Real estate valuation (real estate) can be interpreted as an estimate of the value of rights to specific real estate in the form of currency for a purpose that is well defined in the conditions of a market. Certain with the right methods. The purpose of real estate valuation reflects the need to use real estate for a given job and from there there are demands on real estate benefits that need to be created for the entity in each of the identified jobs. In a market economy, the purposes of real estate valuation often mentioned include:
- Real estate valuation to transfer ownership: helping sellers determine acceptable selling prices; help buyers decide the acceptable purchase price; establish the basis for the exchange of real estate with each other.
- Real estate valuation for financial and credit purposes: using real estate for mortgage loans; valuation for real estate insurance policies.
- Real estate valuation to determine the amount of rent under the contract: help set the rent; Develop rental terms.
- Real estate valuation for real estate development and investment: compared with investment opportunities in other real estate; decide the ability to make investment.
- Evaluating real estate prices in enterprises: making annual financial statements, determining market prices of investment capital; business valuation; purchase, sell, consolidate and liquidate the companys real estate; There are plans to handle real estate when reforming SOEs.
- Real estate valuation to meet the legal requirements: find the value of the annual taxable property; determining compensation value when the State withdraws real estate; calculating taxes when a property is sold or inherited; a court issues a decision to split Real Estate when hearing cases; determining floor prices in service of bidding and auction of public real estate; determining the floor price to serve the sale of confiscated real estate, public funds ...