The majority of people confuse real estate valuation with real estate appraisal. Indeed, even if the two make it possible to determine the value of the property Buy House in Dubai, the real estate appraisal is much more specific. It requires the establishment of a real estate appraisal report. But what is it exactly? What data should be included in this report? How does the real estate expert work?
What is a real estate appraisal?
While real estate appraisal is primarily used in the context of the sale of Buy House in Dubai, real estate appraisal often has other objectives, as we will see.
Definition of real estate expertise
A real estate appraisal is the formal and official report which synthesizes all the technical and / or economic elements of a real estate property
We often confuse real estate expertise and value advice when time to buy real estate investment. However, an opinion of value is simply a document that real estate agents issue after a simple estimate of the price of a property . On the other hand, in a real estate appraisal, the characteristics of the region, the land where the property is located as well as the income from the building are taken into account.
A real estate appraisal is therefore more reliable and more complete than a simple opinion of value.
- Real estate valuation model
- There is no specific method and technique that the real estate expert must follow in his activity. He can take the estimation model that suits him, depending on the analyzes to be carried out on a property. Nevertheless, the methods and models chosen must appear in the Charter of Expertise in Real Estate Valuation and in the standards of real estate valuation in Europe.
Among these methods, we can find:
- The income method,
- The market or comparison method,
- The index method,
- The replacement cost method,
- The professional method,
- The promoter assessment method,
- The soil and construction method.
How is the real estate appraisal going?
Before sending you his real estate appraisal report, the expert proceeds in stages and uses various tools and documents. Below is the progress of a real estate appraisal:
- The client’s request for intervention and information on the purpose of the intervention,
- The visit of the property for Buy House in Dubai,
- The use of documents and documents provided by the customer,
- Analysis of the property,
- Real estate market analysis,
- The choice of methods for the valuation of the property,
- Delivery of the written report to the client.
The real estate appraisal report
The real estate appraisal report is a written document comprising the technical, economic, fiscal and legal studies as well as the conclusions of the expert.
This report clarifies and secures the decisions of the individual. It can also be used in amicable negotiations, but especially in the context of litigation or legal proceedings .
The real estate appraisal report is structured in several parts:
- The detailed description of the property,
- Description of the environment in which the asset is located,
- The location of the property in relation to the cadastre and town planning,
- The positioning of the property in the real estate market,
- Valuation factors,
- The analysis of the value of the property with the arguments put forward.
While the real estate companies in Dubai appraisal allows the owner of a property to determine its selling price, the expertise will most often be used in the context of legal proceedings, to prove the value of a property or to determine its real value.
Namely: in the majority of cases, a real estate appraisal is carried out at the request of a legal body, or in the context of a dispute. If you simply want to estimate a property in order to sell it, the real estate estimate of a real estate agency will be sufficient.
The real estate appraisal charter
There is no law governing the profession of real estate expert. It is for this reason that the associations of real estate experts have agreed to ratify a charter of expertise in real estate valuation.
Thus, even if the real estate appraisal report engages the responsibility of the expert, the latter works according to the real estate appraisal charter.
This charter formalizes the ethical framework of the profession of real estate experts, the missions they carry out, the principles and methods of valuation . It dictates the practice of real estate valuation. For information, it has been ratified by fifteen professional associations, including the Chambre des Experts Fajar realty Dubai.
Know that if the real estate expert you have hired is a signatory member of this charter, you can be sure of his professionalism. Also remember that the membership of all real estate experts is not compulsory.
Real estate Expertise
Carrying out a real estate companies in Dubai appraisal to determine the market value of your building is necessary when selling / buying real estate or taking out a mortgage. During a divorce, for the liquidation of a community of property, also during a rental, the signing of a new lease, during a succession, a partition or a donation, for your tax declaration, the real estate appraisal of the market value will be essential.