Difference between Commercial Appraisal and Cadastral Appraisal

Determining the Value of an Asset is the main objective of an Appraisal, The purpose of the appraisal is in accordance with the requirements: The Real Estate Valuation arises to establish the value of the Sale and the Procedures derived from a purchase and Sale.

In a more practical sense to know the Purchase and Sale Value and for procedures, for example: calculating the taxes and duties of the operation, of the Buyer: Property Acquisition Tax, ISAI and of the Seller: Income Tax, IS R. They require implementing a Commercial Appraisal & Property Valuation respectively.

Who requests a commercial appraisal?

Any natural or legal person who needs to buy real estate.
Either by knowledge to agree on the sale, or to guarantee financing before a credit entity such as the Bank, INFONAVIT, FOVISSSTE. Insure the property, provide the value in accounting books in a Commercial Company.

Who requests a Cadastral or Fiscal Appraisal?

Physical or legal person who is required to pay taxes and rights on the acquisition of real estate; also in case of carrying out a procedure before the treasury or the cadastre offices of your locality. Whether it is a clarification on the payment of property tax,

Main differences between Commercial Appraisal and Cadastral Appraisal.

It is a punctual and specific report that gives certainty about the price that is going to be paid for the property that is the object of the analysis carried out.

Commercial Appraisal: It is a punctual and specific report that gives certainty about the price that is going to be paid for the property that is the object of the analysis carried out.

Property Valuation: Unlike the Commercial appraisal, whose study relies on the market value, the Appraisal, also called Fiscal, is used to update, clarify and/or correct cadastral data, which contains the Property Tax, which is the basis of the Property Tax payment. It is carried out by an authorized and registered Expert by the Treasury or Local Cadastre office, in the same way the Valuation report is registered with the Local Organizations.

The commercial appraisal and the cadastral appraisal are two types of appraisals used to determine the value of a property, but they have different approaches and purposes. The main differences between them are the following:

1. Purpose:

• commercial appraisal: The commercial appraisal is carried out with the objective of determining the market value of a property for commercial purposes, such as the purchase, sale or lease of a property, it is mainly used in real estate transactions and takes into account factors such as market supply and demand. , specific characteristics of the property and comparison with other similar properties in the area.
• Property valuation: The cadastral appraisal is carried out for administrative and tax purposes, and is used to establish the fiscal value of a property in order to calculate taxes and contributions, its main objective is to keep property records updated and guarantee an equitable tax base, it is based on the information contained in the cadastre, which is the public registry of properties and their physical and legal characteristics.

1. Responsible authority:

• commercial appraisal: Commercial appraisals are generally performed by private appraisal firms or independent professionals who are hired by owners, buyers, sellers, or financial institutions interested in learning the value of a property.
• Property valuation: The cadastral appraisal is carried out by the tax authority or the body responsible for the cadastre in a certain area. It can be carried out by government officials or by specialized companies contracted by the competent authority.

1. Basis of valuation:

• commercial appraisal: The commercial appraisal is based on the market value of the property, which is determined considering factors such as location, physical and legal characteristics, supply and demand, market trends, among others, seeking to establish the value for which a buyer would be willing to buy the property and a seller would be willing to sell it in a competitive market.
• Property valuation: The cadastral valuation is based on the information contained in the cadastre, which includes data on the location, size, physical characteristics, permitted uses and legal restrictions of the property, the cadastral valuation tends to be more general and focuses on establishing a fiscal value. used for the calculation of taxes and contributions, without necessarily considering the market value.

In summary, the commercial appraisal focuses on the market value of a property for commercial purposes, while the cadastral appraisal focuses on the fiscal value of a property for administrative and fiscal purposes.

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