Real estate appraisal

  • Land, townhouses, villas, apartments, offices, supermarkets, trade centers, production and business establishments, factories…
  • Assets attached to land

Appraisal purpose

  • Buy, sell, transfer
  • Bank loans, joint venture capital contributions
  • Equitization and business establishment
  • Debt settlement, business dissolution
  • Compensation, insurance, claims
  • Accounting, tax calculation
  • Consulting and setting up investment projects
  • Proof of assets for study and tourism

Appraisal records

For appraisal of townhouses, apartments, land

  • Certificate of house ownership, land use right
  • Construction permit
  • Current map
  • Registration fee declaration
  • For construction work appraisal

Certificate of ownership construction work

  • Construction permit
  • Construction Contracts
  • Blueprint
  • Finished drawing
  • Minutes of acceptance test completed work
Appraisal of individual houses (villa, villas, townhouses), apartment price appraisal, building appraisal, office appraisal… Separate house:   (including: villas, townhouses, independent houses) is a house under the lawful use right of an individual, household, or organization built on recorded land with a purpose. The purpose of use is residential land (residential land). Apartment building: is a house with both private and shared ownership, has more than one floor, many apartments, has walkways, stairs and infrastructure system for common use by households. Apartments are divided into two types based on the purpose of use: residential and mixed use for both residential and business. Buildings:  Like apartment buildings, they are all high-rise buildings with many floors. However, buildings are mainly used as offices, for businesses to hire as office representatives or as corporate headquarters. Office (or office): is a general term for a room or other working area in which people work or is a ‘building’ designed, arranged for ‘use’ or ‘rent’ to ‘individuals’. , organization performs office activities (related to papers, books, computers…), Office can also denote a position or a department in an organization with specific tasks may be associated with activities related to the general affairs, domestic, foreign affairs, management of the office of that organization (Department office, or office located in agencies, organizations, company and usually have the titles of Chief of Office, Deputy of Office, etc.). The Middle Ages (1000-1300) office was established and was the place where most of the imperial letters, legal documents legal were copied and kept.

Appraise the value of Townhouses and Apartments for the following purposes:

  • Buy, sell, transfer.
  • Bank loan.
  • Joint ventures.
  • Equitization and establishment of enterprises.
  • Debt settlement, business dissolution.
  • Compensation, insurance, claims.
  • Accounting, tax calculation.
  • Consulting and setting up investment projects.

Dossier for appraisal of townhouses and apartments need to prepare:

  • Certificate of house ownership, residential land use right
  • Construction permit
  • Current map
  • Registration fee declaration
Factory price appraisal: Steel factory, wooden factory… Appraisal construction works: Hotels, commercial centers, production and business establishments

What is a factory? What types of factories are there?

According to Wikipedia, a factory is a physical asset with a large capacity and management scale (compared to a store), which can be a place to gather manpower, equipment, and materials for the production process. , storage and transportation of goods. Types of workshops: Workshops can be built from steel or wood, but currently mainly made in the style of steel-bearing buildings due to their superior features with the following characteristics:

Sustainability

  • Steel buildings help the production process to be continuous, not interrupted or affected by climatic factors such as rain, storm, snow, or earthquake…
  • Constructed of Structural Steel helps against possible fire risks, wooden workshops do not have this advantage.
  • Waterproof and insect attack : Unlike wooden house structures, steel is a durable material, resistant to water or insects and factors that cause damage to the factory. On the other hand, steel is an extremely durable material, not easily bent or bent by temperature factors, keeping the factory structure stable over time.

Environmental friendliness

To build a log factory, a lot of trunks with good wood nature are needed. This adversely affects the habitat of animals as well as humans. Therefore, iron and steel is the best choice to protect the natural environment.
  • Fast construction time, economical installation cost, long warranty. Depending on the size, the factory can be completed within a few months, the process of dismantling and moving in just a few weeks.
  • Steel buildings are built and maintained for a long time, the structures are repainted to ensure the durability for optimal operation of the steel buildings.
  • The cost of construction and installation of a steel house may be higher than that of a wooden house, but its durability, time of use and superior characteristics are the foundation for steel buildings to be the optimal choice for companies.

