One of the key elements for a successful real estate transaction is the price of the property, which must meet the expectations of both the buyer and seller. That way, both see a fair deal and will realize the sale. However, establishing the price of the property is not something the owner can do arbitrarily. Thus, the perito valuador (expert appraiser) is an important figure in the industry, taking into account current market value, looking after the buyer’s investment and assuring the seller the appropriate return on the property.
The perito valuador is a professional in charge of estimating the value of a property, based on market research that analyzes elements such as demand, location, property characteristics and similar sales offers in the surrounding area.
Their job is to provide an opinion on value. At this point, it should be clarified that cost and value are two totally different concepts. To explain this, a classic car is used as an example: These vehicles can be worth many thousands of dollars due to their uniqueness, although the cost of production was significantly lower.
The role of the perito valuador is to establish a reliable price on the property, as it is backed by an industry professional. Subsequently, this fixed amount is used to calculate the taxes due for the purchase and sale of the property. Appraisal of a house or land takes approximately three days (depending primarily on its location) and is valid for six months.
It should be noted that the perito valuador can also appraise other goods, such as furniture, cars, boats, machinery and even some intangibles, such as services. Thus, they often collaborate with credit institutions and government agencies when calculating the value of collateral.
Appraisal of a house or land takes approximately three days (depending primarily on its location) and is valid for six months.
Until some years ago, architects, engineers and related professionals who had some diploma in valuation could be registered with Cadastre to serve like peritos valuadores. However, today there are new requirements that require obtaining a professional certificate issued by the Secretaría de Educación Pública (specialty or master’s).
As far as professional associations and institutions are concerned, at the state level there is the Consejo Integral de Valuadores del Estado de Jalisco (CIVEJ).
What Happens During an Appraisal?
During an appraisal, a perito valuador typically walks around a property and takes pictures of the outside, as well of each of the rooms inside. They may also measure the size of each room and take notes of any amenities they see.