Appraisal and valuation of real estate

The appraisal and valuation of real estate is a fundamental process in the real estate field that consists of determining the economic value of a property. This assessment is carried out in order to provide accurate and objective information on the
market price of a property at any given time, which is important for a variety of purposes, such as buying, selling, renting, mortgage loans, insurance, inheritances, among others. Here are the key aspects of this process:

Valuation methods

Market Comparison Method: This method involves comparing the property in question with other similar properties that have recently been sold in the same area. Characteristics such as location, size, age, build quality, among others, are taken into account.
Replacement cost method: This method calculates the value of the property based on the cost of building a similar new property on the same site, taking into account the value of the land and current construction costs, adjusted for depreciation and obsolescence.
Discounted cash flow method: This method is mainly used in the valuation of investment properties, such as commercial or rental buildings. It consists of projecting the future income streams that are expected to be generated with the property and discounting them to net present value to determine its present value.
Other methods: In addition to the above methods, there are other valuation approaches, such as the residual method, the income capitalization method, the intrinsic value method, among others, which can be used depending on the specific characteristics of the property and the purpose of the valuation.

Factors influencing valuation

Location: Location is one of the most important factors that influence the value of a property. Properties located in central areas, well connected and with nearby services tend to have a higher value.
Size and Features: The size of the land and construction, as well as the characteristics and qualities of the property, such as the state of conservation, finishes, amenities, and facilities, also affect its value.
Supply and demand: The supply and demand for properties in the local real estate market also influence their value. Supply shortages and high demand tend to increase prices, while oversupply can lead to a decrease in prices.
Economic conditions: General economic conditions, such as interest rates, economic growth, inflation, and the labor market situation, can also affect property values.

Professionals involved:

Real estate appraisers are professionals who specialize in the valuation of real estate. These professionals are trained to perform accurate and objective assessments using appropriate methods and techniques.
Real estate agents can also provide value estimates based on their experience and knowledge of the local market. However, these estimates may be less accurate than those made by a professional appraiser.

Valuation reports

Once the valuation is complete, the appraiser or real estate agent will provide a detailed report that includes information about the valuation method used, comparison data, calculations made, and final conclusions about the value of the property.

Contact

Before submitting your inquiry you can see our commitment to your privacy.

Responsible: Ricardo Ruiz Rubio
Purpose of collection and processing of personal data: to manage the request you make in this contact form.
Rights: You may exercise your rights of access, rectification, limitation and deletion of data in info@peridet.com, as well as the right to file a complaint with a supervisory authority.
Additional information: In my privacy policy you will find additional information about the collection and use of your personal information. Including information on access, retention, rectification, deletion, security and other topics.