ASSESSMENT CRITERIA
INCOME FOCUS
Definition
National Income (RN) is defined as the
remuneration or income received by all
national (non-foreign) productive factors for
participating in the production process for a
period of time.
Frequent use
National income allows us to measure
the economic development of a country
as it serves to: Know if progress remains
the same or recedes. Appreciate the
contribution made by the different
sectors of economic activity.
REAL OPTIONS
Definition
Real options are known as the possibilities
that some projects have to introduce, in the
future, modifications in productive
investments, thus increasing their value.
Frequent use
When the uncertainty is quite extensive.
When the value is appropriate for future
growth options.
When there is updating of projects and
corrections of mid-term strategies.
MARKET APPROACH
This approach is generally used in land
valuation, but it is also used in built real
estate.
COST FOCUS
Definition
Approaches are criteria or ways of
determining the cost of a product or service
for inventory purposes, that is, for the
valuation of the asset or economic resource
that is being developed.
Frequent use
Provides key information to
administrators for decision making,
making wise decisions will cause great
performance.
It is based primarily on the Principle of
Substitution. It is the most direct procedure
and is based on statistical data of offers and
/ or operations performed (Comparable),
which through its analysis and approval,
(Adjustments), allow to estimate the value of
the property under study (Subject).