Depreciation is characterized by a decrease in utility real estate, its consumer attractiveness from the point of view of a potential investor and is expressed in a decrease in value (depreciation) over time under the influence of various factors. Depreciation (I) is usually measured as a percentage, and depreciation is valued as depreciation (O).

Depending on the reasons causing the depreciation of the property, the following types of depreciation are distinguished: physical, functional and external.

Physical and functional wear is divided into removable and irreparable.

Removable wear is wear, the elimination of which is physically possible and economically feasible, i.e. the costs incurred to eliminate one or another type of wear contribute to an increase in the value of the object as a whole.

Identification of all possible types of depreciation is the accumulated depreciation of the property. In value terms, cumulative depreciation is the difference between replacement cost and market price the object being valued.

The cumulative accumulated depreciation is a function of the lifetime of the object. Consider the main evaluative concepts that characterize this indicator. property expense income depreciation

The physical life of the building (FZh) - the period of operation of the building, during which the state of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). Term physical life of the object is laid during construction and depends on the capital group of buildings. Physical life ends when the object is demolished.

Chronological age (XA) - the period of time that has passed from the date of commissioning of the object to the date of assessment.

Economic life (EL) is determined by the operating time during which the object generates income. During this period, ongoing improvements contribute to the value of the property. The economic life of an object ends when the operation of the object cannot generate income, indicated by the corresponding rate for comparable objects in this segment of the real estate market. At the same time, the ongoing improvements no longer contribute to the value of the object due to its general wear and tear.

Effective age (EV) is calculated based on the chronological age of the building, taking into account its technical condition and prevailing at the valuation date economic factors affecting the value of the property being valued. Depending on the characteristics of the operation of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) use of the building, the effective age is usually equal to the chronological one.

Remaining term economic life(OSEZH) building - the period of time from the date of assessment to the end of its economic life.

Physical depreciation is the gradual loss of the technical and operational qualities of an object that were originally laid down during the construction under the influence of natural and climatic factors, as well as human life.

The methods for calculating the physical deterioration of buildings are as follows:

- normative (for residential buildings);
- cost;
- lifetime method.

The normative method for calculating physical wear and tear involves the use of various normative instructions of the intersectoral or departmental level. IN these rules the characteristics of the physical wear of various structural elements of buildings and their assessment are given.

Determination of the physical deterioration of buildings by the method of life

In practice, structural elements that have removable and irremovable physical wear and tear are divided into "long-lived" and "short-lived".

"Short-lived elements" - elements that have a shorter life than the building as a whole (roofing, plumbing fixtures, etc.).

"Long-lived elements" - elements whose expected life is comparable to the life of the building (foundation, load-bearing walls, etc.).

Removable physical deterioration of "short-lived elements" occurs due to the natural wear and tear of building elements over time, as well as careless operation. In this case, the selling price of the building is reduced by the corresponding impairment, as the future owner will need to make "previously deferred repairs" to restore the building to normal operating characteristics ( Maintenance indoor areas, restoration of leaky roof areas, etc.). This assumes that the items are restored to "virtually new" condition. Removable physical depreciation in monetary terms is defined as the "cost of deferred repairs", i.e. the cost of bringing the object to a state "equivalent" to the original.

Fatal physical wear of components with a short life is the cost of restoring high-wear components, determined by the difference between the replacement cost and the amount of removable wear, multiplied by the ratio of the chronological age and the physical life of these elements.

Eliminable physical wear of elements with long term life is determined by the reasonable cost of its elimination, similar to the removable physical wear and tear of elements with a short lifespan.

The irreparable physical wear and tear of elements with a long life is calculated as the difference between the replacement cost of the entire building and the sum of the removable and irreparable wear and tear multiplied by the ratio of the chronological age and the physical life of the building.

functional wear. Signs of functional deterioration in the assessed building - non-compliance of the space-planning and/or constructive solution with modern standards, including various equipment necessary for the normal operation of the structure in accordance with its current or intended use.

Functional wear is divided into removable and irreparable.

value expression functional depreciation is the difference between the cost of reproduction and the cost of replacement, which excludes functional depreciation from consideration.

Removable functional depreciation is determined by the costs of the necessary reconstruction, which contributes to a more efficient operation of the property.

Causes of functional wear:

- deficiencies requiring the addition of elements;
- deficiencies requiring replacement or modernization of elements;
- over-improvements.

Weaknesses that require elements to be added are elements of the building and equipment that do not exist in the existing environment, and without which it cannot meet modern performance standards. Wear due to these positions is measured by the cost of adding these elements, including their installation.

Deficiencies requiring replacement or modernization of elements - items that still perform their functions, but no longer meet modern standards (water and gas meters and fire fighting equipment). Depreciation for these items is measured as the cost of existing elements, taking into account their physical wear and tear, minus the cost of returning materials, plus the cost of dismantling existing ones, and plus the cost of installing new elements. The cost of returning materials is calculated as the cost of dismantled materials and equipment when used at other facilities (finalized residual value).

Super-improvements - positions and elements of the structure, the presence of which is currently inadequate to the modern requirements of market standards. Removable functional wear in this case measured as the current replacement value of the super-improvement items minus physical wear and tear, plus the cost of dismantling, and minus the salvage value of the dismantled items.

Irremovable functional wear is caused by outdated space-planning and/or structural characteristics of the assessed buildings in relation to modern building standards. A sign of irreparable functional wear is the economic inexpediency of incurring costs to eliminate these shortcomings. In addition, it is necessary to take into account the existing at the date of assessment market conditions for adequate architectural conformity of the building to its purpose.

Depending on the specific situation The cost of irremovable functional wear can be determined in two ways:

1) capitalization of losses in rent;
2) capitalization of excess operating costs necessary to maintain the building in proper order.

