Land plots can be assessed for the purpose of

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A plot of land is a part of a territory that has potential utility and has clear boundaries. It can be used for various purposes: as a construction site, agricultural land, road construction, etc.

When is it necessary to estimate the value of a site?

  • when registering a pledge;
  • in the event of a legal dispute;
  • when dividing property;
  • for contribution to the authorized capital;
  • to carry out purchase and sale transactions.

To determine the value of a land plot, you can act independently. However, it is more advisable to contact an independent appraiser. In addition, in certain situations, in addition to the figure (the exact value of the land), an official Valuation Report will be required. And only an appraiser who has successfully passed the qualification exam in the field of “real estate valuation” can draw it up.

Features of land valuation

Land is one of the most difficult objects to value. This is explained by its specifics, imperfect legal framework and inactive market.

Land plots are different from other real estate. Their feature is as follows:

  • it is a natural resource that cannot be replenished like other property assets;
  • when assessing, it is necessary to take into account the likelihood of multi-purpose use of land properties;
  • the concepts of physical wear and tear and functional obsolescence do not apply to the value of land plots, since the service life is not limited;
  • unlike other objects, the value of land increases over time (in the long term, local price declines may be observed. “Buy land, they are no longer producing it”).

The category to which the site belongs is of great importance. There are seven land categories in total:

  1. Lands of settlements. As a rule, these are separate objects that most often do not depend on other real estate and can easily be alienated. The price of such land will be higher if all utilities are connected, a road and transport network is built, and other elements of urban infrastructure are present.
  2. Agricultural land. Used by relevant enterprises for agricultural needs. Fertility and location are critical to pricing.
  3. Lands for industry, energy and other special purposes. Such territories are allocated for the needs of enterprises, institutions and to ensure the economic activities of populated areas.
  4. Specially protected areas. Sites that have a special environmental, historical, cultural or other purpose. Such lands are completely or partially withdrawn from circulation.
  5. Forest fund lands. Used for forestry.
  6. Water fund lands. Territories where reservoirs and various water bodies are located.
  7. Reserve lands. These are state lands taken out of circulation during conservation. Their use is permissible only after the category has been adjusted.

Any assessment of the value of a land plot begins with establishing the rights being assessed and determining the legal regime, that is, the category, type of permitted use, form of ownership and intended purpose.

The intended purpose is the legally established procedure and conditions for the exploitation of land for specific purposes within the category of land.

The form of ownership can be state, municipal or private. In addition, there are other property rights in the land market: the right of permanent perpetual use, lifelong inheritable possession, lease, and others.

Permitted use of a land plot is the options for possible use of the property. It is established by the executive authorities of the constituent entities of the Russian Federation and the municipality.

Professional land assessment

Why do you need to know the market value of owned land? Land, like the rest of the property and production assets of the company, is an asset that can and should generate profit. There are many ways to obtain benefits: construction, profit from leasing, placement as collateral to obtain bank loan products for production development. In addition to the above, such an assessment may be needed when entering into an inheritance to calculate the state duty when transferring the right to the plot to a new owner. In this case, the assessment is carried out as of the date of death of the previous owner of the land.

Land plots differ in shape, type, and nature of use. Correct determination of the price of owned land or the cost of renting a land plot is the most important factor for the further effective use of this asset. In our company, professional appraisers will determine the current value taking into account the current situation in the real estate market and provide an official opinion. We assess the market value of both undeveloped land plots and those with existing structures. Independent land assessment is one of the areas of our professional activity. We offer assessment of all categories of land - agricultural, industrial, settlements, taking into account the type of permitted use.

What determines the cost of land

There are four main categories of factors that influence the value of land:

Category Factors and their characteristics
Economic State of the world/national/regional economy. The level of employment of the population and the amount of wages, solvency. Costs of development or production of construction work. Providing financing and taxation.
Social Based on the basic needs of people for communication and land acquisition. These are the age structure of the location of the site, level of education, crime rate, and sense of ownership.
Legal Providing benefits, stimulating the development of land areas. Land use control. Setting rental rates. Infrastructure.
Physical Location, environment. Remoteness from relatively large highways, settlements and infrastructure.

