The concept of “building valuation” implies the determination of the price of the object, as well as the determination of rights (ownership, lease, etc.) in relation to the property to be priced.
The basis and purpose for assessing the value of the premises are such prevailing circumstances as:
- buying or selling;
- the need for real estate insurance;
- entering the building into the statutory fund;
- transfer of immovable property to the heir after the death of the testator;
- obtaining a bank loan providing for a pledge of real estate;
- implementation of court decisions.
Reference. The grounds for assessing property belonging to the category of immovable may be different, but they all have a legal basis, which is based on the legislative acts of the Russian Federation.
Legislative basis
The articles of the law stipulate the essence of such activities in the Russian Federation, determine the persons conducting the valuation of real estate, establish the rules and requirements for the valuation of the premises, and also indicate cases that provide for the establishment of the appraised value of the premises.
Features when determining the cost of the premises
The real estate appraisal procedure takes into account some features when determining the price of an object and depends entirely on various circumstances that are decisive in carrying out such activities. The valuation of property belonging to the category of immovable property must take into account:
- type of building;
- purpose of the object;
- condition of real estate;
- the location of the building;
- building dimensions;
- availability of transport communication with the object.
Taking into account all these factors allows us to determine one of the three categories of assessment applied to the object, which involves:
- market valuation of real estate;
- cost estimate for the object;
- income appraisal of the property.
Each category provides for a specific purpose for which real estate valuation will be carried out, as well as several types of determining the value of an object: consumer, insurance, investment, collateral, disposal, and others.
Important! Completion of the object valuation procedure involves the provision by the valuation organization of a complete package of documentation to the customer with a description of all the reasons that influenced the final result of the valuation.
Characteristics of the stages
The procedure for assessing certain real estate objects consists of several stages necessary for its implementation, according to which the appraiser determines the basis for the sequence of his actions.
The legislative process of real estate valuation is characterized by the following actions:
- characteristic features of the property are determined.
- Market conditions related to real estate are analyzed.
- Methods for assessing immovable objects are selected and the necessary calculations are made for this.
- The values obtained as a result of the actions carried out by the appraiser, which determine the value of the object, are formed and analyzed.
- The customer receives a full report on the price of construction, as well as a detailed statement of all the reasons that had an impact on the final price.
Estimated property price
Calculations involving the assessment of the price of the premises depend on the characteristics of this very premises, as well as on the purpose of the assessment and other conditions and features.
The estimated price of the building takes into account:
What is the date of the procedure?
The construction appraisal date is a calendar day on which the specialists of the authorized organization determine the final declared and fixed cost of the object, regardless of the date of the report signed by the appraisers.
The valuation date implies a special requirement, according to which the price of an object is tied to a specific number of its final valuation.
Such a requirement is necessary to fix the valuation of the premises on a specific date in the face of constantly changing market prices.
If the object is an apartment
An appraisal of an apartment necessarily provides for an inspection of the residential premises by a representative of the company evaluating it, and also takes into account in detail all the features and details of the premises for which the price should be set.
When an expert appraisal of an apartment is carried out by a specialist, the following actions are provided:
- selection of the organization that will carry out this procedure.
- Preparation of documents necessary to start the process of determining the cost of an apartment, which provide for the provision of:
- a document confirming the right of ownership;
- registration certificate or USRN certificate;
- floor plan;
- the passport;
- explication to the floor plan provided by the owner.
- Carrying out photography of a dwelling, entrance, courtyard, facade of a building at a certain address to assess its attractiveness.
- Entering data on the premises in the inspection sheet, on the basis of which an authorized person will draw up a report and determine the cost of the apartment.
Cost setting adjustments
The procedure for assessing real estate objects by authorized persons cannot pass without making amendments to the standard documentation developed by organizations. Adjustments directly depend on certain characteristics of the object, the location of the property, as well as on a large number of reasons that affect the final determination of its value.
The amendments being made take into account:
Reference. Each amendment made to the document has its own characteristics, and also depends on a number of reasons and conditions encountered in the evaluation.
per building type
An amendment providing for the type of building is made by the appraiser in cases where the house belongs to the category of block or panel structures, which reduces the cost of the apartments located in it in the amount of 10-15%.
For residential buildings built of brick, such an adjustment does not apply, the document already provides for a certain calculation formula intended for such buildings. Houses built from more modern, safe and environmentally friendly materials are always more expensive than outdated structures.
Cost accounting
The valuation of real estate involves an income approach to accounting for the funds spent on the maintenance and operation of the valuation object, where all possible income and expenditure options are taken into account.
