SANTO DOMINGO –This is the process of determining the value of properties, including houses, land, and commercial buildings. This procedure is carried out by specialized professionals, known as appraisers, who employ various methodologies and techniques to establish a fair and objective value.
The Dominican Institute of Appraisers, Inc. (ITADO) is the entity in the Dominican Republic that groups and represents professionals in this field.
This mechanism is crucial in the real estate market, as it provides an objective basis for negotiating prices in purchase and sale transactions, ensuring fair agreements and reducing the risk of disputes. It is also used to establish the cadastral value of properties, which affects tax obligations.
There are several methods for appraising properties, among which the following stand out:
• The sales comparison tool analyzes similar properties that have been recently sold in the same area, allowing you to obtain a value based on actual transactions.
• Cost-based, which is based on calculating the reconstruction value less depreciation, being useful for new or renovated properties.
• The income call, applied to investment properties.
Factors such as changes in the economy, supply, and demand can affect property values. Therefore, it is advisable for property owners to have their properties appraised periodically to stay informed about market trends.
Currently, technology has revolutionized this process, facilitating the use of advanced software and data analysis tools that improve both the accuracy and efficiency in property evaluation.
It is estimated that between 5 and 6 million homes are sold annually in the U.S., and each of these transactions typically requires an appraisal. It is estimated that between 7 and 10 million properties could enter the appraisal process each year, considering both purchase transactions and refinancings. However, these figures can vary depending on real estate market conditions and the economy.
The time required for data collection on the property is usually short for the process, while delivery is estimated to take two to five working days.
Source: Better Money Habits/ National Association of Appraisers (NAA).
Cover photo: Photo credit: VectorUpStudio / Vectorstock.
Originally published in the 8th edition of El Inmobiliario print magazine.
