A property valuation/appraisal service is a service to assess or estimate property prices. The results of this assessment can be used as a reference for those with an interest in following the desired objectives, such as buying and selling, assessing tax values , etc.
According to the Indonesian Professional Appraisal Society (MAPPI), the practice of property appraisal has become known in Indonesia since the 1970s. This is in line with the development of the business climate in Indonesia so that the need for property appraisal services from time to time continues to grow. As the name implies, the property appraisal profession handles various things related to property ranging from land prices to buildings such as houses, apartments, buildings, and so on.
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In considering prices, a property appraiser will look at various factors, such as price movements to date, ease of traffic, and environmental factors. A property appraiser generally joins the Public Appraisal Service Office (KJPP) or a property company. The appraisal profession is under the auspices of the official MAPPI organization.
Some of the objectives of a property valuation/appraisal for the purpose of buying and selling are, among others:
- Lease eligibility and assessment of current leases and to assess tax objects to determine the amount of tax;
- Assessing regional assets to prepare regional balance sheets / financial reports and for calculating the composition of debt and equity in the capital structure of a business;
- Assess and estimate the price of land and buildings such as housing, apartments, buildings, and so on;
- To set prices objectively following various aspects such as price movements to date, ease of traffic, and the surrounding environment;
- Communicate and provide property consultations to clients;
- Implementing arrangements, guarding, escorting, and patrolling the community and government activities as needed;
- Provide data reporting containing analysis of property market trends;
- Examine properties to evaluate construction, condition, special features, and functional design, and take appropriate measurements;
- Calculates the final estimate of the property's value, taking into account factors such as depreciation, replacement cost, comparable value of similar properties, and potential income;
- Prepare written reports that estimate the value of the property, outline the method by which the estimates are made, and meet valuation standards;
- Collect and analyze relevant data to identify property market trends;
- Check records of a property's operating income and expenses.
- Property appraisers are also different from the real estate agent profession even though their respective jobs are closely related.
Basically, appraisal services can be used for general purposes. However, currently, the utilization is mostly used by the business world and government agencies.
Thus a short article about property valuation/appraisal, hopefully, this is useful.
