The real estate appraisal is a very important step in the process of selling and buying a property. Here we explain to you what is this process and the important factors that it involves.
What is a Property Valuation?
Is the formal way to determine the real value of a property. Take into account different factors and has a legally validation. it is a guarantee for both, the seller and the buyer and other interested parties.
However, the valuation has specific time and context. The estimate time the document is valid goes around 6 to 12 months, depending on the variations in the real estate market.
Who can do the real estate valuation?
Real estate appraisals can only be carried out by appraisers. These are experts who have professional license to do so.
It is important to know that the commercial valuation in the hands of a professional can help you either you are the seller or the buyer. In the first case, can help you to put a price on your property that is not less than it really has on the market. And in the second case can help you to know if the price you pay for the home you want to buy is not higher than its really worth.
How is the valuation made?
Before the visit, the professional have to do a registration study. That must be allows to know the legal situation of the property, the cadastral plan number, the name of the owner and if it has annotations. With this document the expert locates the property, confirms its area and shape.
Generally, experts also do a study of similar properties in the area where the property is located: they see how much they have sold for in recent months. Or if there is another property (in the same condo or neighborhood) that is for sale, they ask what the price is. All this also influences the price.
Paola Mazzara Nativu Escazú and Santa Ana Advisor
Internal Factors
Some of the internal factors that the expert will analyze are:
- Size of the property
- Physical conditions. In this section, are include characteristics from the type of ceiling to the internal furniture. It is important that everything is in good condition, otherwise the price of the house may devalue.
- Surface
- State of conservation
- Electrical, hydraulic and gas installation
- The quality of the materials in which the property is built
Consider that each change you make to the property can either increase or decrease its value. So if you want to invest in a property you may also be interested in this article:
External Factors
Like the property itself, there are external factors that can influence the increase or decrease the property’s value. Some of them are:
- Location
- Access to basic services
- Street lighting
- Public transportation
- Security
- Urban growth
There are many factors that influence the final valuation price that is assigned to the property. It is important to keep in mind that although there are external factors that you cannot control, the internal ones you can. It is recommended to keep the property in the best conditions, since the appraisal tries to guarantee both the seller and the buyer that the property has the necessary to provide a good quality of life to those who decide to live in it.