The results obtained are reflected in the budget, according to which it is possible to calculate the cost in this category of accounting.
Operating expenses
Determining the value of real estate takes into account the costs of maintaining and operating the facility, and classifies them as operating expenses (OP). In turn, such operating costs are divided into three types:
- expenses are conditionally fixed. This type of costs implies costs taken into account by appraisers and applied for the stable functioning and operation of the property.
The amount of semi-fixed costs does not depend on the workload of the object subject to the assessment, and the amount of operating costs for its maintenance is stable and is at the same established level.
- Costs are conditionally variable. A type of cost that depends entirely on the workload of the immovable object.
- replacement costs. Costs intended to replace decommissioned parts and elements of the building. Such expenses, because they are credited to a separate fund, are called reserve expenses.
What is to be assessed?
Property
Each property, depending on the conditions of its location, design, purpose of destination, as well as many other factors, has its own specific features. There are no two absolutely identical objects to be assessed.
An individual approach to establishing the value of real estate takes into account all the details of the assessment that may affect the final result of determining the value of the object.
Apartment renovation
In order to establish the actual cost of the apartment, it is necessary to evaluate the repairs made in the apartment and add to the cost of housing the amount that was spent on the repair of the premises. In cases where repairs have not been made, the actual cost of the dwelling is calculated from the money that will be required for repairs.
In practice, the assessment of the repair of the premises allows the appraiser to perform his actions in the sequence established by the company:
- a representative of the organization analyzes the physical deterioration of the dwelling;
- The specialist of the company carries out all the necessary measurements to determine the cost of repairs;
- Based on the results obtained, the representative of the organization assesses the general condition of the apartment;
- At the final stage, an estimate is prepared that provides for the cost of repair and construction work performed in the premises, and the price of materials is calculated in the event that the premises require repair.
Apartment repairs are assessed for various purposes, but basically the customer invites an appraiser to his living space in order to buy and sell housing, as well as assess the damage caused to the premises in order to file a lawsuit in the courts.
Reference. For a better assessment of the apartment, the customer can provide the appraiser with sales receipts, acts of work performed, contracts, invoices and other documentation. The additional information obtained will help the specialist to establish the real cost of repairing the premises.
home furniture
In order to evaluate the furniture in the apartment, a specialist needs to analyze the consumer qualities of the property present in the room, take into account the year of manufacture, study the state, supply, demand, and draw a parallel with modern analogues.
The appraisal process includes an inspection of the property, its photographing, as well as the preparation of accounting documentation on the actual value of the furniture.
The most common furniture appraisal procedure occurs during the following operations:
- buying or selling premises;
- rent;
- donation;
- inclusion of furniture in the statutory fund;
- taxation;
- division of property;
- insurance process.
Rooms
A distinctive feature of the room appraisal is the procedure for determining the value of a share belonging to one of the owners, which is calculated by dividing the appraised amount by the number of owners registered in the room.
The assessment of the room is carried out in the presence of such necessary documents:
- passports of the owners of the premises;
- a document confirming the rights to a dwelling;
- registration certificate or certificate from the USRN;
- floor plan;
- explication.
Attention! In special cases provided for by law, a document confirming the right to enter into an inheritance may be required.
country buildings
The suburban real estate market is very popular among the population. Very often, demand for housing exceeds supply, and prices become higher than even the market value. An independent valuation helps to establish the real price of the property and balance the balance between the seller and the buyer.
Evaluation of suburban real estate takes into account the remoteness of the object from the city and transport links, the availability of natural resources is taken into account, the quality of water and soil is determined, the availability of utilities is taken into account.
Of great importance for establishing the value of the object is the presence of a developed infrastructure, the availability of access roads and the quality of roads.
Independent valuation companies
As a rule, real estate appraisal is carried out by independent appraisal companies that have licenses for this type of activity, and appraisers, having insured their personal liability, receive appropriate certificates.
The solution of the valuation issue by such organizations is carried out within 1-3 days, after which the customer receives a detailed report on the value of the object, which allows him to carry out any types of transactions provided for by law with the property that has passed the valuation procedure.
