The real estate appraisal determines the market price of a property
The notion of appraisal refers to a valuation . This is the act and result of appraising or valuing : indicating the price or monetary amount of something.
The appraisal of an asset involves determining its value . Depending on the context, there are different types of appraisal. Each one has its particularities, although they all share certain characteristics.
Real estate appraisal
In the case of real estate appraisal , it consists of defining the commercial value of a property through a monetary figure , which is arrived at after the development of a technical survey that analyzes the characteristics of the property, its condition , etc. Also known as a real estate appraisal , this appraisal is carried out by an appraiser.
The real estate appraisal corresponds to a specific date, since it is generated according to current conditions. It should be noted that the age of the property is one of the data that affects the valuation. Another term by which the property being valued in this case is known is real estate , and it corresponds to anything that is linked to the land, such as a building, premises or a home.
This procedure must lead to the formal act of recording the price of the property in a document , which must be prepared by an appraiser, who is usually a surveyor, an architect, an economist or a civil engineer, among other professions. In this document it is mandatory to indicate various information, among which the following stand out:
* state of the property, in terms of its conservation and maintenance , without leaving aside its remaining useful life;
* legal and tax information;
* seniority. This point is very important, especially when it affects the price due to issues such as the added value of having belonged to a specific family or having been designed by a famous architect, among other possibilities;
* the reason why the appraisal was carried out;
* the methodology that the professional has used;
* the location of the property with great detail, including geographical coordinates;
* the dimensions.
Tax and commercial appraisal
The idea of fiscal appraisal , on the other hand, refers to an appraisal carried out by the treasury . This valuation is not commercial: its objective is not to promote or allow a sale, but rather the application of a tax or fee .
Typically, the commercial appraisal is higher than the tax appraisal. That is to say, the sale price of a property or land on the market is higher than the value established by the treasury.
Other types
Nor can we leave aside the mortgage appraisal , which consists of defining the value of a property in the market with a view to applying for a mortgage loan . Other uses include setting the rental price of real estate and knowing what the correct premium is when obtaining insurance. The premium is the amount added to the value of an asset that must be paid.
Luxury cars are some products that are usually valued to insure them
It is important to note that the mortgage appraisal is mandatory when requesting a mortgage loan, so the corresponding financial institution always requires it to complete the procedures . For this reason, it cannot be carried out in any way, but must comply with the regulations in force in each country, which usually regulate a well-defined entity.
The insurance appraisal , on the other hand, is used to define an insurance policy. It must be issued by a public broker or an appraiser and is used as a starting point to insure an asset, since it indicates its owner and the insurance company the commercial value. This procedure is usually carried out to insure collectible vehicles, works of art and machinery.