What is a real estate appraisal?
Real estate appraisals are the most effective and official way to know the real value of a property based on various factors related to the quality of life offered by said property.
In the case of real estate appraisals, it is presented in a document that is legally valid and is necessary to carry out various procedures related to the property.
The real estate appraisals They are for the purpose of carrying out legal operations such as:
|Buy and sell||rent justification|
|Mortgage loans – Infonavit, FOVISSSTE, ISSFAM||Payment of compensation for expropriation|
|land concessions||Compensation for causes of public utility|
|Prosecutors – Cadastral||Obtaining insurance|
|Trials / Deed / Probate||Merger or Acquisition|
Who can perform real estate appraisals?
Based on article 3 of the Regulations of the Federal Tax Code, The institutions authorized to carry out tax appraisals are:
- The Institute of Administration and Appraisals of National Assets.
- Credit institutions.
- Public brokers who have current registration with the Ministry of Economy.
- Valuation Companies, and/or Professional Valuation Experts
Why are real estate appraisals necessary?
Normally, any credit institution that provides the loan and/or financing service requires support from the applicant, this can be any type of asset that has a value, including properties. It is through these assets that the institution ensures its payment, but for a property to be taken into account it must have an appraisal made by a certified expert who can determine whether or not it is possible to grant the requested credit.
As it is a detailed study and the value determined by the expert, the success of the operation carried out with said study will depend, for which an external and professional person is required, who knows and can determine a real value of the property, based on in the tables issued by the treasury.
What properties do we value?
- Industrial ships.
- commercial premises
- Properties under construction.
- Parking lots.
- Urban land.
- Forest Land.
- Agricultural land.
What is delivered in real estate appraisals and what aspects does it consider?
A real estate appraisal is made by analyzing different factors such as:
- Age of the property.
- m² of construction.
- Total area.
- Quality of finishes.
- State of conservation.
- Existence of electrical installation.
- Existence of hydraulic installation.
- Existence of gas installation.
- Location – Within this point various aspects are considered such as:
- Street lighting.
- Drinking water.
- Access to public transport.
- Urban growth.
- Access roads to the property.
- Shops, restaurants, shopping centers, parks, schools and any place near the property that can provide amenities and/or services.
All these characteristics help determine both the condition of the property and its habitability and, consequently, the quality of life that the inhabitants could have. The result of this analysis is what is called the real value of the property.
All these characteristics help determine both the condition in which the property is located and its habitability. The result of this analysis is what is called the real value of the property.
Types of real estate appraisals
What is the validity of a real estate appraisal?
In general, real estate appraisals are valid for six months, so it is necessary to analyze the reason for it to determine our needs and choose the most convenient option.
|mortgage||This type of appraisal is requested by financial institutions such as Infonavit, FOVISSSTE and ISSFAM, with the purpose of determining, based on the value of the house, the amount that will be lent to the beneficiary, as well as the deed expenses. It should be considered that the appraisal is not included in the mortgage loan, so the buyer must cover it.|
|Buy and sell||It is used to know the price at which a property can be bought or sold. Aspects such as inflation, the location of the property, the market, the real estate offer near the property, etc. are taken into account. A real estate appraisal will help define the fair price of the property. In this way, conflicts are avoided due to the fact that the house is above the market price and, in the same way, losses are avoided by offering it at a lower price.|
|value opinion||Approximate values and costs are estimated, without the need to resort to specific quotes for each asset, since the purpose of this appraisal is to have values in a timely manner and that generally are not for decisions that require a very deep study.|
|Determination of income||In general, this appraisal is requested to determine the amount for which a property can be rented, as well as to request a contract assignment or compensation for unpaid rents. It is useful for both room rentals and commercial rentals.|
|Sure||It allows estimating a fair market value that allows a replacement. It guarantees before any insurance company the economic protection that covers the property in the event of a risk or accident due to insecurity or natural phenomena.|
|deed||Its objective is precisely to notarize the property, for which it is governed by an expert with registration in the Treasury and is sent to the portal of the finance secretary, this to pay the corresponding contributions depending on the commercial value reached by the property.|
|Fiscal or cadastral||The purpose of this kind of appraisal is to verify that a property is up to date with the payment of predial, water, real estate acquisition tax, etc. The location of the property, the square meters of construction and land are taken into account. It is used to indicate to the local treasury how much the property is worth before the cadastre and thus know how much property will be charged.|