Evaluation of the premises: stages and nuances of the process

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Real estate is represented by numerous objects that can be residential or non-residential. It even includes land. It is not uncommon to need an appraisal of a property for various purposes, such as selling it, pledging it, leasing it, or doing something similar. The valuation should only be carried out by experienced experts, which allows you to determine the market price of a particular object.

What can be judged?

Valuation is an in-demand service that can be performed on public, commercial or private property. The most frequently performed procedure is for:

• residential property represented by houses, apartments or rooms;
• land plots;
• commercial premises that are hotels, offices, warehouses or shops;
• unfinished construction;
• industrial premises;
• engineering communication networks;
• outbuildings and auxiliary buildings.

Evaluation of the premises involves the study of all its parameters and characteristics. The requirements for living quarters are also taken into account, since if they are violated, this will certainly lead tosignificant reduction in the value of the object.

When is an assessment required?

This process is implemented in different situations:

• sale or purchase of real estate;
• renting premises;
• property dispute resolution;
• entering into an inheritance, according to which various real estate passes to the heir;
• putting on the company's balance sheet an object that was previously unaccounted for;
• purchase of premises at the expense of borrowed funds, for which an encumbrance is imposed on it, so the bank needs information about the price of collateral;
• implementation of various investment projects;
• conclusion of an insurance contract;
• drawing up a marriage contract.

Evaluation of the premises is required for almost any legal action with real estate. If you plan to sell or rent the premises, then knowing what its cost will undoubtedly affect the price of the contract.

Pros of an evaluation

A property valuation offers many benefits:

• determining the real value of real estate;
• reducing the risks of various banking or insurance institutions;
• buyers of real estate can be sure that there is no overpayment and loss of a significant amount of funds;
• due to the availability of information about the market price, you can choose the best option for buying.

Thanks to the evaluation of the land, it is possible to determine the optim althe cost of various country buildings.

Property appraisal process

Evaluation of a residential or non-residential facility is made in almost the same way, and the differences lie in the fact that different parameters of the property are being studied. The procedure itself is divided into successive stages:

• selected by a company or a private independent appraiser;
• a contract is concluded with the organization for the provision of an assessment service;
• the document specifies the terms of the procedure, the procedure for the implementation of this process, as well as the cost of the service;
• preparing documents for the building, submitted by an extract from the USRN, registration certificate and other papers;
• the characteristics of the object are assessed, for which the requirements for residential premises or non-residential real estate are taken into account;
• existing layout, condition of property, useful life, suitability for certain purposes, and condition of finishes are being studied;
• the market price of the object is determined, for which different methods can be used: analog, profitable or costly;
• the price is affected by the address of the object, the availability and efficiency of communications, the life of the property and other factors;
• based on the studied parameters, a report is generated containing the price of the property.

If the assessment is carried out when applying for a mortgage loan, then a company accredited by a banking institution is selected for this. When choosing a company, it is taken into account that it must have the appropriate license.

Nuances of assessing non-residentialobject

Evaluation of non-residential premises involves taking into account factors:

• location of property;
• floors;
• total floor space;
• availability of parking spaces near the entrance;
• year of construction;
• availability and condition of utilities;
• finishing and engineering equipment;
• other parameters that are important to buyers or users.

Such facilities include shops, warehouses, offices or industrial premises.

Features of the procedure

The process is considered complex and specific, therefore only specialists are trusted. When evaluating any type of real estate, professionals will certainly take into account various factors:

• prices for similar properties in the region are being studied;
• it is considered optimal to use the comparative method of determining the value of the property under study, for which the prices of different options are compared;
• preliminary appraiser must study various information about the premises, which should be not only economic or technical, but also legal;
• is determined as the total market price of the object, and the cost of 1 sq. m. m.

So evaluation services are considered quite important. They can only be carried out by experienced and professional appraisers. This service is required in various situations, and is also carried out in relation to a variety of real estate objects. By obtaining information about the value of the object, it is possible toprevent unforeseen and unnecessary expenses, and you can also draw up a lease on favorable terms. At the same time, the assessment is considered to be a fairly affordable service.