How is a real estate appraisal done?

A real estate appraisal is a process that determines the value of a property. This value is based on several factors, such as location, physical characteristics of the property, market conditions and future trends.

Why is a real estate appraisal important?

A real estate appraisal may be necessary for several purposes, such as:

• Applying for a mortgage loan : Banks require an appraisal to determine the amount of the loan they can grant.
• Selling or buying a property: The appraisal helps establish a fair price for the property.
• Obtaining insurance: Insurance companies need to know the value of the property to determine the insurance premium.
• Filing taxes: The appraisal can be used to calculate property and other taxes.

Who can perform a real estate appraisal?

Real estate appraisals can only be performed by appraisers certified by an appraisal company authorized by the Financial Superintendence of Colombia..

How is a real estate appraisal performed?

The real estate appraisal process is generally carried out as follows:

1. Appraisal request: The owner of the property or a person interested in the property contacts an appraiser to request an appraisal.
2. Visit to the property: The appraiser visits the property to make a physical inspection and take measurements.
3. Gathering of information: The appraiser gathers information about the property, such as location, size, physical characteristics, market conditions and future trends.
4. Analysis of the information: The appraiser analyzes the information gathered to determine the value of the property.
5. Preparation of the report: The appraiser prepares a report containing the value of the property, the methodology used to determine it, and relevant information about the property.

How much does a real estate appraisal cost?

The cost of a real estate appraisal varies depending on several factors, such as the type of property, the location and the complexity of the appraisal. In general, the cost of a real estate appraisal ranges from $500.000 and $2.000.000 for the most traditional (house, apartment). For other types of properties it may be required to have a deeper concept and study, so its value may be higher, such is the case of the valuation of a hospital, the valuation of a lot or property that even having an existing construction has a favorable regulation that allows to think of a potential development of the same.

Tips for obtaining an accurate real estate appraisal

• Select an experienced and certified appraiser.
• Provide the appraiser with all relevant information about the property.
• Allow the appraiser to make a physical inspection of the property.
• Ask the appraiser to explain the methodology used to determine the value of the property.

Additional resources:

• Superintendencia Financiera de Colombia: https://www.superfinanciera.gov.co/
• Sociedad Colombiana de Avaluadores: https://www.facebook.com/scdavaluadores/?locale=es_LA
• Lonja de Propiedad Raíz de Bogotá: https://www.lonjadebogota.org.co/

We hope you found this information useful. If you have any further questions, please do not hesitate to contact us.