Valuation process

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Valuation process

The valuation process is an orderly and logical action plan, organized in accordance with well-defined fundamentals, that helps the appraiser to reach a firm conclusion or Estimates of the value of these assets are valid and plausible.

    The valuation process includes the following steps:

- Identify the problem.
- Planning valuation.
- Collect documents (appraise the current situation).
- Document analysis and application of valuation methods.
- Prepare and complete the evaluation report.
- Report on price appraisal.

I. DETERMINING THE ISSUES

    As the first step in the price appraisal process, including the following main contents:

    1. Get to know about the property

1.1. Legal characteristics

    Be aware of the property rights or assessed benefits.

    A subgroup of assessed rights, such as unconditional ownership, lease rights, licenses, restrictive terms, transfer rights, etc.

1.2. Economic - technical characteristics of the property

For real estate that identifies the location, size of the plot, characteristics and style of the constructions on the site, allocation, population density, and percentage of land (from the master plan, the regional blueprint ...).

For machines - devices that recognize capacity, technical features, model, place of manufacture, year of import, year of putting into production ...

For businesses that recognize the type of business, size, product, market, brand, ...

    2. Setting goals or valuation purposes

Determine the specific purpose of price appraisal according to customer requirements.

    3. Determining the basis of the value of price appraisal

Determine which values need to be estimated, such as market value or non-market values: investment value, reinstatement value, liquidation value, insurance value, taxable value. ..

    4. Determine documents needed for price appraisal

Based on the characteristics of assets, the purpose of the valuation determines the necessary documents that customers must provide.

    5. Reach agreement with customers on the price they will pay for the service and ask for the time it will take to complete.

II. MAKE A PRICE APPRAISAL PLANNING

    In this step, the following issues need to be resolved:

    1. Be aware of the required documents

- Market, assets and comparison documents
- Documents must be the most reliable source.
- The data used must be accurate, accurate and must be verified.

    2. Designing a research program and planning a working schedule

- Determining the order of income and data analysis, especially the property survey plan that needs price appraisal.
- Distinguish what parts can be delegated.
- Determining the time limit for the order of steps to be followed

    3. Outline of evaluation report

Determine the presentation format of the report

III. DOCUMENT COLLECTION (STATUS APPRAISAL)

    This step should be addressed:

    1. Gathering general information sources and special information

Comprehensive documents on regions, regions, countries, society, economy, politics, environment.
Special documents (objects of study and comparability), locations of construction works, sales, costs, income / expenses.

    2. Appraisal of the current status of properties - Real estate

- Assessment of the current state of assets - real estate subject to price appraisal
- Assessing the current status of comparable properties - real estate

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