A property appraisal is a document meant to estimate the real value of a given real estate property. The appraisal shows the estimated market value of the property as determined by the real estate agent.
The property appraisal has become an essential tool to help the real estate agent in offering a realistic, attractive price in order to shorten the sale negotiations.
This technical tool relies on several methods of price evaluation to determine a market average price and also to present a price range to the owner.
We rely on the following appraisal methods:
Using different data sources such as real estate tracking and your own sales history, we find similar properties to obtain a price range. You can alter the selection of the properties so that only the most pertinent cases are considered, and you benefit from your own experience as a real estate agent. The length of time a property has been sold and the publication of sales references in certain databases can distort the reality of the market, that’s the reason why we blend this data with stock references and unsold properties, so that the real estate agent can adjust the price according to the latest developments.
Investors are most interested in the rental value appraisal, as valuating a property according to its rental potential allows you to quickly calculate the ideal purchase price in order to keep a certain level of profitability. Rental prices quickly follow the sales indicators, a neighborhood with an expensive real estate stock will necessarily be expensive to rent. This evaluation technique complements the comparative method perfectly.
Inflation, or monetary erosion index, are simple indexes published by the Ministry of Economy, they allow you to evaluate the inflation of the cost of living year by year. Depending on the date of acquisition of the property, we apply the government's coefficient to evaluate the price of the property at the end. This calculation method cannot be used alone, it is necessarily in addition to a comparative market study or a rental value calculation, its reliability being questionable according to tense markets.
The method of calculation by replacement cost is especially valid for individual properties in which you must know the price of the land, the cost of the construction and the capital losses/capital gains. This allows the owner to project the reality of the construction cost of the property starting from a new land. This method is limited to certain properties and can easily be combined with a comparative market method.
Thanks to your Apimo real estate software, you have a global methodological approach, which integrates your own business expertise and your transaction history to produce the most accurate estimates possible.
On the other hand, you will be able to edit in a few clicks a unique and quality PDF file, which will be a real advantage to gain the owner's trust and help you to get the sale mandate.