Appraisal of urban properties and buildings

Why a technical property appraisal is necessary

A property is often the highest-value item on a company's balance sheet — and the one most frequently carried at a figure nobody can explain. Historical acquisition cost, a broker's estimate, "what the neighbor sold for": none of them stands up to an audit, a serious negotiation or a challenge in court.

A technical appraisal exists to turn value into a substantiated conclusion. It is not an opinion about price: it is an engineering exercise that starts with an on-site inspection, gathers real market data, applies statistical treatment and arrives at a value with a declared degree of substantiation and precision — exactly as ABNT NBR 14653-2 requires and as auditors, banks and judges expect to find.

When your company needs an appraisal report

• Financial close and adoption of deemed cost — measurement of property/plant & equipment at fair value under CPC 27 / IAS 16 and CPC 46 / IFRS 13, with a report that supports the disclosure note.
• Corporate transactions — mergers, acquisitions, spin-offs, contribution of assets to share capital, shareholder buyout valuations and purchase price allocation (PPA).
• Collateral and credit — reports for financial institutions, fiduciary liens, credit notes and structured transactions.
• Litigation — court-appointed expert work and out-of-court disputes, technical advisory, expropriations, eviction actions, rent review proceedings and corporate dissolutions.
• Neighboring construction — pre-construction condition surveys and advance production of evidence, before excavations, demolitions or pile driving begin.
• Insurance — determination of the value at risk and the cost of rebuilding.

What we do

• Appraisal of residential, commercial and industrial buildings — houses, apartments, complexes, warehouses, industrial plants, corporate towers and urban land.
• Reports for financial reporting — deemed cost, fair value, value in use and fair value less costs of disposal, with the documentation auditors require.
• Court-appointed expert work and out-of-court disputes — acting as court-appointed expert or party-appointed technical advisor, handling expert questions, clarifications and technical defense.
• Pre-construction condition surveys and advance evidence production — recording the condition of neighboring buildings before, during and after the work, with photographic and crack mapping.
• Building inspection — classification of anomalies and failures by degree of risk and a maintenance plan in accordance with the IBAPE standard and ABNT NBR 16747.
• Appraisal of special-purpose properties — hospitals, schools, hotels, fuel stations and properties with no comparable market, using the cost quantification method.

Methodology

1. Document review — examination of the documents provided by the contracting company and characterization of the property based on them.
2. On-site inspection — survey of construction standard, apparent age, state of conservation, improvements and value-enhancing and value-detracting factors in the surroundings.
3. Market research — collection of listing and actual transaction data in the region, with identification of the source and cleansing of the sample.
4. Data treatment — direct comparison method through statistical inference (regression) whenever the sample allows; alternatively, factor-based treatment. For properties with no market, the cost quantification method with physical and functional depreciation.
5. Classification — determination of the degree of substantiation and degree of precision achieved, according to the tables of NBR 14653-2.
6. Report — complete calculation memorandum, spreadsheets, photographic record and ART (professional liability record) filed with CREA.

Deliverables