Important information about the real estate appraisal

It is important to know the economic situation when carrying out the real estate appraisal process in order to know the conditions affecting the appraisal process. It is also necessary for those who evaluate the real estate to know some definitions in order to reach a professional appraisal. The Saudi Authority for Accredited Valuers held several courses, among its many axes were some information that I would like to provide:
1- What is the real estate appraisal process? It is the art and science of appreciating value at a specific time for a specific purpose.
2- What are the evaluation methods and methods? The agreed upon methods (market, cost, income) and methods (comparisons method, contractor method, investment method, earnings method, residual value method, cash flow method) and the reference for that is the international evaluation standards approved by the Saudi Authority for Accredited Valuers, which, by the way, is an independent non-governmental organization. profitability, aiming to set high quality international standards.
3- What is the method of comparison with the real estate appraisal? It is a joke based on real data from the market to find the actual value of the property or for rent through comparisons.
4- What is the realistic definition of building cost? It is the cost of construction less depreciation or amortization based on the number of years.
5- What is the depreciation or statute of limitations for the property? It is the gradual decrease in the value of the property as a result of use or obsolescence.
6- What is the definition of real estate reference information? And what is its importance? Definition: A detailed study of the property (location, building, etc.). Its importance lies in its reliance on collecting and analyzing information, which increases the professionalism of evaluation, determines the available and required real estate capabilities, and finally determines the effects on decision-making.
7- What is the difference between the price and value of the property? The price of the property is what the sale took place on, while the value is the amount that is put in the appraisal paper.
8- What are the sources of real estate data for the valuer? From accredited real estate offices, real estate registration, and finally real estate inspection.
9- Finally, the valuer may make a mistake and be right, and it is assumed that the value of the property in the evaluation does not differ from the value real The property has a percentage that may increase or decrease by 10% - 15%, according to what is customary in the real estate market, compared to the market price, and the valuer has nothing but the appearance from the statement of the property.
There is a potential for the price of the property to rise more than the value of the evaluation, in light of the availability of economic factors, such as speculation, the lack of available investment opportunities, which gives the property more room for movement, which leads to its rise, and finally the personal desire as well as in the event of the availability of information and opposite sources that were mentioned such as Economic factors, the lack of market speculation, and the large number of available investment opportunities will cause a decrease in the property price.