For finance and economics, is considered valuation or appraisal to the contemplation of various indicators in particular to determine the final value of a product or of any kind and, thus, facilitate its Exchange in economic operations.
A type of assessment is the urban development that seeks to assess property and rights of real estate type, often in order to distribute costs equitably among participants or owners in a case of transformation or similar. Different valuation methods in these cases, such as the method of comparison (of similar goods), there are the capitalization (in terms of the NET performance produced by the property), the rateable value (pricing of land registry in accordance with the existing public regulations), and the residual value of the soil.
It is appraised in cases in which an owner want to sell a property and you want to receive an official estimate of the value as a parameter of reference for potential buyers. These valuations tend to contemplate criteria location, size, conditions and other indicators.
Pricing also commonly the term is used for purposes of determining the value of objects as works of art, jewelry, collectibles, vehicles and others. The valuations of objects may occur to the effect that the owner of them can exchange them for money in Exchange. But also take place very frequently when it's exclusive and unique pieces that will be put to auction and is so accurate assessment to determine a price for the auction which will be increased (or not) based by interested buyers.
The valuation or appraisal, although it works with different methodologies, usually contains a share of subjectivity and social value for the determination of the final cost.
Article contributed by the team of collaborators.