Getting accurate appraisals is an important part of sales transactions in Latin America. A Latin American appraisal is the key to determining a fair sale price for any property. This sort of valuation is required for purchases of commercial properties as well as investment properties.
In the United States, valuation of property is supported by many clear records and other factors that can be calculated by experts. However, in Latin America, there are a variety of unique complications that make choosing the best appraisal company even more important.
In fact, there are several obstacles to accurately valuing property in Latin America. These problems include a lack of accurately recorded sales history for previous and comparable sales, diverse land, diverse socio-economic neighborhoods, and lack of government valuations for tax purposes.
How can you overcome these obstacles to create a proper valuation? How can you get the most accurate appraisal so you can have confidence in the price set for the purchase or sale of your property? Hiring the right people is the key to ensuring accuracy.
Who Needs Appraisals in Latin America?
Latin America is a beautiful and diverse region of our world. Latin America includes a collection of 20 sovereign states stretching from the northernmost border of Mexico to the southern tip of South America. This includes the Caribbean.
Latin America has much to offer residents and visitors alike. Countries such as Brazil, Costa Rica, and Mexico are becoming hot spots for foreign investors. In almost every Latin American country there are large areas where businesses have chosen to open. They find that by operating in these regions, their employees can also enjoy the beauty and simplicity unique to each country. And with so many vacation destinations in the countries, a growing number of people are buying second homes, especially along the coastlines.
What Makes Getting Accurate Appraisals Difficult in Latin America?
Are you looking to buy or sell your commercial property in a Latin American country? Are you thinking of purchasing a commercial building there? There are a variety of things that make getting an accurate Latin American appraisal difficult but critical. It is important to hire a company experienced in navigating the obstacles unique to each area. This will ensure you can have full confidence in the price set for your transaction.
One of the biggest complications with a Latin American appraisal is the lack of efficient record keeping for prior sales of property. Often the sale prices for previous transactions are not registered in a meaningful or accessible way. The public, and even real estate agents, often do not have access to accurate historical sale prices. Unfortunately, it is equally difficult to find the sale prices for comparable sales.
To make matters more complicated, government property valuation for tax purposes is often not completed on a regular basis. If these assessments occurred on a more regular basis, they could provide a baseline for valuation by an appraiser. A few countries such as Chile, Colombia, Costa Rica, and Guatemala require property assessments to occur at least every five years. Five years can bring a lot of changes to a home. Consider, though, that property valuations for tax purposes have not occurred for more than a decade in some countries!
The time elapsed between assessments is not the only problem. Unfortunately, such evaluations are often not very accurate anyway. Governmental property assessments are either determined by self-assessment, or by mass assessment. This means the owner sets a property value with little guidance. Otherwise, we use a formula for a large grouping of properties to determine value. This sort of valuation does not take into account each property’s uniqueness in structure, upkeep, and land.
You Can Get an Accurate Latin American Appraisal
These obstacles make it difficult, but that does not mean it is impossible to get an accurate valuation of a home you wish to buy or sell. It is possible to get a very precise assessment, but to do so you must use an experienced appraisal company.
The appraisers at Global Valuation are perfect for the job. Each of our highly trained appraisers boasts an impressive list of qualifications. In addition, Global Valuation has a solid history of evaluating properties in the countries of Latin America.
Global Valuation Is the Right Company for Your Latin American Appraisal
In short, it is wise to choose a well-established company experienced with the difficulties of a Latin American appraisal. You need a company that knows how to tackle the unique obstacles inherent in obtaining accurate valuation of property.
Need a Latin American appraisal performed? The Global Valuation team can help you get the facts you need. Simply call (770) 988-4498 for more information.