General information about the cost of land

Most often, the market value of a land plot is determined. This type of cost is used when selling a plot and when making other transactions.

The seller has the right to set any price at his own discretion, but for successful sale the cost must be objective.

To establish such a price, we recommend contacting an independent appraiser.

The market value of a plot of land depends on:

  • supply and demand in the market, severity of competition;
  • the expected size, duration and possibility of making a profit from the use of a land plot for a specific period of time with the most efficient use of the object;
  • location and external factors;
  • adjustments to the intended purpose, type of permitted use, rights of certain persons to the site.

The market value is established on the secondary real estate market on a certain day. The price cannot be higher than the most expected costs for purchasing a similar plot.

The very first stage is to analyze the most effective use of the property. Current use may not be the most effective. For example, in St. Petersburg on the outskirts of the city (Devyatkino, Parnas, Shushary), according to the General Plan, land plots were gradually removed from the category of “agricultural land” and became “land of settlements” with the type of permitted use “for multi-storey housing construction.” At the same time, in order to minimize taxation, owners of plots who did not plan to start construction did not document the status of the land. But when all the neighbors around are building multi-story residential buildings, then using the land for agriculture is not the most reasonable option.

Land valuation can be divided into two categories:

  1. Mass cadastral valuation - used to simultaneously determine the cadastral value of all land plots within the boundaries of an administrative unit. Today, property tax is determined based on the cadastral value. Based on the distribution of plots according to their intended purpose and type of permitted use. It is carried out by state budgetary institutions formed in each region separately (this policy is due to the fact that private appraisers have a poor track record in carrying out such projects).
  2. Individual site assessment - carried out to determine the market or other value of a particular object.

The cost is calculated using various approaches and methods. For calculations, it is important to use methods that use complete and reliable information about both the object itself and market data. However, no matter what methods and approaches are used, the assessment begins with determining the option for using the land that will create its maximum value.

What affects the cost of land plots

The results of the examination are influenced by a number of factors:

  1. Object category. Land intended for the construction of commercial buildings has a higher price than land intended for the construction of houses.
  2. Location of the land. Plots located in the city center are worth more than those located far from the populated area.
  3. State of the market. Supply and demand in the market affect the price of land.
  4. The climate in the region and the topography of the territory also affect the value of real estate.
  5. The area of ​​the territory and its fertility. In this regard, objects with chernozem soils have an advantage.
  6. Economic situation in the area. In prosperous regions of the Russian Federation, the cost of land is higher.
  7. Property type. The territory is either personally owned or leased.

ATTENTION! Based on the results of the assessment of the dacha land plot, a report is drawn up in accordance with the provisions of Federal Law No. 135.

Valuation of land plot

Market valuation of a land plot is considered a rather complex procedure, since the characteristics of each property are unique. The regulations for assessing the value of a land plot were approved by Order of the Ministry of Property of the Russian Federation No. 568 of March 6, 2002.

To conduct an individual assessment of a plot of land, you will need to obtain the following information:

  • USRN data;
  • physical characteristics of the site;
  • information about encumbrances;
  • data on the availability of communications and the possibility of development;
  • economic forces.

The assessment is carried out on the basis of the integrated application of three approaches: profitable, comparative and costly. The approaches use the following methods:

An approach Methods
Profitable Method of capitalization of ground rent, balance, intended use
Comparative Sales Comparison, Allocation and Distribution Method
Expensive Residue method, extraction method

Let's look at each approach in more detail.

Procedure for assessing a land plot

The process of determining the value of a land plot is carried out in several stages.

Selecting an appraisal company and concluding an agreement with it

First of all, it is necessary to determine which company to entrust with carrying out the assessment. The selection should be taken with particular seriousness. You can use the services of government agencies or private organizations. Private traders charge more for work, but they do it faster and more thoroughly.