Calculation of unrecoverable functional wear by capitalizing the excess operating costs required to maintain the building in good condition can be done in a similar way. This approach preferred for assessing the irremovable functional deterioration of buildings that differ in non-standard architectural solutions and in which, nevertheless, the rent is comparable to rent for modern analogue facilities, in contrast to the value of operating costs.

External (economic) depreciation - depreciation of an object due to a negative impact in relation to the object of assessment external environment: market situation, easements imposed on certain use of real estate, changes in the surrounding infrastructure and legislative decisions in the field of taxation, etc. External depreciation of real estate, depending on the reasons that caused it, in most cases is unrecoverable due to the invariability of the location, but in some cases it can “remove itself” due to positive change surrounding market environment. - elements that have a shorter life than the building as a whole (roofing, sanitary equipment, etc.).

Calculation of the depreciation of the property

Depreciation in valuation is defined as the loss of an object's usefulness, and hence its value, for any reason. Depreciation allows for adjustments to be made between the value of a specially selected new building and the actual property being valued.

The following methods for calculating the cumulative depreciation of a property are most widely used.

Partition method

Three types of wear are defined: physical, functional and external.

Physical deterioration implies any physical aging of the building, up to the destruction of structures. In the practice of assessment, two types of physical depreciation are considered: removable and irremovable.

Removable physical depreciation - implies that the costs of its elimination do not exceed the potential benefits (increase in the value of the object) of the investor. Removable physical wear and tear include current repairs.

Irremovable physical deterioration is characterized by an increase in the cost of repairing objects over the value added of the object of assessment.

To determine the irremovable physical wear and tear, structural elements are divided into:

Long-term ( engineering systems, foundations, plumbing, electrical system, frames, walls)

Wearable (roofing, gutters, trim)

Before attributing a building element to one or another group indicated above, it should be noted that:

The service life depends on the building materials that were used, and on the technology of work;
Structural elements of the building are technically interconnected.

Wear parts are those that are repeatedly replaced during the life of the facility.

An engineering method can be applied to determine the irreparable physical wear.

After determining the depreciation of short-term assets from total cost reproduction of the object should subtract the cost of acquiring short-term assets.

functional wear arises if some of the functions of the property do not meet modern standards.

If recoverable wear is associated with an obsolete item, then the wear is measured by the cost of replacing it.

Unrecoverable functional wear is associated with a decrease in the cost of the object due to a lack or excess of certain quality characteristics (poor layout, too dense building, inconvenient location of the building, lack of access to the building)

The calculation of irremovable functional depreciation can be carried out by capitalization of rental losses.

External (economic) depreciation arises under the influence of factors external to the object of ownership.

The most typical factors include:

Nearest natural objects
Condition of the adjacent territory
neighboring property
Competition in the real estate market
social situation
Distance from places of work
infrastructure development

The economic depreciation of real estate can be measured by the decrease in rent relative to similar properties.

Economic depreciation can also be determined by the pair sales method. It is necessary to compare real estate objects, one of which was influenced by an external factor, and the other factors of the external environment were not affected.

Lifetime Method

The economic life of a property is the period of time over which improvements contribute to the value of the site.

The term of physical life is the period of time during which the structure actually exists and is suitable for habitation or work in it.

The effective age of the structure is based on an estimate appearance, physical condition and economic factors of its environment.

The remaining economic life of a building is the period of time from the date of appraisal to the end of the economic life of the building.

I / BC \u003d EV / TS,

Where I - wear,%;

EV – effective age, years

BC - replacement cost, %

TS - typical economic life, years

And \u003d EV / (EV + OS),

Where OS is the remaining period of economic life, years.

Market sampling method

This method is based on comparable sales information. The depreciation of the assessed object is determined in the following sequence:

1. Collection of analytical information on recently sold similar properties

2. Determination of the cost of a land plot for each analogue object

3. Determination of the cost of improvements by subtracting from the price of the sold analogues of the cost land plots

4. Determination of the replacement cost without taking into account the depreciation of each analogue object on the date of assessment.

5. Determination of depreciation by subtracting from the replacement value (stage 4) the value of the property (stage 3)

6. Determining the effective age of analogue objects

7. Determination of the average annual depreciation by dividing the depreciation obtained (stage 5) by the effective age of the corresponding object

8. Determination of the average annual percentage of depreciation by dividing the average annual depreciation by the replacement cost of improvements.

This process should be repeated several times depending on the number of analogues chosen.

In the total amount of wear, one can distinguish physical, functional and economic depreciation. Physical and functional depreciation are determined by inspecting the building, and their values are deducted from the total depreciation. It turns out the value of economic depreciation.

Determining the depreciation of a property

The full cost of reproduction or replacement is the sum of the costs of reproduction (replacement) of a new building at prices in effect on the date of the valuation. Therefore, it is necessary to take into account the differences in the characteristics of the new object and the property being valued.

Wear in the assessment means the loss of utility, and hence the value of the object of assessment for any reason. Depreciation (as a loss of value) can be expressed in absolute and relative units. If wear is expressed in absolute units ( monetary units), then it is subtracted from full cost reproduction.

V play \u003d Vp play - And or V substitute \u003d Vp substitute - And, (6.5)

where CB is the cost of object reproduction;

V replacement - the cost of replacing object improvements;

Vp reproduction - the total cost of reproduction of the object;

Vp replacement - the total cost of replacing the object;

And - depreciation of the object of assessment, expressed in monetary units.

If wear is expressed in relative units (percentage), then the following formula is applied:

Vp play = V play (1 - I), (6.6)

where I - depreciation of the object of assessment, expressed in relative units.

