Approaches applied to real estate appraisal. Approaches and methods of real estate appraisal. What are the different types of value in relation to real estate

Topic 5. Methods of real estate appraisal and their practical use

Control questions

1. What is the difference between the cost, value and price of a property?

4. What factors have a determining influence on the value of real estate?

7. What are the main acts regulating valuation activities?

In the theory of appraisal of income-generating real estate, there are three main approaches to appraisal, on the basis of which specific methods of real estate appraisal are built. These approaches are known as the cost approach, the income approach, and market approach(also known as SAP - Sales Benchmarking Approach). Let's consider the essence and areas of applicability of each of the three approaches.

The cost-based approach to the appraisal of property (real estate) is based on the application of cost estimates that are associated with the creation and acquisition of this type of property. When assessing property, various methods of calculating the value of property can be used, for example, calculation using the analysis of the articles of the balance sheet of the enterprise. Applying the cost approach, you can use both the real costs that were associated with the purchase and operation of a particular property, and the costs that are required to purchase a property of similar properties.

The income approach to appraisal is based on the assumption that there is a certain ratio between the value of a real estate object and the income that this object can bring. Various valuation methods based on the income approach differ in how this ratio is determined. This distinguishes such valuation methods as the gross rent multiplier, the direct capitalization method, the discounting method. cash flows.

An approach comparative analysis sales is characterized by the analysis of market sales similar and similar to the given property. In order for this approach to be applicable in a specific situation, it is necessary to have extensive market information on the sale of real estate, which is possible only if the real estate market and its information infrastructure are highly developed.

So, we have three main approaches to solving the problem of real estate appraisal. As a rule, specific methods of real estate appraisal use not one, but several approaches for appraisal. For example, when valuing a building using a cost approach, the cost of materials used in the construction of a building can be estimated using market data. Or, for example, when using the method of comparative analysis of sales, weights can be entered for various sales options, depending on what income was generated by a particular object being compared with the object for evaluation.

The correct choice of approach to the appraisal of a particular real estate object is the key to an adequate appraisal. With a developed market and information infrastructure, all three approaches should theoretically give the same assessment of the value of real estate. However, such a situation is a rather rare occurrence. This is due to the fact that the real estate market, with the exception of its individual segments, is an imperfect market. Starting to study approaches to real estate appraisal, first we will consider the cost approach, since it is, in principle, applicable to the appraisal of any real estate. However, such use is not justified in all cases.

Then we will look at the income approach, which is applied in the event that the property is planned to be used for the purpose of generating income.

The last will be considered the approach of comparative analysis of sales (market), which gives good results in the developed real estate market.

The conceptual similarity of approaches to the assessment of various property objects is revealed. At the same time, the type of the assessed object determines the features of specific methods arising from specific assessment problems, inherent, as a rule, only this kind property.

Cost approach

The cost approach is a set of methods for assessing the value of an object based on determining the costs necessary for reproduction or replacement of an object, taking into account its wear and tear.

In the cost approach, it is assumed that the costs required to create an assessed property in its current state or reproduce its consumer properties correspond to market value of this object. The cost approach allows you to calculate the cost of building an object in current prices ah (as of the valuation date) minus the total accumulated (total) depreciation.

1. Calculation of the cost of acquisition or long-term lease of free and available land for the purpose of its optimal use;
2. Assessment of the replacement cost of the appraised building. The calculation of the replacement cost is based on the calculation of the costs of reconstructing the object under consideration, based on current prices and the conditions for the manufacture of similar objects at a certain date;
3. Determination of the amount of physical, functional and external wear and tear of the property;
4. Assessment of the size of entrepreneurial profit (investor's profit);
5. Calculation of the total cost of the appraisal object by adjusting the replacement cost for depreciation with a subsequent increase in the resulting value by cost land plot.

Income approach

Determining the market value of real estate objects using the income approach is based on the principle of expectation. In accordance with this principle, the typical investor, that is, the buyer of a property, purchases it in anticipation of receiving future income from use. Given that there is a direct relationship between the size of the investment and the benefits from the commercial use of the investment, the value of real estate is defined as the value of the rights to receive the income it brings, in other words, the value of the property is defined as the present value of future income generated by the property being valued.

The main stages of the assessment procedure with this approach:

1. Making a forecast of future income from the lease of the estimated areas for rent for the period of ownership and, based on the data obtained, determining the potential gross income (GVR), which is calculated using the formula (1):

PVD = S x Na, (1)

where S is the area to be leased, sq. m,

Nа - rental rate for 1 sq.m.

3. Determination on the basis of market analysis of losses from underutilization of space and when collecting rent, calculation of the actual gross income (DVD). As a rule, the owner in the long term does not have the opportunity to permanently lease 100% of the building area. Losses of rent are due to underemployment of the property and non-payment of rent by unscrupulous tenants. The degree of unemployment of a profitable real estate object is characterized by the underutilization coefficient, which is determined by the ratio of the amount of non-leased areas to the amount total area to be rented out. The calculation of the actual gross income (DVD) is carried out according to the formula (2):

DVD = PVD * KZ * Ks, (2)

where DVD is the actual gross income,

LDPE - potential gross income,

Кз - area utilization factor,

Кс - payment collection coefficient.