Having decided on an appraisal company, you should visit it, talk with employees, and check the availability of documents about the legal activities of the company. Then discuss the terms of the service, its cost, methods used, and then formalize the agreement.

Direct assessment

Specialists first check the documents submitted by the client for the land plot and analyze them for legality of registration and absence of encumbrances. Then they go to the site, inspect the property and the territory adjacent to it.

Determining the value of land

Having received all the necessary data during the assessment of the land plot, the company’s employees determine the value of the plot. The price of real estate depends on many factors, for example:

  • region of site location;
  • proximity to bus stops;
  • presence of buildings;
  • ecology in the region;
  • infrastructure development.

If agricultural land is subject to valuation, then soil fertility, the price of agricultural products in a particular region, and the required costs of using the property play a large role in determining the final cost.

Drawing up and issuing an assessment report

The last stage of the procedure is the preparation of an assessment report. It contains the following information:

  1. Cost of land.
  2. Date of assessment.
  3. Description of the donation. All characteristics of the property are indicated here, allowing it to be identified from other similar objects, for example, area, cadastral number, location address, presence of buildings, etc.
  4. Information about the customer.
  5. Information about the appraisal company and the specialist who conducted the appraisal.
  6. A list of standards that the appraiser considered when performing the work.
  7. Quantitative and qualitative characteristics of land.
  8. Analysis of the market situation in a specific region, review of real estate prices.
  9. The assessment procedure, the methods used, approaches, tools.
  10. List of documents attached to the report.
  11. Appraiser's signature.

The specialist attaches various papers to the report depending on the situation, as well as photographs of the land plot.

Income approach

The income approach is based on determining possible future income from the use of land. The approach is based on the principle of expectation. An investor or buyer, acting reasonably, will purchase land with the expectation of making a profit or benefit from its future use.

This approach can only be applied to such objects from which income can be derived. This will require a thorough financial, economic and physical analysis of the characteristics of the site and the entire project.

The approach uses one of three methods:

  1. Method of capitalization of ground rent. To use the method, you must have information about rental rates and physical characteristics of the site.
  2. The remainder method is the calculation of the value of a plot of land that can be “improved” for subsequent profit. At the same time, construction costs and revenue from the project are determined.
  3. Intended Use Method - Used to determine cost based on the best use case.

Let us consider the features of each method of the income approach in more detail.

The land plot is assessed for the purpose of

The payback period for agricultural production costs is 10 years. Determine the cost of the land plot. Task 11. Using the method of dividing into plots, determine the cost of a land mass with an area of ​​40 acres.

It is planned to divide this area into four sections of 10 acres each. The estimated sale price of all plots is determined in dollars. dollars for one plot). Development and sales costs relate to the present time and will amount to (USD.

): direct development costs -; management, security, control - 5000; overhead costs -; contractor's profit -; sales costs - 4000; current expenses (taxes, insurance) - 5000; developer's profit - It is planned that the developer will sell one plot at the end of each month. The monthly discount rate for this type of investment is determined to be 2%. Task 12.

How is a land plot assessed?

Purposes of land valuation They can be very different.

An assessment of the value of a piece of land is required in many cases.

Firstly, knowledge of the market value is necessary for participants in a purchase and sale transaction to make an economically sound decision.

You need to know the market value of a plot when providing land as collateral for a bank loan (the assessment results will be used to determine the collateral value).

An independent assessment of a land plot is required when justifying investment projects and determining the most effective use of land, when making a transaction with a single piece of real estate, when adding a plot of land to the authorized capital and in a number of other cases.

The state needs an assessment of the value of a land plot.

Only relying on it can one organize an effective taxation system.

On what basis is the land plot assessed?

What rights apply to an easement? Give examples.

10. Give examples of public and private easements. 11. What categories of land is the land fund of the Russian Federation divided into? 12. What legal concepts make up the legal regime of a land plot? 13. What is meant by the permitted use of a land plot? 14.

