Rawaj Real Estate Appraisal

Items and steps based on and approved in the evaluation method

Rawaj is a professional appraisal company that adopts international methods in the real estate appraisal process to come up with a report that is closer to accuracy to reach the fair value of the real estate, and the methods are as follows:

Comparison method

The comparative sales method relies on statistics to deal with the modern real sales in the surrounding area of the target property or a similar area with the evaluation, provided that the comparative properties are closer to the property subject to appraisal in terms of quantitative and qualitative characteristics, then necessary adjustments and modifications are done according to scientific methods

Cost method

The cost method, which depends on three branches of science (cost accounting and engineering in addition to statistics to determine the value of the land or the residual value method that depends on income capitalization and accounting). The value of the construction of the property is calculated at the time of the evaluation according to the status on which it is based (the value of reproduction of reality) with deduction of various depreciations, if any, including (depreciation that can be repaired and repaired – external depreciation as a result of external factors – functional depreciation) and then adding the land value of the property to a comparative sale.

Capitalization method

Income capitalization method is the basic method for commercial real estate and is based on the financial and accounting sciences and financial analysis of the real estate, where dependence is made to reach the value in light of reaching the expected net income from the property after confirming the data according to the market, and different methods are derived from that method, from which the direct capitalization method which is calculated as (net income / capitalization rate) and the method of deducting future cash flows at the appropriate discount rate while not ignoring the last value of the property. It is preferred to use Excel program in this method.