Currently, according to the international trend, real estate transactions are evaluated by an independent organization of valuation consultancy to ensure objectivity and transparency in the transaction process of property.
A property is rated as the highest and best use if at the time of valuation it shows that the property is being used legally and is giving the largest net income or the present value of the future's net income is likely to be at its largest. That highest and best use can persists and lasts for a certain amount of time.
Pursuant to Civil Code No. 33/2005/QH11 passed by the National Assembly of the Socialist Republic of Vietnam on June 14, 2005, real properties properties shall include:
- Land; houses and constructions attached to the land, including properties attached to such houses and constructions;
- Other properties attached to the land;
- Other properties specified by law.
Pursuant to the International Valuation Standard 2005, real property is defined as land and man-made structures attached to land.
Real estate valuation is an estimate of the value of specific real estate title in monetary form for a well-defined purpose under certain market conditions in terms of appropriate methods.
Objects and assets of real property valuation include:
- Types of land: residential land, agricultural land, land with gardens, production and business land, special-use land, other land, etc.
- Construction works, works on land (including properties attached to that construction work): townhouses, apartments, villas, schools, hospitals, etc.
- Land for projects of factories, trade centers, apartments, office buildings, etc.
- Restaurants, hotels, resorts, etc.
- Real properties valuation for financial and credit purposes: using real estate for mortgage loans; Valuation for real estate insurance contracts.
- Real properties valuation for determining lease fee: It helps to set lease fee level; to set lease conditions.
- Property valuation to transfer ownership: it helps the seller determine acceptable selling price, and it helps the buyer determine acceptable buying price, it helps to establish the basis for the exchange of real estate with each other.
- Property valuation for real estate development and investment: to compare with investment opportunities in other real estate; decision on the chance of making investment.
- Property valuation in enterprises: To make annual financial statements, to determine the market prices of investment capital; to determine business value; purchase, sale, consolidation and liquidation of the company's real estate; to have a plan to handle real estate when reforming state-owned enterprises.
- Property valuation to meet legal requirements: To find annual taxable value for real estate; determination of compensation value when the State recovers real estate; to determine tax when a property is sold or inherited; the court decides to divide real estate when hearing cases; to determine the price floor for the auction of public real estate; to determine the price floor to serve the sale of confiscated real estate, and remittance to the State fund, etc.
- Sales comparison method
- Income method
- Residual method
- Certificate of land use right, related legal documents.
For getting consultancy on service of real property valuation, please provide us your contact in the box below:
Contact for appraisal: 096.308.2527 - 0963.133.613 - 0939.71.5555
Email: [email protected]
