A property appraisal determines the value of a real estate asset in a specific context, from the standpoint of the market. This guide gives a comprehensive overview of the Technical Market Valuation Report (PTAM), an essential document for many transactions that demands a meticulous, criteria-based approach.
What is a PTAM?
A PTAM is a report prepared by a qualified professional, with a detailed analysis of a property's value and its market potential. It is usually requested in situations such as:
- Buying or selling property — to know the fair value and negotiate on equal terms.
- Financing — so the lender is confident about the asset pledged as collateral.
- Estate inventories and partitions — for a precise, fair division among heirs.
- Legal proceedings — to determine the value of an asset in disputes.
Why appraisal matters
Recognized methodologies
The process requires established methods, applied according to the property type and the local market: the comparative method (sales of similar properties in the area), the cost method (construction cost and depreciation), and the income method (the property's capacity to generate revenue). The appraiser must understand the particularities of each and know how to apply them.
Who this guide is for: real estate agents and property managers, lawyers and accountants working with inventories and disputes, investors, and students interested in the technical and legal aspects of property appraisal.