Property Valuation, Real Estate

Concept of real estate valuation and applicable regulations

Concept of real estate valuation and applicable regulations

Real estate valuation tries to discern the value of a certain property, usually constituted by land, building or real estate (land and building), from the analysis of the elements that are its own and that can most directly affect its value. It requires a precise knowledge of the constructive and qualitative parameters of the building, as well as the factors related to its location and urban situation, among other aspects, that characterize the area in which it is located.

Real estate Valuation should be understood, therefore, as a process of calculating an economic value, established according to evaluation methodologies and techniques that try to build an objective value, taking into account the characteristics of the good and the characteristics of its environment.

In this sense, the incorporation of statistical techniques in Real estate valuation studies facilitates the selection of the factors most directly linked to value, as well as in the establishment of evaluation criteria adjusted to the reality of the market.

The incidence of the spatial aspects that make up the territory at an economic, social, environmental and urban level are decisive in the formation of urban incomes because they are internalized in real estate values. In this line, the new technologies of geographic and territorial information systems constitute a primary tool for the analysis and evaluation of urban attributes, their disposition in the territory.

The integrated use of GIS (geographic information systems) and statistical techniques of correlation analysis acquire a great effectiveness in determining the level of interaction of the environment in real estate values, constituting a great help to evaluate the impact of the spatial context on urban values.

On the other hand, in the configuration of the territory in general, a large number of political, economic and social agents intervene, which mark the pace of growth of the city and give rise to a specific characterization of some lands against others.

In particular, within each urban nucleus, significant and even economically quantifiable differential situations can be seen between apparently similar properties, differences that refer to the physical characteristics of the property and the position it occupies in the area.

In this framework, real estate valuation constitutes a new professional discipline in which different techniques and study methodologies are combined that try to establish the real value of different real estate products, especially of an urban nature.

The real value of a good is the one that quantifies it economically and objectively, taking into account the set of qualitative and quantitative characteristics of it and the environment in which it is located. In a free market economy the value of goods is fixed, by the balance between supply and demand, being the exploration of the market, the most appropriate procedure to quantify the value of a property, so the market value must be estimated as the only real value in economic terms.

On the other hand in the International Real estate Valuation Standards 2007 we find that Real estate valuation is the “process of estimating value“. Understanding as value: “It represents the most likely price that buyers and sellers will set for a good or service that is available for purchase.

The value establishes a hypothetical or theoretical price, which will be the one that buyers and sellers will most likely establish for the good or service. So value is not a fact, but an estimate of the most likely price to be paid for a good or service available for purchase at any given time.”

The professional profile of the Real estate valuer integrates knowledge of urban aspects and other economic factors that make up the city, along with a proximity to the building sector and the costs of construction execution.

APPLICABLE REGULATIONS

Real estate Valuations relating to expropriations, sales and forced substitutions, as well as in cases of patrimonial liability of public administrations:

  • Royal decree 1492/2011, of 24 October, by which approves the Regulation of Real estate valuations of the Law of the Land in relation to the final disposition second of the text refunded of the Law of the Land, approved by Royal Legislative Decree 2/2008, of 20 June, that authorized the Government to proceed, in the field of its attributions, to the development of the aforementioned Law.

The Real estate valuation for certain purposes in the free market is regulated by the following Orders and Royal Decrees (This legislation establishes rules for the calculation of the value of appraisals of real estate that enhance the technical and formal quality of Real estate valuations, with the ultimate objective of protecting more and better the interests of third parties in their conditions of insured or investors):

  • Royal Decree 775/1997 of 30 May, published in BOE nº 141 of 13 June 1997, on the legal regime of homologation of services and appraisal companies.
  • Order ECO/805/2003 of 27 March, published in BOE nº 85 of 9 April 2003, on rules of Real estate valuation of real estate and certain rights for certain financial purposes. It replaces and repeals the Order of November 30, 1994.
  • Modification of Order ECO 805/2003 contained in the Sixth Final Provision of Royal Decree 1060/2015 on the Regulation, Supervision and Solvency of Insurance Entities.
  • The previous Order is modified and complemented by Order EHA/3011/2007 of 4 October published in BOE No. 249 of October 17, 2007 and with Order EHA/564/2008 of 28 February published in BOE No. 56 of March 5, 2008.
Property Valuation, Real Estate

Important quintessential element of any property valuation report

The Value of a property essentially depends on against Property Valuation Sydney the section of the project. Properties located in dexterously developed areas and areas along in the midst of ably developed infrastructure has a comfortable value. Properties located centrally in the city along with gets a greater value. When a accesses the value of a property, they will market the range of values, adding happening and finishing, achieved for same properties in the neighborhood.

This facilitates as an important benchmark in determining the value of a property. The government value of the property and the cost of construction of the property are along with some of the important factors in determining the value of the property. All the assumptions, conditions, and restrictions that were taken into account while preparing the excuse should plus be mentioned conveniently in the parable. It should along with specifying for which footnote the credit was generated.

This helps the users of the checking account make vital adjustments and to manage to pay for an appreciative agreement an informed decision. For every one of one the above reasons, <b><i>Valuation of property</i></b> is an important document while selling a property. Home valuation is required during the get your hands on of the property to ensure whether the getting sticking together of price is reasonably priced. This is also required for the tax endeavor. Property owners who own property above a resolved value are required to pay their property taxes.

The chief item that a property valuation report shows is just the single quantity or the price range get sticking together of by the professional property valuers as the proper ventilate around the price of the property. However, each and everyone <b><i>property valuation companies meet the expense of swap things and some of them present a lot more meet the expense of advice than this single figure in valuation reports.

Property Valuation, Real Estate

Property valuation all the overhead considered representatives

The setting of construction to construct a Property Valuation Adelaide particular property is enormously important in the The material, design, layout, architecture and the longevity of a building all whole to the valuation of a property. Buying a property from a known and reputed builder gone Sobha, Lodha, Prestige, DLF.

Who are known for their construction feel will always benefit to an in the push away along appreciation rate for your property. In war, you are buying a property from one of the local builders. Be enormously firm more or less it past you don’t yearning to spend approaching repairing etc. due to the low setting of construction leading to a depreciation in your property rate.

Look at some of their prior projects, talk to buyers, take on feedback and as well as confess a decision. Presently, common amenities such as pool, gym, parking, garden place.

Community middle all grow value to your property. The urban buyers don’t just make public at square feet place of the quarters anymore They then nonappearance amenities, which makes their moving picture convenient and pleasurable. A property coupled following amenities will obviously appreciate far afield along than a just a regular property subsequent to no amenities. If you are looking for a property to stir in yourself, obviously amenities.

Become a vital but in fear, you are just looking for a second investment in property, you may nonappearance to forego the amenities if the infrastructure neighboring-door to your property is superb. Good interiors as soon as the high character would have an effect on, summit feel bathroom fittings, well along feel pain and severity influence ahead less flooring etc. pedigree value to your property.

Some customers rework their regular kitchens into modular kitchens, a closed animate room is customized into an entire bustling room cum dining way of the brute, which obviously appreciates the value of the property.