Property Valuation/Appraisal Services

What is Property Valuation/Appraisal Service? Property Appraisal is a process of determining the value, whether market value, investment value, insurance value, or other types of value, of a property on a certain valuation date. Determination of the value of a property according to the American Institute of Real Estate Appraiser (1987: 63) and Eckert et al. (1991: 151) can be done through three approaches, namely the market data comparison approach, the cost approach, and the income capitalization approach. Property Appraisal Services are services to help determine the value of a property.

There are many property valuation/appraisal services in Indonesia, they grow along with the development of the economy in Indonesia. In the assessment, the value referred to is always the market value, which is the value formed from the strength of demand and supply in the free market, without any intervention from anyone in normal market conditions (not in the midst of a recession or a booming market).

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The value itself is actually an economic concept. An item will have value if the item is useful (has utility) and is able to provide satisfaction to humans and desired (desire). Goods will be more valuable if their useful value can be proven so that they are really needed (demanded) and are scarce.

Besides that, the goods needed must also be transferable to other people. So in a nutshell it can be said that an item has value if it meets these elements which are abbreviated as dust (desire / demanded, utility, scarce & transferable). So the value is a function of dust (Value f (dust)).

Asset/property valuation is currently needed by both the private sector and the government, both central and local, to increase accountability and create administrative order to encourage better and modern asset management (optimization).

Property appraisal can be used for many things, for example, Property Appraisal for sale and purchase purposes, lease feasibility, and current lease studies and to assess tax objects to determine tax targets, assess regional assets for the purposes of preparing regional balance sheets / financial statements and to calculate debt composition and equity in the capital structure of a business.

Property appraisal services can be used for general purposes, but currently, their use is more widely used by the business world and government agencies.