What is an Appraisal?
Appraisals are estimates of the value of a movable or immovable property carried out and supported by an Expert Appraiser. Said value is reflected in a monetary figure through an impartial technical opinion that determines its power of change at a certain date.
If it is a property, the value estimate takes into account the physical characteristics, use, market analysis and urban. Regarding a movable property, the physical condition, functionality and market value are taken into account.
Appraisals can be carried out on any type of property, which can be tangible or intangible furniture and real estate and can be of various types, so people can go to an Appraiser when they want to know the value of any of their assets. .
Benefits of performing appraisals
When carrying out an appraisal, a precise and detailed result will be obtained, so it will be possible to obtain the exact value of the property so that the sale can be made at a fair price, in addition, the valuations that are made are based on the characteristics of the movable and immovable property. .
These appraisals consist of a process supported by Certified Valuation Experts, so it is valid before official institutions, these experts are in charge of supervising, advising and controlling the requested assets.
There is a wide variety of appraisals that can be made to tangible and intangible assets, so the needs are covered in a personalized way thanks to the advice, reports and reports that the appraisers make.
It is a document that has a confidential value, so the information of the owner and the movable or immovable property that is valued is safe at each stage of the appraisal, it also helps for better decision making.
Who can perform appraisals?
It is important to know that not everyone can carry out appraisals, since these are done by Expert Appraisers who have a title and professional license, which authorizes them as appraisers.
Hiring a Certified Appraiser can be done independently or through different institutions, however, you must make sure that the person or institution has a fiscal guarantee and is authorized.
An Expert Appraiser will act as a consultation agent and will be able to make an opinion in which he will estimate and quantify the value of the movable or immovable property and once the valuation has been completed, he will issue an appraisal with official validity that can be used to carry out the necessary procedure.
- On the other hand, according to 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
When is an appraisal necessary?
Property
They are tangible objects also known as real estate, which are characterized by a fixed position, within this category we can value houses, buildings, industrial buildings or plots.
In general, real estate appraisals are requested when carrying out operations of:
| Buy and sell | Mortgage credits |
| Income Justification | Fiscal Guarantees |
| Payment of compensation for expropriation / Compensation For causes of public utility | Bank credits |
| land concessions | Trials, Deeds, Probate, Inheritances |
| Fiscal Guarantees | Donations / Subdivision of properties |
Movable property
They consist of a tangible nature and can be moved from one place to another, they consist of objects such as: jewelry, televisions, books, household items, computers, among others.
An appraisal of personal property is requested when carrying out operations of:
- Buy and sell
- Rent
- Restatement of financial statements
- credits and insurance
- Tax guarantees
- Internal or external audits
- Mergers
- Transfer of assets (transfer pricing)
- IFRS and IFRS opinions
What assets can be valued?
A Certified Appraiser can carry out the inspection of any type of tangible and intangible asset, which, in other words, everything has a value that must be determined.
A wide variety of assets can be valued in different contexts and for various purposes. Asset valuation is an important process in areas such as accounting, finance, insurance, taxes and business transactions. Some of the types of assets that can be valued include:
- Property: Properties such as land, buildings, houses and commercial premises.
- Movable property: Physical properties that can be moved, such as vehicles, machinery, furniture, and equipment.
- Intangible goods: Assets that do not have a tangible physical presence, such as patents, trademarks, copyrights, licenses and goodwill (intangible value associated with a company's reputation).
- Financial investments: Stocks, bonds, investment funds and other financial instruments.
- Business and companies: Business valuation is crucial in commercial transactions, mergers and acquisitions, financial planning, among others.
- Inventory: Valuing a company's inventory is essential to determining the total value of goods available for sale.
- Jewelry and valuables: Artwork, antiques, jewelry and other collectible valuables.
- Natural resources: The valuation of resources such as minerals, oil, gas and wood.
- Contractual rights: Valuation of contracts, agreements and contractual rights, such as leases and license agreements.
What aspects are taken into account when valuing a property?
Consider the general and particular details, the commercial value and the valuable information of the movable and immovable property.
Property
There are several factors in conducting a real estate analysis, including:
- Age of the property
- Square meters of construction
- Total area
- Quality and type of finishes
- State of conservation
- Existence of electrical installation
- Existence of hydraulic installation
- Existence of gas installation
- The location considers aspects such as the type of use, electricity, drinking water, public lighting, security, urban growth, access roads to the property and access to public transport.
Movable property
The appraisal of a movable asset is carried out by analyzing different factors, such as:
- Age of movable property
- Marketing grade and/or brand
- Maintenance provided to the asset
- Visible/invisible damage
- Plugins added to asset
- incidents/repairs
- special depreciation
- Technology
How is the value of a movable and immovable property obtained?
There are three approaches to valuationeitherno To determine the value of an asset:
- physical or direct approach: The replacement value, as of today, of the construction materials and facilities that were used is determined. This approach will assess the terrain, buildings, facilities, or demerits.
- Comparative or market approach: It is considered according to the market offer of similar properties, in the same area or similar areas. This approach uses the comparison of factors such as: the age of the property, the location and the shape, with which its value is determined.
- 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. The approach determines whether the income will be constant or variable and will be determined through the Capitalization Value or income.
How long are the appraisals valid?
In general, the validity of an appraisal is from six months to one year, as long as the property does not undergo modifications during the administrative procedures, and there are no different economic conditions or modifications to the assets to those in which the appraisal was carried out. appraise.
Types of Appraisals
There are different types of appraisals and the choice of the appropriate one depends on the needs and purpose of the appraisal. According to their usefulness, we can classify them into different groups:
Valuation Process
- Quotation request and approval.
In this process, the applicant goes to a notary or a private company and the purpose of the valuation is analyzed, the time and day of the expert's visit is set, and the location of the property is later verified.
- Delivery or sending of documentation.
The applicant submits the registration history of the movable or immovable property, with which the corresponding valuation method and the approach to be used will be determined.
- Visit and photographic report.
The Certified Appraiser Expert visits the applicant to carry out the valuation and photographic report of the assets.
- report delivery
The estimated value is delivered to the applicant, together with the certified document.
Depending on the complexity of what you want to value will be the number of days used to do it and these will be determined at the beginning of the process. The exact information on the period of time that the appraisal will take will be specified in the quote.
