Banks haven't increased their fees for the past four years and appraisal firms are threatening to “halt its services’’ if banks do not increase rates soon.
Such a development would hit home loans hard as property appraisal companies give valuation services for banks by calculating the real value of a given Turkey property when an individual asks for a loan for that property. Thus, they are able to offer a mortgage that reflects the property’s value.
Banks have been giving 250 Turkish Liras per appraisal for the past four years but the Union of Turkish Valuation Experts recently sent a note to all banks, saying they will ask for 350 liras plus value-added tax per home as of the 1st of March so the lines are clearly drawn
If this conflict between the Banks and appraisal companies is not resolved soon, it will be nearly impossible for Turkish or foreign investors to buy as they won’t be able to get Turkish home loans.