TS 86 – Valuation Methods

A surveyor working on the Italian real estate market will often find himself appraising the architectural, historical, and artistic qualities of properties. In these circumstances the surveyor would rely on the appraisal system, which is a market oriented method of valuation. The appraisal system applies the principles of the Market Comparison Approach, which is based on the collecting of comparable properties and the adjustments of their prices, based on the characteristics of all comparable properties and those of the property being valued. The appraisal system is formed by a system of equations which are capable of calculating the value of the property to be appraised and the monetary adjustments (hedonic prices) of the real estate characteristics employed in the valuation, especially the adjustments of the qualitative characteristics of the properties