Analysis of highest and best use:
Is conducting the necessary studies to determine the use, being physically possible, legally permissible and financially feasible provided the most value to a property, it may be vacant land or property improvements.
It is an opinion of value or the process by which if you get an opinion of value.
It is the physical terrain plus improvements attached to it, if any.
The pocket or aggregate amount to develop an improvement applies to the reproduction of a same improvement as the replacement with equivalent functionality.
The set of studies conducted to determine the relationship between the cost of an investment versus the benefits to her.
Audit Study Cart:
Is prior to the acquisition of a property or an investment operation analysis, is constituted by the research on contractual terms, legal, tax and the characteristics of the property and its market prior to the completion of the transaction.
Investment Feasibility Study:
It is an analysis to investigate whether a project meets the predefined objectives. Its profitability is analyzed under different criteria, including the perspective of the investor.
That set of all shares, rights and benefits relating to the ownership of a property or real estate. Set of rights with which the ownership of real property is provided.
Refers to an established and operated in a timeframe established business. Are analyzed and valued economic investment involved in their operation properties (hotels, restaurants, marinas, clubs, athletic clubs, etc…) In which the physical part (real property assets) is integral to the business operation.
The amount by which a particular buyer agrees to pay and a particular seller accepted under the prevailing circumstances in your transaction.
Freehold or fee simple:
Represents full ownership of real estate, unencumbered and subject only to the limitations of expropriation, confiscation, law enforcement and fees.
Physical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, rights capital (equity), mineral rights and contracts, which are distinguished from tangible assets as buildings and equipment.
Property that can be perceived by the senses; includes land, improvements attached, furniture, merchandise, cash and other items of working capital employed in a business.
Purpose of an appraisal:
Represents the main reason a valuatorio work, which is to obtain the opinion of value.
Using an appraisal or study:
It is the use that will be given to an assessment or study, according to a previous agreement between client and consultant.
User of a valuation study:
Represent the client or other parties identified as users of the work, according to a previous agreement between client and consultant.
The monetary relationship between property rights and those who buy, sell or use such rights. The value expresses an economic concept and, as such, is never a fact but an opinion of the value at a given time, according to preset definitions.
Values used most frequently:
The value of an asset or set of assets that is covered by an insurance policy; can be estimated by deducting costs uninsurable assets (such as land value) of the market value. Often it is also regarded as the reproduction or replacement cost plus debris removal or demolition, unless the assets are not insurable.
Market value (market value):
The most probable price, is a certain date, in cash or cash equivalent terms, or other terms agreed with accuracy in which specific property rights can be sold, after a reasonable exposure time in a competitive market and low all the conditions of a fair sale, with the buyer and seller acting sensibly, knowledge and self-interest, and assuming that neither is acting under pressure.
Value as a going concern:
Market value of all tangible and intangible assets of a business transaction, duly established in horizon defined temporal analysis and considering all the stock sale.
The specific value of an investment for a particular investor or group of investors based on individual investment requirements; differs from market value, which is impersonal and objective.
Value for a particular investor.
The value has to apply an analytical model that uses a specified rate of return sought by the investor.
Forced liquidation value:
The most probable price which a property will be sold under the following conditions:
- The sale will be consummated within a period of time to market severely limited, as specified by the customer.
- Actual conditions prevailing market are those for which the right to property is subject.
- Buyer acts consciously and knowingly.
- The vendor is in a state of extreme compulsion to sell.
- Buyer is under typical conditions of motivation.
- Buyer acts under conditions considered in their best interest.
- Marketing efforts for achieving limited sale is permitted.
- Payment will be in cash or equivalent financial terms.
- Pricing is given under normal sales, unaffected by special financing or sales concessions, granted by any person involved in the sale.
Accounting concept; historical cost of the improvements less any deduction for depreciation plus the cost of improvements made in subsequent years.
Value in use:
Represents the value of a property for its current user. It is the concept of subjective value.
Value for purposes of calculating taxes.
A value that cannot be attributed to any of the physical parts of the property; for example, the value attributed to excess concessional lease rent or mortgage or the value attributed to goodwill.