What is construction? What types of  buildings are there?

Construction

Legal bases:  Article 3 of the Law on Construction 2014: Construction works are  products created by human labor, construction materials, equipment installed in works, linked and positioned with the land. , which may include below ground, above ground, underwater and above water sections, are built to design. Construction works include civil works, works industry, traffic, agriculture and rural development,  technical infrastructure works and  other works.

Classification of construction works:

a. Civil works

  • Housing includes apartments and detached houses
  • Public works include:  cultural works, educational works,  medical works,  commercial and service buildings, working houses, hotels, guest houses, traffic service houses, information service houses. communications, radio and television broadcasting towers, railway stations, bus stations, sports facilities of all kinds

b. Industrial works include:

Coal and ore mining works; oil and gas extraction works; chemical and petrochemical works; petroleum, oil, liquefied petroleum gas depots and gas and oil distribution pipelines; metallurgical works; mechanical works, manufacturing; works electronic industry – informatics; energy works; works light industry; works food industry; works building materials industry; production works and warehouses for explosives industrial.

c. Traffic works include:

Road works, railway works, waterway works, bridges, bridges, airports.

d. Irrigation works include:

Reservoirs, dams, culverts, pumping stations, wells, water pipelines, canals, works on canals and embankments of all kinds.

e. Technical infrastructure works include:

  • Water supply and drainage works;
  • Water treatment factory,
  • Waste treatment works: landfills, landfills; waste treatment plant;
  • Urban lighting works.
Valuation of the Factory serves the following purposes:
  • Buy, sell, transfer.
  • Bank loan.
  • Joint ventures.
  • Equitization and establishment of enterprises.
  • Debt settlement, business dissolution.
  • Compensation, insurance, claims.
  • Accounting, tax calculation.
  • Consulting and setting up investment projects.​
Factory appraisal documents need to prepare:
  • Certificate of ownership construction work
  • Construction permit
  • Construction Contracts
  • Blueprint
  • Finished drawing
  • Minutes of acceptance test completed work

Valuation of land for the following purposes:

  • Buy, sell, transfer.
  • Bank loan.
  • Joint ventures.
  • Equitization and establishment of enterprises.
  • Debt settlement, business dissolution.
  • Compensation, insurance, claims.
  • Accounting, tax calculation.
  • Consulting and setting up investment projects.

Land appraisal documents need to be prepared:

  • Certificate of house ownership, residential land use right
  • Construction permit
  • Current map
  • Registration fee declaration

Overview of real estate appraisal

I. Concept of Valuation

Valuation is understood as the assessment or re-evaluation of the value of an asset in accordance with the market at a certain place and time according to Vietnamese standards or international practices.

II. The concept of real estate appraisal

A real estate appraisal is an estimate of the value of specific property rights in monetary form for a specified purpose under certain market conditions with established methods. appropriate law.

1. Purpose of real estate appraisal

The purpose of property valuation can be classified into many types, here are just a few of the following: preservation purposes, asset purchase, property ownership conversion, mortgage, calculation, etc. Taxes, liquidation of assets…

1.1. Asset protection

– Valuation of assets for asset depreciation. – Property insurance, indemnity and property assessment.

1.2. Purchase and sale of single-item property

1.3. Changes in the ownership of assets of the enterprise

– Enterprises contributing capital for business cooperation and joint venture enterprises. – Consolidation or merger of businesses. – Sale of business. – Rent.

1.4. Real estate transfer

1.5. Indemnify

1.6. Mortgage

Banks require businesses to have assets, especially real estate as collateral. The collateral value must match the market value of the property at the time of mortgage and account adaptation. The purpose is to ensure the safety of the bank. Actual safety cannot but be determined by the accuracy of the appraisal of mortgage real estate. Therefore, it is necessary to have a professional appraiser.

