When you want to conduct a property valuation sale, it’s necessary to assess its value. It’s nearly insolvable to perform this procedure without special knowledge- “ by eye ”, because for this it’s necessary to rightly apply the assessment tools approaches and styles regulated by the Federal norms. The figure presented by the expert in the report must be accurate. For this purpose, specialists find and dissect large quantities of information, while all their conduct correspond to the established working algorithms.
Choice of Approach
A certain set of approaches containing several styles is applied to each type and type of real estate. assaying the object of assessment, the expert selects applicable tools for work that are optimally suited for studying the specific and standard characteristics of a particular property. For standard objects that have a huge number of similar analogues in Moscow, a relative approach is applied. The use of the system is also advisable in the evaluation of land plots, private houses.
still, for illustration, work is carried out with a unique object, If. In similar cases, it’s nearly insolvable to find a property with analogous characteristics on the open request, so experts only estimate the cost of construction. The income approach is applied to marketable parcels. Consider the features of each approach independently.
relative approach
still, information on the request value of which is intimately available on the network or indicated in published diurnals, analogues are compared, If a specialist is faced with the task of comparing an appraisal object with a set of analogous or analogous objects. Such a description is specified in Federal StandardNo. 1( clause 12). Paragraph 13 in the same FSO countries that information on the prices of completed deals or offer prices can be used forcalculations.However, the reviewer fails to collect data at the first stage of work, If information about proved completed deals is nonpublic and is in a database that isn’t accessible. For this reason, experts use information from open sources, but not about the trade prices, but about the prices in the offers.
The analogue must be similar with the object of assessment in terms of several cost- determining characteristics specialized, profitable, social and material. The most analogous property must belong to the same request member and be similar to the property in terms of price- forming factors.
In hunt of analogues, pundits use data published in the media, on property valuation websites, in technical services, and also cooperate with large real estate sale agencies that give information from their databases.