The most accurate way to appraise real estate
(TDVC How to appraise real estate) – Real estate is a legal term (in some countries such as the United Kingdom, Canada, Australia, the United States and Bahama) that has a meaning including land and what is permanently attached to the land. In Vietnam as well as in the world, the real estate group has a very large proportion, high complexity, and accounts for the majority of transactions on the market. Therefore, accurate real estate appraisal for purposes such as purchase and sale, investment, capital contribution, bank loan … plays a particularly important role in ensuring legitimate purposes for stakeholders.
For real estate appraisal, recently, the appraiser usually applies the most popular method which is the comparative approach according to the market approach. This is the optimal and basic method, gives the most accurate estimation results, and is the basis of all other land valuation methods. According to Wyatt (2007), “The principle of comparison is the basis of all other methods, it is also the method of valuation itself”.
Real estate appraisal by comparison method: is determining land price through comparing the land to be appraised with similar land that has been traded on the real estate market . In order to determine the house price by this method, the appraiser needs to pay attention to the land location, infrastructure conditions, the width of the road leading to the property, the utilities in the surrounding area, and physical characteristics of the land and the time of real estate transactions. If the appraiser wants to calculate the value of only land on which construction works are located, the appraiser must calculate the value of the construction works minus from the selling price to determine the land price. The case of applying the comparison method to real estate is when there is information on transactions of real estate on the market that are similar to the appraised real estate, but within 2 years from the time of valuation.
1. Steps to conduct real estate appraisal
When conducting a real estate appraisal by the comparative method, the appraiser should follow the following steps:
Step 1: Research the market to get information about the transaction price, listing price or asking price and comparison factors of similar properties with appraised real estate, successfully traded or trading in the market. Collected information must be objectively correct according to the actual real estate transaction and based on specific evidence to prove the price of real estate has been successfully traded in the market. Appraisers can collect market evidence through sales contracts, sales invoices, successful transactions at real estate exchanges, the mass media, actual investigation results…
Step 2: Collect and check information and data on comparability factors from the same or similar type real estate that can be compared with the appraised real estate, that have been successfully traded or are being traded on the market, at the time of valuation or close to the time of valuation. The information includes: selling price of similar property; characteristics of the property that has been successfully traded such as area, facade size, construction works on land, land use purpose, origin of land use, land use term… The appraisers can collect this by surveying the actual asking price or successful transaction in the area where the appraisedl property is located, searching for transactions on reputable real estate websites, media, notary offices…
Step 3: Select a standard comparison unit and build an analysis and comparison table for each standard comparison unit. Land, farm: price/m2, price/meter length of facade, price/rod,… Construction works : price/m 2
Step 4: Analyze and identify differentiating factors between comparable real estate and appraised real estate, thereby adjusting the prices of comparable properties according to the difference in comparability factors with appraised properties to find a guide price for each comparable property. Some adjust factors when appraising real estate such as: location; the size of the land plot; business environment; the infrastructure; width of roads and alleys leading to houses and land; distance to central areas, People’s Committee, trade centers, means of transport;…
Step 5: Synthetic analysing indicated prices of comparable properties, extracting a representative guide price to estimate and determine the price of the appraised property.
2. Factors affecting real estate appraisal
The factors used to set the basis for the appraisal of real estate prices, often used by real estate appraisers, are as follows:
Legal factors of the property: Real estate has been granted a certificate or has not been granted a certificate of land use rights, long-term use period or remaining use term (how many years), the rights of users for real estate.
Location: location in the central area, suburban area, rural area; living environment such as education level, security level; business environment in densely populated residential area, near offices, administrative agencies…; distance to utilities such as supermarkets, schools, hospitals, parks, bus stations; traffic characteristics, lanes, lane width…
Market factors: Whether the real estate market is vibrant, highly liquid or not, the attraction of real estate and investment attraction is heading towards.
Construction built on land: Types of houses are apartments, townhouses, or villas; How many floors does the house have? Modern or classical architecture; Furniture of the construction works; Building materials…
3. Reputable real estate appraisal company
Real estate is a valuable asset of individuals, organizations and businesses. The real estate market is related to many industries and fields such as construction, banking, environment, etc., so the development of the real estate market will promote the socio-economic development of the country and contribute to the improvement of the living standards of the population. Therefore, real estate appraisal is very important in the market economy, serving many legitimate purposes for individuals, organizations and businesses, including: buying, selling, transferring, mortgaging for bank loans, investment, tax calculation, business…
Understanding that importance, Thanh Do Joint Stock Valuation Company has been providing the leading prestigious real estate appraisal service in Vietnam. With experience and high expertise in the field of valuation, we have performed many large-scale and complex real estate appraisal contracts serving many legitimate purposes for stakeholders and highly appreciated by government agencies and businesses. Thanh Do Joint Stock Valuation Company is an appraisal unit received certificate ISO 9001:2015 for quality management systems in valuation services in the following areas: Enterprise valuation; Valuation of investment projects; Real estate valuation; Valuation of construction works; Valuation of machinery and equipment, makes an important contribution to help customers make accurate business decisions, call for investment capital, get bank loans and trade transparently in the market. In addition, Thanh Do is currently a prestigious partner of many domestic and international banks such as: Vietnam Asset Management Company (VAMC), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), An Binh Commercial Joint Stock Bank (ABBANK), Vietnam Maritime Commercial Joint Stock Bank (MSB), The Vietnam Bank for Agriculture and Rural Development (Agribank), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), National Citizen Bank (NCB), Saigon – Hanoi Commercial Joint Stock Bank (SHB), Military Commercial Joint Stock Bank (MBBANK), Woori Bank, Kookmin Bank, Shanghai Commercial Savings Bank… along with system of branches-representative offices in major provinces and cities such as Hanoi, Da Nang, Ho Chi Minh City, Hai Phong, Quang Ninh, Bac Ninh, Bac Giang, Thai Binh, Nam Dinh, Tuyen Quang, Thanh Hoa, Nghe An, Khanh Hoa, Can Tho, Ca Mau, An Giang and neighboring provinces. We are committed to promptly responding to the appraisal requests of the customers.
Thanh Do Valuation Join Stock Company – Professional valuation enterprise, reputation provide real value to customers in the service valuation. In 2019, (TDVC) was honored to be certified as “Top 50 Brand – Trademark Reputabale 2019”, In 2020 Thanh Do was honored with “Top 50 Trusted Brand 2020” and “Top 50 Brand Dat Viet Reputabale 2020”, In 2021 Thanh Do was honored Top 10 Brand Asia – Pacific. In addition, TDVC applies the International Standard ISO 9001: 2015 for the quality management system in property appraisal services, making an important contribution to help customers to have decisions in investment, business and transparent trading in the market.
Contact for appraisal: 0985 103 666 0906 020 090
Website: www.thamdinhgiathanhdo.com
