Asset Valuation

property valuation

What are property appraisals?

An asset appraisal is used to determine the real value of an asset, this can be tangible or intangible., this value estimate will be presented in an official and confidential document.

An asset appraisal must be performed by a certified expert, this will be based on different characteristics of the asset to estimate its value.

Why is property valuation important?

Before assigning a price to an asset, the seller must know its fair value (property valuation), so he will have a basis for defining the price at which he can sell it. 

This will avoid giving it a very high price, which would make it difficult to sell, or selling it at a price below its real value and making a loss.

As for the buyer, an appraisal of the property will give him the assurance that it has a fair value, Likewise, it will serve to inform you of the specific characteristics of the property in question and ensure that it is in good condition and, therefore, that a fair purchase is being made.

What assets can be valued?

In ANEPSA We have a wide variety of professionals trained to carry out appraisals of assets, from office equipment and furniture to industrial warehouses, guaranteeing value opinions and estimates based on current market conditions, in order to cover the needs of appraisals for purchase-sale transactions, obtaining insurance, price distribution, accounting records, support for trusts, tax guarantees, tenders, auctions of assets, financing, disposals, etc.

Some of the assets that can be valued are:

audio and video equipment
Computer equipment
telecommunication equipment
Construction team
Laboratory equipment
Industrial machinery
household items
process equipment
Electronic equipment
Store and warehouse equipment
specialized tools
Furniture and office equipment
molds and dies
Spare parts
transport equipment
Material handling
metal mechanic
auto parts

Methods and techniques of valuation of movable and immovable property:

The asset valuation methods are:

Market Methodology

This method estimates the value of the goods by comparing them with others existing in the market, that is, it is based on an analysis of supply and demand of the goods in question, rental operations, recent purchase and sale transactions, among others, the approval The data from said analyzes make it possible for the appraiser to estimate a comparative market value indicator.

Income Methodology

This method estimates the value of an asset based on the income it produces., determines in a present value the benefits that will be generated in the future. To determine the value indicator using this approach, it is necessary to quantify the profitability of the asset, as well as the capitalization rate, interest rate or discount applicable to the case. 

The revenue approach is based on the principle of highest and best use and the principle of anticipation. It is applied to elements related to economic exploitation, as well as to economically indivisible productive units; however it is not applicable to its components separately.

The value obtained through this approach must be expressed in the appraisal report as Capitalization or Income Value.

Methodology Costs

This approach determines the value of a good based on its physical and economic characteristics and its replacement or reproduction value. Subsequently, the corresponding depreciation percentages will be applied, such as: age, maintenance, conservation, functional, technical, economic obsolescence, etc. The demerits applied must be specified by the appraiser in the appraisal report.

The application of this method is based on the premise that as a substitute for a good it would be possible to acquire or build an identical or similar good that provides equivalent functions.

The value obtained using this approach should be expressed in the report as Physical Value.

Quote here the Valuation of Assets

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