How to choose a real estate appraiser

The valuation will be used by a bank, a notary, a court or the tax authority. If the appraiser is not licensed or the report is incomplete, it may be rejected and you will pay twice. Most problems can be spotted in advance — if you know what to check.

1. Check the CIAB public register

Only appraisers holding a certificate and listed in the public register of the Chamber of Independent Appraisers in Bulgaria may carry out valuations. The register is open to anyone at ciab.bg/public-register and can be searched by name, city, regional chapter or certificate number.

Ask for the certificate number at the first conversation. An appraiser who does not give it straight away is not a good choice.

2. Competence must match your type of asset

Under the Bulgarian Valuation Standards, appraisal competence is divided by asset type. A real estate certificate does not entitle its holder to value machinery, agricultural land with permanent crops or intangible assets — and vice versa.

So ask not only “do you have a certificate” but “for which asset types is it”. Where an engagement covers different assets, it is normal for several appraisers with the relevant competence to be involved.

3. Ask about insurance

An independent appraiser is liable for their conclusion. Ask whether they hold professional indemnity insurance. A serious appraiser will answer without hesitation.

4. What the report must contain

The Bulgarian Valuation Standards set minimum content for a valuation report. Before you pay, ask whether the report includes:

• details of the client, the appraiser and the user of the valuation;
• the purpose and the date to which the value relates;
• a description of the asset with its identifying particulars;
• the basis of value and the approaches and methods applied — with reasoning, not just a number;
• the general and specific assumptions and limitations;
• the opinion of value, photographs and attached documents;
• the independent appraiser’s declaration under Art. 21 of the Independent Appraisers Act.

A one-page report with a single figure does not meet these requirements, however low the price.

5. Independence

An appraiser may not have a material interest in the asset, represent a party to the transaction or value in a conflict of interest. If the appraiser is a broker, seller or intermediary in the same transaction, the valuation is not independent.

Warning signs

• A fee set as a percentage of the value. The CIAB Code of Professional Ethics prohibits an appraiser from quoting a fee linked as a percentage to the value concluded. This is a direct conflict of interest.
• A value promised in advance. “It will come out as you need” is the surest sign that the valuation will not withstand scrutiny. Value is determined after inspection and analysis, not before.
• No inspection. Unless the purpose and the asset allow otherwise, a valuation without a site inspection is poorly supported.
• An unclear price. The price and any extras — travel, express delivery — should be clear upfront.
• No certificate number, or one that cannot be verified in the register.

Questions you can ask

1. What is your certificate number and for which assets is it?
2. What is the basis of value and why is it suitable for my purpose?
3. Can I see the structure of the report?
4. What is the final price and what does it include?
5. When will I receive the report, and will the bank or institution accept it?

This information is general and does not replace advice on a specific case. A particular bank or institution may impose additional requirements — check them in advance.

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