Inspection implies payment by the customer for the services of a specialist in monetary amounts that are fixed on the territory of the Russian Federation. The average cost of real estate appraisal is defined as follows:
- one-room apartment - 2500 rubles;
- two-room apartment - 3125 rubles;
- three-room apartment - 3125 rubles;
- more than four rooms - 5000 rubles;
- private residential buildings - 7500 rubles;
- cottages - 7500 rubles;
- construction in progress (up to 100 sq. m) - 5000 rubles;
- size from 100 to 300 sq. m - 7500 rubles;
- size from 300 to 500 sq. m - 15,000 rubles;
- size from 500 to 700 sq.m - 17,500 rubles;
- size from 700 to 1000 sq. m - 22500 rubles;
- size from 1000 to 5000 sq. m - 25,000 rubles.
Attention! The cost of real estate appraisal, depending on the conditions, features and geographical location of various regions of the Russian Federation, may differ significantly.
SRO
One of the non-profit organizations that is engaged in an independent assessment of real estate is the self-regulatory organization of appraisers (SRO). The legislative activity of the SRO is regulated by the Federal Law of the Russian Federation No. 315 and No. 135.
The organization consists of individuals working as appraisers, both under an employment contract with a legal entity, and in private practice, who have insured their personal liability.
STK
Founded in 1998, the consulting company engaged in the territory of the Russian Federation not only in the evaluation of real estate, but also in the analysis and valuation of the assets of various enterprises, has extensive experience in conducting its activities.
Its branches are scattered in almost all regions of the country, which provides an opportunity for any civil and legal persons to enter into business relations with the organization that has gained popularity.
The close cooperation of the enterprise with Russian banks, in particular with the CNS, allows not only to assess the property of its clients, but also to deepen cooperation with its partners in the field of providing real estate with software, as well as contribute to the development of mortgage lending.
CNS
The Real Estate Center organized by Sberbank today offers its clients in Moscow a unique opportunity to assess real estate through a service created by CNS specialists.
The Real Estate Center evaluates the real estate objects of its customers with high quality and in the shortest possible time and provides them with the necessary reporting in a timely manner.
Real estate appraisal is a time-consuming and complex process, where all the smallest details, characteristics, features and conditions of the object are taken into account. Only specialists with professional skills in property valuation can establish the real value of real estate.
Expert evaluation determines the market value of the apartment.
When making a transaction, the parties independently determine it.
But there are various legal points in which the appraised value is necessary.
A professional independent real estate appraisal is carried out using established methods of value research and allows you to calculate the most up-to-date and objective price.
Evaluation by experts has many advantages, the most important of which is the outcome of ongoing research. Upon their completion, a document is drawn up that has legal force, which can be used in court proceedings as basis for calculation and collection of compensation.
Independent examination of the object required in the following cases:
Main criteria
Important parameters housing appraisals are:
Additional pluses can serve as a telephone number, Internet line, cable TV. The presence of a loggia, plastic windows, a metal door, and occasionally the social status of neighbors can affect the value of housing space.
Rules for the procedure
Who conducts it
Determination of the price of an immovable object can be made only a certain category of specialists. This role is played by individuals who have license to carry out expert activities . In addition, they must be members of a self-regulatory organization and insure their liability.
Their activities are regulated FZ-7 "On valuation activities in the Russian Federation". The owner of real estate, when contacting the office of experts, can find out from the employees the period of activity of their company, specialization and the availability of an insurance policy for a certain type of service. An organization providing an expert assessment must necessarily have at least 2 specialists and provide an insurance contract at the request of the client.
Is concluded with the customer work agreement.
Methods
To obtain the most objective results of the study three approaches are used:
Implementation procedure
For expert research the customer is represented:
- Documents establishing the authority to the apartment;
- Form 11A certificate, explication and floor plan submitted.
In addition, additional documentation may be required. Copies of all papers are attached to the conclusion.
By signing an agreement, client pays for work specialist:
Next hand determine the date and time inspection of the object. The appraisal can be carried out without the visit of the appraiser according to the submitted documentation, but there is a possibility of inaccuracies in determining the price.
After inspecting the object, a evaluation report. The customer is acquainted with the results of the findings and, if he has no complaints about the work performed, is prepared and signed act of delivery and acceptance of services.
The report is prepared in two copies, one of which is given to the applicant.
Price
If you order a service from professional experts, then the amount can be completely different for different objects and amount to from 2 to 5 thousand rubles.
In addition, each organization can set its own price for the services provided.
Self-execution of work
Self-assessment involves the use of a simplified procedure for comparative analysis of apartments for sale with similar parameters.
In such a situation carefully a database of similar objects is selected put up for sale. Information can be taken at, on the Internet and in the media publishing free ads. It is necessary to select at least six options that are equivalent in terms of location, building design, decoration, number of rooms, housing condition, number of storeys, kitchen size and the presence of a balcony.
