WHAT IS A PROPERTY EVALUATION?
A Property Evaluation is a procedure that in the most “classical” cases serves to establish in economic terms the most probable Value of a Property.
But it can also be used to calculate the Value of Italian Property Rights (e.g. Right of Way, Water Right, etc.) or to assess the Economic Amount of a Property Damage (e.g. Landslide Damage).
A Metric Calculation is also a Property Evaluation, carried out to evaluate the cost of materials and workmanship necessary to set up a Construction Site and carry out a Construction Project.
HOW IS A PROPERTY EVALUATION MADE?
In order to make an Evaluation we must always first ask ourselves what the real reason is.
The answer may seem simple at first glance. This is because when we think about the value of something, we often refer to its “market value”.
But the value of an asset is not just the “market value”, and will be different depending on the reason for which we make the Evaluation.
Let’s take a simple flat as an example: do we want to know how much it is worth on the current market as it is? Or perhaps we are interested in how much it will be worth once modified or transformed? And in this case, what will be the cost that we will have to bear for the work necessary for its transformation?
These questions lead us to look at the same asset (the flat) from different points of view.
These are the different Economic Aspects of a Property Evaluation, which a Professional Surveyor knows well, and to which it is necessary to turn in order to obtain an Evaluation that can meet our needs precisely.
Each of these Economic Aspects has its own method of application, and it will be the Professional’s task to identify the most correct one, following the appropriate procedure to obtain the Value we are interested in.