What is Real Estate Tax Value and How is it Calculated?

The real estate market value is a factor used to determine the value of a property and is crucial for calculating tax payments. This value reflects the actual market value of the property and serves as a criterion in tax declarations. It is also an influential factor in determining the insurance premiums for vehicles. Real estate market value is significant for property and vehicle owners, and its accurate calculation helps provide better insights into the value of your property or vehicle. In this article, you will find detailed information about what the real estate market value is and how it is calculated.

What is Market Value?

When buying or selling an asset, the market value refers to the current sales or circulation price at that point in time. It functions to prevent the asset from being sold below its value and to maintain market balance. Market value, resulting from the supply-demand balance, is not only used in buying and selling transactions but also in determining insurance and tax values. It reflects the market value of an asset at a specific time and place. This value represents the price the buyer agrees to pay to the seller, and it is a price agreed upon by both parties. Market value generally promotes more competition and efficiency in commerce.

Where is Market Value Used?

Market value is a frequently used term in economic transactions. It is used to determine the market value of an asset. While it can be applied in many areas, the most common include:

• Identifying investment opportunities for a property.
• Determining the value of a property in court proceedings.
• Calculating the compensation for the expropriation of a property.
• Determining the price of second-hand vehicles.
• Calculating the insurance value of properties and vehicles.
• Calculating taxes payable for transactions such as selling, transferring, mortgaging, or pledging a property.
• Determining and collecting property taxes in municipal processes.

How to Check Market Value?

Checking the market value is an essential process for property owners. Knowing the market value of a building or land can guide real estate transactions and tax payments. So, how can you check the market value?
You can learn the market value of a property through the municipality where it is located. District municipalities often provide this service on their websites. By entering details such as the age of the building and the neighborhood, you can find the market value by streets. Similarly, land market value inquiries can be made in the same way.

You can also check the market value through the e-Government portal. This service is available under the "Municipal Services" section. By entering details like neighborhood, street name, and building age, you can find the market value of the property.

Here’s a simple explanation of the process:

• Log in to e-Government to access the municipality list.
• Select a specific municipality for inquiry.
• Use this section to check the land’s square meter unit value.
• Fill out the inquiry form with neighborhood, street, and year details, then proceed with the query.

How is Market Value Calculated?

Market value calculation is a method used to determine the market value of a property. To begin, you need to know the market value and square meter data of at least three properties in the area where the property is located. Based on this information, the value of the property can be calculated.

The answer to the question of how market value is calculated lies in determining the average prices in the area where the property is located. By identifying the market value and square meter data of at least three properties and taking their average, the market value of the property is established.

• The market values of three properties in a specific neighborhood are summed.
• The areas of these properties are also summed.
• The total value is divided by the total area.
• The calculated value is then multiplied by the square meters of the property in question. The result represents the market value per square meter of the property.

Who Determines Market Value?

Market value plays a significant role in ensuring that properties, houses, or land are sold at their appropriate value and in accurately calculating costs like insurance and tax payments. It is usually determined by the municipalities where the property is located.

When determining the market value of a property, municipalities consider several factors, including the location, size, the value of surrounding properties, and market conditions. Taking all these factors into account ensures an accurate determination of the property’s market value.

Market value should align with the real market price of the property. This alignment ensures that transactions such as selling, insuring, or paying taxes are carried out correctly.

What is Land Market Value?

Land market value refers to the purchase and sale value of a piece of land determined based on market conditions. The value of the land is influenced by factors such as its features, location, and environmental conditions. The land market value is also calculated to include additional costs such as title deed fees and expenses, making it an essential factor in land transactions.

Where to Check Land Market Value?

You can obtain information about the land market value by consulting the municipality where the land is located. This information is usually available on the municipality’s website or via e-Government. To learn the land market value, visit the e-Government portal or the municipality’s website and search accordingly.

If you are unsure which municipality the land belongs to, you can check the municipality list on e-Government. Visit the official website of the relevant municipality and use the land market value inquiry section to access the information you need.

What is the Market Value of a Workplace?

The market value of a workplace is an important factor determined by considering all its features and market conditions. This value represents the worth of the workplace and serves as a reference in buying and selling transactions. The market value of a workplace should be calculated accurately, so consulting experts is essential.

What Affects the Market Value of a Workplace?

The location of the workplace, the value and position of surrounding workplaces, the development level of the area, infrastructure conditions, and transportation options are crucial factors. Additionally, minimum and inflation-adjusted values published by the Ministry of Finance and Customs also affect the market value of a workplace.

What is Vehicle Market Value?

Vehicle market value refers to the purchase and sale value of a vehicle, determined based on its model and features under current conditions. Often referred to as the insurance value, this figure is crucial in cases of damage and is used to determine the vehicle's market price.

The model and features of the vehicle can affect this value, leading to variations in the market value. Factors such as the vehicle’s age, mileage, engine power, and overall condition are considered.

What Affects the Market Value of a Vehicle?

• Vehicle sales websites.
• Car import and export companies and online platforms.
• Classified ads in newspapers, periodic publications, and galleries.