Real estate appraisal for deed purposes
What is a real estate deed appraisal?
A real estate deed appraisal refers to the valuation of a property that is carried out with the purpose of determining its market value. At the time of the deed of a property, this type of appraisal is commonly required by financial institutions, buyers and sellers during the process of buying and selling a property.
The real estate appraisal of deeds aims to establish the fair and precise value of the property, taking into account various factors that may influence its valuation, such as location, size, physical and structural characteristics, state of conservation, available services, trends in real estate market, among others.
This type of appraisal is important in the title process, as it helps determine the value of the property that will be used as the basis for the transaction, by the buyer, the title appraisal provides objective and reliable information about the market value. of the property, which allows you to make informed decisions and negotiate a fair price, for the seller, the appraisal can support the requested sale price and increase the buyer's confidence in the transaction.
The deed real estate appraisal is carried out by a professional in the area of real estate valuation, such as a appraiser or an appraiser certified, experts use recognized methods and techniques to perform the necessary analysis and calculations that result in an accurate and reliable valuation.
In summary, the real estate appraisal of the deed is the process of determining the market value of a property at the time of the deed of the property, since it provides valuable information for buyers, sellers and financial entities involved in the transaction, ensuring an objective valuation. and fair of the property.
What is it for?
The objective of a deed appraisal is, precisely, to deed a property.
A real estate deed appraisal serves several key purposes:
- Set the buy-sell price: The deed appraisal helps determine the market value of a property at the time of deed, providing an objective and reliable basis for negotiating the purchase-sale price between the buyer and the seller.
- Guide decision making: Both the buyer and the seller can use the closing appraisal as an important reference when making decisions related to the transaction, said buyer can evaluate if the sale price requested is reasonable and adequate in relation to the market value determined in the appraisal, for its part, the seller can obtain a justification supported by experts to establish the sale price.
- Facilitate obtaining financing: Financial institutions often require a real estate appraisal at closing as part of the mortgage financing application process, this appraisal helps the lender determine the value of the property that will serve as collateral for the loan, and provides an independent and objective evaluation to ensure that the value of the property supports the amount of the requested loan.
- Provide security and confidence in the transaction: By having a real estate appraisal of deed, both the buyer and the seller can feel more secure and confident in the transaction, the appraisal provides a professional evaluation of the market value of the property, which reduces uncertainty and increases transparency in the negotiation.
- Comply with legal and tax requirements: In some countries or jurisdictions, the completion of a real estate deed appraisal may be a legal or tax requirement, for example, it may be necessary to calculate taxes on the transfer of property or to comply with specific regulations in the deed process.
In summary, the real estate appraisal of deed serves to establish the market value of a property at the time of deed, facilitate decision making, obtain financing, generate confidence in the transaction and comply with legal and tax requirements, it is a tool essential to ensure that the purchase-sale transaction of a property is carried out in a fair, transparent manner and backed by a professional evaluation.
Who performs the Real Estate Appraisal of Deed?
This appraisal is carried out by an expert with registration in Treasury.
Subsequently, it is sent to the portal of the finance secretary to pay the corresponding contributions depending on the commercial value reached by the property.
How is its value calculated?
Through the appraisal, three types of values or real estate valuation approaches are obtained to determine the value of a property:
- physical or direct approach: Determination of the replacement value of the materials, which helps us to finish the calculation of the construction materials and facilities, which were used in its construction at value today.
- Comparative market approach: It is considered according to the market offer of similar properties in the same area or similar areas.
- Income capitalization approach: A comparison is made based on similar properties in the area or similar areas that are for rent, to identify the value of all future income that the property will produce.
How valid is it?
The validity of A Deed Real Estate Appraisal is six months, as long as the property does not undergo modifications during the administrative procedures and there are no economic conditions different from those in which the appraisal was carried out.
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What do I need to request a Real Estate Appraisal of Deed?
Documentation that certifies the authenticity of the property is required throughout the appraisal process, such as:
- Deed (Condominium, co-ownership, private).
- Property ticket, water ticket.
- Identification or business name to whom the appraisal will be addressed.
All documentation delivered must be photostatic and will not be used for purposes other than those authorized. This type of appraisals must have these characteristics without exception, otherwise they will not be accepted before notaries.
What does the appraisal include?
Determination of real estate value
Sketch of the property