What requirements or restrictions may the permitted use of a land plot contain? 15. What forms of payment for land are established in the Russian Federation? 16. What land plots are currently in free civil circulation? 17.

What restrictions on property rights exist for foreign legal entities and individuals in the Russian Federation? 18.

Which land plots are divisible? 19. In what cases can a land plot be seized from the owner for state or municipal needs? 20.

Land valuation: what is it and how is it done?

The main territorial zones are as follows: ■ residential; ■ public and business; ■ engineering and transport infrastructure; ■ production; ■ recreational; ■ agricultural use; ■ military facilities and special purposes.

Cadastral valuation of urban land is carried out on the basis of the integrated use of income, comparative and cost approaches, based on information about transactions on the land and other real estate market, the level of rent and profitability of land use. Cadastral valuation of agricultural land.

The purpose of the assessment is to determine the cadastral value of agricultural land to justify land tax, rent and other payments in transactions with land plots.

/ land valuation

Continue to next article Valuation of a piece of land is necessary to solve a number of problems. An expert assessment of a land plot is aimed at studying its environmental condition.

In accordance with Article 13 of the Land Code of the Russian Federation (LLC RF) “land protection”, the assessment of the condition of land plots and the effectiveness of measures for their protection is carried out taking into account, among other things, environmental assessment.

Of great importance is the assessment of the land (soil cover) of a land plot, the purpose of which is to determine its fertility.

Preserving and increasing soil fertility and, as a consequence, increasing productivity is one of the main objectives of state economic policy.

Monitoring of agricultural lands in order to assess the soil fertility of arable lands must be carried out at least once every five years.

Site assessment

What approaches to determining the capitalization ratio when valuing land have developed in world practice? 45.

What is the difference between calculating the capitalization rate for land and calculating the capitalization rate for buildings and structures? 46.

What are the features of the method of capitalizing rent for settlement land? 47. To estimate the value of which land plots can the residual method be used? 48.

What stages does the procedure for assessing the market value of a land plot include using the residual method? 49.

What stages does the procedure for assessing the market value of a land plot using the intended use method include? 50. What stages does the procedure for assessing the market value of a land plot include by dividing it into plots? 51.

What are the advantages and disadvantages of the income approach to land valuation? 52.

Source: https://jurist-company.com/otsenka-zemelnogo-uchastka-proizvoditsya-s-tselyu/

Pravis lawyers are among the best in Kazan

It is clear that the market value of land changes over time, and therefore the valuation of a land plot is made on a specific date (usually the valuation of a land plot is carried out on the date of inspection of the land by appraisers). The land plot is assessed based on the principle of the most efficient use of land.

In other words, the assessment of the land plot is carried out taking into account the possibility of such use of the plot, which is the most probable, physically possible, financially feasible and reasonably justified.

What are the features of land valuation? Valuation of land plots in settlements (towns, villages, villages, etc.

) is carried out on the basis of an analysis of market data on lease, purchase and sale transactions, information on engineering and transport infrastructure, the state of the environment, etc.

Ground rent capitalization method

Used to calculate the cost of plots with and without buildings.
The main condition for the application of this method is the admissibility of obtaining land rent. Using this method of calculation implies the following algorithm:

  1. Determination of land rent, which is created on a land plot.
  2. Determination of capitalization ratio.
  3. Calculation of market value.

Land rent can be defined as the benefit received from renting out a plot of land. Data for the capitalization rate is obtained by comparing sales prices and rental amounts, and based on these data, a coefficient is determined, or using the cumulative method.

To determine the market value of the site, the direct capitalization method is used. It involves dividing the annual rental income by the capitalization rate. As a result, the profit amount is converted into the cost of the land plot.

Calculations are made according to the formula:

Land price = Rental income/Capitalization rate.

Income is determined based on the intended purpose of the valuation object. The following can be used as income:

  • in relation to agricultural lands and forest resources - estimated rental income;
  • for a developed land plot - part of the profit from improvements (real estate located on it);
  • for the assessment of land in settlements - rental income.

