Objectives of Property Valuation

The activity of real estate appraisal has, as its name indicates, the ultimate goal of determining the property value. Thus, evaluating corresponds to the act of predicting the market value of a good or service. In this case, the assessment is related to immovable property, which includes the majority of real estate projects.
Thus, given the specific case of this evaluation work, it can be stated that through even if you want to define / determine:
• Market Value of the Land;
• Constructive Potential;
• Costs of Construction;
For the particular case of an assessment of urban land, there are two methods that fall in pursuit of that goal:
• Comparative or Market Method;
• Cost Method;
The choice of assessment methods have to be linked to optical under which the owner or a prospective buyer wants to see the property assessed. For certain "situations such as" there is, respectively, suitability for different, methods of evaluation. However, even though the assessed value determined by the method or technique that best fits the case under study, should not be left to determine the value by another method, and reflect on the differences obtained.
In addition, techniques are also used for processing samples, which complement the traditional methods, namely:
• Homogenization of the sample (like real estate);
• Statistical analysis (data of the aforementioned real estate);