Concept in Definition ABC

The word appraisal designates that determination of the price or value of something, be it an object, a real estate, or any another material good plausible to have a value, a price in the market in which it is bought and sell.

Valuation that is carried out and by which the value of a real estate, an object, among others, is determined to be marketed in the market and that is conditioned by various factors

In the specific field of finance, the appraisal or appraisal or appraisal , turns out to be the name by which the process from which the value of an asset is estimated, such as: companies, brands, stocks, among others, or failing that, a liability (the debt of a company).

It should be noted that there are many appraisal methods, among which the following stand out: absolute valuation model (one that determines a value through the estimation of the future cash flow, forecast from the asset and discounted at today's value), relative valuation model (will determine the price based on the market prices of similar assets) and

option pricing model (It is 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 largely on the information. financial of the company in question.

In the case of companies that present public issuance of shares, the financial statements are reviewed by public accountants and then supervised by a specialized entity destined to such necessary.

Such a situation does not usually happen with private companies, which in many cases their financial statements are manufactured with the objective of reducing taxable income.

Meanwhile, a deficient appraisal or valuation will affect an over or under valuation scenario.

On the other hand, in the area of ​​buying and selling properties, the word appraisal turns out to be an extremely common, since in this way it designates the determination of the value that this or that property presents and that will depend on various factors which we will discuss below in detail.

When an owner wants to sell or rent his property, he must go to a real estate or professional suitable in the field for you to evaluate the property and other influencing conditions, and after analyzing all the variables, determine the sale or rental value corresponding to that property.

We must emphasize that such 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 arrive at the determination taking into account several factors such as: the square meters of the property, its state, its location, the value of the square meter within the area in which it is located and any other ponderable outstanding.

There are various methods of appraisal, that of comparison, is the most used and consists of the valuation of the property from the comparison with other similar goods and whose value is already known.

It is usually demand the knowledge of six properties that are taken as a reference.

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.

Now, the valuation does not end there but other factors that will add or subtract in the valuation must be taken into account, such as the area in which it is located, neighborhood, there are neighborhoods that are more appreciated than others and that raises the value of the subway.

The number of rooms, the larger the property, the lower its value in relation to the smaller properties that are easier to sell.

The age of the property, if it is brand new, will be more expensive than if it has already been presented for several years, because of course, there is supposed to be more wear, especially in the case of property buildings horizontal.

And of course the state of the property, that is, if it is in perfect condition conservation and it does not need any repair, or if on the contrary it does need it and it must be recycled.

Brightness is also highly regarded by most people and it is featured on the upper floors.

If it has amenities, pool, barbeque, multipurpose room, something very present in new constructions and also the provision: if it is to the street, quiet part of the building, lateral, it will affect the value.

Issues in Appraisal