The word appraisal designates that one Determination of the price or value of something, whether it is an object, real estate, or any other material good that can hold a value, a price in the market in which it is bought and sold.
Valuation that is carried out and by which the value of a real estate property, an object, among others, is determined to be commercialized in the market and that is conditioned by various factors
In the specific field of finance, the appraisal or valuation or valuation It turns out to be the name by which the process from which the value of an asset is estimated, such as: companies, brands, sharesamong others, or failing that a liability (the debt of a company).
It should be noted that there are many valuation methods, among which are: absolute valuation model (one that determines a value through the estimation of the future cash flow, foreseen from the asset and discounted at today’s value), relative valuation model (it will determine the price based on the market prices that hold similar assets) and option pricing model (only used in certain types of derivative financial assets).
In any case, it is important to point out that an optimal appraisal will always depend to a large extent on the financial information of the company in question.
In the case of companies that present a public issuance of shares, the financial statements are reviewed by public accountants and then supervised by a specialized entity assigned to this task.
Such a situation does not usually happen with private companies, which in many cases their financial statements are fabricated with the aim of reducing taxable income.
Meanwhile, a deficient appraisal or valuation will affect a scenario of over or under valuation.
On the other hand, in the area of buying and selling properties, the word appraisal turns out to be an extremely common term, since in this way it is designated the determination of the value that this or that property presents and that will depend on various factors that we will address. below in detail.
When an owner wishes to put his property up for sale or rent, he must go to a real estate agency or qualified professional in the matter to evaluate the property and other influential conditions, and after analyzing all the variables, determine the corresponding sale or rental value. to that property.
We must emphasize that such an evaluation of the property, to rent or to sell, must be carried out by a professional specially trained for it, known as a public auctioneer.
A professional will make the determination taking into account several factors such as: the square meters of the property, its condition, its location, the value of the square meter within the area in which it is located and any other outstanding ponderable.
There are various appraisal methods, the comparison method is the most widely used and consists of the valuation of the property from the comparison with other similar assets whose value is already known.
Knowledge of six properties that are taken as reference is normally required.
After defining the unit value of the square meter, it is multiplied by the square meters of the property and that gives us a value.
However, the valuation does not end there, but other factors must be taken into account that will add or subtract from the valuation, such as the area in which it is located, the neighborhood, there are neighborhoods that are more appreciated than others and that raises the price. meter value.
The number of rooms, the larger the property, the lower its value in relation to smaller properties that are easier to sell.
The age of the property, if it is brand new, will be more expensive than if it is already several years old, because of course, it is assumed that there is greater wear and tear, especially in the case of condominium buildings.
And of course the state of the property, that is, if it is in perfect condition and does not need any repair, or if, on the contrary, it does need it and it must be recycled.
Light is also highly regarded by most people and it occurs on the upper floors.
If it has amenities, a pool, a grill, a multipurpose room, something very present in new constructions and also the disposition: if it is facing the street, quiet part of the building, lateral, it will affect the value.
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