The information received must be credible, and the proposal for the evaluation period relevant. Information can be clarified personally by calling the specified contacts.
Prices for selected options are subject to change. The size of the adjustment will depend on the time of growth and decrease in prices in the market. When sellers are most interested in quickly selling their properties, you can expect a significant discount of 10 to 15%. But sometimes sellers can hold their home until a future increase in its value. With stable prices, the discount can be from 4 to 6%.
The price is calculated for 1 sq. m. of each option from the compiled list. To do this, taking into account the adjustment, it must be divided by the total area of the object. From all the obtained values, it is necessary to exclude the most maximum and minimum, which differ from the average by 20%. Having determined the average value per unit square. m. and multiplying it by the area of the appraised housing, its approximate real price is calculated.
In addition, there is an option to study the real cost of living space - this market research. Initially, it is exhibited at a very high price compared to the market price. If no proposals are received, the amount is gradually reduced until the interested persons appear. This method has positive and negative points. On the one hand, selling an apartment for a long time can ruin its reputation. Potential bidders analyzing the situation on the market can wait for the price to fall to a minimum value.
For the rules of the considered procedure, see the following video:
Welcome! Today you will learn what an appraisal of an apartment for a mortgage is, why it is needed, how much it costs to appraise an apartment for a mortgage and where to order it. In this post, we have collected information for you from our experts on this important issue and are ready to answer the remaining questions in the comments.
An integral part of the execution of a mortgage agreement is the appraisal of the value of the apartment. This is a federal requirement. The bank, issuing a loan in a fairly large amount, requires collateral at a cost equal to or greater than the loan amount. In the case of concluding a loan agreement for the purchase of real estate, the purchased apartment is the subject of collateral. In this regard, the assessment of real estate in mortgage lending is carried out.
The bank determines the loan amount based on the liquid and market value of the property. Moreover, the lowest indicated price is taken into account. Thus, the financial institution insures itself in case of gross violations of the loan agreement by the borrower, thereby being able to sell the pledged property at a price that will compensate for all losses on the loan.
Also, the assessment of real estate in mortgage lending is important for the borrower himself. Firstly, it will help him assess the adequacy of the housing price set by the seller. Secondly, the borrower can be sure that in the absence of the possibility of further timely repayment of payments, the mortgage agreement can be closed by selling the apartment at a fair market value.
On the one hand, it is in the interests of the bank that the cost of housing is not artificially high, otherwise, the sale of the collateral will not cover the costs of the mortgage agreement. On the other hand, the borrower, and especially his realtor, are interested in a larger loan amount and a larger transaction amount, respectively. Therefore, in order to respect the interests of all parties, it is necessary to obtain an independent expert assessment.
How does a mortgage appraise an apartment?
First of all, it is worth considering that the assessment of the apartment is made when the housing is finally chosen and there is an agreement with the seller. In order for a real estate appraisal for a mortgage to be made, the borrower must collect the necessary package of documents.
It includes:
- Legal documents. Most often, this is a copy of the certificate of ownership of the apartment, or a copy of the contract of sale. If a mortgage is issued on a part of the living space, then a copy of the equity participation agreement is provided.
- BTI plans, including the explication of the apartment - a document that has a detailed description of the entire area, indicating the exact dimensions and a floor plan. According to the available schemes, the appraiser checks the identity of the real and documented real estate plan. If during the reconciliation the fact of redevelopment of housing is discovered, then its registration will be required without fail. Otherwise, the bank will refuse to issue a loan.
- A copy of the cadastral passport. This document is issued by the BTI to the owner of the property.
- Certificate stating that the house does not appear in the demolition plans (not necessary for a new building).
- If a mortgage is issued for living space in a house built before 1960, a certificate of overlap will be required. The fact is that old houses have wooden floors, which are more prone to fire. Because of this, insurance companies refuse to cooperate with the bank, fearing increased risks in the event of an insured event. In this connection, a mortgage cannot be issued, since there is no insurance contract.
- Copy of your passport and contact details.
When all the necessary documents are collected, the borrower must contact the appraisal company and agree on the place and time of the examination. On the appointed day, the appraiser goes to the object, where he carries out a certain sequence of actions, the result of which is a report - the assessment of the subject of mortgage.
Assessment Methods
Being engaged in examination, the appraiser can use several methods in his work to determine the liquid and market value of housing. The most common method is comparative. In this case, the object is evaluated in terms of closed transactions in the market for similar housing.
