Property Valuation for a Mortgage in Bishkek: Who Does It, How Much It Costs and Why It Is Required
Before issuing a mortgage, the bank wants to know the real value of the property that will serve as collateral. For this, an independent appraiser is engaged. Let us explain how this works.
What Is a Valuation for a Mortgage?
It is an official document — an appraisal report on the market value of a real estate object. The appraiser visits the property, inspects the apartment, analyses the market and issues a value conclusion.
The bank uses this figure to calculate the maximum loan amount.
Why Is the Appraised Value Often Lower Than Market Value?
This is the most frequently asked question. The reasons:
- Appraiser conservatism — the appraiser bears legal responsibility, so they orient to the "lower end" of the market range
- Comparison method — actual completed transactions are used, not asking prices in listings
- Liquidation discount factored in — the bank thinks about how quickly it can sell the apartment in the event of borrower default. A 10–20% discount is built in for this reason
- Unregistered redevelopment — automatically reduces the appraised value
The difference between the appraised and market value typically amounts to 10–25%.
How Does This Affect the Mortgage Amount?
The bank lends not against the contract price but against the appraised value.
Example:
- You are buying an apartment for 8,000,000 som
- The appraiser concludes: 6,500,000 som
- The bank is prepared to lend 80% of the appraised value = 5,200,000 som
- Your down payment: 8,000,000 − 5,200,000 = 2,800,000 som (35% of the price)
Although the bank promised "20% down payment" — due to the valuation gap, the actual payment turned out to be larger.
Takeaway: when selecting an apartment with a mortgage, factor in a possible valuation gap of +10–20% on top of the down payment.
Who Carries Out the Valuation?
The appraiser must be accredited by the bank issuing the mortgage. Each bank has its own list of approved appraisal companies.
How to find an appraiser:
- Request the list of accredited appraisers from your bank
- Call 2–3 companies and compare prices
- Choose those with experience on similar properties
Important: an appraiser "from outside" who is not on the bank's list will not be accepted. The bank will not accept such a report.
How Much Does a Valuation Cost?
| Property Type | Valuation Cost |
|---|---|
| Apartment (standard) | 3,000–5,000 som |
| Apartment (luxury, large area) | 5,000–10,000 som |
| Private house | 6,000–15,000 som |
| Commercial real estate | from 10,000 som |
The valuation is paid by the buyer. Include this amount in your purchase budget.
What Does the Appraiser Check?
On visiting the property, the appraiser looks at:
- General condition of the building and apartment
- Compliance of the layout with the technical passport
- Presence of unauthorised redevelopments
- Condition of utilities (visual)
- Floor, view from the windows, district infrastructure
- Comparable transactions in the database
How to Increase the Appraised Value
- Rectify unauthorised redevelopments or legalise them before the appraisal
- Prepare the apartment — cleanliness and order create an impression of good condition
- Provide documents in advance — technical passport, title documents
- Mention the advantages — proximity to the metro (in prospect), shopping centres, new renovation
Validity Period of the Appraisal Report
The appraisal report is valid for 6 months. If the transaction does not go through within this period — a new appraisal is required.
Consultation with Aziza Talantbekovna – realtor, 30 years experience, Bishkek. From 2,000 som. Tel: +996 702 584 477
PAID consultation. From 2,000 som. Even for a single question. Tel: +996 702 584 477