The peculiarity of the capitalization ratio is that it consists only of the rate of return and does not include the capital recovery rate. The capitalization rate is determined in the following ways:

  1. Dividing the amount of land rent for similar objects by their selling price.
  2. Cumulative: the addition of the risk-free rate of return on capital and the risk premium associated with investing in a given object.

The capitalization method may not always be used. Among the limitations are instability of prices, unevenness of accrued profits, as well as a wide range of prices for the sale of similar objects on the market. The use of the method is advisable when valuing land plots that bring constant or steadily changing profits.

Remainder method

The main condition for applying the method is the availability of the land plot for development in order to subsequently generate income. An algorithm for determining the value of an object using this method:

  1. Determination of costs for reproduction/replacement of improvements that correspond to the NEI.
  2. Calculation of net operating income from a property complex for a specific period of time. Market rental rates are used as a basis.
  3. Calculation of ground rent in the form of the difference between income from the use of the property complex and income received only from improvements.
  4. Determining the market value of an object through capitalization of ground rent.

Net operating income (NOI) is calculated using the following formula:

NER = Actual Gross Income – Operating Expenses.

Potential gross income is the income that can be received as a result of renting out the entire area of ​​the property complex when there are no losses from non-payment of rent. Rental rates are assumed to be average market rates for similar properties.

This method is especially relevant for assessing a site built up with commercial properties. It shows its effectiveness in the absence of information on sales of vacant plots.

The remainder method is used under the following conditions:

  • existing facilities meet the requirements of the NEI of the land plot;
  • the cost of real estate located on a land plot or the costs of its construction, as well as its service life, can be calculated with a high degree of accuracy;
  • the annual net operating income resulting from the operation is already known.

The remainder method is used when non-residential real estate is relatively recently put into operation or has not yet been built.

Intended Use Method

The main rule that must be observed for the calculation by the intended use method is the possibility of exploiting the land in a way that brings profit. The algorithm for applying the method is as follows:

  1. Calculation of the amount and time structure of costs required to use the facility in accordance with the NEI.
  2. Calculation of the amount and time structure of income.
  3. Calculation of the size and structure of operating expenses.
  4. Calculation of the discount rate that corresponds to the level of investment risk.
  5. Determining the value of a land plot by discounting cash flows.

Discounting is a procedure for bringing future cash flows to the valuation date at a discount rate determined by the appraiser. As a source of income, rental, economic use of the properties of a site or property complex, as well as the sale of an object are used.

Comparative approach

The comparative approach involves determining the value of a land plot by comparing the sales prices of similar objects. The approach is based on the principle of substitution - the buyer, acting reasonably, will not pay more for the property than he could pay for a similar plot of land.

The comparative approach shows its effectiveness for estimating the value of undeveloped plots. If there is a sufficient amount of reliable data on the sale of objects for a specific time period, it is possible to obtain the most accurate market value of a site in a specific market.

The comparative approach uses three methods:

  1. The sales comparison method is considered the simplest and most effective. Based on comparison of prices of similar objects.
  2. Selection method – used exclusively for built-up objects.
  3. Distribution method - used to establish the relationship between the value of a land plot and the buildings erected on it.

Sales comparison method

The main condition for the possibility of using the sales comparison method is the availability of data on the prices of transactions with land plots, which are analogues of the object of assessment. The method implies the following algorithm:

  1. Determining which elements will be compared.
  2. Establishing the value of adjustments for each comparison element.
  3. Making adjustments for all comparison elements separately.
  4. Determining the market value of a land plot by summarizing the adjustments made.

The following factors are used as elements taken for comparison:

  • location;
  • type of permitted use;
  • presence of encumbrances;
  • physical properties - area, fertility, relief, etc.;
  • transport accessibility;
  • availability of utilities, etc.

