The main criteria for the assessment of real property and personal property are usefulness. The procedures applied in the assessment process have the same goals and calculated to define the level of functionality from the properties assessed. This process requires the interpretation of the concept of usefulness.
Utility is a term that is relative or comparative and is not an absolute condition. For example, the use of agricultural land is usually measured by production capacity.
Value is a function of quantity and quality of production that will be generated from agricultural land or of the quantity and quality of the building is very important for the operational activities of agriculture.
When the land has development potential, productivity will be measured by how productive land can be developed into housing, commercial property, industrial or mixed use. Thus, the value of land is determined by evaluating the usefulness of the legal aspect, namely the laws that apply, physical condition, function, economic conditions, and environmental factors that determine productivity
Fundamentally, property assessment determined by how the property is used and / or how the property is usually sold in the market. For some properties, optimum functionality achieved if the property is operated by retired. Other properties have a greater usefulness if operated as part of a set of properties, for example, a property that is owned and managed by agencies such as the network business center, restaurant or hotel Italy. Therefore, it must be distinguished between the uses of property are seen as a solitary, and when part of a group. Assessors will see the property as the perspective of the market. In general, mengestimasikan Evaluation and report the value of the properties individually. If the value of the property seen as part of the group, or portfolio, different from the value of the benefits, then this value must be considered
Property is usually self individually assessed and individually, too. If the assets that increase (or decrease) in value because of functional or combined with other assets economy, where the difference between the value of these can be reviewed in the process of evaluation and assessment stated in the report, both requested by the client or based on the observation Evaluation own. Estimated value definition can be expressed as Market Value equipped with supporting explanatory statement.
An individual properties may have additional value or value in the Special value as separate entities due to the relationship of physical or functional properties with next-owned by the other party or because of the attraction to buyers with special interests. The amount of additional value, or Special Value generally reported sep
Utility is measured from the perspective of long-term, usually beyond the normal age of a property or group of properties. However, sometimes a property to Redundant, or moved from production activities, modified for the use of alternative or function, or may not solely used for a while. In the other hand, the external market conditions, economic or political, can cause a decrease in production for a period that can not be determined. Rating the situation so requires special expertise and training, and reporting should be conducted in accordance with the Standard Assessment. Assessors should ensure full disclosure and explanation about the definition of value, the data used in the assessment, and the assumption of special or limitation (if any) that limit the assessment
source: Indonesia Standard Valuation (SPI)