home appraisal
Home Appraisal - Home Valuation
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What is a Home Appraisal and what is its function?
The appraisal of home, also known as appraisal real estate, is he process through he which HE determines he worth of a property. This document is necessary for establish a price appropriate when HE wishes sell either buy a property. He worth HE determines with base in the conditions current of the market real estate, So as in the characteristics of the property, such as: state general, services available, antique, location, between others.
The appraisals real estate agencies also they can have others Finnish besides of the buys-sale, as in cases of leases, guarantees mortgages, claims judicial, between others.
In Colombia HE they handle three guys main of appraisal: appraisal commercial, appraisal cadastral and appraisal for insurance. He worth obtained in any of are modalities It allows carry out transactions with elderly security, avoiding losses economic by to ignore he worth real of the property.
What is taken into account when performing a Home Appraisal?
For determine he worth of a property, HE analyze aspects as:
Location geographical: Proximity to services, accessibility and around.
Size of the land and construction: Surface total and area built.
Characteristics physical: Materials of construction, design architectural and state of conservation.
Services available: Infrastructure electric, health, telecommunications, etc
Conditions legal: Securities of property, liens, restrictions.
Market real estate: Prices of properties similar in the area.
Steps to perform a Home Appraisal
He process of appraisal generally includes the following steps:
Definition of the purpose of the appraisal: Establish he aim and scope of the analysis.
Harvest of information: Obtain data relevant about the property and he market.
Inspection physics: Assess the conditions of the property.
Analysis of data: Apply he method of appraisal appropriate and analyze the information collected.
Elaboration of the report: Document findings and conclusions in a report detailed.
Approaches to Home Appraisal
He approach HE define in function of the aim either need of the customer. The three main are:
Costs specific: HE esteem he worth as Yeah the property out new, and then HE calculates the depreciation according to characteristics as area, meters squares, finishes, etc
Market: HE compare the property with others similar in the zone for establish a worth fair of buys-sale.
Appraisal of rents: HE calculates he worth of the rent monthly either annual that could trigger the property.
When is this appraisal necessary?
The appraisal of a property is clue in situations as:
Buys-sale: Establish a price fair and competitive.
Financing mortgage: Determine he worth of warranty for loans.
Insurance: Estimate he worth insured of the property.
Inheritances and divisions heritage: Distribute equitably the estate.
Claims legal: Support processes judicial related with the property.
International Standards
For guarantee coherence and transparency in the appraisals, HE recommends continue standards international as:
Rules International of Rating (IVS): Issued by he IVSC, provide guidelines for assess assets, included properties residential.
Rules International of Information Financial (IFRS): They establish beginning accountants for he recognition and measurement of assets.
Standards RICS: They provide guidelines for the practice professional in appraisal real estate.
Achieve with are rules ensures that the appraisals be accepted globally.
IFRS related to House Valuation
In he context international, the Rules International of Information Financial (IFRS – IFRS (for its acronym in English) provide he frame accountant for he recognition, measurement and presentation of assets as estate estate. Although a home destined to use staff can No require appraisal accountant formal, in he case of properties used with Finnish commercials, of investment either financial, Yeah is relevant consider the following IFRS:
| Rule | Application for Home Appraisal |
|---|---|
| IFRS 13 – Fair Value Measurement | Establishes how to determine the "fair value" of an asset when it is required to be reported in the financial statements. This standard is key for appraisals for accounting and financial reporting purposes. |
| IAS 16 – Property, Plant and Equipment | Applies when property (such as a home) is used for operating activities. It allows assets to be valued at cost or appraised value, subject to depreciation and periodic review. |
| IAS 40 – Investment Property | If the home is used as an investment to generate income or for capital growth, this standard allows the use of the fair value or cost model in the appraisal. |
ANEPSA GLOBAL
¿Are by sell, buy, ensure either regularize a property? A appraisal professional tea provides certainty, back technical and a base solid for take decisions informed.
In ANEPSA Global, we count with specialists in appraisal real estate, aligned with standards international as IVS and IFRS. We carry out appraisals reliable, detailed and adapted to your needs specific.
Request a price either agenda a advice with our experts.