There are two ways to determine wear:

Life time method
The method of splitting into types of wear.

Depreciation, as a loss of value, can be expressed both in relative terms (in relation to the full cost of reproduction or full replacement cost), and in absolute terms.

Calculation of wear by the life method

Wear is a function of the object's time.

Determining the depreciation of buildings by the lifetime method is based on an examination of the buildings of the object being assessed and the assumption that the effective age of the object relates to the typical economic life in the same way as accumulated depreciation to the cost of reproduction (replacement) of the building.

When calculating wear by the life time method, the following concepts are used:

The physical life of the building (T n) - the period of operation of the building, during which the state of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). The term of the physical life of the object is laid down during construction and depends on the capital group of the building. Physical life ends when the object is demolished.

Chronological age (T fact) - the period of time that has passed from the commissioning of the object to the date of the assessment.

The effective age (T eff) is calculated on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the date of the assessment that affect the value of the property being assessed. Depending on the characteristics of the operation of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) use of the building, the effective age, as

Rice. 6.1. Periods of the life of the building and the estimated indicators characterizing them

Indicators of physical depreciation, effective age and economic life are in a certain ratio, which can be expressed by the formula

And \u003d (T ef / T n) 100%, (6.7)

where I - wear, %.;

T eff - effective age, determined by an expert on the basis of the technical condition of the elements or the building as a whole;

T n - a typical period of physical life.

And \u003d (T fact / T n) 100%, (6.8)

where Tfact is the chronological age.

The use of formula (6.8) is relevant when calculating percentage adjustments for depreciation in compared objects (comparative sales method), when it is not possible for the appraiser to inspect the selected analogues to determine the indicators used in formula (6.7).

Example. Determine the value of the property being valued. A land plot with a building built in 1980 is being assessed. Regulatory term operation of the building for 150 years. Market price land plot determined by the sales comparison method and is equal to 4.5 million rubles. The total replacement cost of the building was determined by the comparative unit method at the level of 11.4 million rubles. The assessment date is January 30, 2010.

The chronological age of the building is 30 years. To calculate the wear of the structure, we use formula (6.8), since the effective age is not given.

And \u003d (T fact / T n) 100% \u003d 30/150 * 100% \u003d 30%.

To calculate the value of the object being valued, we apply the formula 6.2.

V \u003d 4,500,000 + (11,400,000 - 0.3 * 11,400,000) \u003d 12,480,000 rubles.

Thus, the cost of the property being valued, calculated using the cost approach, amounted to 12,480,000 rubles.

Calculation of wear by splitting into types of wear

The most common depreciation calculation method is wear breakdown method.

Depending on the factors that reduce the value of real estate, depreciation is divided into physical, functional and external (economic). Physical and functional wear can be removable and irreparable. External wear is usually irreparable.

Rice. 6.2. Classification of depreciation of real estate objects

The sum of all possible types of depreciation is the accumulated depreciation of the property.

Physical deterioration reflects changes in the physical properties of the property over time (for example, defects in structural elements). Physical wear can occur under the influence of operational factors or under the influence of natural and environmental factors.

functional wear called a decrease in the value of a property associated with a discrepancy between the design and planning decisions, building standards, design quality, manufacturing material modern requirements for these positions.

External wear- this is a decrease in the value of the property due to the negative influence of the external environment in relation to the object of assessment: location, market situation, easements imposed on certain use of real estate, changes in the surrounding infrastructure and legislative decisions in the field of taxation, etc.

Depreciation is considered to be removable if its elimination is physically possible and economically feasible.

Physical removable wear is determined by the cost method, calculating the cost necessary work for the replacement and improvement of individual structural elements of the building.

cost method is to determine the cost of restoring elements of buildings and structures. The cost method is used to determine the removable physical wear.

An example of calculating physical depreciation by the cost method is given in Table 6.5.

Table 6.5.

Example of calculation of removable physical wear

Eliminable physical wear according to table 6.5 is 333,500 rubles.

To calculate the physical irremovable wear usually use the expert method or the method of life.

The most accurate and most time-consuming way is expert. It involves the creation of a defective statement and the determination of the percentage of wear of all structural elements of a building or structure.

The calculation of the physical deterioration of the building as a whole will be carried out according to the formula:

And physical = ? [ I physical i I i ] (6.9)

Ifiz i - physical wear and tear of a separate i-th structural element (%);

I i - specific gravity of the i-th structural element;

n is the number of structural elements of the evaluated building.

The calculation of the physical deterioration of the building is given in table 6.6.

Table 6.6. Calculation of physical wear

Structural elements of the building	Share in total cost, %	actual physical element, %	The share of the physical wear of the element in the total physical wear of the building, % (Special weight of the element * *Ifiz el-ta)/100
Foundation
Walls and partitions
overlap
Roof and roof



Sanitary and electrical devices
Other works
Physical deterioration of the building

Lifetime Method used to calculate the physical and physical irremovable wear, this method is discussed in detail above.

normative method.

The normative method is used to calculate physical depreciation or physical unrecoverable depreciation. If physical disposable wear is calculated, then there is no need to take into account the factors that were taken into account when calculating physical disposable wear.

Physical deterioration is determined using a breakdown of the building by components. The amount of physical depreciation of the assessed object was determined on the basis of the "Rules for assessing physical depreciation" VSN 53-86 (p). The total physical wear is determined by formula (6.9), when the weights of structural elements and the values of physical wear of these structural elements are determined.

functional wear they call the decrease in the value of property associated with the inconsistency of design and planning solutions, building standards, design quality, manufacturing material with modern requirements for these positions.

Causes of functional wear:

deficiencies requiring the addition of elements;
deficiencies requiring replacement or modernization of elements;
superimprovements.

