Real estate valuation

Real estate valuation is the process of determining the value of a property based on a set of criteria and determinants that include the physical characteristics of the property, market conditions, and economic factors. Real estate valuation is used in several different scenarios such as buying and selling, insurance, tax valuation, judicial estimates, real estate financing procedures, etc.

The real estate valuation process includes evaluating all available data and information about the property, by certified real estate valuation experts. The value of the property is estimated based on the following criteria:

•  Location: Location is one of the main factors in determining the value of a property. The location of the property is analyzed based on the surrounding infrastructure, its proximity to vital facilities and services such as schools, hospitals, and commercial centers, the view of landscapes, and the presence of nearby entertainment and commercial areas.
•  Condition and physical qualities: Determining the value of the property also includes evaluating the condition of the property and its physical characteristics such as area, number of rooms, bathrooms, finishes, and additional functions such as a swimming pool or garden.
• Market evaluation: The local market is analyzed to determine the value of the property based on similar prices of properties sold in the area. This includes a comparison of similar properties in terms of location, size, defects and other criteria.
•  Economic factors: It includes economic factors such as the state of the local economy, supply and demand in the real estate market, interest rates and other factors affecting price fluctuations.

After completing these operations, the value of the property is determined and an appraisal report is submitted that contains all the important information, foundations and justifications used. Real estate valuation is important for people who want to sell or buy their real estate or obtain financing for their real estate projects.