In addition to pricing factors, the characteristics of completed transactions in relation to land plots are taken into account. This:

  • terms of payment under the agreement - own or borrowed funds are used;
  • terms of payment – ​​cash, barter, etc.;
  • the circumstances in which the transaction was made - bankruptcy, free market, etc.;
  • change in prices for land plots over a period of time, starting from the date of concluding a transaction with an analogue until the date of appraisal work.

Prices are adjusted according to units of comparison:

  • if the site is not intended for development - rub./1 m2 of site;
  • if the site is intended for construction purposes - rub./1 m2 of constructed area.

Based on the results of making adjustments, prices of analogues per unit of measurement should be close. If a significant scatter is detected, it is necessary to select other analogues. Data for comparison are taken from reliable sources of information: Directory of real estate appraiser Leifer L.A., NCPO, StatRealt resource.

After all adjustments have been made, the final value of the appraised object is calculated using the weighted average formula.

How is the value of a land plot determined?

Our company’s specialists take into account a complex of factors to assess the value of a land plot. Important indicators that are taken into account when assessing land are:

  • the shape of the owned land plot, area, distance from populated areas, roads and railways, presence of access roads and their quality, purpose, permitted use;
  • availability of utilities (gas supply, water supply and sewerage, electrical networks) and telecommunications (broadband Internet, cable television);
  • general economic, political and social situation in the region where the land is located;
  • average price for plots of the same category on the market;
  • availability of land improvements;
  • availability and cost of buildings on the site.

To carry out an assessment, in most cases, the appraiser needs to inspect the area being assessed, take appropriate photographs, review the package of documents available to the customer to determine the intended purpose and become familiar with all the details of the assessment object. The documents provided must include evidence of existing property rights and a cadastral passport indicating the cadastral value.

The presence of natural resources on the assessed plot of land somewhat changes the usual assessment algorithm. Our appraisers have all the skills and knowledge required to carry out such an appraisal.

Selection method

Conditions under which the method can be used:

  • availability of information on transaction prices in relation to property complexes similar to the one that includes the property being valued;
  • compliance of existing land improvements with its NEI.

To use the method, the following algorithm is used:

  1. Establishing the elements by which the unified property complex will be compared with analogues.
  2. Establishment for each element of the nature and degree of differences between the analog and a single complex.
  3. Determine price adjustments for each comparison item.
  4. Making smoothing adjustments for each comparison element.
  5. Calculation of the market value of the property complex, which includes the property being valued.
  6. Calculation of the cost of replacement/reproduction of improvements to the territory.
  7. Determining the value of the assessed land plot by subtracting the cost of replacement/reproduction of improvements from the price of a single real estate complex.

When determining the cost of replacement/reproduction, the amount of accumulated wear and tear of improvements is taken into account. It is defined in total or monetary terms as the sum of physical, functional and economic wear and tear.

Distribution method

To apply the distribution method, the following conditions must be met:

  • availability of data on prices of transactions with property complexes;
  • availability of data on the share of the land plot in the market value of the entire property;
  • compliance of the method of using the object with its NEI.

The method is used according to the following algorithm:

  1. Establishing the elements by which the unified property complex will be compared with its analogues.
  2. Establishing the degree of difference between analogues and the assessed object for each element.
  3. Smoothing price adjustment for each element of comparison of objects.
  4. Determination of the market value of the entire property complex.
  5. Calculation of the market value of a land plot by multiplying the market value of the entire object by the size of the land share in it.

The distribution method can only be applied to developed land plots.

Cost-effective approach

When calculating the market price of a land plot, the cost approach is practically not applicable. It involves assessing the plot of land with its improvements (buildings, structures, communications). It is assumed that the investor, acting wisely, will not pay a higher price than what it would cost to purchase land for development and erect a similar building on it in a specific time period.

The cost approach is based on the allocation method and determines the market value using the following formula (it is important that the site is used in accordance with the NEI):

Land value = Cost of land with improvements - Cost of improvements.

When is an assessment needed?