It should be noted that other income received from the operation of the facility in excess of lease payments (for example, for the use of additional services- car park, etc.).

4. Calculation of the operating costs of the appraised property, which is based on an analysis of the actual costs of its maintenance and / or typical costs in a given market. Expenses are conditionally fixed (property tax, insurance premiums, payments for a land plot), conditionally variable (utilities, current renovation work, wage maintenance personnel, etc.), replacement costs (costs of periodic replacement of high-wearing structural elements of the building).

Thus, the estimated operating costs are deducted from the DIA, and the bottom line is net operating income (NPR).

5. Recalculation of net operating income into the present value of the object.

The procedure for appraising a property begins with an inspection. Before starting the inspection, it is recommended that you familiarize yourself with the available technical documentation for the facility, as well as conduct a conversation with the technical service specialists responsible for its operation.

Comparative approach

A prerequisite for the application of market approach methods is the availability of information on transactions with similar facilities real estate (which are comparable in purpose, size and location) that occurred in comparable conditions (time of the transaction and the terms of financing the transaction).

The comparative approach is based on three basic principles of real estate valuation: supply and demand, substitution and contribution. Based on these principles of real estate appraisal in the market approach, a number of quantitative and qualitative methods are used to distinguish elements of comparison and measure adjustments to market data of comparable properties to model the value of the appraised property.

The basic principle in the market approach to real estate appraisal is the principle of substitution, which states that a potential buyer will not pay for the property a price that exceeds the cost of acquiring a property that is similar from his point of view.

The main difficulties in applying the methods of the market approach are related to the lack of transparency. Russian market real estate. In most cases, the real prices of real estate transactions are unknown. In this regard, the prices of bids for properties offered for sale are often used in the assessment.

The Sales Comparison Method determines the market value of a property based on an analysis of recent sales of comparable properties that are similar in size and use to the property being valued. This costing method assumes that the market will set the price for the property being valued in the same way as for comparable, competitive properties. In order to apply the sales comparison method, experts use a number of valuation principles, including the principle of substitution.

The application of the sales comparison method consists in the sequential execution of the following actions:

1. Detailed market research in order to obtain reliable information about all factors related to objects of comparable utility;
2. Determination of suitable units of comparison and comparative analysis for each unit;
3. Comparison of the evaluated object with the selected comparison objects in order to adjust their sales prices or exclude them from the list of compared ones;
4. Bringing a number of adjusted indicators of the value of comparable objects to the market value of the object of appraisal.

Real estate offices can be used as sources of information on market transactions with real estate, government sources, own databases, publications, etc.

After choosing the unit of comparison, it is necessary to determine the main indicators or comparison elements, using which you can model the value of the object by making the necessary adjustments to the purchase and sale prices of comparable properties.

In appraisal practice, when determining the value of real estate, such basic elements of comparison are distinguished, such as the transferred rights to real estate, the conditions of financial settlements when purchasing real estate, the conditions of sale (purity of the transaction), the time of sale, functional purpose facility, location, convenience of access roads, area of the facility, technical condition and level of finishing of premises.

This method is most effective for regularly sold properties. To highlight the elements of the measurement of adjustments, quantitative and qualitative methods are used.

Quantitative methods include:

· Analysis of paired sales (two different sales are compared to determine the adjustment for one comparison element);
· statistical analysis(the method is based on the use of the apparatus of mathematical statistics for carrying out correlation and regression analysis);
· Analysis of the secondary market (this method determines the amount of adjustments based on data not directly related to the subject of assessment or the object of comparison) and others.

Qualitative techniques include:

classification (benchmarking) analysis (the method is similar to the analysis of paired sales, except that the adjustments are not expressed as a percentage or sums of money, but in the categories of fuzzy logic);

distribution analysis (comparative sales are distributed in descending order of adequacy, then the place of the appraised object in the series of comparative sales is determined).

Harmonization of results

The final stage of the assessment is the reconciliation of the results obtained by different methods within the framework of the approaches used. The purpose of this agreement is to obtain the final final value of the cost.

The three assessment approaches are independent of each other, although each is based on the same economic principles... In an ideal (open and competitive) market, all three approaches should lead to the same value. However, most markets are imperfect, supply and demand are not in equilibrium. Potential users can be misinformed, manufacturers can be ineffective. For these and other reasons, the approaches can give different indicators of value, which the evaluator compares with each other, carrying out the approval procedure.

As stated in Federal standards assessments (FSO No. 1), the method of approval chosen by the appraiser, as well as everything made by the appraiser in the implementation of the approval of the results of the judgment, the assumptions and the information used must be justified.

Weighted averaging is considered the most preferable option for carrying out the procedure for agreeing the results obtained in order to obtain the final value of the cost. The appraiser weighs the extent to which this or that approach corresponds to the purpose of evaluating the object under consideration, whether the calculations carried out are supported by market data, whether they do not contradict them, and at the final conclusion in to a greater extent relies on the value that is obtained on the basis of the most ideal approach from all points of view.