Functional wear can be removable and irreparable. Removable functional wear is calculated most often by the cost method.

Depending on the functional wear can be determined in the following ways:

based on excess operating costs;
based on pair sales.

Market data are used to determine the required calculated indicators (rent rates, capitalization rates, etc.).

At the same time, the selected analogues should not have signs of functional wear identified in the object of assessment. Below is an example of calculating functional wear (Table 6.7).

Table 6.7. Calculation of functional depreciation based on losses in rent

Estimated indicators	*Medium* *indicators* by analogues	*Indicators for* *assessed*

Leased area (S), m 2
Loss coefficient from underloading (Kp), % of HP



Potential gross income, rub. in year PVD = Sar _ S
Actual gross income, rub. in year DVD = PVD _ (1 - Kp)
Net operating income, rub. in year CHOD = DVD - OR
The value of the property, rub.
The cost of the building, rub. Vsp = V _ (1 - dzu) (in these calculations, the share of the land plot is taken expertly 25%)
Functional wear, %	(3656 250 - 3178125) / 3656250= 0.13 or 13%

The functional depreciation calculation can be made on the basis of excess operating costs to maintain the building due to functional depreciation. Consider an example of calculating functional depreciation based on excess operating costs in table 6.8.

Table 6.8. Example of functional depreciation calculation based on excess operating expenses

Estimated indicators	*Averages* by analogues	*Indicators for* *assessed*
Annual rent (Car), rub./m 2
Area rented out for rent (S), m 2
Loss coefficient from underloading, determined according to average market data (Kp), % of HPH
Operating expenses (OR), rub./m 2
Capitalization rate calculated using the market extraction method (R), %
The share of the land plot in the value of the property (dzu), %
Potential gross income, rub. per year DHA = Sar _ S
Actual gross income, rub. per year DVD = HP _ (1-Kp)
Net operating income, rub. per year CHOD \u003d DVD - OR
The value of the property, rub.V=CHOD/R
The cost of the building, rub. Vsp = V _ (1 - dzu)
Functional wear, %	(182813-164062.5)/182813=0.10 or 10%

External wear- depreciation of the object due to the negative influence of the external environment in relation to the object of assessment: location, market situation, easements imposed on certain use of real estate, changes in the surrounding infrastructure and legislative decisions in the field of taxation, etc. Although external wear and tear is more often unrecoverable, it can sometimes "repair itself" due to positive changes in the surrounding market environment.

The following methods can be used to assess external wear:

based on loss in rent;
based on excess operating expenses;
based on pair sales;

Consider an example of determining external depreciation based on price information for recently sold similar objects (pair sales). The objects of a pair sale differ from each other only in the external wear and tear identified and correlated to the object of assessment.

Example. It is necessary to evaluate the external wear caused by the reduction investment attractiveness office building due to the relocation of a chemical plant in its immediate vicinity as part of the withdrawal program manufacturing enterprises from the city center of Moscow. A pair sale of objects A and B of a similar purpose was revealed on the real estate market. The cost of land in this area is about 25% of the total value of a typical property. Calculation of external depreciation by the method of paired sales in table 6.9.

Table 6.9. Example of Calculating External Depreciation Based on Paired Sales

Indicators	Value
	Sale price of object A, located far from large industrial enterprises, rubles
	Sale price of object B, located near large industrial enterprises, rubles
	The sale price of the building of object A, rubles (the share of the land plot is 25%, the share of the building is 75%).	7500000*0,75=5625000
	Sale price of the building of object B, rubles	6900000*0,75=5175000
	Difference including:
	* in cost due to physical differences between objects A and B, rubles
	* in the cost caused by the proximity of the clothing market, rubles
	Loss of value associated with the presence of an external depreciation factor, rubles
	External wear, %.	450,000/7500000=0.06 or 6%

Depreciation can be calculated in percentage terms and in value terms, depending on the chosen method.

If all types of depreciation are calculated in monetary terms, then the basic formula of the cost approach (6.2) should be used.

If they were calculated different kinds depreciation in value and percentage terms, then the cost of reproduction (replacement cost) is calculated by the formula:

V rev = (Vp rev - And physical devices - And fun. devices) _ (1-I physical well) _ (1-I fun.nu) _ (1 - And vn), (6.10)

And fun devices - disposable functional wear, monetary units;

And physical well - physical wear and tear, %;

And physical well - functional irremovable wear,%;

And vn - external wear,%.

When determining depreciation, the most important thing is to identify signs that reduce the value of a building. Physical deterioration is present in most buildings, however, for modern buildings in large Russian cities, there is often no external and functional deterioration. In this case, the formula is simplified to the following form:

V rev = (Vp rev - And fun. devices) _ (1-I physical well), (6.11)

Where V is the cost of reproduction;

Vp repro - the total cost of reproduction;

And physical devices - physical disposable wear, monetary units;

And physical well - physical depreciation is irreparable,%.

After calculating the full cost of reproduction (full replacement cost), as well as the accumulated depreciation, the cost of the land plot and the valued property as a whole is determined.

For determining market value property, calculated in the framework of the cost approach, it is necessary to use the formula (6.1).

Land valuation methods

METHODS FOR ASSESSING THE COST OF LAND PLOTS

Rice. 6.3 Land valuation methods

The assessment of the value of land plots is carried out on the basis of the Guidelines for determining the market value of land plots, approved by the order of the Ministry of Property of Russia dated 06.03.2002 No. 568-r or on the basis of other methods presented in the educational literature, since guidelines are not binding.

Among other methods in the educational literature for calculating the cost of land use the method of reimbursement of infrastructure costs, the method of standard investment contracts.