Land valuation can be useful in different situations, for example:

  1. Upon entering into inheritance rights. In this case, it is important to know the cost to determine the amount of the state fee that the heirs pay to the notary.
  2. When contributing property to the authorized capital as a contribution.
  3. To complete a real estate purchase and sale transaction. Here it is important to find out the market price for such objects, so as not to undercut the price, but also not to overinflate the cost of the plot.
  4. To challenge the cadastral price and reduce the amount of land tax.
  5. When drawing up a business plan to prepare an investment project.
  6. For the purpose of obtaining a mortgage or other loan from a bank that requires the payment of collateral.
  7. To conclude a land lease transaction with subsequent purchase.
  8. When conducting a comprehensive business assessment.
  9. For litigation related to a person's real estate.
  10. During enforcement proceedings.

This list of situations where land valuation may be required is not exhaustive.

Evaluation report

As a result of the work, an assessment report is drawn up. It has a prescribed form and is drawn up in accordance with approved standards. It has legal force and may be required in the following cases:

  • when registering a purchase and sale;
  • upon entering into inheritance;
  • to include the site in the authorized capital;
  • to challenge the cadastral value in order to reduce the tax burden;
  • to include reliable information in the business plan when implementing an investment project;
  • for lending purposes;
  • when drawing up a lease agreement;
  • to determine the redemption price;
  • in legal disputes and other situations.

The materials used in the appraisal report must support the calculated market value of the land. If some information is not related to the set price, it is not advisable to include it in the report so as not to mislead the reader.

The report contains the following information:

  • description of the land plot indicating the purpose, type of permitted use, property;
  • description of improvements to the land plot (buildings, structures, utilities and results of work that change the quality characteristics of the property);
  • photographs of the property and improvements located on it;
  • description of the land market;
  • determination of the NEI option.

In addition, the report must describe the procedure for determining the value of the valuation object. For this purpose, it is indicated which approaches and methods were applied and links to sources of information are provided.

The final cost of the land plot is written in rubles as a specific value. The contract for carrying out appraisal work may stipulate otherwise. For example, one of the terms of the contract may stipulate the need to indicate the cost in the form of a range.

Procedure for assessing the market value of a land plot

If it becomes necessary to establish the market price of a land plot, the copyright holder independently selects an independent appraiser.

The choice of a specific appraiser depends only on the wishes of the customers. This decision may be influenced by the experience of the appraiser, the business reputation established in the region, as well as other factors. The appraiser selected to carry out the work is obliged to enter into a simple written agreement with the customers. In the contract, in addition to describing the object of assessment, it is necessary to agree on the amount of remuneration for the work performed.

General rules for obtaining an independent assessment of the market value of land include the following steps:

  • 1) The decision by the copyright holder to conduct an assessment;
  • 2) Selection of an appraiser and conclusion of an agreement;
  • 3) Carrying out work to determine the market value of the object;
  • 4) Drawing up a final report;
  • 5) Signing a certificate of completion of work and handing over the result to the customer.

The result of the appraiser’s work can be used when agreeing on the terms of a contract for the sale and purchase of a specific land plot, as well as when challenging the cadastral value of a plot.

Author of the article

Cost of services

Cost of work
Assessment of agricultural landfrom 18,000 R
Valuation of a land plot, massif (recreational land)Great Dane
Valuation of a land plot, massif (land of settlements)Great Dane

What's included in the price

  • Appraiser visit;
  • All company expenses, including unexpected ones;
  • Printing 2 copies of the Assessment Report

Cost of assessment

The cost of services of an appraisal company differs depending on the specific company, as well as on the region of its location, the area of ​​the land plot and other factors. Therefore, the price range is quite large - from 2 to 20 thousand rubles.

Thus, the assessment of a land plot is required in different cases and requires the participation of qualified specialists. Their services are not free, so you need to be prepared for financial expenses.

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Required documents

  • Certificate of state registration of land rights or Extract from the Unified State Register of Real Estate;
  • Cadastral passport of the land plot;
  • Information about the presence of encumbrances (collateral, long-term lease agreement, etc.);
  • Certificate of the initial balance sheet and residual value of the object as of the date of assessment (the owner is a legal entity);
  • If there are buildings on the land plot, then it is necessary to provide documentation for each improvement object.