In real estate appraisal, there are three generally accepted approaches to determining the value: cost, market and profitable. Each approach has its own established methods, techniques and procedures. The conceptual similarity of approaches to the assessment of various property objects is revealed. At the same time, the type of the assessed object determines the features of specific methods arising from specific valuation problems, inherent, as a rule, only to this type of property.

Cost approach

The cost approach to real estate appraisal is based on comparing the costs of creating a real estate object with the value of the appraised or comparable objects. The approach is based on examining the investor's ability to acquire real estate and proceeds from the principle of substitution, which states that the buyer, with due discretion, will not pay for the property large amount than the one that would cost the receipt of an appropriate building plot and the construction of an object similar in purpose and quality in the foreseeable future without significant delays.

The main stages of the assessment procedure with this approach:

1. Calculation of the cost of acquisition or long-term lease of free and available land for the purpose of its optimal use;

2. Assessment of the replacement cost of the appraised building. The calculation of the replacement cost is based on the calculation of the costs of reconstructing the object in question, based on current prices and the conditions for the manufacture of similar objects at a certain date.

3. Determination of the amount of physical, functional and external wear and tear of the property;

4. Assessment of the size of entrepreneurial profit (investor's profit);

5. Calculation of the total cost of the object of appraisal by adjusting the replacement cost for wear and tear, followed by an increase in the resulting value by the cost of the land plot.

The cost approach is most appropriate when evaluating recently commissioned properties; it leads to the most convincing results in the case of a sufficiently justified cost of the land plot and insignificant accumulated depreciation of improvements. The cost approach is legitimate when assessing the value of planned facilities, special-purpose facilities and other property, transactions for which are rarely concluded on the market, can be used in assessing for insurance purposes. This approach when evaluating objects to be reconstructed, it allows you to establish whether construction costs will be offset by an increase in operating income or proceeds from the sale of property. Applying the cost approach to in this case avoids the risk of over-investment.

Also, the cost approach is used for the purposes of taxation of property of legal and individuals, upon arrest real estate, to analyze the best and most efficient use of a piece of land.

Determining the value of a land plot

In accordance with Art. 35 of the Civil Code of the Russian Federation, upon the transfer of ownership of a building, structure, structure located on someone else's land plot, to another person, it acquires the right to use the corresponding part of the land plot occupied by a building, structure, structure and necessary for their use, on the same conditions and to the same extent as the previous owner.

Of all the land valuation methods, the sales benchmarking method is decisive.

The replacement cost of construction of the property being appraised is calculated at current prices as new (excluding accumulated depreciation) and referenced to the appraisal date. The determination of the replacement cost is based on the calculation of costs associated with the construction of an object and its delivery to the customer. Depending on the procedure for accounting for these costs, it is customary to distinguish direct and indirect costs in the cost of construction.

Direct costs are directly related to construction (cost of materials, wages of construction workers, cost of construction machines and mechanisms, etc.). Indirect costs are costs that are not directly related to construction (fees to design and estimate organizations, the cost of investments in land, marketing, insurance and advertising costs, etc.). The developer's profit reflects the costs of managing and organizing construction, general supervision and entrepreneurial risk associated with development. The entrepreneur's profit is defined as part of the profit from the sale of the object. Regardless of the amount of interest and the corresponding basis (part of the value of property), the amount of entrepreneurial profit remains constant.

The main source of comparative data on the cost value of real estate objects is construction contracts for the construction of structures similar to the one being assessed. In addition, design appraisers usually maintain their own databases of current prices for finished houses, office buildings, apartments, hotels, shops and industrial buildings. Currently in Russia there is a system of standards and price levels determined by the corresponding price indices.

The constructed objects under the influence of various natural and functional factors lose their performance and are destroyed. In addition, the market value of the object is influenced by external economic impact from the immediate environment and changes in the market environment. At the same time, physical wear (loss of performance), functional aging (loss of technological compliance and cost due to scientific and technological progress), external or economic wear (change in the attractiveness of an object in terms of changes in the external environment and the economic situation in the region) are distinguished. Together, these types of depreciation constitute the accumulated depreciation, which will be the difference between the replacement cost of the object and the cost of reproduction (replacement) of the object of appraisal.

The most complete and reliable source of information about the technical condition of a building or structure are materials of natural survey. The first condition for conducting such surveys should be a precise definition of the functional purpose of the object of assessment: the use of software direct appointment or with a change in technological and functional parameters. At the same time, it is necessary to present the limits of changes in loads and effects on the supporting structures of buildings.

The second condition for conducting research is to obtain complete information about the natural and climatic parameters and specific factors of the impact of the area of the location of the object and their changes in the process of technogenic activity.

Market approach

A prerequisite for the application of market approach methods is the availability of information about transactions with similar real estate objects (which are comparable in purpose, size and location) that have occurred in comparable conditions (time of the transaction and the terms of financing the transaction).

The main difficulties in applying the methods of the market approach are associated with the lack of transparency of the Russian real estate market. In most cases, the real prices of real estate transactions are unknown. In this regard, the prices of bids for properties offered for sale are often used in the assessment.

