Appraisal Services – Experts – Peruvian Experts – CONATA. REPEV (SBS)
FAQ
APPRAISALS PERU

 

Email: ryb@tasadores-peru.com
Telephone: (511) 421-1797
Nextel: 419*1582
Fax: 421-1993

Address:
Camino Real 390, Oficina C-91
San Isidro

Office Hours
Monday – Friday: 9:00 a.m. to 6:00 p.m.

Home / Centro de Consultas

DEFINITIONS OF THE DIFFERENT CONCEPTS USED IN APPRAISALS

A. DEFINITION OF PRICES AND VALUES

PRICE OF A PROPERTY
The price of a property is an existent fact.
It is the amount of money that is fixed on a property as result of the negotiation between the supply and demand, in a free market.
Represents the price requested by the owner.
Price offered by the buyer.
Closing price of the sales and purchase transaction.

VALUE OF A PROPERTY
Is the degree of usefulness of the properties expressed in monetary terms, bearing in mind the qualities that determine its price or useful capacity.

COUNTABLE VALUE OF A PROPERTY
Is the value with which it is recorded in a company’s ACCOUNTING on a given date. At the time of the purchase, it is revised with the amount paid for it, should the purchased property be new this Value is the Similar New Value.
With the passing of time, the Countable Value will be equal to the Purchasing Value minus total depreciation according to the tax regulations.
Generally the Countable Value is out of proportion to the Appraisal Value.

 

B.DEFINITIONS OF TERMS USED IN APPRAISALS

APPRAISAL VALUE
Is the best estimate that an expert can make of the value of the property, calculated in accordance with the Rules of the National Appraisal Regulations of Peru and represents the Value of reconstructing or restoring the property by one with the same characteristics, state of repair and years of use.

In the case of real state property it represents the Reconstruction Value at the time affected by a penalty for years of construction and state of repair.

In the case of machines it represents the Value of the asset starting from its Value as New depreciated linearly by its years of construction and useful life expectancy.

MARKET VALUE
Is the value obtained affecting the Appraisal Value by a factor obtained from the comparison of purchase and sale operations carried out with similar assets, establishing the differences that could exist between them and the analyzed property.

REALIZABLE VALUE
Realizable value of the property, understood as the net value of recovery or expected sale, in the case of an eventual sale of the property by execution, “ad corpus” or as is and where it is, at the time of the appraisal.
It is also the Value that would be obtained for the property should it be sold rapidly within a lapse not greater than 6 months.

 

C.OTHER DEFINITIONS

SIMILAR NEW VALUE
What a similar new property is worth at the time.

RESIDUAL VALUE
Recovery value of a property at the end of its useful life.

REPOTENTIATED VALUE
Value of the property when it has been restored with significant improvements that expand it useful life span and improve its yield.

REPLACEMENT VALUE
What it costs to build, manufacture or acquire a similar property affected by depreciation and state of repair at the time. It is the current cost for reproducing a property with its same characteristics, state of repair, operating capacity, etc.

OBSOLESCENCE
Is the comparative loss of production capacity that a property suffers by effect of technological changes. There exists a functional obsolescence and an economical obsolescence.

DEPRECIATION
Is loss in value of real estate due to its use. This loss increases in the measure that they approach the end of their useful life. Depreciation is associated with age, the higher its life expectancy the less the equipment depreciates per year.

CONSERVATIVE AND REASONABLE VALUE
The value should be based on a reference market value, calculated on the grounds of reliable information. In no case should the value be estimated on the grounds of mere expectations of improved prices in the market or suppositions of a financial nature associated with potential clients, but rather will follow a strictly conservative criteria based on the prevailing market conditions.

CURRENT INFORMATION
Recent information obtained during an earlier period in which the market conditions for said property have not varied significantly. The ideal would be that it not be older than 3 months and in more stable cases it should not exceed a year.

RELIABLE INFORMATION
Reliable information is that obtained from a source with a high level of credibility and seriousness or from an official organism or from a company belonging to financial system.

EVALUATION OF MARKET TRENDS
If trends in the real state and personal property market are permanently evaluated by way of:

  • Telephone calls to notices placed on real state.
  • Telephone calls to advertisements published in newspapers.
  • Reading specialized magazines
  • Consultation with manufacturers and suppliers.
  • Acquisition and consultation of databases.
  • Research through the Internet.