Commercial Property Appraisal
What is a commercial real estate appraisal?
It is an estimate of commercial value of an asset as of a specific date, where value means the equivalent in monetary figures or the utility of said asset, which is obtained through an impartial technical opinion. This opinion is determined based on the physical and construction characteristics, location, age and use of the property, in addition to market research and analysis.
What is a commercial real estate appraisal used for?
The real estate appraisal is responsible for facilitating the sale or purchase of a property, In Mexico, owning your home is the most important asset for families, Therefore, it is crucial to have knowledge of the value of property at different times in life and for various purposes.
It is extremely important if you are considering selling a property, as you will be able to determine the correct value, know the variations in the market, if any improvements have been made or even if your environment has changed and be eligible for a mortgage credit.
Benefits of a commercial real estate appraisal
- Carrying out purchase or sale transactions through negotiation agreements: This process involves carrying out the purchase or sale of goods or services through negotiation agreements between the parties involved, in this context, negotiations are carried out to establish the terms and conditions of the transaction, such as the price, the payment terms, deliveries, among other relevant aspects, negotiation is essential to ensure that both parties agree and are satisfied with the final terms of the transaction, thus facilitating the exchange of goods or services.
- Legalization of undeclared construction structures: This process refers to the regularization of constructions that have been carried out without meeting the legal requirements or without having been duly declared to the competent authorities. In many cases, undeclared structures can be considered illegal or irregular constructions, to legalize these constructions. , the procedures and requirements established by local legislation must be followed, such as obtaining the corresponding permits, adjusting the structure to the required standards and paying any fines or penalties that may apply.
- Use as backup to obtain a loan: In this context, it refers to the use of an asset, such as a property, a vehicle or an investment, as collateral or support to obtain a financial loan, the lender will assess the value and quality of the asset offered as collateral and, depending on For this, it will be able to grant a loan with more favorable conditions, in the event that the borrower does not comply with its payment obligations, the lender can execute the guarantee and take possession of the asset to recover the money lent.
- Transformation of financial statements to a more adequate presentation: This process involves reformulating or restating the existing financial statements to provide a more adequate, clear and understandable presentation of the financial information, which may be necessary when the existing financial statements do not comply with the applicable accounting principles or do not accurately reflect the situation. results of operations and cash flows of an entity, the transformation implies adjusting accounting methods, correcting errors, reclassifying items and making other necessary modifications to present more accurate and relevant financial information and this practice is important to guarantee transparency and the reliability of an organization's financial information.
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 replacement value of materials which helps us to finish the calculation of 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?
Generally the validity of a Commercial 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.
With ANEPSA an appraisal of this type is possible, certified and carried out by professional appraisers with an issued certificate, providing you with total security and certainty of the final value, contact to one of our advisers.
What are the requirements to apply?
Documentation* is required that certifies the authenticity of the property 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.
*If you do not have documentation, an appraisal can be made.
What does the appraisal include?
Determination of real estate value
They may vary depending on the type of appraisal.