How to correctly evaluate the castle area: Features

After the formation in our country of market relations in the field of real estate, the value of real estate is constantly growing. Real estate are serious value and any decision to buy or sell them requires a responsible approach. This, in turn, determines the stable demand for independent real estate assessment services.

The cost of any property is based on the value of the land on which this object is located. It often happens that the cost of the land is greater than the total cost of all existing buildings on it. Indeed, the land determines the most important quality of the property – its location. In addition, the Earth, unlike man -made buildings, is not subject to physical wear andar and practically does not lose its consumer properties over time, which means that the cost of land, most likely, will only grow over time. All this makes land plots an attractive object for investment.

The process of independent land assessment, in contrast to the assessment of man -made real estate objects, has its own characteristics. The main feature is that the costly approach is not used to determine the cost of undeveloped land plots. This is due to the fact that the costly approach, first of all, is based on the principle of replacement, that is, calculation of costs of the construction (creation) of a new real estate object, identical to the object of evaluation, and in relation to land plots this principle cannot be applied.

The main approaches used to assess the market value of the Earth are profitable and comparative. The profitable approach is based on the construction of a model of future income from the operation of the land and considers the market value of the site as the current value of future income from its use. This approach is well adapted for evaluating the land intended for commercial development, that is, for the construction of commercial public buildings or commercial housing. At the same time, this approach is not used to evaluate the Earth, which is not intended for the targeted extraction of income. Such lands include areas intended for individual housing construction, summer cottages, etc. P.

The main approach, which is widely used to determine the value of both commercial and non -profit land, is a comparative approach. When assessing the land by comparative methods, the value of the assessed land plot is calculated on the basis of the prices of transactions with similar land plots that were recently committed in the area under consideration.

In order to determine the market value of the land plot with a comparative approach to the assessment, you must first collect information about similar areas that have been recently sold in the neighborhood. If there is no way to get data on the prices of the transactions, you can use the prices of proposals for the sale of land, but the prices of offers must be adjusted by the amount of the so-called adjustment for bargaining, that is, by the amount of a possible discount, which the seller can provide in the process of concluding the sales transaction.

After the analogs are selected, it remains only to make simple calculations to determine the cost of the site in question. To do this, first the cost of 1 square meter of land for all analogues is calculated, and then the obtained values ​​are averaged. The average value will be the market value of 1 square meter of the estimated area. To form the final result, it remains only to multiply the resulting value by the total area of ​​the land plot in question.

As can be seen from the description, the use of a comparative approach in determining the market value of the Earth is not particularly difficult. Comparative methods for determining the value of land are quite universal and, despite their simplicity, are able to give very accurate evaluation results.