Modern estimation of the cost of the land plotwill determine the market price of ownership of a piece of land or other proprietary rights that are relevant to the land being valued. Now we will consider this issue in more detail, because financial transactions related to land are considered one of the most complex and have many nuances and pitfalls.
When is it necessary to evaluate the land?
Estimation of the cost of land is formed during registrationpledge, purchase / sale, contribution to the authorized capital of the enterprise and other purposes, which provides for legislation. An appraisal examination is carried out in relation to industrial, settlement, and agricultural land. Estimation of the cost of a land plot is necessary for the division of property. If you need an estimate of the right to lease, then the value of the right to lease a piece of land on the market will be determined as the difference between the market value and the lease capitalized rate on this plot. To assess the land plot (for the market price), it is necessary to take into account its location, transport accessibility, availability of communications, its purpose, and the possibility to change the latter.
The main reasons for assessing land:
- To execute the verdict of the court concerning the rights of inheritance, the resolution of property disputes, for example, during the divorce proceedings, etc.
- When lending against a plot of land. This may be a piece of land purchased for credit money or already owned.
- When carrying out a lease or purchase / sale transaction.
- To revise the cadastral value. The purpose of this operation is to reduce the taxable base, etc.
The difficulty of assessing land is that it is necessary to take into account such factors:
- permitted use;
- the purpose of the plot of the serpent;
- volume-spatial characteristics (relief, area) and much more.
Modern estimation of the cost of the land plotdiffers from the evaluation of an apartment or a house that have only one designated purpose. Depending on the terrain, the cost of land will be different. In addition, assessing the value of land, you can apply all existing approaches to obtain the final price: profitable, costly and comparative. The most used approach is the comparative one. Nevertheless, in certain situations (for example, if there is insufficient activity in the real estate market in terms of selling / buying land plots), this approach can not be applied. In this case, the cost is determined by a costly or profitable approach.
Assessment of the value of the land plot is dependentalso from the expected duration, magnitude and possibility of generating income as a result of the lease of the site for the period of time when it is used most effectively.
How much are the evaluation works
The valuation of land is alsoits value. And the latter depends on the purpose of assessing the value of a plot of land, its purpose, the amount of work, and also from the appraiser who conducts this assessment.