Real Estate Valuation
Among the various spectrums of real estate valuation:
Sale and purchase transactions
Valuation ensures the establishment of a fair market price, providing an objective benchmark for both sellers and buyers.
Intra-group transactions
Real estate valuation is necessary for intra-group transactions, whether it's a sale-purchase or rental, to ensure transparency and fairness in the prices set between associated/affiliated entities. This helps ensure compliance with tax regulations and avoid potential tax adjustments, thus minimizing fiscal risks.
Market rent estimation
Real estate valuation is essential for estimating market rent, providing an objective analysis of its value in the market context. This enables the establishment of a fair and competitive rent level, ensuring a balance between property owners' income and tenants' requirements, contributing to optimized contractual relations.
Financial reporting, for Updating Book Value
Companies owning tangible assets periodically reassess their assets to reflect their fair value in financial statements.
Financial reporting, for Purchase Price Allocation
Real estate valuation is essential for determining how the purchase price should be allocated among the property components (land and buildings), ensuring a correct reflection of each element's value in the financial statement, facilitating financial performance evaluation and compliance with applicable accounting standards.
Obtaining and refinancing a mortgage guarantee
Banks or other creditors request valuations to determine the property’s collateral value, protecting themselves against financial risks.
Valuation of properties for securing non-bank loans
For loans from non-bank financial institutions, valuations are used to determine the collateral and reduce default risks.
Tax calculation and fiscal reporting (valuation for taxation purposes)
Valuation is required for calculating property taxes and periodically updating taxable value.
Taxable value calculation for properties in special economic zones (SEZ)
Properties in these zones benefit from certain tax advantages, and valuation helps establish taxable value and apply benefits correctly.
Determining value for insurance
A correct property valuation ensures adequate financial coverage in case of damage (fire, earthquake, etc.).
Divorces, property division, and inheritances
Valuations are used for the fair division of properties in legal processes, including accurate calculation of inheritance taxes.
Estate planning and wealth transfer
Valuations are used by families with significant wealth to plan the efficient transfer of properties between generations, optimizing taxes and avoiding disputes.
Valuation for granting usufruct rights
When an owner wishes to grant another person the right to use the property without transferring ownership, valuation helps establish a fair value for this right.
Valuations for property ownership and rights disputes
In disputes related to property titles or claims, property valuation is essential for determining value and legal rights.
Bankruptcy and foreclosure
Valuation is crucial in judicial procedures to determine property value, either for liquidation or securing creditors' claims.
Feasibility analysis for developers
Real estate developers use valuations to estimate costs and potential returns in new real estate projects.
Valuation for commercial and residential leasing
Valuations provide an objective basis for establishing fair rent and terms in leasing contracts.
Optimizing real estate portfolios
Real estate portfolio owners use valuations to determine the total value of assets and make informed decisions about acquisition or sale.
Investment return calculations for real estate investments
Valuations are used by investment funds and private investors to estimate potential appreciation and returns on properties.
Financing for modernization and expansion projects
Property owners use valuations to obtain financing for improvements, and creditors use them to determine if the investment is justified.
Relocation compensation calculations
In public interest projects, valuation helps determine compensation for tenants' relocation.
Transparency in public reporting and for shareholders
Valuations ensure fairness in asset reporting by publicly listed companies and public institutions.
Analysis for changing the destination of a property
Valuation is useful in functional transformations (e.g., converting commercial spaces to residences or vice versa), to calculate financial viability.
Valuation in property portfolio sales
Real estate companies or large investors selling portfolios of properties (e.g., office buildings) use valuations to establish an aggregated market value, adjusted to market conditions.
Valuation for agricultural land sales
In transactions involving agricultural land, valuation considers specific factors (soil quality, access to resources) and helps establish the correct value based on agricultural potential.
Compensation calculation for easements
In cases where easements are imposed on properties (right of way, pipelines, etc.), valuation helps establish compensation for affected property owners.
Valuation for determining contributions in-kind in associations
In partnerships where one party contributes a real estate property instead of capital, valuation determines the value of this contribution.
Valuations for establishing mining or forestry royalties
For properties holding exploitable natural resources (e.g., mines or forests), valuation helps establish the value of resources and associated royalties.
Valuation for cryptocurrency transactions backed by real estate
In more innovative cases, properties are valued to support digital assets (e.g., tokens secured by physical assets), providing a tangible value basis for investors.
Valuation of properties in corporate relocation contexts
In corporate relocations, valuation of premises or land helps establish a fair value and negotiate compensation.