¿What is an appraisal?
An appraisal is a professional opinion about a property’s value, expressed in currency units at a given date for a particular applicant, to be used for a specific purpose. This opinion carries a fundamental condition: it must be disinterested, technically sustained and impartial.
Types of appraisals
Appraisals and valuations are classified according to needs. The most common types are: appraisals for succession processes before Notary, value in use, for market selling or buying, for investments and for fiscal reasons.
Appraisals for Succession Processes before Notary
It’s common for Notaries to require a Judicial Appraiser for the assessment of inventoried property in succession processes. For this type of appraisals we have specialized professionals in assessing judicial appraisals.
This type of appraisal is made when the market value of a property (fixed assets) used in productive activities (land or buildings) such as factories, hotels, shopping malls, schools, warehouses, livestock or agricultural farms, tourist projects, etc., must be known. Usually the market value is needed for evaluation reasons, restatement of financial statements or mergers, insurance, credit guarantees or other related reasons.
Buying or Selling Appraisals
These are the most common type of appraisals, and are made with the purpose of determining the market value of a property that is to be sold, bought or leased.
In Costa Rica these appraisals are important and necessary, since they are required for the Real Estate Tax Affidavit (Law 7509) that must be presented to Municipalities. Also, they are required for the Solidarity Tax for the Strengthening of Housing Program Affidavit (luxury house tax, Law 8683) that must be presented to the General Tax Administration (Dirección General de Tributación).
At BUENAS RAICES S.A., we have a select group of specialized professionals that can make any type of real estate appraisal in properties such as:
• Lots (residential, commercial, industrial, etc)
• Farms (agricultural, livestock and touristic)
• Warehouses and industrial plants
• Buildings (whatever its use)
Additionally, if you require so, we offer professional services in other fields, such as:
• Engineering (all areas)
If you need more information regarding property appraisals in Costa Rica, please contact us. It will be our pleasure to help you.