Our specialists may also need additional information: the presence of encumbrances, liens, legal disputes regarding the subject of assessment, and more.
This list is not exhaustive and is ultimately determined by our specialists together with the Customer.

Land plots can be assessed for the purpose of

Land footage assessment is carried out for the following purposes:

  1. To obtain a mortgage or use as collateral
  2. In order to resolve various property disputes
  3. To optimize taxation
  4. For the purpose of completing purchase and sale transactions
  5. When adding a land plot to the authorized capital of the company
  6. For the purpose of making management decisions

For the cost of land valuation work, see the price list. Valuation of land plots So, the valuation of land area is carried out according to the principle of the most effective use.

The assessment of the market value of urban land areas is carried out on the basis of data on purchase and sale transactions, rental rates, offer prices, environmental condition of the area, additional improvements, etc.

Land valuation

The market activity of enterprises is increasing, household incomes are increasing, mortgage and other types of lending are developing. All this requires the provision of highly professional land valuation services. Let's take a closer look at what such an assessment is.

If we are talking about land valuation, then, as a rule, it is necessary to determine the market value of the right to own this plot or the market value of the lease of this plot. This assessment is characterized by the location of the site and current market conditions.

If land plots are intended for production, the expected profit received from the land plot is taken into account. Depending on supply and demand, prices for land plots change, so the assessment is carried out as of a specific date.

The assessment also takes into account the intended purpose of the land plot, since if it changes, the value of the land may change.

Objectives of land valuation

As paragraph 3 of FSO No. 2 states, the purpose of carrying out appraisal work is to determine the value of a particular object. The type of examination is determined in the assignment, taking into account the intended use of the result obtained. Paragraph 5 of FSO No. 2 indicates what the types of value of an object that is subject to assessment may be, among them:

  • investment,
  • market,
  • cadastral,
  • liquidation

All of the above assumes that land valuation can be individual and mass.

Individual involves the consideration of individual objects to meet the needs of individual land owners. Mass is used for various government purposes: taxation and others. When assessing land plots, the economic point of view of considering the concept of “plot of land” is adopted.

Valuation of land plots can be carried out for the purpose of

Conclusion Work on expert assessment of the value of land plots is a complex procedure due to the need to take into account all aspects of use, including land as a natural resource, as well as real estate and the immediate living environment. Only such an integrated approach will ensure high reliability of the assessment. If the cost is underestimated, a situation will arise in which the use of this natural resource will be ineffective.

How is the market value of the site estimated?

Important Market value plays a significant role when performing cadastral valuation work. Paragraph 3 of Article 66 of the Russian Land Code clearly states that when the market value of a land plot is determined, its cadastral price is set at a similar level.

This is necessary to avoid possible discrepancies, and also significantly saves money and time, providing the opportunity to refuse re-evaluation. Attention Also, this provision minimizes the risks of abuse of cadastral valuation.

Recently, according to all lawyers involved in practice, land valuation is increasingly being used to contribute it to the authorized capital. This is due to the fact that this approach makes it possible to reduce income taxes.

Land assessment

The assessment of agricultural land plots is based on an analysis of yields and revenues for the sale of agricultural products.

The assessment of dacha land plots is carried out based on an analysis of the prices of purchase and sale transactions, the availability of transport, access roads, distance from central highways, the natural environment, and the presence of utilities on the site. For the cost of land valuation work, see the price list.

Documents required for the assessment of a land plot: - Document of ownership of the land plot (or right of use); - Cadastral plan of the land plot; - Data on the presence of encumbrances on the land plot (collateral, long-term lease agreements); - Detailed data on existing land plot of buildings.

Source: https://juristufa.ru/2018/04/17/otsenka-zemelnyh-uchastkov-mozhet-proizvoditsya-s-tselyu/

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