The necessity of valuing a property

During the last decade, the unprecedented development and dissemination of mortgages and business loans, also showed the necessity of assessments as a necessary element of any loan transaction.

The assessment identifies and spells out the commercial value of the property which is one of the key elements of the process of administration.

In Cyprus, the identification of commercial values of the property was object and the basic parameter of various economic and political considerations and expressed piecemeal at will and without any economical criteria.

The institutionalization of the system of objective determination of values encountered, even partially, the problem, but clearly laid the foundations for the modernization, social justice in this area and compliance with applicable the European community.

Within the rational development and operation of real estate, the concept Assessment is an integral tool helps to create infrastructure and facilitate mortgage transactions.

The rapid development of the Real Estate, made numerous changes and innovations in the conventional sense of the commercial value of the property, which longer depend on many parameters, the economic orientation of society and the economic and political choices.

Today, the assessment requires complete documentation, which results from research of land and use of specific methods and valuations in some cases, a combination of economical and statistical models methods relating to risk the investment.

Of course, Cyprus, structured Property (Real Estate), is undergoing yet childhood or even the pre-teen age. It has become aware that existence of a documented assessment, a key point facility, but and much more to ensure the interests of the individual.

The state, but all those involved with the subject entities must contribute to the citizen to obtain the "conscience" in regard to the valuation of assets. This will guard against inappropriate actions, wrong choices and will certainly contribute to the mental tranquility.

Becomes quite understandable that these can not be achieved amateurism, but requires the assistance of professional valuers.

Today, the estimates reported in both the private construction (houses, blocks, etc) and professional (office buildings, stores, hotels, commercial and industrial construction, etc.). In the case of residence, he addressed the appraiser to determine how the choice of the property is correct, based on their needs, whether meets the applicable planning provisions and whether they agree with existing market values of similar properties.

Assessing a business property is more complex, and assistance of a professional appraiser has even greater value.
In commercial properties taken into account many parameters, the main which are those land uses, existing planning provisions and restrictions, location and quality of the property, the depreciation of capital, the feasibility of investment in relation to the condition and value of the property. Repeatedly seen cases in which acquired properties (especially parcels) versus high amounts, which could not be used for activities for which acquired, the prohibition of related uses.

The development of new advanced methods of valuations, combined with statistical the risk to avoid failures, adds even more value to process of assessing a property.

We have already entered an era where the Property will be developed more drafted and will follow specific guidelines, which will be result not only great experience, but also specific economical options.

Under this new phase of development of land, the contribution - involvement of the professional appraiser will be required.