The application of the sales comparison method consists in the sequential execution of the following actions:

1. a detailed market research in order to obtain reliable information about all factors related to objects of comparable utility;

2. determination of suitable units of comparison and comparative analysis for each unit;

3. comparison of the evaluated object with the selected comparison objects in order to adjust their sales prices or exclude them from the list of compared ones;

4. bringing a number of adjusted indicators of the value of comparable objects to the market value of the object of appraisal.

Real estate offices, government sources, own databases, publications, etc. can be used as sources of information on market transactions with real estate.

In appraisal practice, when determining the value of real estate, such basic elements of comparison are distinguished, such as the transferred rights to real estate, the conditions of financial settlements when purchasing real estate, the terms of sale (purity of the transaction), the time of sale, the functional purpose of the object, location, convenience of access roads, the area of the object, technical condition and level of finishing of the premises.

This method is most effective for regularly sold properties.

To highlight the elements of the measurement of adjustments, quantitative and qualitative methods are used.

Quantitative methods include:

· Analysis of paired sales (two different sales are compared to determine the adjustment for one comparison element);

· Statistical analysis (the method is based on the use of the apparatus of mathematical statistics for carrying out correlation and regression analysis);

· Analysis of the secondary market (this method determines the amount of adjustments based on data not directly related to the subject of assessment or the object of comparison) and others.

Qualitative techniques include:

· Classification (comparative) analysis (the method is similar to the analysis of paired sales, except that the adjustments are expressed not in percentages or monetary amounts, but in categories of fuzzy logic);

· Distribution analysis (comparative sales are distributed in decreasing order of adequacy, then the place of the object of assessment in the series of comparative sales is determined).

Income approach

The advantage of the income approach over the cost and market approaches is that it more reflects the investor's view of real estate as a source of income, that is, this property quality is taken into account as the main one. pricing factor... The main disadvantage of the income approach is that, unlike the other two approaches, it is predictive data based.

The main stages of the assessment procedure with this approach:

1. Making a forecast of future income from the lease of the estimated areas for rent for the period of ownership and, based on the data obtained, determining the potential gross income (GVR), which is calculated using formula 1.1:

PVD = S * Ca, (1.1)

S - leased area, sq. M;

Ca - rental rate for 1 sq. M.

2. Determination on the basis of market analysis of losses from underutilization of space and when collecting rent, the calculation of the actual gross income (DVD). As a rule, the owner in the long term does not have the opportunity to permanently lease 100% of the building area. Losses of rent are due to underemployment of the property and non-payment of rent by unscrupulous tenants. The degree of unemployment of a profitable real estate object is characterized by the underutilization rate, which is determined by the ratio of the amount of unleased areas to the amount of the total area to be leased.

The calculation of the actual gross income (DVD) is carried out according to the formula 1.2:

DWD = PVD * Kz * Ks, (1.2)

DVD - actual gross income;

LDPE - potential gross income;

Кз - area utilization factor;

Кс - payment collection coefficient.

It should be noted that other incomes received from the operation of the facility in excess of lease payments (for example, for the use of additional services - parking, etc.) must be added to the DVD calculated in the above way.

3. Calculation of the operating costs of the appraised property, which is based on an analysis of the actual costs of its maintenance and / or typical costs in a given market. Expenses are conditionally fixed (property tax, insurance premiums, payments for a land plot), conditionally variable (utilities, current repairs, salaries of service personnel, etc.), replacement costs (expenses for the periodic replacement of wear-out structural building elements).

Thus, the estimated operating costs are deducted from the DIA, and the bottom line is net operating income (NPR).

4. Recalculation of net operating income into the present value of the object.

Direct capitalization method - a method for determining the market value of a profitable object based on direct conversion of the most typical first year income into value by dividing it by the capitalization ratio, obtained on the basis of an analysis of market data on the ratios of net income and the value of assets, similar to the object being evaluated, obtained by the market method. extraction. Such a Western classical version of the direct capitalization method, in which the capitalization ratio is extracted from market transactions, is practically impossible to apply in Russian conditions due to the difficulties arising in collecting information (most often the terms and prices of transactions are confidential information). Based on this, in practice, one has to use algebraic methods for constructing the capitalization ratio, which provide for a separate assessment of the rate of return on capital and the rate of its return.

It should be noted that the direct capitalization method is applicable to the valuation of existing assets that do not require, as of the date of valuation, large capital investments in repairs or reconstruction.

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Introduction

Real estate appraisal is of interest, first of all, for categories of objects that are actively circulating on the market as an independent commodity. Currently in Russia it is:

· Apartments and rooms;

· Premises and buildings for offices and shops;

· Suburban residential buildings with land plots (cottages and summer cottages);

· Vacant land plots intended for building or for other purposes (in the short term);

· Warehouse and production facilities.

In addition, real estate objects, as a rule, are part of the property complex of enterprises and organizations (in particular, those being privatized) and significantly affects their value. There are other categories of real estate objects, the market for which has not yet formed.

The assessment of an object is influenced by a variety of conditions and their combinations. An example of classification signs.

Origin:

1. Natural (natural) objects.

2. Man-made objects (buildings).

Purpose:

1. Free land plots (for building or other purposes).

2. Natural complexes (deposits) for their exploitation.

3. Buildings.

· For housing.

