The concept of real estate appraisal

Valuation is the assessment or re-evaluation of a property’s value in accordance with the market at a certain time according to Vietnamese standards or international practices. Real estate valuation includes: Machinery, equipment, means of transport, other goods and services, etc. In each case and for specific appraisal purposes, the concept of market value and non-valued value shall be applied. market as the basis for valuation. 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 appropriate methods. well suited

Appraisal object

Real estate appraisal: Machinery, equipment, production lines, means of transport…

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

  • List of assets, economic contracts for purchase and sale (For machinery and equipment)
  • Certificate of registration, registration book (For vehicle)
  • Certificate of registration, inland watercraft, certificate of technical safety. (For ships)
  • Commercial contract, customs declaration. (For imported property)

Appraisal process of machinery and equipment


The valuation process is an organized and logical science of practice that is consistent with well-defined ground rules that enable the appraiser to arrive at an estimate of value. valid and trustworthy.

Appraisal process of machinery and equipment

  • General determination of the property to be appraised and determine the market or non-market value as a basis for valuation.
  • Determine the purpose of the client’s appraisal.
  • Review of the property’s preliminary assessment of the appraised property in terms of legal , location, features, technical specifications of machinery and equipment, and matters relating to the property.
  • Provide estimates on methods, sources of information collection, etc. to make a valuation plan.

Planning valuation

  • Human resources perform, assign people in charge, specific tasks of each group, organize coordination between groups…
  • Timetable;
  • The means, tools, tools required to carry out the field survey…
  • Coordinating with customers and guides to survey the current status; Other related issues…

Site survey, information gathering

– Survey the site to get full information about machinery and equipment such as: Year of manufacture, origin, main technical parameters, materials for making machinery and equipment, machinery supply equipment, current technical condition, etc. – Collect information on the production and business situation, exploitation ability of machinery and equipment to be appraised. – Research the domestic market, the regional market to find information suitable with the method of application to appraise the property price at the request of the customer. – Situation of similar properties on the market. – Political, economic and social situation at home and abroad.

Information analysis

  • Analyze and evaluate the collected information.
  • Compare the results of the field survey with the documents provided by the customer.
  • Analysis of factors affecting the value of machinery and equipment, market situation, etc.

Determine the value of the property to be appraised

  • Choose a method of valuation suitable to the purpose and asset valuation.
  • Implement the contents of the selected method of appraisal.
  • Prepare reports and certificates of valuation results.
  • Based on the results obtained from the above steps.
  • According to the prescribed form.
Excerpted from: Short-term training document for specialized knowledge in price appraisal of the Department of Price Management – Ministry of Finance


Send request a quote