Concept in Definition ABC

Valuation is the practice of assigning economic value to a good or service with the purpose of locating it in the buying and selling market.

For the finance and the economy, Valuation or appraisal is considered to be the contemplation of various indicators in particular for decide the final value of a product or good of any kind and, thus, enable its exchange in economic operations.

One type of valuation is urban planning that seeks to value real estate-type assets and rights, often in order to to distribute the costs equitably among the participants or owners in a case of transformation or Similary. There are different valuation methods in these cases, such as the method from comparison (of similar assets), capitalization (in terms of the net return produced by the property), value cadastral (the cadastre appraisal in accordance with existing public regulations), and the residual value of the I usually.
There is talk of appraisal in cases in which an owner wishes to sell a real property and wants to receive an official estimate of its value as a reference parameter for potentials buyers. These appraisals usually consider criteria of location, size, conditions and other indicators.

The term appraisal is also commonly used for purposes of determining the value of objects such as works of art. art, jewelry, collectibles, vehicles and others. Appraisals of objects can occur so that the owner of the same can exchange them for money in exchange houses. But they also take place very frequently when it comes to unique and exclusive pieces that will be put up for auction and it is then it needs the valuation to determine a base price at the auction that will be increased (or not) by the buyers interested.

The valuation or appraisal, although it works with different methodologies, usually contains a quota of subjectivity or social value for the determination of the final cost.