Independent expert assessment of all real estate types, advice on determining the value of real estate (house, cottage, apartment, land plot, building, premises, office)
The expert evaluation of real estate determines its market value, which should be established, for example, before the transaction. Economic valuation of real estate is regulated strictly enough
The valuation of real estate is roughly divided into five groups:
- residential real estate valuation (house, cottage, apartment)
- evaluation of office space or warehouse
- land plot valuation (including buildings situated on it)
- assessment of buildings and structures (apartment buildings, shopping centers)
- construction progress assessment
The methods of real estate valuation are chosen depending on the type of immovable property.
What Is Independent Valuation Of Property Cost?
Estimation of the real estate market value is the most common type of valuation activity. Appraisers here determine the price of the object and legal rights to it, after which a transaction, such as purchase and sale or lease, is carried out in respect of the object.
In the modern real estate market there is a large number of individuals and legal entities who need to conduct an independent assessment. Evaluation procedures are carried out by qualified appraisers. The result of their work is a report on real estate valuation, which is used as one of the main arguments in making transactions. It shall be submitted in writing and contains:
- characteristics of the site being evaluated
- applicable methods of real estate valuation
- list of documents used
- various calculations and charts.
The report received on the basis of the results of the real estate assessment is officially considered by the state and municipal authorities as well. Such a responsible approach is very important when assessing the cost of commercial real estate and housing to eliminate the risks that could lead to excessive losses.
Several types of property values are distinguished in the assessment of real estate. Thus, it is possible to carry out the following types of assessment procedures:
- fair market value of real estate, it determines price-cost probabilities that will be paid for the object on the open market provided there is a sufficient amount of competition. In this case, the value of the real estate should not be subject to any restrictions, it being understood that deal-making parties act reasonably and have all the necessary information
- сadastral valuation of real estate, which is usually carried out for tax purposes. Cadastral valuation of real estate is necessary in the process of any land plot transactions, as well as in calculating land tax base
- assessment of the investment value of real estate, which is carried out in respect of a particular investor
- Estimation of the residual value of real estate properties, which is usually significantly lower than the market value, as the sale takes place within the shortest period of time.
Replacement value is used in the process of concluding insurance contracts showing how much the construction will cost upon occurrence of the insured event.
Objectives of real estate valuation
The independent valuation of real estate is a procedure that is carried out in a variety of cases, from the sale to the determination of the share of the property. A well-conducted expertise will help you:
- to get a convincing argument for the purchase and sale, lease, mortgage, exchange, donation, inheritance
- to apply for a loan against real estate or a part of it
- to define the price of property for resolving property disputes.
- to register a part of real estate as an investment in authorized capital of another company
- to define the price of real estate for the evaluation of investment projects
- to define the price of the property to be insured
- to assess the amount of damage caused to the property by third parties
- to determine the property tax base
- to determine the price of the construction in progress
Assessment of residential buildings and individual premises (apartments, rooms) is carried out to determine the market value of ownership rights, leases, and other property rights in respect of the object under assessment. When assessing the market value of an apartment, all its characteristics are taken into account in detail. In particular, analysts in apartment valuation take into account such features as:
- type of house, the layout and the state of the finish
- home location
- remoteness from the most important infrastructure facilities
- storey and other nuances.
Assessment of buildings and premises
Our specialists assess the value of buildings and the technical condition of buildings of any complexity and purpose. In most cases such assessment procedures are carried out when it is necessary to apply for a bank loan or to determine the price of property for signing an agreement with the insurer. In addition, technical assessment of a building is performed for its placement on the balance sheet of the organization or contribution to the authorized capital. Our specialists after the assessment of the building condition are ready to submit a report with the necessary operative part, which will contain, for example:
- price per square meter of building
- rental rate.