"The value of your rent depends on the condition of the property, the area, the services, whether it is furnished, and whether it has additional features or amenities.".
SANTO DOMINGO – Don't let sentimental phrases cloud your judgment. When you participate in the property valuation process, as a trained advisor in the sector, be ready to clarify to homeowners that the appraisal, and nothing else, is what determines the true value of their home.
“My children grew up here, this was my first purchase, I planted that tree when my daughter was about to turn 15”; don’t feed into those statements because they are not your allies, rather they represent one of the obstacles that cause many owners to delay deciding to sell their property
Heed the advice of expert Claudia Castillo and pay attention. “Sometimes we make investments in homes that don't add value to them; it also depends on the area where it's located, and sentimental value doesn't add value to the property either,” she explained while presenting on the topic at the CBR-01 Certification course, sponsored this week by the AEI, the Association of Real Estate Agents and Companies.
It defines the appraisal as the document that justifiably establishes the value of a property, in accordance with previously established criteria and developing an appropriate methodology.
The architect has been involved in the real estate and banking industries for over 25 years. She completed postgraduate studies in Real Estate Appraisal and Project Evaluation at the University of Buenos Aires (UBA), Argentina, and has an extensive biographical profile that attests to her qualifications and experience.
For real estate agents, there are two types of appraisals, he explained: market and mortgage. He outlined the phases: referral letter, appraisal certificate, contingent and limiting conditions, location report, cadastral identification of the property, description, access and boundaries of the sector, public services, appraised property report, general description and current occupancy, final appraisal or value, and supporting documents.
He explained to the students how the rental price of a property is calculated worldwide: “It consists of applying 0.005 to its price. For example, if you have a luxury apartment in Piantini and it is worth around USD$500,000, it is estimated to have an average rental price of USD$2,500. However, this rule can vary depending on the condition of the property, the area, the services, whether it is furnished, and any additional features or amenities.”
He explained the comparative method, which is the most widely used in the real estate sector. “It consists of valuing the property to be appraised by comparing it with other similar properties whose value is known. The regulations require a minimum of 3 and a maximum of 6 'comparison properties' which will be weighted by coefficients to make them comparable to the property being valued. This will give us a unit value per square meter of property which, multiplied by the square meters of the property being appraised, will give us its market value.”.
Among the external factors that determine the appraisal, he cited climate, and social, economic, and administrative factors; while internal factors include surface area, quality of materials, the property's location within the building, age, and state of maintenance. As intangible values, Castillo cited utility, scarcity, desirability, and actual purchasing power.
The real estate agent—reflects the general manager of Top Inmobiliario—must, by obligation, know the basics for determining a price or price range within their work as a real estate advisor. This undoubtedly comes from experience and specialization.