True, value judgments are made taking into account the definition of correction factors. They are calculated on the basis of the difference in various significant indicators of housing: the novelty of the house, the size of the living space, the quality of the finish, the remoteness of the building from significant urban infrastructure, etc. This method is also called the market method.
The second most popular method that the appraiser uses in his work is costly. In this case, the costs for the construction of an identical object are calculated.
The third, least applicable method (when the reason for appraising an apartment is a mortgage) is profitable. In this case, it is assumed what potential income the property would bring if, for example, it was used for rent or for other purposes, the purpose of which is revenue.
When using the comparative method, the market value of housing is determined, and when using the costly method, the liquid value is determined. Usually the market and liquid prices do not differ significantly, but there are cases when the difference is noticeable. For example, a very expensive repair was made in an apartment from high-quality building materials, but at the same time the house in which it is located belongs to the old fund and is located in a district of the city remote from the center. In this case, the market value will be much higher than the liquidity.
When leaving to inspect the object, the appraiser not only inspects the housing and makes a reconciliation with the BTI plans, but also photographs the premises.
The following factors must also be taken into account:
- prestige and environmental friendliness of the area;
- the presence of nearby stops, schools, children. gardens, clinics, shopping centers and other infrastructure;
- the novelty of the house, the state of decoration, entrances, ceilings;
- what materials the building is built from;
- number of floors in the house;
- landscaping and landscaping.
Regarding the apartment itself, the following is taken into account:
- area;
- number of rooms and their location (layout);
- condition of finishing and communications;
- floor;
- the absence or presence of visible and hidden defects or breakdowns.
Ready report
Based on the above data, the appraiser draws up a report that contains the following information:
- First of all, the data of the firm-appraiser and the data of the customer are indicated.
- What follows is information about the methods by which the assessment was made.
- Provides complete information about the appraised apartment.
- Comparative analysis of the real estate market.
- The liquid and market value of the property.
- Appendix.
First of all, the credit specialists of the bank will study the final part, which contains the report. It is in the application that documents and photographs of the property will be located, information on the price of housing will be duplicated, and, most importantly, data on how much the bank will be able to gain from the sale of the apartment in case of termination of the mortgage agreement.
The report itself is a printed document, with a volume of 25-30 sheets of A4 format, laced, numbered and certified by the seal and signature of the responsible employee of the appraiser company.
Validity of the evaluation report is 6 months. After this period, if for some reason the mortgage agreement has not yet been concluded, the bank will request a new, up-to-date document.
The average turnaround time for a report is 2 to 5 business days.
What is the price
The cost of assessing an apartment for a mortgage will depend primarily on the region in which the assessment will be made.
In Moscow, you will have to pay from 3,500 to 5,000 rubles for conducting an assessment and compiling a report. In St. Petersburg, ordering the services of an appraiser will cost 3,000-4,000 rubles.
If a mortgage is issued in the regions, then ordering the service pays an average of 2000-3000 rubles.
To save on the services of appraisers, first of all take care of the timely filing of an application for an appraisal. For the urgent preparation of the report, the company will require an additional fee of 2-3 thousand rubles.
When choosing whom to order an assessment from, study the offers of firms and choose the most profitable one. However, pay attention to the length of service of the organization and its reputation. After all, a report prepared by a one-day firm for a small fee may simply not be accepted by the bank, because it will not be executed in accordance with all the necessary requirements.
Who pays for the property appraisal? The one who purchases an apartment and orders a service is a borrower. Whoever is given a loan is interested in collecting all the documents, and therefore pays for the assessment.
Where to order an appraisal of an apartment for a mortgage
Who does the property appraisal? Usually this is either a company engaged in this type of activity or a private appraiser. Nevertheless, the following requirements are imposed on all persons (individuals and legal entities) involved in the assessment of real estate objects:
- The activities of the appraiser must be insured for a period of 1 year.
- A firm or an individual must be a member of an SRO (association of self-regulatory organizations), as well as make contributions to the general fund on an ongoing basis.
- The appraiser must have a civil liability policy in the amount of 300,000 rubles.
These are the main rules. But there is one more thing that can affect the independence of the result - a representative of a company or a private appraiser should not be a relative of the person ordering the appraisal service.
As a rule, when applying for a mortgage, the borrower does not have difficulty finding an appraiser. Usually, the bank provides its client with a list of accredited organizations from which this service can be ordered.
Why is it better to choose an appraiser from the list provided by the bank? Because all companies from this list are regular partners of a financial organization, have proven themselves in this market, and prepare documents in accordance with all the requirements of the Association of Russian Banks and the Association of Housing Mortgage Lending.
