EVALUATIONS - Process description
For a correct evaluation of a property, it will be necessary to present a proof of the property title (example: certificate of the land register or land passbook), plant of location to the scale 1:1000 or 1:2000 and plants with areas indication.
A visit will be made to the property, evaluating its extrinsic and intrinsic qualities. The intrinsic qualities correspond to the current state of the property (doors, windows, taps, walls, finishing's, antiquity, etc.) and the extrinsical qualities correspond to the location and urban integration (level and quality of urbanization, proximity of urban centers, commercial importance of the zone, etc.).
In the end, a report will be prepared, consisting of 6 parts (adaptable to the purpose for which it is intended): Descriptive Memory, Calculations, Market Prospection, Form, Evaluator Responsibility and Documentation. In the Descriptive Memory we shall describe the property, its building, its qualities, urban integration, used evaluation method and, whenever possible, indications about high and low valor aspects of the property. In Calculations, we present a quantitative view on the valor aspects of the property, based on a market prospection also presented on the report.
For a better understanding of these calculations, we present the form and documentation used as a basis for the evaluation.
Lastly, we append evaluator credentials and insurance policy to guaranty full responsibility in the evaluation procedure.
To view an abstract example of an apartment evaluation report, click here
Normally it presents market values. The petitioner will be able to request another type of value associated with the property, as for example, the Value of Substitution, the value of Income or Locative case, the Residual Value, the Effective Value, the Potential Value, etc.
Market Value – It is the esteem value of transaction to the date of the evaluation between a purchaser and a salesman, each one acting of an independent form, without coercion and with full knowledge of the market.
Substitution Value – It is defined as the necessary cost for the construction of a well similar one. It is very used in the evaluations of properties never or rare done business, not existing value of market (ex: castles).
Residual Value – It is used in the evaluation of lands and properties to rehabilitate, and that is given by deducing from the presumable venal value (real cost) of the constructed or rehabilitated property all the costs associates to the intervention.
Effective Value – The value of the property corresponding to the use that is given.
Potential Value – It is the corresponding value of the maximum and best exploitation of this foreseen property and legally stated in this moment (ex: alteration of use, expansions, alterations).