· For the office.

· For trade and the sphere of paid services.

· For industry.

· Others.

Scale:

1. Land tracts.

2. Separate land plots.

3. Complexes of buildings and structures.

4. Multi-apartment residential building.

5. Residential building with one apartment (mansion, cottage).

6. Section (entrance).

7. Floor in section.

8. Apartment.

9. Room.

10. Summer cottage.

11. The complex of administrative buildings.

12. Building.

13. Premises or parts of buildings (sections, floors).

Ready to use:

1. Finished objects.

2. Requiring reconstruction or major repairs.

3. Requiring completion of construction.

1. Methodology for real estate appraisal

The real estate appraisal technique can be broken down into stages:

Stage 1. Defining the task of real estate appraisal

Real estate appraisal is the determination of the value of real estate in accordance with the stated purpose, the appraisal procedure and the requirements of the appraiser's ethics. Determination of the purpose of real estate appraisal is initially the basis for the choice of valuation techniques and, accordingly, has a significant impact on the result of the appraisal. In the future, the type of value is determined, which is necessary in accordance with the set goal.

V market conditions allocate different kinds property value:

1) market - this is the most probable selling price of an object in a competitive and open market with conscious and rational actions in their own interests by the buyer and the seller, who are well informed and do not experience the pressure of extraordinary circumstances;

2) investment - this is the value of the assessed object for a specific investor; increase in the market value of the property as a result of investment;

3) liquidation - this is the value in case of a forced sale; it is identical to market value, but limited by the timing of appraisal, market research, and market promotion necessary to obtain the best possible price;

4) cadastral - means the market value of a real estate object established in the process of state cadastral appraisal, determined by mass appraisal methods, or, if it is impossible to determine the market value by mass appraisal methods, the market value determined individually for a specific real estate object in accordance with the legislation on appraisal activities.

Fact state registration the emergence and transfer of rights to real estate is certified by the issuance of a certificate, and a special inscription is made on the documents expressing the content of the transaction. The registration procedure itself is reduced to records of information on the rights to each property and its parameters in the Unified State Register.

The date of the appraisal is set - the calendar date, as of which the value of the appraisal object is determined.

Limiting conditions are formulated - statements in the report describing obstacles or circumstances that affect the assessment of the value of the property

Stage 2. Drawing up a plan and contract for real estate appraisal

1. Sources of information, methods of real estate appraisal are determined and then a work plan is drawn up.

2. The costs of real estate appraisal are summed up and negotiated monetary reward for real estate appraisal.

3. A contract for real estate appraisal is drawn up.

3 stage. Collect analysis of information about the property

Collection and processing of the following information and documentation:

1) documents of title, information about the encumbrance of the object of assessment with the rights of other persons;

2) data accounting and reporting related to the subject of assessment;

3) information on the technical and operational characteristics of the object of assessment;

4) information required to establish quantitative and quality characteristics the subject of assessment in order to determine its value, as well as other information related to the subject of assessment;

5) analysis of the market to which the subject of assessment belongs, the current situation and trends, as well as the choice of analogues of the subject of assessment and its justification;

6) inspection of the facility and the surrounding area, a description of the legal status of the property, physical and economic characteristics, location;

7) analysis and processing of information.

Stage 4. Analysis of the best and most efficient use of real estate

1. Analysis of the best and most efficient use of both the already built up and the supposed vacant land plot.

2. The legal validity of the chosen use case, physical feasibility and financial viability.

3. Determination of the highest property value.

5 etap. Calculation of the appraised value of a property based on three approaches:

1) the income approach;

2) a comparative approach;

3) costly approach.

Stage 6. Coordination of the results of the appraisal of the real estate object

7 stage. Assessment report preparation

Preparation of a document containing the justification for the opinion of the appraiser on the value of the property.

2. Cost estimation based on the income approach

The income approach is based on the fact that the value of the real estate in which the capital is invested must correspond to the current assessment of the quality and amount of income that this real estate is able to bring. Capitalization of income is a process that determines the relationship between future income and the present value of an object. Basic formula income approach:

C = BH / K or V = 1 / R,

where C (V) is the value of the property;

ЧД (I) - the expected income from the appraised property. Income usually refers to the net operating income that the property is able to generate over the period;

K (R) - the rate of return or profit is the ratio or capitalization rate. The capitalization ratio is the rate of return that reflects the relationship between income and the value of the appraised object.

The capitalization rate is the ratio of the market value of a property to the net income it brings.

Discount rate - norm compound interest, which is used when translating at a particular point in time the value of cash flows arising from the use of property.

Income capitalization model

Stages of the income approach:

1. Calculation of gross income from the use of the object based on the analysis of current rates and rates in the rental market for comparable properties.

2. Evaluation of losses from incomplete loading (leasing) and uncollected lease payments is based on the analysis of the market, the nature of its dynamics in relation to the appraised real estate. The amount calculated in this way is deducted from the gross income, and the total is the actual gross income.

