REAL ESTATE ASSESSMENT

Currently, according to international trends, real estate transactions are appraised by an independent consulting organization to ensure objectivity and transparency in the process of property transactions.

A property is assessed as highest and best use if at the time of valuation it is found that the property is in lawful use and is providing the greatest net income or is likely to present value. present of future net income is the largest, highest and best use that can exist and last continuously for a certain period of time.

1. Real Estate and Real Estate Appraisal
Property is assets that include:
Land;
Houses, constructions attached to land, including properties attached to such houses and constructions;
Other properties attached to land;
Other properties prescribed by law…”
Valuation is the assessment or re-evaluation of the value of an asset in accordance with the market at a certain place and time according to Vietnamese standards or international practices.
Therefore, real estate appraisal is the estimated amount of the value of land use rights, ownership of houses, and structures attached to land being traded on the market at that time. valuation point and for a well-defined purpose under the conditions of a given market with appropriate methods.
Real estate market is a specific space, time, and place where activities of buying, selling, transferring, leasing, mortgage and related services such as intermediaries, brokerage, consultancy take place. issues related to real estate between entities in the market in which the role of state management has a decisive impact on promoting development or inhibiting business activities in the real estate market .
Real estate prices depend largely on the supply-demand relationship in the market. When demand is greater than supply, real estate prices are often pushed up; conversely, when demand is lower than supply, real estate prices tend to fall. However, the price depends on many other factors such as those stemming from market defects such as “monopoly”, “speculation”, “unfair competition”, etc. Factors stemming from State intervention such as State investment in upgrading infrastructure of residential areas (roads, water supply and drainage, electricity supply…)
Property is assessed as highest and best use if at the time of valuation it is shown that the property is being legally used and is providing the greatest net income or potential for value. present value of future net income is the greatest, highest and best use that can exist and last continuously for a certain period of time

The earnings method (also called the investment method or the capitalization method)
Cost method (cost method)
Profit method (or accounting method)
The residual method (or business analysis / hypothetical development method)

Property mortgage, credit guarantee;
Buying, selling, transferring, contributing capital to joint ventures;
Enterprise establishment, enterprise equitization;
Debt settlement, enterprise dissolution;
Compensation, insurance, claims;
Accounting, tax calculation ;
Consulting and setting up investment projects;
Other purposes;