Order a report from a trusted company trusted by the bank - you will receive a document in the shortest possible time, completed in accordance with all requirements. Why take the risk and turn to firms that are not accredited by the bank, which will take as little money as possible for their work, but the final document will not be checked by loan officers, and the real estate appraisal will have to be ordered again, while unforeseen, extra expenses no one except the borrower will pay.
When choosing an appraiser from the list received at the bank, pay attention to how long the company has been on the market, whether it has managed to prove itself, read the reviews on the Internet.
Having made a choice, you need to contact the appraiser and submit an application. After that, you can start collecting the necessary documents.
What to do if the appraised value of the apartment differs from the amount of the mortgage loan
Based on the value at which the apartment will be assessed, the bank will determine the amount of the loan. If the assessed value equals or slightly exceeds the price set by the seller, then the mortgage loan will cover all the costs of acquiring a new home. But it is not uncommon for the appraised value to be lower than the amount required to purchase an apartment and, accordingly, the bank cannot provide a loan for an amount in excess of that indicated in the appraisal company's report. What to do in this case?
First of all, you can order a second assessment from another specialist at your own expense. It is possible that the initial assessment did not take into account all the factors that affect the correct pricing.
If during the re-assessment the price is determined within the same limits, then it is possible to provide an additional mortgage for the missing amount.
Also, do not neglect the opportunity to ask the seller for a discount. Perhaps, seeing a real buyer, he will make concessions.
If there is no additional real estate, and the seller does not agree to lower the price significantly, you can get a cash loan for the missing amount. True, the interest rate will be significantly higher than the mortgage rate.
Conclusion
No mortgage deal is complete without an apartment appraisal. This is not just a formality that requires additional costs. A well-conducted assessment confirms that in the event of situations leading to the termination of the mortgage agreement, housing can indeed be sold by one of the parties to the parties, thereby covering all losses. The main thing for both the bank and the client is that the assessment be objective, professional and independent.
If you have any questions about this topic, we are waiting for them in the comments.
It will also be interesting and important for you to learn how to arrange it correctly and why it is needed.
We will be grateful for the repost, like and rating of the article.
The process of establishing the value of real estate is carried out according to certain principles, using established methods. Real estate appraisal includes several stages.
Stage 1. Statement of the problem - for which it is necessary to determine the value of the object. At this stage, clarification of the purpose of the procedure is required. For example, to sell an apartment or to obtain a mortgage loan.
It is required to find out what value is to be set. It will depend on the purpose of the assessment. So for the sale of property, you need to determine the market value, for registration of an insurance policy - an insurance policy. The collateral value is usually calculated when a property is mortgaged for a loan.
The date of the work must be determined. All possible conditions and circumstances that may affect the final cost are recorded.
Stage 2. Formation of the plan and contract. The appraiser, after a preliminary acquaintance with the object, draws up a procedure for conducting appraisal work, which begins with a visual inspection of the property, familiarization with the information provided. If the object is large enough, then the need to attract additional expert appraisers is determined.
At the end of this stage, it is required to draw up and sign an agreement, which indicates the parties to its conclusion.
Also 
Stage 3. Collection of information and substantiation of conclusions. This stage is the most responsible. The final result depends on what information is collected.
Real estate is studied in more detail, which is signed in detail. Possible defects are indicated, the adjacent territory to the object is described. Existing legal papers are analyzed, their reliability is checked. The object is considered from the point of view of its economic and social location.
In the end, all collected and provided information is analyzed by a specialist.
Stage 4. The most acceptable and effective way of using the given territory, both the equipped place and the supposedly vacant one, is chosen. The highest price for the use of the land plot where the object is located is determined.
Stage 5 Procedure for calculating the value of an object. It is carried out on the basis of three main calculation methods:
- the income approach is based on the determination of the possible receipt of economic benefits from the use of this object.
- The comparative method is based on the comparison of similar properties. This method cannot be applied to unique objects, since the property must be comparable.
- The cost approach is based on the inclusion of those costs that were previously incurred and which should be paid additionally to restore the object, taking into account its depreciation.
Stage 6 Coordination of the obtained results, taking into account all conditions. At this stage, possible inaccuracies and errors are identified. The final total cost is formed.
Stage 7. Drawing up an evaluation report, which is transferred to the customer of the work.
It must contain the following information:
- date of the report;
- information about the appraiser;
- the basis for carrying out appraisal work;
- description of the property;
- a list of the used methods and ways of conducting the assessment;
- tolerances and restrictions in determining the cost;
- list of documentation;
- total value of the object.
