value opinion
Value Opinion
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What is a Value Opinion?
The opinion of value marks the beginning of the process to determine the value of a property. The quantity and quality of data available may affect the accuracy of this assessment. If the source data is insufficient or unreliable, it is necessary to resort to external sources to complement the research.
What Objective Does It Have?
The primary purpose of this valuation is to provide a quick and useful estimate. It is generally not used for decisions that require extensive analysis, since approximations and costs are calculated without using specific prices for each item.
How to Obtain the Value of a Property?
To obtain the value of a property, exclusively a comparative or market method is used. This involves examining market listings for similar properties in the same or similar areas.
The comparative or market method is a commonly used technique to determine the value of a property. It involves analyzing and comparing the characteristics and prices of similar properties that have recently sold in the same or similar geographic area. Some of the key factors considered in this process include:
- Location: Location is a fundamental factor in property valuation. Properties located in areas with high demand, developed infrastructure, access to services and good schools tend to have a higher value.
- Property size and features: Aspects such as the size of the land, the size of the structure, the number of bedrooms, bathrooms, garages, and any additional features such as swimming pools, gardens, etc. are compared.
- Status and conditions: The state of maintenance of the property and any need for repairs or renovations can significantly affect its value. Properties in good condition tend to have a higher value than those that need major repairs.
- Property age: The age of the property can also influence its value. New or recently renovated properties tend to have a higher value compared to older ones.
- Market conditions: General economic and real estate market conditions can also influence property value. Supply and demand, mortgage interest rates, and other macroeconomic factors can impact property prices.
Once this information is collected and compared to similar properties, the value of the property in question is adjusted to reflect the differences between them. This may include adjustments for size, location, specific features and market conditions. The result is an estimate of the market value of the property in question.
What Is the Difference Between Opinion of Value and Real Estate Appraisal?
The difference between a value opinion and a real estate appraisal lies in its formality and methodological approach. The opinion of value is more informal and based solely on market methodology, while real estate appraisal employs a broader range of methods, including the cost method and the income capitalization method.
In addition, the real estate appraisal can take into account the added value within the property, such as whether significant improvements have been made such as the construction of an additional floor, the expansion of rooms, or the creation of green areas. This type of appraisal considers these improvements and provides recommendations on the property's potential, based on comparable or similar properties in the same area.
In addition, the valuation can take into account the added value within the house, for example: if the house is located in a residential area, but the owner has added an extra floor, rooms, green areas, etc. This type of appraisal takes them into account, tells you what you can do with your property, and is based on comparable or similar properties in the area.
How Valid Does a Value Opinion Have?
An opinion of value is generally valid for six months, unless during that period the property experiences significant changes that could affect its value. Additionally, the validity of the opinion of value can be extended if economic conditions have not changed since the time of the initial appraisal.
What Do I Need to Request a Value Opinion?
- Property plans if available.
- Copy of the applicant's INE.
- The copy of deeds with measurements and also boundaries with seals and signatures before the RPP
What Does a Value Opinion Include?
- Photographic report
- Sketch of the property
- Determination of real estate value
ANEPSA GLOBAL
With Anepsa Global it is possible for this and other types of appraisals to be carried out, contact us by leaving your information or sending a message through our social networks, we are here to provide you with advice and guide you so that you know what type of appraisal is best for you.
