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Real Estate

Credit Appraisal

A bank's or financial institution's determination of the value of a property offered as collateral for a housing/commercial loan, under BDDK and SPK regulation. Technically the same process as a general appraisal, specific to credit.

Credit appraisal is the process by which a bank or financial institution determines the market value of a property offered as collateral for a mortgage-backed loan. It uses the same methodology as a general property appraisal (ekspertiz) but with additional banking-specific requirements.

Regulatory framework: Banks are supervised by the Banking Regulation and Supervision Agency (BDDK), and the appraisal firms they use must hold both an SPK licence and a place on the bank's approved list. Each major bank (Ziraat, İş Bankası, Garanti BBVA, Akbank, QNB, Yapı Kredi, etc.) maintains its own pool of contracted appraisal firms; buyers generally cannot choose independently.

Process:

1. After the loan application, the bank sends the appraisal request to a contracted firm. 2. The appraiser inspects the property: m², rooms, age, zoning, title records, comparable sales. 3. The appraiser applies applicable methods (comparison / income / cost) to determine value. 4. The report is delivered to the bank, typically within 5-10 business days. 5. The bank lends up to 75-80% of the appraised value (LTV = loan-to-value). The remaining down payment is covered by the buyer.

Difference from general appraisal: Generally the appraised value comes in below the declared sale price; this is normal risk management for the bank. For the buyer, the gap must be covered in cash. A credit appraisal is valid only for that specific loan — switching banks requires a new appraisal.

Fee: In 2026, an average residential credit appraisal runs TRY 5,000-8,000 to the bank; commercial appraisals start at TRY 10,000+, varying by property size and nature. The fee is typically passed to the buyer.

Examples

  • 1.A buyer purchases an apartment for TRY 4 million; the bank's appraisal sets value at TRY 3,700,000 → the bank lends 80% LTV = TRY 2,960,000; the buyer covers TRY 1,040,000 in cash.
  • 2.A credit appraisal from Bank A is not valid for Bank B; the buyer switching banks pays a new appraisal fee.
  • 3.For a commercial loan, a shop appraisal uses triple-method analysis: annual rent income + comparable shop sales + construction cost.

Frequently Asked Questions

What's the difference between a general appraisal and a credit appraisal?expand_more
Methodologically they are the same — the difference lies in purpose and regulator. A **general appraisal** (ekspertiz) is broadly used for court, tax and insurance purposes. A **credit appraisal** is a bank-commissioned appraisal for loan approval, subject to dual BDDK + SPK oversight. Report formats are similar, but credit appraisals include bank-specific risk annexes (LTV, liquidity analysis).
Who pays the credit appraisal fee?expand_more
Varies by bank: typically the **buyer** pays, but some banks cover it in promotional campaigns. In 2026, residential appraisals average TRY 5,000-8,000. The fee is collected at application; it is not refunded even if the loan is denied.
My credit appraisal came in low — what can I do?expand_more
Appeal options are limited. A second appraisal from the same bank is generally refused. Options: (1) try a different bank (pay a new fee), (2) if the report has errors, file a complaint with SPK, (3) cover the gap in cash, (4) negotiate a lower price with the seller. Remember: credit appraisal value is **not market value** — it is the bank's risk assessment.
How long does a credit appraisal take?expand_more
Typically **5-10 business days**. The appraiser contacts you to schedule a site visit; they must show ID at the visit. Title and municipal checks take another 2-3 business days. Once the report is uploaded to the bank's system, the credit approval process begins.

Related Terms

Property AppraisalMortgage (İpotek)Ownership

Sources

  • • Banking Law 5411 (BDDK authority)
  • • Capital Markets Law 6362 and related communiqués
  • • BDDK and SPK authorised appraisal firms list (bddk.gov.tr, spl.com.tr)

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Last updated: 2026-04-24