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How is the market value of real estate calculated? – Placement Immo

How is the market value of real estate calculated?

When you think about investing in a home, you usually come across a variety of terms in the real estate world, one of which has to do with the commercial value of real estate.

Understanding how to reach this value and why it varies from house to house will help you make the best decisions when selling or buying real estate.

What is the difference between business value and ultimate expertise?

If you’re wondering what the commercial value of real estate is, the answer is simple. It can be defined as the purchase or sale price determined by the property owner, property management professional, or banking professional.

Rather, the final or tax assessment is the value established by the Internal Revenue Service (SII) with respect to the price of the land on which the real estate is located, the construction value of the real estate, and legal and technical definitions.

Some aspects that oppose these two concepts are:

  • The tax valuation is usually lower than the commercial value of the property.
  • While the final assessment is determined only by the Internal Revenue Service (SII), the commercial value of real estate can be determined by a variety of entities.
  • The tax assessment of real estate is directly linked to the payment of taxes or annual contributions.
  • Final assessments are made every four years and commercial value is subject to change at any time.

Factors that determine the commercial value of real estate

When calculating the commercial value of real estate, we usually consider several aspects that affect the purchase or sale price.

Some of these aspects are:

location

There are areas that are much more valuable for living or commercial use simply because of their surroundings.

This can be useful, for example, if your property location has multiple utilities nearby, such as a park, college or university.

access road

Road infrastructure or property access is rated in good condition and there are several transportation options.

use of public transport

Proximity to major roads or easy access to public transport affects the commercial value of a property.

specific characteristics of an attribute

A property’s construction, design, size, age and materials used are undoubtedly essential to giving your property some commercial value.

Aspects such as finishes, facades, doors, parking spaces, stairs, masonry, painting, etc. are considered here.

supply and demand

If other people sell the same or similar properties that you own, it is very likely that the value of your business will decrease. On the other hand, if your assets are unique in their sector, this will have a positive impact on their commercial value.

terrain

Whether you are planning to sell or sell, be aware that the land on which the property is built also affects the value of your business.

So if your property is on flat or fragile, sloping land, you need to consider the differences.

How to calculate the commercial value of real estate in Chile?

As you know, business value is determined by considering many factors.

Now, in order to know how to calculate the commercial value of real estate in Chile, we need to define the calculation criteria based on who determines this value.

That’s why, for example, in terms of building area, you can find different commercial values, whether or not their properties are similar.

Taking into account the foregoing and the complexity of determining the selling price, it is better to consult a specialist who is experienced in this type of calculation.

In Easy Investment, an efficient methodology is used based on the following characteristics:

  • The best trading options are sought.
  • He has many years of experience in investment and real estate brokerage.
  • It has an implementation of the software that evaluates the conditions of the project.
  • Advice and guidance are provided.

In this way, you can tailor your housing project to your needs and investor situation.