Depreciation is characterized by a decrease in the usefulness of a property, its consumer attractiveness from the point of view of a potential investor and is expressed in a decrease in value (depreciation) under the influence of various factors over time.

As the facility is operated, the parameters characterizing the structural reliability of buildings and structures, as well as their functional compliance with the current and, moreover, future use associated with human life, gradually deteriorate. In addition, the value of real estate is no less influenced by external factors due to changes in the market environment, the imposition of restrictions on certain use of buildings, etc.

Depreciation (I) is usually measured as a percentage, and depreciation is valued as depreciation (O).

Depending on the reasons causing the depreciation of the property, the following types of depreciation are distinguished: physical, functional and external.

Classification of depreciation of real estate objects:

Each type of wear is characterized by its subdivision: removable and irremovable.

Removable wear- depreciation, the elimination of which is physically possible and economically feasible. At the same time, economic feasibility lies in the fact that the costs incurred to eliminate one or another type of wear should contribute to an increase in the value of the object as a whole.

Unrecoverable wear- wear that is either physically impossible or not economically feasible.

If all the indicated types of depreciation are identified, they talk about the total accumulated depreciation of the property. In value terms, cumulative depreciation is the difference between the replacement cost and the market price of the property being valued.
Based on the essence of these definitions, it can be argued that the total accumulated depreciation is, first of all, a function of the lifetime of the object. Given this circumstance, consider the essence of the main evaluative concepts that characterize this indicator:

physical life building ( FJ ) - is determined by the period of operation of the building, during which the state of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). The term of the physical life of the object is laid down during construction and depends on the capital group of buildings. Physical life ends when the object is demolished.

Chronological age(XV)- this is the period of time that has passed from the date of commissioning of the facility to the date of assessment.

Economic Life (EJ) - is determined by the operating time during which the object generates income. During this period, improvements made contribute to the value of the property. The economic life of the object ends when the operation of the object cannot generate income, indicated by the corresponding rate but comparable objects in this segment of the real estate market. At the same time, the improvements made no longer contribute to the value of the object due to its general wear and tear.

Effective age (EV) - is determined on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the date of assessment that affect the value of the property being assessed. Depending on the characteristics of the operation of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) use of the building, the effective age is usually equal to the chronological one.

Remaining economic life (OSEZH) building is the period of time from the date of assessment to the end of its economic life.

Wear calculation methods:

1. Physical deterioration - It represents a gradual loss of the technical and operational qualities of the object, which were originally laid down during the construction, under the influence of natural and climatic factors, as well as human life.

There are the following methods for calculating the physical deterioration of buildings:

Normative (for residential buildings);

Cost;

lifetime method.

Normative method for calculating physical wear and tear

The normative method for calculating physical wear and tear involves the use of various normative instructions of the intersectoral or departmental level. As an example of such instructions, one can name the "Rules for assessing the physical deterioration of residential buildings" VSN 53-86 Gosgrazhdanstroy (State Committee for Civil Engineering and Architecture under GOSSTROY USSR. Moscow 1990), applied by the Bureau technical inventory in order to assess the physical deterioration of residential buildings during technical inventory, planning overhaul housing stock regardless of its departmental affiliation.

In these rules, a description of the physical wear and tear of various structural elements of buildings and their assessment are given.

The physical deterioration of the building should be determined by the formula:

Ff =

where Ff - physical deterioration of the building, (%);

Fi - physical wear i-ro structural element (%);

Li - coefficient corresponding to the share of the replacement cost of the i-ro structural element in the total replacement cost of the building;
n is the number of structural elements in the building.

The shares of the replacement cost of individual structures, elements and systems in the total replacement cost of the building (in%) are usually taken according to the aggregate indicators of the replacement cost of residential buildings approved in the prescribed manner, and for structures, elements and systems that do not have approved indicators - according to their estimated cost.

Cost method for determining physical wear and tear

Physical wear and tear at the time of its assessment is expressed as the ratio of the cost of objectively necessary repair measures to eliminate damage to structures, an element, a system or a building as a whole, and their replacement cost.

essence cost method determination of physical wear is to determine the cost of recreating building elements.

The described method allows calculating the wear of elements and the building as a whole immediately in terms of value, which is more preferable than other methods for calculating physical wear. In addition, since the impairment calculation is based on a reasonable actual cost to bring worn parts to "like new condition", the result of this approach can be considered fairly accurate. Among the shortcomings inherent in this technique, it is necessary to note the mandatory detailing and accuracy of calculating the costs of repairing worn-out building elements.

Determination of the physical deterioration of buildings by the method of life

Based on the essence of the previously considered basic evaluative concepts that characterize the total accumulated depreciation of a building in terms of its operating time, it can be argued that physical depreciation, effective age and economic life are in a certain ratio. This ratio can be expressed by the following formula (1):

where: I (%) - wear in percent;

EV - effective age, determined by an expert on the basis of the technical condition of the elements or the building as a whole;

VF - typical period of physical life;

OSFZh - the remaining period of physical life.

Or according to the formula (2):

where: And (%) - depreciation in percent;

VF - a typical period of physical life.

The percentage of depreciation of elements or the building as a whole calculated in this way can be translated into value terms (depreciation):

O \u003d BC * (I / 100);

where: I - depreciation in percent; BC - replacement cost.

2. functional wear

Signs of functional deterioration in the assessed building, as a rule, are the discrepancy between its space-planning and/or constructive solution to modern standards, including various equipment necessary for the normal operation of the structure in accordance with its current or intended use.

depending on physical ability and economic feasibility elimination of the causes that caused functional wear, it is divided into removable and irreparable. The cost expression of functional wear is the difference between the cost of reproduction and the cost of replacement, since the calculation of the latter, based on its definition, obviously excludes functional wear from consideration.

