consists of about 9 to 10 pages. An appraisal for court purposes can include dozens of pages. The appraisal typically includes several main chapters. These chapters encompass a description of the property, its legal status, planning status, licensing, and permit checks. Real estate appraisals examine all relevant characteristics of the property and, through a comprehensive summary, determine its value or another value according to the appraisal's purpose.

Real estate appraisals for assessing the value of a house are also done for the purpose of estimating the expected taxes in a sale. The taxes that a real estate appraiser needs to calculate in house appraisals include payments to the Israel Land Authority, betterment tax, and capital gains tax. A real estate appraisal for a house can help the seller understand how much money will remain net after all mandatory payments. In many cases, the value of a plot with a private house is influenced by the amount of existing building rights on the plot. Unused building rights have significant monetary value. A real estate appraiser needs to examine all plans that affecting the land. In many cases the value of the house is a derivative of the unused building rights.

The appraisal process for an apartment or private house involves several key stages. In the first stage, the real estate appraiser will visit the apartment or house and take measurements of the living space. In the second stage, the appraiser will submit a request to the Land Registry Office to obtain the property's land registry document and joint house plan. In the third stage, the real estate appraiser will examine all plans affecting the land. This check is crucial for identifying building rights. The fourth stage is a critical step in the process of appraising the value of an apartment or house to identify building irregularities. The real estate appraiser needs to obtain building plans from the local planning committee and compare the actual construction against the approved plans.

The Real Estate Appraisers Law defines the conditions for registration in the appraisers' registry, the order of examinations, and the duration of specialization. In addition to the law, regulations for land appraisers stipulate the manner of conducting specialization, reporting, and duration. As part of the regulatory burden reduction, academic studies in land appraisal have been simplified. To become a land appraiser, until recently, there was a need to pass twelve preliminary exams and two final exams conducted by the Land Appraisers Council at the Ministry of Justice. Today, to become a land appraiser, one needs to complete a specialized academic degree in land appraisal, with a one-year specialization, and successfully pass a final comprehensive examination.