Object cost criteria
The value of the final price of real estate is influenced by a huge number of criteria and factors:
For real estate, the year of construction of the building, as well as the material from which it was built, has a significant impact on the value.
How assessment is done in practice: order of procedure
Usually, when a real estate appraisal takes place, the two participants in the transaction have a different view of the final result. The bank is interested in underestimating the value of real estate. If it is lower, then the implementation of the object as collateral may be faster.
For the borrower, a higher cost guarantees a larger loan amount. This situation should be taken into account when a banking organization provides its appraiser.
Moreover, when carrying out appraisal work by an independent specialist, the bank may refuse to accept such a report.
Real estate appraisal is a procedure that is required to be carried out to establish the value of an object at a particular moment. Perform work to determine the value of experts-appraisers. The estimation procedure consists of several stages, each of which is important for establishing an accurate final cost.
14.03.2008 08:36 [ Appraisal company "Corporation EVALUATION" ]
This article is devoted to real estate valuation and is addressed primarily to people interested in pricing issues in the real estate market, as well as the methodological and legal foundations of real estate valuation.
real estate, or real estate, - these are land plots, subsoil plots, isolated water bodies and everything that is firmly connected with the land, that is, objects that cannot be moved without disproportionate damage to their purpose. This concept also includes the rights, interests and benefits arising from the ownership of real estate.
Real estate in our country is in free civil circulation and is the object of various transactions, which often gives rise to the need to assess its value. By definition, an appraisal is a set of actions aimed at establishing the value of an appraisal object. What can act as an object of assessment, if we talk about real estate valuation? Of course, first of all, these are things, that is, various real estate objects. But it can also be separate rights in relation to the property, for example, the right to lease, and obligations (debts), as well as works or services.
Most often in the practice of real estate appraisal, the following types of real estate appear as objects of appraisal:
* land;
* buildings (residential and non-residential);
* premises (residential and non-residential);
* objects of construction in progress;
* buildings;
* subsoil plots;
* forests, perennial plantings;
* isolated water bodies.
When evaluating any real estate object, it is necessary to establish what right to this object is being evaluated in this case. For example, both ownership and lease rights can be valued for the same building. It is obvious that the value of these two types of rights are fundamentally different.
There are situations when the legal rights of third parties who are not the owners of the property exist on the property. In this case, the object is said to have an encumbrance. For example, if a building is leased out on a long-term basis, then in addition to the property right that belongs to the owner of the building, there is also the right of the tenant, stipulated by the lease agreement and the current legislation. Another example of an encumbrance is a land plot, the owner of which, due to the peculiarities of the location of the plot, is obliged to provide the right of passage (passage) through his plot. When evaluating real estate, it is imperative to take into account the presence of any encumbrances, since they, as a rule, reduce the value of the object.
But the objects of evaluation can be not only things, but also rights, obligations, debts, works, services. The right to lease real estate already mentioned above is nothing more than a type of obligation in relation to this property and can act as an object of assessment. Moreover, such an object (the right to lease) can be sold, pledged or made as a contribution to the authorized capital of a legal entity.
The main task that is solved in the process of real estate appraisal is the determination of the value of the object. But what value should be determined in each specific case? This question must be answered by the appraiser before proceeding with the appraisal. There are many different types of value, of which the most common is the market value.
Market value is the most probable price at which the object of appraisal can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and any extraordinary circumstances are not reflected in the value of the transaction price. The market value has an extremely wide scope and is determined in cases of purchase and sale or pledge of a real estate object, its contribution to the authorized capital or registration, in cases of inheritance or donation of an object, in determining the taxable base and in many other situations. The market value standard is so often used that even at the legislative level there is a provision according to which, if the word “cost” is used in official documents (texts of laws, government decrees, etc.) without any explanation, then it should be borne in mind exactly market value. The phrases "actual value", "fair value", "actual value" appearing in the documents should also be understood as "market value".
Any valuation begins with the conclusion of an valuation contract and ends with the preparation and submission of a written valuation report to the customer. Let us consider in more detail the process of real estate appraisal using the example of building appraisal. Building appraisal includes the following steps:
* Conclusion with the customer of the contract for evaluation.
* Establishment of quantitative and qualitative characteristics of the building.
* Analysis of the real estate market in the area of the appraised building.
* The choice of method (methods) of assessment within each of the approaches to assessment and the implementation of the necessary estimated calculations.
* Summarizing the results obtained within the framework of each of the appraisal approaches, and determining the final value of the cost of the building.