· Removable functional wear

Removable functional depreciation is usually determined by the costs of the necessary reconstruction, which contributes to a more efficient operation of the property.

It is believed that removable functional wear is caused by:

Disadvantages requiring the addition of elements,

Deficiencies requiring replacement or modernization of elements,

Over-improvements.

To the disadvantages that need to be added, refers to elements of the building and equipment that do not exist in the existing environment and without which it cannot meet modern performance standards. Wear due to these positions is measured by the cost of adding these elements, including their installation.

To the shortcomings requiring replacement or modernization of elements, include positions that still perform their functions, but no longer meet modern standards (water and gas meters, etc.). Depreciation for these items is measured as the cost of existing elements, taking into account their physical wear and tear, minus the cost of returning materials, plus the cost of dismantling existing ones, and plus the cost of installing new elements. At the same time, the cost of returning materials is determined as the cost of dismantled materials and equipment when used at other facilities (finalized residual value).

To super-improvements include positions and elements of the structure, the presence of which is currently inadequate to the modern requirements of market standards. Removable functional depreciation in this case is measured as the current replacement cost of the "superimprovement" items minus physical depreciation, plus the cost of dismantling, and minus the salvage value of the dismantled elements.

An example of super-improvements is the situation when the owner of the house, adapting it for himself, made any changes for his own convenience ( investment value) are not adequate from the point of view of a typical user. Among them, for example, include the redevelopment of the usable area of the premises for a specific use, due to the hobbies of the owner or his occupation. Removable functional wear in such a situation is determined by the current cost of the cost of bringing the changed elements to their original state. In addition, the concept of over-improvements is closely related to the segment of the real estate market, where the same improvements can be recognized both as appropriate for a particular segment and as redundant from the point of view of a typical user.

· Unrecoverable functional wear

Irreversible functional deterioration is usually caused by outdated space-planning and/or structural characteristics of the assessed buildings relative to modern building standards. First of all, the economic inexpediency of carrying out the costs of eliminating these shortcomings makes it possible to judge the sign of precisely irremovable functional wear. In addition, it is necessary to take into account the market conditions prevailing at the date of the assessment for adequate architectural compliance of the building with its purpose.

3. External (economic) wear

External depreciation is the depreciation of an object due to the negative impact of the external environment on the object of assessment: the market situation, easements imposed on certain use of real estate, changes in the surrounding infrastructure, legislative decisions in the field of taxation, etc. External depreciation of real estate, depending on the reasons that caused it, in most cases is unremovable due to the invariance of the location, but in some cases it can "self-eliminate" due to positive changes in the surrounding market environment.

3. Real estate appraisal

3.5. Approaches to real estate valuation.

3.5.2. Cost approach

Cost approach- is a collection evaluation methods based on the determination of the costs necessary to restore or replace the object of assessment, taking into account accumulated depreciation. Based on the assumption that the buyer will not pay for finished object more than for creating an object of similar utility.

Information needed to apply the cost approach:
- level wages;
- the amount of overhead costs;
- equipment costs;
- profit margins for builders this region;
- market prices for building materials.

Advantages of the cost approach:
1. When evaluating new objects, the cost approach is the most reliable.
2. This approach is appropriate or the only possible one in the following cases:
§ technical and economic analysis of the cost of new construction;
§ justification of the need to update the existing facility;
§ building valuation special purpose;
§ when evaluating objects in "passive" market sectors;
§ analysis of land use efficiency;
§ solution of object insurance problems;
§ solving problems of taxation;
§ when agreeing on the value of the property 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. The discrepancy between the costs of acquiring the property being valued and the costs of new construction of exactly the same object, because accumulated depreciation is subtracted from the construction cost during the appraisal process.
4. Problematic calculation of the cost of reproduction of old buildings.
5. Difficulty in determining the amount of accumulated wear and tear of old buildings and structures.
6. Separate assessment of the land plot from buildings.
7. Problematic evaluation of land plots in Russia.

Stages of the cost approach(see fig.3.3):
- Calculation of the cost of the land plot, taking into account the most efficient use (Cz).
- Calculation of replacement cost or replacement cost (Svs or Szam).
- Calculation of accumulated depreciation (all types) (Sizn):
· physical deterioration - wear associated with a decrease in the performance of an object as a result of natural physical aging and the influence of external adverse factors;
· functional wear - depreciation due to non-compliance with modern requirements for such objects;
· external wear - depreciation as a result of changes in external economic factors.

Calculation of the cost of the object, taking into account the accumulated wear and tear: Sleep = Svs-Sizn.

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

3.5.2.1. Comparative unit method

This method involves calculating the construction cost of a comparative unit of a similar building. The cost of a comparative unit of an analogue should be adjusted for existing differences in the compared objects (layout, equipment, property rights, etc.)

If 1 m 2 is selected as a comparative unit, then the calculation formula will look like this:

C o \u003d C m 2 * S o * K p * K n * K m * K in * K pz * K vat,

C o - the value of the object being assessed;
C m 2 - the cost of 1 m 2 of a typical building on the base date;
S about - the area of the estimated object (number of units of comparison);
K p - coefficient taking into account the possible discrepancy between the data on the area of the object and the construction area (1.1-1.2);
K n - coefficient taking into account the possible discrepancy between the evaluated object and the selected typical structure (for identical = 1);
K m - coefficient taking into account the location of the object;
K in - coefficient taking into account the change in the cost of construction and installation works between the base date and the date at the time of assessment;
K pz - coefficient taking into account the developer's profit (%);
K VAT - coefficient taking into account VAT (%).

