Real Estate Appraisal in Central-Eastern Europe: Comparative Analysis of Poland and Slovakia

Andrej Adamuscin,Izabela Rącka,Sławomir Palicki

doi:10.1515/remav-2017-0029

Abstract

Abstract The countries in Central-Eastern Europe have been subjected to dynamic economic changes. Researchers from Poland and Slovakia study the history of the creation of and rules by which the real estate appraiser’s profession functions. They also present the methodological basics for property appraisals. The original value of this article is a comparative analysis depicting the similarities and differences occurring in the research area, in two countries from the same region of Europe. The analysis may also influence the methodological discussions of specialists concerning the correctness and purpose of certain approaches, methods or techniques of property appraisal. The main goal of this article is conducting research on the operational rules of the real estate appraiser profession and property appraisal methods. The detailed objectives include: a critical comparative analysis of the solutions used in the above-mentioned countries, searching for interesting, unusual methodological propositions, and presenting a current assessment of the applied property appraisal methodology. The foremost methods used in this article are: the analysis of legislative instruments, the analysis of literature concerning property appraisal methodology in Poland and Slovakia, and a questionnaire (CAWI and PAPI technique). Complementary knowledge was derived from official government internet portals and trade associations dealing with property appraisals. A comparative analysis was the basis for conducting research on the similarities and differences in the studied countries.

Highlights

Real estate appraisers in Poland are natural persons with professional qualifications in the field of real estate appraisal
The following operational principles are emphasized, regardless of the current stage of the trade association: – creating conditions for professional development – continuous training is obligatory in countries where the real estate appraiser profession and other professions connected with the estate market have a long tradition (ANTONIADES 2012); – creating and respecting the standards of the profession – clear and enforceable standards create, among other factors, the foundation of the profession, defining the rules for property appraisal (CLOSER 2007)
They enable the analysis of appraisal reports established by other real estate appraisers (DURKIN 2016); – creating and respecting the Code of Conduct and Ethics – the real estate appraisers who do not fulfil their duties in a proper way or are accused of discharging professional duties or even fraudulent activities should be subjected to professional liability

Summary

Introduction

Real estate appraisers in Poland are natural persons with professional qualifications in the field of real estate appraisal. Pursuant to Polish legislation, a real estate appraisal can only be performed by a person having that specific professional qualification (under the threat of putting under arrest or a fine, envisaged by the law) Both business organizations as well as natural persons are entitled to provide appraisal services. According to the Ministry of Justice of the Slovak Republic (Jaspi program), there were 836 natural persons holding certificates of real estate appraisers at the end of 2015 in Slovakia. Real estate appraisers in Slovakia are natural persons or legal entities with professional qualifications in the field of property valuation. In cases when legal entities carry out such activity, they should hold an appraiser's certificate, as in Poland Such qualifications entitle them to determine the value of all types of property which is permanently fixed to the ground. The SKZ is a member (currently as an observer) of the International Valuation Standards Committee (IVSC) in London

Literature review

Data and methods

Findings

Discussion and conclusions