Work phases of the Euroval appraiser
The Methodology for preparing valuation reports by the appraiser at Euroval is described in two phases:
2. Control and Validation
1. Visit to the property
- Checking the environment based on equipment, communications, infrastructure and location.
- Physical identification of the real estateby ocular inspection. Checking surfaces, visible easements and their occupation status.
- Characteristics of the building: construction, equipment, qualities, finishes, installations, conservation, etc.
- Adaptation of the real estateurban planning.
- Sketches and photographs.
2. Documentary study
- Verification of its registry description and of the writing surfaces, with those obtained in the optional visit, in the terms foreseen in the corresponding valuation methodology.
- Verification of possible discrepancies with the cadastral data: area, permitted uses, boundaries, age, annexed elements …
- Lease agreements and additional documentation, in the case of leased goods.
- Maximum legal value, for Dwellings public protection.
- Opening licence for commercial premises.
- Project visa and building permit for real estatesunder construction.
- Study of the urban planning for land and plots, and where appropriate, the existence of the right to urban use that is valued.
- Economic data from the last 3 years and social security data, to be real estateslinked to an economic exploitation.
- Any documentation deemed necessary by the acting appraisal team.
3. Information and market research
- Study of the supply, demand and expectations of the real estate market, relative to real estatescomparables by use and typology, with which it is the object of the appraisal .
- A survey of witness values for sale, or recent transactions, homogenising the values real estatesin relation to the property being surveyed appraisal
4. Calculation of values
- The appraiser fills in all the information collected in the computer application SET – Expert System of appraisal .
- SET directed by the corporate technical criteria and the appraiser:
- It obtains the geographical coordinates of the location of the real estate.
- He gets the cadastral information from it.
- It obtains the maps and plans to be incorporated in the appraisal .
- It obtains the comparable tokens according to their geographical coordinates and characteristics
- It homogenizes the control values in relation to the property that is the object of appraisal .
- It calculates all the technical values required by current regulations.
- It obtains the value according appraisal to the required purpose.
5. Final observations and considerations
- The appraiser complements with his own considerations and observations on the real estateobject of valuation those already automatically established by SET according to corporate technical criteria.
6. Attachments to Real Estate Appraisal Repors
- Site plans and location of the real estate, and dimensional drawings or plans of the appraised property shall be included in the valuation reports.
- Photographic report of the interior and exterior of the real estate.
- Documentation used by the appraiser for the preparation of the report, according to the regulations and valuation methodology used.
Control and Validation
File Control and Validation
- It is carried out by the company’s control and validation department, made up of technicians with experience in carrying out valuations of more than 3 years.
- All the files are reviewed, consulting the information generated by VAE (Validation Assisted by Euroval) – our own computer application, checking the methodology used, reviewing and correcting any deficiencies found and checking the values obtained against those in the company’s external database.
- The exhaustive checks carried out by the department consist of
- Correct location
- Areas (measurement, registration, cadastre)
- Urban situation (land)
- Witnesses used:
- Checking the reliability of the source (private individual, api, developer)
- Verification of the reliability of the information in it (value, area, age)
- In the event that all the information contained in the witness is deemed to be true, the witness is validated.
- Checking the values: Valuations carried out in the area beforehand
- Statistical value devices: VAE
- When the department considers it convenient, it will return the file to the appraiser, so that he can correct the possible deficiencies, entering the file again when it is received again, in the validation circuit.
- Other important functions carried out by the department are
- Follow-up of the rectification of those found
- Monitoring and resolution of technical complaints
- Qualification of appraisal technicians
- This whole process is assisted by SET – Expert System (own appraisal computer application for preparing appraisals) and COM (computer application for communications also own)
VECA (Verified and Automated Statistical Validation)
When one appraisal arrives at the validation department it is accompanied by VECA, this is the process that reviews one appraisal before it arrives at the validator and generates information to help the validation process.
From the information that VECA provides to the validator, it is worth mentioning
- Customer-specific requirements
- Peculiarities according to the purpose of appraisal
- Comparative study of values of the area and the appraisal :
- Contrast the value of appraisal with Euroval’s internal value sources and external sources.
- Sample quality
- Warnings and conditions
- Surface transformation coefficients.
- Legal aspects such as the public protection regime, the lease…
- Registration match with another appraisal .
- Market situation control
- Attached documentation.
VECA contrasts the value of appraisal with Euroval’s internal value sources and external sources.
- INE (National Institute of Statistics) land Dwelling and price
- IAEMI (Reports and economic analysis for the real estate market).
- Leading external supplier of real estates
- Local markets Euroval