* Drawing up and transfer to the customer of the assessment report.
When conducting an appraisal, the appraiser uses information from the following documents:
* Certificate of state registration of the right to the assessed building.
* Extract from the BTI passport for the building, explication and floor plan.
* A lease agreement or a certificate of state registration of the right to a land plot on which the assessed building is located.
* Help from the copyright holder on the absence or presence of encumbrances.
* Certificate of book value of the building (for owners - legal entities).
The information from these documents, as well as the results of the inspection of the building by the appraiser, are the information base for an objective assessment.
In general, three main approaches are used to assess the value of buildings: cost, income and comparative.
The cost approach is a set of cost estimation methods based on determining the costs required to restore or replace a building, taking into account its wear and tear. The cost approach is based on the principle of substitution, which assumes that a reasonable buyer would not pay more than the cost of constructing a building of similar utility to the one being valued.
The income approach is a set of valuation methods based on the determination of the expected income from the operation of the building. Determining the value of a building from the standpoint of the income approach is based on the assumption that a potential buyer (investor) will not pay more than the present value of future income received as a result of the operation of this building (it is assumed that for this buyer it is not important real estate as such, but the right to receive future income from the ownership of this real estate Yu). Similarly, the owner will not sell his real estate at a price below the present value of projected future earnings. It is believed that as a result of the interaction, the parties will come to an agreement on the market price of the building, equal to the current value of future income.
The most obvious, and fully taking into account the ratio of supply and demand in the market, is a comparative approach - a set of methods for estimating the value based on comparing the building being valued with similar buildings, for which there is information about the prices of transactions with them. The application of the comparative approach is based on the assumption that an informed, reasonable buyer will not pay more than the acquisition (offer) price in the same market of another object with a similar utility. In the practical application of the comparative approach, buildings similar to the appraised are considered that have been sold or at least offered for sale. Then corrections (corrections) are made for the differences that exist between the evaluated and comparable objects, because it is very difficult to find two absolutely similar objects. The adjusted price determines the most likely price for the building being valued if it were offered for sale on the open market.
As you can see, real estate appraisal is a rather complicated process, which requires special knowledge. Only appraisers who meet the requirements of the Law “On Appraisal Activities in the Russian Federation” are entitled to conduct appraisals and issue appraisal reports. Not so long ago, this law was amended and, according to the current procedure, appraisers are persons who are members of one of the self-regulatory organizations of appraisers and who have insured their liability in accordance with the requirements of current legislation. At the same time, a non-profit organization established for the purpose of regulating and controlling appraisal activities, included in the unified state register of self-regulatory organizations of appraisers and uniting appraisers on the terms of membership is recognized as a self-regulatory organization of appraisers. In order to become a member of a self-regulatory organization, each appraiser must meet the following requirements:
* have higher education;
* have a special education in the field of appraisal activities approved by state bodies;
* Regularly (at least once every three years) study in special advanced training programs;
* not have an unexpunged or outstanding conviction for crimes in the sphere of the economy, as well as for crimes of medium gravity, grave and especially grave crimes.
The result of the appraiser's work is an appraisal report, which contains the result of the appraisal and describes the entire appraisal process. The assessment report must include:
* the date of the assessment;
* evaluation standards used;
* goals and objectives of the assessment;
* date of compilation and serial number of the report;
* the basis for the assessment (such a basis, as a rule, is an assessment agreement);
* location of the appraiser and information about the license issued to him;
* an accurate description of the object of assessment, and in relation to objects owned by a legal entity - the details of the legal entity and the book value of these objects;
* the standards used to determine the appropriate type of value of the object being evaluated, the rationale for their use in the evaluation of this object, the list of data used, indicating the sources of their receipt, as well as the assumptions made during the evaluation;
* the sequence of determining the value of the object and its final value, as well as the limitations and limits of the application of the result;
* date of determining the value of the object;
* a list of documents used by the appraiser and establishing the quantitative and qualitative characteristics of the object being evaluated.
The appraisal report must be page numbered, stitched, signed by the appraiser who conducted the appraisal, and also sealed with the personal seal of the appraiser or the seal of the legal entity with which the appraiser has entered into an employment contract. Consumers of valuation services should remember that only such a document, drawn up in compliance with all legal requirements and applicable valuation standards, will be a real valuation report, which will be accepted in all official instances.
If you need to get detailed professional advice on real estate valuation, you can contact the appraisal company "Corporation" APPRAISAL "by phone: + 7-495-7268674