An important step is the choice of a typical object. In this case, it is necessary to take into account:
- single functional purpose;
- proximity physical characteristics;
- comparable chronological age of objects;
- other characteristics.

3.5.2.2. Breakdown method

This method involves breaking down the assessed object into building components - foundation, walls, ceilings, etc. The cost of each component is derived from the sum of the direct and indirect costs, required for the device of a unit of volume according to the formula:

, Where

From zd - the cost of building the building as a whole;
V j is the volume of the j-th component;
C j is the cost per unit of volume;
n is the number of selected building components;
K n is a coefficient that takes into account the existing inconsistencies between the assessed object and the selected typical structure.

There are several options for using the component breakdown method:
- subcontract;
- breakdown according to the profile of work;
- allocation of costs.

Subcontract method based on the fact that the builder-general contractor hires subcontractors to perform part of the construction work. Then the total costs for all subcontractors are calculated.

Stake by profile method similar to the previous one and based on the calculation of the costs of hiring various specialists .

Cost Allocation Method involves the use of different units of comparison to evaluate different components of the building, after which these estimates are summed up.

Rice. 3.3. The procedure for assessing the value of real estate using the cost approach

3.5.2.3. Quantitative survey method

This method is based on the application of a detailed quantitative calculation of the costs for the installation of individual components, equipment and the construction of the building as a whole. In addition to calculating direct costs, it is necessary to take into account overheads and other costs, i.e. drawn up full estimate reconstruction of the object being evaluated.

Construction cost calculation

Construction cost buildings and structures is determined by the amount of investment required for its implementation. The cost of construction, as a rule, is determined at the stage of pre-project studies (preparation of a feasibility study for construction).

The estimated cost of construction of buildings and structures is the sum Money necessary for its implementation in accordance with the project documentation.

Based on the estimated cost, the amount of capital investments, construction financing, as well as the formation of free (contractual) prices for construction products is calculated.

The estimated cost of construction includes the following elements:

construction works;

equipment installation work installation work);

the cost of purchasing (manufacturing) equipment, furniture and inventory;

other costs.

Cost calculation methods. When drawing up estimates (calculations) of the investor and the contractor on an alternative basis, the following cost calculation methods can be used:
resource;
resource-index;
basic-index;
basic compensatory;
based on a data bank on the cost of previously built or designed analog objects.

Resource method - calculation in current (forecast) prices and tariffs of resources (cost elements), is based on the need for materials, products, structures (including auxiliary ones used in the production process), as well as data on distances and methods of their delivery to the construction site , energy consumption for technological purposes, operating time of construction machines and their composition, labor costs of workers.

Resource-index method - this combination resource method with a system of indexes for resources used in construction.

Cost indices (prices, costs) - relative performance, determined by the ratio of current (forecast) cost indicators and basic cost indicators for resources comparable in terms of nomenclature.

Basis-index method - recalculation of costs according to the lines of the estimate from the basic price level to the current price level using indices.

Basic compensation method - summation of the cost calculated in the basic level estimated prices, and determined by the calculations of additional costs associated with changes in prices and tariffs for the resources used in the construction process.

It should be noted that before stabilization economic situation and the formation of appropriate market structures, the most priority methods for calculating the estimated cost are resource and resource-index methods. In the practical activities of experts, the basic-index method for calculating the estimated cost is more popular.

Determining the depreciation of a property

Depending on the reasons causing the depreciation of the property, the following types of depreciation are distinguished: physical, functional and external.

Physical and functional wear is divided into removable and irreparable.

Removable wear - this is wear, the elimination of which is physically possible and economically feasible, i.e. the costs incurred to eliminate one or another type of wear contribute to an increase in the value of the object as a whole.

Identification of all possible types of depreciation is the accumulated depreciation of the property. In value terms, cumulative depreciation is the difference between the replacement cost and the market price of the property being valued.

The cumulative accumulated depreciation is a function of the lifetime of the object. Consider the main evaluative concepts that characterize this indicator.

Physical life of the building (FZh) - the period of operation of the building, during which the state of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). The term of the physical life of the object is laid down during construction and depends on the capital group of buildings. Physical life ends when the object is demolished.

Chronological age (XV) - the period of time that has passed from the date of commissioning of the object to the date of assessment.

Economic Life (EJ) is determined by the operating time during which the object generates income. During this period, ongoing improvements contribute to the value of the property. The economic life of an object ends when the operation of the object cannot generate income, indicated by the corresponding rate for comparable objects in this segment of the real estate market. At the same time, the ongoing improvements no longer contribute to the value of the object due to its general wear and tear.

Effective age (EV) is calculated on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the date of assessment that affect the value of the property being assessed. Depending on the characteristics of the operation of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) use of the building, the effective age is usually equal to the chronological one.

Remaining economic life (OSE) buildings - the period of time from the date of assessment to the end of its economic life (Fig. 3.4).

Rice. 3.4. Periods of building life and indicators characterizing them

Depreciation in valuation practice must be distinguished in meaning from a similar term used in accounting (depreciation). Estimated depreciation is one of the main parameters that allow you to calculate the current value of the appraised object on a specific date.

The methods for calculating the physical deterioration of buildings are as follows:
Normative (for residential buildings);
cost;
life time method.

Normative method the calculation of physical wear and tear involves the use of various regulatory instructions of the intersectoral or departmental level.

In these rules, a description of the physical wear and tear of various structural elements of buildings and their assessment are given.

The physical deterioration of the building should be determined by the formula:

, Where

And f - physical deterioration of the building,%;

And i - physical wear of the i-th structural element,%;

L i - coefficient corresponding to the share of the replacement cost of the i-th structural element in the total replacement cost of the building;

P- the number of structural elements in the building.