1.7. Determining the value of assets for equitization

The company that issues shares is a type of capital market centralized process, so the company that issues the shares must calculate the cost. The buyer who is the owner of the stock needs to see firsthand the ability to spend evenly and the performance of the stock. Basically, the stock as well as the dividend yield is determined by the current state and prospects of the company issuing the shares. That in itself has many factors that need valuation.

1.8. Accounting

The national tax on property and resources including land tax, house tax, inheritance tax, gift tax… is subject to self (here, excluding property transferred or rented as an object. of taxes) those taxes are properly applied to a certain level of countries. Some countries use current market prices as the basis for tax calculation. Therefore, it is necessary to conduct a tax assessment. Therefore, it is necessary to have tax experts and tax agencies.

1.9. Payment operations

Enterprises conduct settlement and settlement of assets, split or merge; People with related interests require compensation, so the property also needs to be sold or valued or changed. Thus, it is necessary for valuation experts to draw up valuation conclusions for the current payment of the business as a basis for handling existing assets.

1.10. Consulting service

The above presentation of valuation characteristics can all be considered as specific areas of consulting services. Here, consulting service does not mean directly serving the conduct of property operations as mentioned above, but rather conducting the asset valuation business that has arisen or will arise, but serves as a consultant for the client. business owner, creditor or business person. There are many types of counseling, mainly: – Litigation. – Help with accounting.

1.11. Proof of assets for study, settlement, tourism.

III. Principles and process of real estate appraisal

1.  Principles of real estate appraisal

– The principle of best and most effective use – Principle of supply and demand. – Contribution principles. – Principle of substitution. – Principle of balance – Principle of predicting future benefits – The principle of increasing or decreasing income – Principle of income distribution – Principle of change – Principles of compliance – Principles of competition In addition to the principles of price appraisal applied according to Vietnam Standard No. 06 promulgated together with Decision No. 77/2005/QD-BTC dated November 1, 2005 of the Ministry of Finance, the principle of real estate appraisal is still valid. There are the following principles: – Matching principle. – The principle of profitability of the land…

2. Real estate appraisal process

2.1. Identify the problem

– Set appraisal goals or objectives. – Identify the real estate to be appraised: characteristics legal, economic and technical – Select the value basis of the valuation and the method ofvaluation – Set effective date – Agree with customers on completion time and service price

2.2. Plan your appraisal

– Identify the factors of supply and demand, appropriate to the function, characteristics and rights of the purchased real estate; sell; rental and market characteristics. – Identify the necessary documents for the appraisal request: real estate, market… – Design program – Prepare report outline. – Plan a timetable work for each step work and for the whole process.

2.3. Real estate appraisals, appraisals and comparable properties Conduct income and synthesize documents on the market:

+ General data: economic, political of the region, area, province… + Special data: cost, income, market price, rental price, interest rate, profit… Conduct real estate appraisals + Real estate appraisal + Comparative properties

2.4. Information analysis and method application

2.4.1. Document analysis
  • Analysis of use bestand mosteffective
  • Market analysis
  • Analysis of real estate appraisal and comparison real estate
2.4.2. Application of methods appraisal
  • Using the data collected and analyzed in the methods
  • Analyze the advantages and disadvantages of the information

2.5. Estimation of market value – Non-market real estate appraisal

  • Give the results of each method appraisal method
  • Provide the market value of the assessed property (market value or non-market value)
  • Make a comment on the appraisal results
  • Introduce limitations on appraisal results

2.6. Real estate appraisal reports and certificates

The appraisal report represents the experience and skill of the appraiser and is the end product of the entire appraisal work. A valuation report is a summary of the data analyzed, the methods used, and the rationale for the value conclusion. The valuation report must state the following main contents: + Type of real estate to be appraised + Appraisal customer + Purpose of appraisal + Time of appraisal + Legal, economic and technical characteristics of appraised real estate + Valuation basis of valuation + Apply methods of valuation + Result of valuation + Limitations of appraisal results Excerpted from: Short-term training document for specialized knowledge in price appraisal of the Department of Price Management – Ministry of Finance

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