If in our previous article we explained how we can appraize a home online, in this article we are going to explain what real estate valuation and appraisal are and what each of them may be needed for. In addition, we will explain what an appraisal is
- VALUATION
- ASSESSMENT
- EXPERTISE
As we have seen in the previous posts, there may be several occasions in which you need to know the value of your home, or that of a property you want to buy.
Depending on the purpose for which we want to know this value, you will have to lean towards one or the other option.
1. REAL ESTATE VALUATION
Real estate valuation is the professional appraisal that a real estate agency or company can make on a property. To do it, in principle it is not even necessary to make a visit to the house. Objective data from the company’s ownership, environment and experience, which you can compare with other operations in the area, are the basis of this real estate valuation.
Ideally it should be done, or at least signed, by a Adelaide Property Valuer real estate agent (API). The most important thing about the real estate valuation is that it is not a legal document. Its purpose is usually to start a process of buying and selling a real estate property, although you may want to know that figure when making other types of decisions.
2. REAL ESTATE APPRAISAL
The difference with the real estate valuation is that the appraisal is a legal document that must be made by a real estate technician or an architect. In this case, there must be a visit (at least) to the property. The appraisal is done through an official process. This work must be based on a scale, contained in the article of the BOE of March 2003 (ECO/805/2003).
The appraisal can only be carried out by certain companies that have to be registered and approved. The appraisal is a legal document that can be used for a legal purpose. An appraisal is usually requested to face a process such as an inheritance, a trial, an important management with a bank, etc …
Apart from the real estate valuation and appraisal, we have a third study related to the value of a home. It’s about expertise.
3. EXPERTISE
The expert report is a third real estate study related to the value of a home. It is the only one of the three that is based on strictly objective aspects. The expert report, as the name suggests, must be carried out by an expert. It is a document, usually quite extensive, which includes the objective “reasons” for which a property is granted a certain value. The expert report will be based on the construction materials and how to use them as a fundamental aspect to set a final figure, which will be the expert value of that property.