Procedures and principles for real estate valuation

• Best used and most effective
• The principle of supply and demand
• Principle of contribution
• Replace
• Principle of balance
• Anticipate future benefit
• Income increase or decrease
• Income distribution
• Change
• Compliance
• Compete

In addition to the principles of price appraisal applied according to Vietnam Standard No. 06 promulgated together with the Finance Ministry's Decision No. 77/2005 / QD-BTC of November 1, 2005, the principle of real estate price appraisal also There are the following principles:

- Matching principle
- The principle of profitability of the land ...

Real estate valuation process

        2.1. Identify the problem

- Set goals or valuation purposes
- Realization of real estate subject to price appraisal: legal, economic and technical characteristics
- Choose the basis of the value of price appraisal and method of price appraisal
- Set the effective date
- Agree with customers on the completion time and service price
        2.2. Planning valuation
- Identify factors of supply and demand, appropriate to the functions, characteristics and rights of the property to be purchased; sell; rental and market characteristics.
- Identify documents needed for valuation request: real estate, market ...
- Design program
- Prepare report outline.
- Plan a work schedule for each job step and for the whole process.

       2.3. Real estate appraisals, price appraisals and comparable real estate
- Conduct income and aggregate materials on the market:
+ General data: economy, politics of region, locality, province ...
+ Special data: expenses, income, market price, rental price, interest rate, profit ...
- Conduct appraisal of real estate status
+ Real estate valuation
+ The comparison real estate
        2.4. Information analysis and application method
2.4.1. Document analysis
- Analyze using the most effective and most effective
- Market analysis
- Analysis of appraised real estate and comparable real estate
2.4.2. Application of valuation methods
- Use the collected and analyzed data into the methods
- Analyzing the advantages and disadvantages of the information
        2.5. Estimated market value - Non-real estate market valuation
+ Give the results of each valuation method
+ Provide the market value of the assessed real estate (market value or non-market value)
+ Making comments on the results of price appraisal
+ Setting restrictions on valuation results
        2.6. Real estate valuation reports and certificates
- The valuation report demonstrates the experience and skills of the appraiser and is the final product of the entire valuation work.
- Valuation report is a summary of the data analyzed, the methods applied and the reasons leading to the conclusion about the value.
- The evaluation report needs to state the following main contents:

+ Type of real estate to be appraised
+ Customer evaluation
+ Evaluation purpose
+ Time of evaluation
+ Legal and economic characteristics - technical characteristics of real estate appraisal
+ Basis of value of price appraisal
+ Application of valuation methods
+ Price appraisal results
+ Limitations of valuation results