3. Calculation of costs associated with the subject of assessment:

Operating (operational) - the cost of operating the facility;

Fixed - maintenance costs accounts payable(interest on loans, depreciation charges, taxes, payments, etc.);

Provisions - the cost of purchasing (replacing) accessories for the property.

4. Determination of the amount of net income from the sale of the object.

5. Calculation of the capitalization ratio.

The income approach estimates the value of real estate in this moment as the present value of future cash flows, i.e. reflects:

1) the quality and quantity of income that the real estate object can bring during its service life;

2) risks characteristic of both the assessed object and the region.

The income approach is used to determine:

1) investment value because a potential investor will not pay for an object more than the present value of future income from this object;

2) market value.

Option 20.

The property is a building. Area 700 m 2. The underutilization rate is 15% of the potential gross income (GVP). The rental rate is 300 rubles / m2. Operating expenses - 25% of the actual gross income (DVD). Capitalization ratio 10%. Determine the value of the property.

1. LDPE = A * S * 12,

where LDPE is the potential gross income;

A - rental rate;

S is the area of the property.

LDPE = 300 * 700 * 12 = 2,520,000 rubles.

2. DWD = PVD (1 - k underload),

where DVD is the actual gross income;

k underload - coefficient of underload.

DVD = 2,520,000 * (1 - 0.15) = 2,142,000 rubles.

3. CHOD = DVD - OR,

where CHOD is net operating income;

RR = 0.25 * DVD = 0.25 * 2,142,000 = 535,500 rubles. - operating expenses.

CHOD = 2142000 - 5355000 = 1606500 rubles.

4.C = CHOD / R k,

where C is the value of the property;

R k - capitalization ratio.

С = 1606500 / 0.1 = 16065000 rubles.

Conclusion: the cost of an appraisal object with an area of 700 m 2 is equal to 16,065,000 rubles.

3. Assessment of the value of real estate based on a comparative approach

The comparative approach to valuation is a set of valuation methods based on comparing a property with its counterparts for which there is information about the prices of transactions with them. Conditions for applying the comparative approach to real estate appraisal:

1. The object must not be unique.

2. The information must be comprehensive, including the terms of transactions.

3. Factors affecting the value of compared analogs of the appraised real estate must be comparable.

The comparative approach is based on the principles:

Substitutions;

Balance;

Supply and demand.

Stages of a comparative approach for real estate appraisal:

Stage 1.

Market research - an analysis of the state and trends of the market is carried out, and especially of the segment to which the evaluated object belongs; identifies real estate objects that are most comparable to the appraised one, sold relatively recently.

Stage 2.

Collecting and checking the reliability of information about the proposed for sale or recently sold analogs of the property appraisal object; comparison of analog objects with the evaluated object.

Stage 3.

Adjustment of the sales prices of the selected analogues in accordance with the differences from the valuation object.

Stage 4.

Establishing the value of a real estate appraisal object by agreeing on the adjusted prices of analogous objects. Comparable objects must belong to the same segment and transactions with them should be carried out on conditions typical for this segment:

1. at the time of exposure. Exposure time - the time that the object is on the market;

2. on the independence of the subjects of the transaction. Independence means that transactions are not concluded at market prices if the seller and the buyer:

Are in a family relationship;

Are representatives of the holding and an independent subsidiary;

Have a different interdependence and mutual interest; transactions are carried out with objects burdened with a pledge or other obligations;

They are engaged in the sale of real estate objects of deceased persons, etc.;

3. on investment motivation, which is determined by:

Similar motives for investors;

Similar best and most efficient use of facilities; the degree of deterioration of the building.

The main criteria for the selection of analogue objects in real estate appraisal:

1. Ownership of real estate. The ownership adjustment is the difference between market and contractual rent because full right property is determined at market rents and current funding available.

2. Terms of financing the transaction. In case of atypical financing conditions of the transaction, a thorough analysis is required, as a result of which an amendment is made.

3. Terms of Sale and Time of Sale.

4. Location.

5. Physical characteristics.

To determine the final value of the property being appraised, an adjustment to comparable sales is required. The calculation and adjustments are made on the basis of a logical analysis of previous calculations, taking into account the significance of each indicator. The most important is the accurate determination of the correction factors (see Fig. 1)

Picture 1

Percentage adjustments are made by multiplying the selling price of the analogue object or its comparison unit by a coefficient reflecting the degree of differences in the characteristics of the analogue object and the evaluated object. If the object being evaluated is better than a comparable analogue, then a raising coefficient is added to the price of the latter, if it is worse - a decreasing one.

Cost adjustments:

a) the absolute corrections made to the unit of comparison change the price of the sold analogue object by a certain amount, in which the difference in the characteristics of the analogue object and the evaluated object is estimated. A positive correction is made if the evaluated object is better than a comparable analogue, negative if it is worse;

b) monetary adjustments made to the price of the sold analogue object as a whole change it by a certain amount, in which the differences in characteristics are estimated. Cumulative percentage adjustments are determined by multiplying all individual percent adjustments.

The amendment in the form of a general grouping is usually used in the developed real estate market, where there are a large number of sales. The cumulative adjustment is made within the selected group of comparable objects.

