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Friday, March 19, 2021

Get to know about property valuation

A property valuation/appraisal is a profession related to the world of property, its existence is very much needed by various parties. This profession handles various things related to property ranging from land prices to buildings such as houses, apartments, buildings, and so on.

In considering prices, an appraiser will look at various factors, such as price movements to date, ease of traffic, and also environmental factors.

Appraisal services (Property valuation/Appraisal) can be used for general purposes, but currently, their use is more widely used by the business world and Government Agencies. The objectives and reasons for conducting an assessment of assets essentially include the following.

  • Complete a loan application.
  • Development and rehabilitation of companies with investment facilities from the Government.
  • Companies that will go public (initial public offering / IPO).
  • Insurance coverage.
  • Merger/acquisition companies.
  • Transfer of rights.
  • Liquidation of companies.
  • Establishment of Land and Building Tax (PBB) NJOP

Meanwhile, the parties that can take advantage of appraisal services are as follows:

For the government, property appraisal can be used as a reference for the imposition of tax rates, calculating and knowing national assets, in the context of business mergers / additional capital for state companies or investments in other fields, grants (including assistance from other parties), project appraisal before submission to the government, closing insurance, buying and selling, swapping government assets, land acquisition, etc., assessment of public facilities for determining reasonable rates for public servants (such as PLN, Perumtel, Toll Road, etc.).

property valuation
image from pixabay

Financial Institutions (Banks), for one of the bases for credit (loan) and leasing, outlays, mortgage guarantees, calculation bases for sale when it has to be auctioned off, calculating the wealth of the bank or customer.

Insurance company, form the basis of the imposition of policy rates (insurance premiums), the basis for determining compensation, guarantees.

Auction Companies and Pawnshops can take advantage of appraisal services to determine the base price for the auction, etc.

Capital Market Implementing Agency, for determining the value of assets of companies that will go public, Determining the value of shares, etc.

Personal / Individual / Community, for grants, Merger/establishment/distribution of business and assets, distribution of assets / and inheritance, buying and selling / auction, closing insurance, deciding credit/mortgage guarantee.

Asset/property valuation is currently needed by both the private sector and the government, both central and local, to increase accountability and create administrative order to encourage better and modern asset management (optimization).

Property appraisal can be used for many things, for example, Property Appraisal for sale and purchase purposes, lease eligibility, and current lease studies and to assess tax objects to determine tax targets, assess regional assets for the purposes of preparing regional balance sheets / financial reports and to calculate debt composition and equity in the capital structure of a business.

Hopefully, this article can help you get to know about Property Valuation.

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