For each type of property valuation, independently taken styles for assessing their request value are used. The principles and approaches by which, for illustration, a structure or impalpable property can be valued have distinctive features.
still, which is valid for the assessment of structures, or a auto, If we’re talking about the cost approach. Of course, land can belong to a person as real estate, but he didn’t put any trouble or expenditure into its creation. In this case, how can the value of land be calculated? Only by considering it as part of the property, making a computation of the residual value of the( total) property, taking into account the costs invested in advancements. The choice of this approach is due to the difficulties that arise when taking into account all the advancements of the point over numerous times, which include mortal labor, fiscal costs for accoutrements , construction of structure. In addition, the point is girdled by other objects that affect its demand from buyers. The last index is easier to measure than the former bones.
According to the rules of valuation practice, the expert is obliged to substantiate the fact of applying or rejecting the approach.
The styles used most constantly are
• Deals comparison;
• Rent, as well as the system of the remainder;
• Intended use.
The deals comparison system is used to estimate the vacant lot or the land on which the structures are erected. You can work with it handed that the reviewer will have information about deals with analogousobjects.However, the expert analyzes only request offers in which the object is endowed with analogous characteristics, If similar information isn’t available.
When an appraisal of land containing endless structures is needed, we use the allotment system. For such a procedure, data on deals are needed, where the object- land, acts as a single real estate. The specifications must be the same. The use of the land plot in this case is as effective as possible, i.e., it complies with the rules of the stylish exploitation.
Within the frame of this system, the reviewer performs the following conduct
• Using a relative approach, calculates the request value of the EON( single property);
• Calculates the cost of land( relief);
• Subtracts from the request- the cost of relief( reduplication).
To find out the cost of a erected- up area, you can use the distribution system, the rules for working with which are mandated by the following conditions
• It’s necessary to find information about prices for deals with EON with analogous parameters;
• We need data on the participated cost of the point, which you can find out by abating from the cost of the EON;
• Effective land use;
The algorithm of the expert’s conduct will be as follows
• The specialist calculates the cost of EON together with the land, using a relative approach;
• You can find out the property valuation of the point by multiplying it by the price value of the share of land present in a single object.