Sequence of amendments:

1. Amendment to financing terms

2. Correction for special conditions sales.

3. Adjustment for the time of sale.

4. Correction for location.

5. Correction for physical characteristics.

Benefits of Comparative PApproaches for real estate appraisal:

1. The final cost reflects the views of typical sellers and buyers.

2. Sales prices reflect the change financial conditions and inflation.

3. Statically grounded.

4. Corrections are made for differences between compared objects.

5. It is quite easy to use and gives reliable results.

Disadvantages of the comparative approachwhen evaluating real estate:

1. Differences in sales.

2. Difficulty collecting information on practical sales prices.

3. Problems in collecting information on specific terms of the transaction.

4. Dependence on market activity.

5. Dependence on market stability

6. Difficulty reconciling data on significantly different sales.

The property is a building. Area 700 m 2. Type of law: property. Financing conditions are typical market conditions. Adjustment for bargaining 10%. Location - South microdistrict. The state of the interior finishing at the property is excellent. Convenience in location is the first line. Number of storeys - basement. Determine the selling price of the property.

Table 1

Sales comparison method

Parameter name	Assessment object
Sale price, rub.
Area, m2
Cost, rub./m 2
Type of law	Own
Adjustment
Adjusted price, rub.
Financing conditions	Typical market
Adjustment
Adjusted price, rub.
Terms of sale	Typical
Adjustment
Adjusted price, rub.
Bargaining adjustment
Adjusted price, rub.
Location	Southern microdistrict	Southern microdistrict	Southern microdistrict	Southern microdistrict
Adjustment
Adjusted price, rub.
Condition of interior decoration
Adjustment
Adjusted price, rub.
Convenient location	1st line	1st line	2nd line		2nd line
Adjustment
Adjusted price, rub.
Number of storeys
Adjustment
Adjusted price, rub.
Weight coefficient
The recalculated cost, rub.
Total price, rub./m 2

Calculations:

3 . Determination of the cost in rubles. per m 2:

1) 10,000,000 / 675 = 14,841.81 rubles / m2;

2) 12,000,000 / 730 = 61,438.36 rubles / m2;

3) 40,000,000 / 941 = 42,507.97 rubles / m2;

4) 4,500,000 / 644 = 6,987.58 rubles / m2.

Since the type of law, financing terms and conditions of sale for a real estate object and its analogues are the same, the adjustment factor is zero, which means that the price per m2 remains the same.

13. Adjustment for bargaining:

1) 14814.14 - (14814.81 * 0.1) = 13333.33 rubles;

2) 16438.36 - (16438.36 * 0.1) = 14794.52 rubles;

3) 42507.97 - (42507.97 * 0.1) = 38357.17 rubles;

4) 6987.58 - (6987.58 * 0.1) = 6288.82 rubles.

15. The location of OH and the fourth analogue object is different.

16. Definition of adjustment:

72,435 / 67,13 = 1,08.

17. Adjusted price:

4) 6288,82 * 1,08 = 6791,92.

18. The state of the interior decoration of all analogue objects differs from internal state finishes OH. The first and third analogs are in good condition, the second and fourth are in rough condition.

20. Adjusted price:

1) 13333.33 + 3000 = 16333.33 rubles;

2) 14794.52 + 8000 = 22794.52 rubles;

3) 38,257.17 +3000 = 41,257.17 rubles;

4) 6791.92 + 8000 = 14791.92 rubles.

21. The second and fourth analogue objects differ in the convenience of their location from the OH.

23. Adjusted price:

2) 22794.52 * 1.16 = 26441.64 rubles;

4) 14,791.92 * 1.16 = 17,158.63 rubles.

24. The first and third analogous objects differ in the number of storeys from the OH.

26. Adjusted price:

1) 16333.33 * 0.81 = 13230 rubles;

3) 41,257.17 * 0.81 = 33,418.31 rubles.

28. Weighted value:

1) 13230 * 0.5 = 6615 rubles;

2) 26441.64 * 0.1 = 2644.16 rubles;

3) 33418.31 * 0.3 = 10,025.49 rubles;

4) 17158.63 * 0.1 = 1715.86 rubles.

29. Total price in rubles. per m 2:

6615 + 2644.16 + 10025.49 +1715.86 = 21000.51 rubles / m2.

Thus, the selling price of the property is:

21,000.51 * 700 = 14,700,357 rubles.

Conclusion: the cost of a property with an area of 700 m 2 is 14,700,357 rubles.

4. Cost estimation based on the cost approach

The cost approach is a set of valuation methods based on determining the costs required to restore or replace the valuation object, taking into account the accumulated depreciation. It is based on the assumption that the buyer will not pay more for the finished object than for the creation of an object of similar utility.

Information required to apply the cost approach:

1) the level of wages;

2) the amount of overhead costs;

3) equipment costs;

4) the rate of return of builders in a given region;

5) market prices for building materials.

Stages of the cost approach:

1. Calculation of the cost of a land plot, taking into account the most efficient use (Sz).

2. Calculation of the replacement cost or replacement cost (Svs or Szam).

3. Calculation of accumulated depreciation (all types) (Life):

Physical wear and tear - wear associated with a decrease in the performance of an object as a result of natural physical aging and the influence of external unfavorable factors;

Functional obsolescence - wear and tear due to non-compliance with modern requirements for such facilities;

External obsolescence - depreciation as a result of changes in external economic factors.

4. Calculation of the cost of the object, taking into account the accumulated depreciation: Sleep = Svs - Life.

5. Determination of the final value of real estate: Sit = Cs + Sleep.

Benefits of the cost approach:

When evaluating new objects, the cost approach is the most reliable. This approach is advisable or the only possible in the following cases:

1) technical and economic analysis of the cost of new construction;

2) justification of the need to update the existing facility;

3) assessment of special buildings;

4) when evaluating objects in "passive" market sectors;

5) analysis of the efficiency of land use;

6) solving problems of object insurance;

7) solving problems of taxation;

8) when agreeing on the values of the real estate object obtained by other methods.

Disadvantages of the cost approach:

1. Costs are not always equivalent to market value .

2. Attempts to achieve a more accurate assessment result are accompanied by a rapid increase in labor costs.

3. Inconsistency between the acquisition costs of the property being evaluated and the costs of new construction of exactly the same property, since the appraisal process deducts the accumulated depreciation from the construction cost.

4. Problems in calculating the cost of reproduction of old buildings.

5. The difficulty of determining the amount of accumulated wear and tear of old buildings and structures.

6. Separate appraisal of the land plot from buildings.

7. Problems of assessment land plots in Russia.

5. Coordination of the results obtained and the derivation of the final value of the value of the property

real estate appraisal cost costly

As a rule, one of the approaches is considered basic, the other two are necessary to adjust the results obtained. This takes into account the significance and applicability of each approach in a specific situation. The total value of the value of the appraisal item indicated in the appraisal report may be considered recommended for appraisal purposes if no more than 6 months have passed from the date of the appraisal report to the date of the transaction with the appraisal item.

The total value of the property value is derived based on a comparison of the results of applying different approaches to valuation. The Hierarchy Analysis Method (HAI) is used to reconcile the results obtained using different approaches and assessment methods.

1. The first step of the AHP is structuring the problem, agreeing the results in the form of a hierarchy. In the most simple form the hierarchy is built from the top, representing the goal of the problem through intermediate levels, usually a criterion for comparison to the lowest level, which in general is a set of alternatives.

2. After the hierarchical reproduction of the problem, a criteria comparison matrix is constructed and the value of the criteria priorities is calculated. Matrix element - aij - represents the intensity of hierarchy element i relative to hierarchy j.

The intensity of manifestation is usually assessed on a scale of intensity in points from 1 to 9:

1 - equal importance;

3 - moderate superiority of one over the other;

5 - significant superiority;

7 - significant superiority;

9 - very strong superiority;

2,4,6,8 - intermediate values.

If, when comparing the elements of the hierarchy ij, we obtain aij = 5, then aji = 1/5. The results obtained at the lower level are compared, i.e. a set of alternatives among themselves and for each selected criterion separately.

The final value of the weight of each alternative is determined by multiplying local priorities by the priority of matching the criterion at a higher level and further summing up for each element in accordance with the criterion affected by the element.

Reconciliation of real estate appraisal results: structuring by hierarchy:

A - the ability to reflect the actual intentions of the buyer and seller.

B - type, quality, extensiveness of data on the basis of which the analysis was carried out.

B - the ability of the parameters of the methods used to take into account market fluctuations.

D - the ability of the methods to take into account the specific methods of assessing the object that affect the value (size, location, etc.).

An agreement matrix is built and the values of the criteria are calculated.

The results are then compared at the lowest level for each criterion.

After the assessment for each criterion (A, B, C, D), the final value of the weights of each method is calculated. The totals are combined in a table.

table 2

The last step in negotiating the price of a property is to calculate the cost using the formula:

C = (DS * HD) + (ЗС * ХЗ) + (SS * ХС),

where DS is the value of the property, obtained by the income approach;

ЗС - the value of the property, obtained by the cost approach method;

CC - the value of the property, obtained by the comparative approach;

Xd, Xs, Xs - the weight of each approach.

С = (16065000 * 0.5) + (14700357 * 0.5) = 15382678.5 rubles.

Thus, as a result of using three approaches to appraising a property and agreeing on the results obtained, the value of the appraised property is obtained, which will be presented in the appraisal report.

The derivation of the final value of the cost should be accompanied by taking into account the assumptions and limiting conditions due to the completeness and reliability of the information used.

Conclusion

In this course project, we examined the methodology for real estate appraisal and carried out real estate appraisal by two approaches: profitable and comparative. With the income approach, the cost of a property with an area of 700 m 2 was RUB 16,065,000, and with a comparative approach - RUB 14,700,357. The results were agreed upon. As a result, the cost of the appraisal object amounted to 1,5382678.5 rubles.

Bibliography

1. Gryaznova AG, Fedotova MA Real estate appraisal: textbook. 2nd ed., Rev. and add. M., 2008.560 p.

2. Ivanova EN Assessment of the value of real estate: textbook. manual / ed. Dr. econ. Sciences, prof. M. A. Fedotova. M., 2007.344 p.

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