PROPERTY APPRAISAL

SACOMVALUE: BUSINESS SECTOR

Property Appraisal

PROPERTY APPRAISAL

Thursday, 07 June 2012 00:00

Nowadays, following global trend, all real estates transactions are appraised by an independent consultant institution for ensuring the objectivity, transparency in the course of the transaction.
According to Item 15, Article 15, Section I of Law No. 11/2012/QH13 on Pricing, which takes effect from January 01, 2012, property appraisal is the method of determining the cash value of types of assets by competent authority in compliance with Civil law and the suitability with the market value at a certain location, time, for a certain purpose in conformity with standards on appraisal

        Therefore, Real Estate Appraisal is the estimated amount of the value of land use rights, ownership of houses and structures attached to the land being traded in the market at the time of valuation and for a purpose that has been defined in terms of a certain market with the appropriate method that are stipulated in Vietnamese Appraisal Standards or International Practices.
        Real estate market is specific space, time, location where activities of trading, transferring, leasing, mortgaging take place and services rendered like intermediary, brokerage, consultancy….related to real estates among subjects in the market in which the management role of the State has a decisive impact on speeding up or holding back the development of trading activities in real estates market.
         Real estates price depends largely on the demand-supply relationship in the market. When the demand is higher than the supply, the price of real estates is pushed up, vice versa, when the demand is lower than the supply, the price tends to go down. However, the price also depends on many other factors such as factors originated from the weaknesses of the market, for example “monopoly”, “speculation”, “unhealthy competition”...factors originated from the State intervention, for example: upgrade of infrastructures for residential areas (street, water drainage and supply, power supply...)
        Real estates appraisal service is one of our strength. With plentiful data stores, professional and experienced staffs, SACOMVALUE will provide customers with information on property’s value with the high level of reliability for specific purpose.
1. Subject, properties under the appraisal:
- Type of land: Residential, agricultural, garden land, land for production and doing business, land for special purpose, other types of land...
- Construction works, works attached to land (including assets attached to those construction works): House, apartment, villa, school, hospital…
- Land for project;
- Workshop, trade center, tenement, office tower..
- Restaurant, hotel, resort…
2. Method of appraisal
- Income method (investment method or capitalization method);
- Expenses method (cost method);
- Profit method (or accounting method);
- Surplus method (business analysis/assumption development)
3. Purpose of appraisal:
- Trading, transferring assets;
- Equitizing, trading, merging enterprise (M&A)...
- Setting up joint-venture, establishing, converting or dissolving enterprise;
- Mortgaging, guaranteeing, borrowing from the bank;
- Recording, disposing assets, insurance, compensation, clearance....;
- Determining assets’ value, investment project, value of brand name.....;
- Appraising assets for investigating, judging, dividing, fighting over assets....;
- Demonstrating the assets for the purpose of overseas study, tourism, residence, co-operation, capital contribution...;
- Disposing assets, offsetting debts...;
- Appraising for other purposes.
3. List of documents, materials for the purpose of real estates appraisal:
a. For land:
- Documents demonstrating use right such as: land use right certificate (red book) or certificate of land use right and house ownership (pink book) or other documents;
- Contract of purchase and sale, transfer (if any);
- Registration tax declaration sheet;
- Documents related to heritage, gift … (if any);
- Other related documents (if any);
- Documents related to construction works; structures and assets attached to land;
- Assets Ownership Certificate (if any);
- Documents for trading, offering, changing, disposing, selling assets at a discount (if any);
- Valid decisions on assets ownership of the court or authority (if any);
   b. For construction works:
- Construction license;
- As-built drawing or design drawing (if any);
- Estimates or finalization dossiers (if any);
- Construction Contract;
- Construction technology design dossier and estimates (if any)
- Minutes of checking and taking over (if any);
- Documents, minutes on handling incurred issues and change (if any);
- Other related documents (if any)