A real estate appraisal report estimates the value of a property, or of a right over it, at a valuation date, with explicit method, market data and level of support. In Brazil it follows ABNT NBR 14653 and is signed by a licensed engineer or architect with a technical responsibility record.
Real estate funds (FIIs) use the report when acquiring properties, for in-kind contributions and for periodic fair value measurement. Banks and securitisation companies require collateral appraisals, and companies need it for investment property, business combinations, impairment testing, insurance and corporate transactions.
In disputes, the report determines rental value in lease renewal and review actions and property value in expropriations and divisions of assets, as technical evidence or as an expert's opinion for one of the parties.
ABNT NBR 14653 · IAS 40 · IFRS 13 · CVM Resolution 175
The standard provides for the direct comparison, residual, cost and income capitalisation methods, chosen according to the property and the available data. The report states the level of support achieved (grau de fundamentação), from I to III, and, under the comparison method, the level of precision (grau de precisão).
Urban properties follow part 2 of the standard, rural properties part 3, and income-producing ventures (empreendimentos), such as hotels and shopping centres, part 4. For foreign investors, the report may also follow the RICS Red Book and IVS, reconciling the bases of value.
NBR 14653-1 to 14653-4 · RICS Red Book · IVS 400
Appraisal reports under NBR 14653 are prepared by engineers and architects registered with CREA or CAU, who sign them under an ART or RRT. A real estate broker registered with the national appraisers' register (CNAI) issues a market valuation opinion (PTAM), useful as a price reference in negotiations and governed by the brokers' council rules.
For funds, bank collateral and financial statements, the usual document is the NBR 14653 report, which carries traceable method, support and technical responsibility.
Law 5,194/1966 · Law 12,378/2010 · COFECI Resolution 1,066/2007
When the property belongs to an SPV with debt, cash and other assets, the value of the interest also depends on a valuation of the vehicle. CBG delivers both valuations within a single engagement, with its Real Estate Appraisal and Business Valuation teams.
The work includes a site inspection, document review (title registration, leases, permits), market research and statistical treatment of the sample. The report carries the calculation trail and the source of every data point, and is signed by an engineer registered with CREA under a technical responsibility record.
The standard sets no validity period. The value refers to the valuation date, and each use defines the update it needs. Funds and banks usually ask for an annual reappraisal or one after a material event.
An engineer or architect with active registration at CREA or CAU, with a technical responsibility record for the work (ART or RRT).
They serve different purposes. A PTAM, issued by a broker registered with CNAI, is a price reference for negotiations. For funds, collateral and financial statements, the usual document is the NBR 14653 report.
It is the classification, from I to III, that the standard assigns to the report according to the quantity and quality of the data and the treatment applied. Contracts and regulations may require a minimum level, as in bank collateral.
CBG appraises rural property under NBR 14653-3, covering bare land and improvements. Urban land and land held for urban development follow part 2, and part 4 covers income-producing ventures (empreendimentos) such as subdivisions, hotels and shopping centres.