The real estate valuation is a process that involves the physical inspection of a duly certified professional appraiser to a property with the purpose of estimating the financial value of it.
From a real estate point of view, the valuation of a property is a process usually required whenever the transaction of an apartment, house, shop or land is concerned, for the purposes of sale, lease or in the context of a mortgage loan.
The real estate valuation is required for several purposes, being compulsory in some situations:
A avaliação de um bem imobiliário pode ser feita por diversos métodos, entre os quais há a destacar os 3 seguintes:
Comparative Method - Also called "Direct Method", "Comparison", "Synthetic" or "Empirical", is based on knowledge of the local real estate market and values of real estate transactions similar to those of the property to be evaluated. This is one of the methods most used and inspires greater confidence because it mirrors the commercial value of the good, when subject to the law of demand and supply.
Income Method - Also referred to as "Analytical Method", "Income Capitalization Method", "Exploration Method" or "Indirect Method", and is used when it is possible to estimate the yield obtainable by a given property, taking based on the current capitalization of the expected net income. In conjunction with the previous one, this is one of the most used methods in Portugal.
Cost Method - Also referred to as the "Investment Method," "Cost of Reproduction Method," "Cost of Replacement Method," or "Cost of Replacement Method," is to determine the value of the property through the sum of the value of the land market and of all the necessary costs for the construction of a property with the same physical and functional characteristics. It is used in the evaluation of properties rarely transacted, such as public patrimony, churches, castles, etc.
Real estate appraisals must be done by professionals - appraiser or real estate expert - with a degree in: Real Estate Management, Engineering or Architecture, or in a relevant area related to Real Estate Appraisal; experience in Real Estate Assessments; active registration with the CMVM.They must be enrolled in the professional association and have insurance.
The report shall contain references to the following: