Immovable Property Valuation

What Is Immovable Property Valuation?

Immovable property valuation is the formal and legal equivalent of real estate appraisal. It refers to the process of determining the economic value of land, plots, residential properties, commercial real estate, industrial facilities, and all other immovable assets through professional methods. Upon completion of this process, carried out by CMB-licensed valuation experts, an immovable property valuation report is prepared.

Immovable Property Valuation Methods

Three internationally recognized core methods are used in immovable property valuation. The Sales Comparison Approach is based on comparing the prices of sold properties with similar characteristics. The Income Capitalization Approach evaluates the income-generating potential of the property. The Cost Approach calculates the cost of reconstructing or replacing the property. The valuation expert selects the most appropriate method -- or a combination of methods -- based on the specific characteristics of the property being valued.

When Is Immovable Property Valuation Required?

Immovable property valuation may be required for a wide range of purposes: collateral assessment during loan processes, determining fair market value in purchase and sale transactions, asset valuation in mergers and acquisitions, establishing equitable value in inheritance distributions, determining compensation in expropriation proceedings, setting insured values for insurance policies, and preparing expert witness reports for court proceedings.