The shares of the replacement cost of individual structures, elements and systems in the total replacement cost of the building (as a percentage) are usually taken according to the aggregate indicators of the replacement cost of residential buildings approved in the prescribed manner, and for structures, elements and systems that do not have approved indicators, at their estimated cost .

This technique is used exclusively in domestic practice. For all its clarity and persuasiveness, it has the following disadvantages:
- due to its "normativity", it initially cannot take into account the atypical operating conditions of the facility;
- the complexity of the application due to the necessary detailing of the structural elements of the building;
- the impossibility of measuring functional and external wear;
- subjectivity of specific weighing of structural elements.

At the core cost method The definition of physical wear is physical wear, expressed at the time of its assessment by the ratio of the cost of objectively necessary repair measures that eliminate damage to structures, an element, a system or a building as a whole, and their replacement cost.

The essence of the cost method for determining physical wear and tear is to determine the cost of recreating building elements.

This method allows you to immediately calculate the wear of the elements and the building as a whole in terms of value. Since the impairment calculation is based on a reasonable actual cost to bring worn items to “like new condition”, the result under this approach can be considered fairly accurate. The disadvantages of the method are the obligatory detailing and accuracy of calculating the costs of repairing worn-out building elements.

Determination of the physical deterioration of buildings lifetime method . Indicators of physical depreciation, effective age and economic life are in a certain ratio, which can be expressed by the formula:

I - wear;
EV - effective age;
VF - typical period of physical life;
OSFZh - the remaining period of physical life.

The use of this formula is also relevant when calculating percentage adjustments for depreciation in compared objects (comparative sales method), when it is not possible for the appraiser to inspect the selected analogues. The percentage of depreciation of elements or the building as a whole calculated in this way can be translated into value terms (depreciation):

In practice, building elements that have removable and irremovable physical wear are divided into "long-lived" and "short-lived".

"Short-lived elements"- elements that have a shorter life than the building as a whole (roofing, sanitary equipment, etc.).

"Long-lived elements"- elements whose expected life is comparable to the life of the building (foundation, load-bearing walls, etc.).

Removable physical wear and tear of "short-lived elements" occurs due to the natural wear and tear of building elements over time, as well as careless operation. In this case, the selling price of the building is reduced by the corresponding impairment, as the future owner will need to make “previously deferred repairs” in order to restore the normal operating characteristics of the structure (current interior repairs, restoration of leaking roof areas, etc.). This assumes that the items are restored to "practically new" condition. Removable physical depreciation in monetary terms is defined as the "cost of deferred repairs", i.e. the cost of bringing the object to a state "equivalent" to the original.

The removable physical wear of elements with a long life is determined by a reasonable cost of its elimination, similarly to the removable physical wear of elements with a short life.

The irremovable physical wear and tear of elements with a long life is calculated as the difference between the replacement cost of the entire building and the sum of removable and irremovable wear, multiplied by the ratio of the chronological age and the physical life of the building.

functional wear. Signs of functional wear in the assessed building - non-compliance of the space-planning and/or constructive solution with modern standards, including various equipment necessary for the normal operation of the structure in accordance with its current or intended use.

Functional wear is divided into removable and irreparable.

The cost expression of functional wear is the difference between the cost of reproduction and the cost of replacement, which excludes functional wear from consideration.

Removable functional wear is determined by the costs of the necessary reconstruction, contributing to a more efficient operation of the property.

Causes of functional wear:
deficiencies requiring the addition of elements;
deficiencies requiring replacement or modernization of elements;
superimprovements.

Weaknesses that require elements to be added are elements of the building and equipment that are not present in the existing environment and without which it cannot meet modern performance standards. Wear due to these positions is measured by the cost of adding these elements, including their installation.

Super-improvements - positions and elements of the structure, the presence of which is currently inadequate to the modern requirements of market standards. Removable functional depreciation in this case is measured as the current replacement cost of the “superimprovement” items minus physical depreciation, plus the cost of dismantling, and minus the salvage value of the dismantled elements.

Unrecoverable functional wear is caused by outdated space-planning and/or structural characteristics of the assessed buildings in relation to modern construction standards. A sign of irreparable functional wear is the economic inexpediency of incurring costs to eliminate these shortcomings. In addition, it is necessary to take into account the market conditions prevailing at the date of the assessment for adequate architectural compliance of the building with its purpose.

Depending on the specific situation, the cost of irremovable functional wear can be determined in two ways:
1) capitalization of losses in rent;
2) capitalization of excess operating costs necessary to maintain the building in proper order.

To determine the required calculated indicators (rent rates, capitalization rates, etc.), adjusted data on comparable analogues are used. At the same time, the selected analogues should not have signs of irremovable functional wear identified in the object of assessment.

Impairment caused by irreparable functional depreciation due to an outdated space-planning solution (specific area, cubic capacity) is determined by capitalization of losses in rent.

Calculation of unrecoverable functional wear by capitalizing the excess operating costs required to maintain the building in good condition can be done in a similar way. This approach is preferable for assessing the irremovable functional depreciation of buildings that differ in non-standard architectural solutions and in which, nevertheless, the amount of rent is comparable to the rent for modern analogues, in contrast to the amount of operating costs.

External (economic) depreciation - depreciation of the object due to the negative influence of the external environment in relation to the object of assessment: the market situation, easements imposed on certain use of real estate, changes in the surrounding infrastructure and legislative decisions in the field of taxation, etc. External depreciation of real estate, depending on the reasons that caused it, in most cases is unremovable due to the invariability of the location, but in some cases it can “remove itself” due to positive changes in the surrounding market environment.

The following methods can be used to assess external wear:
capitalization of losses in rent;
comparative sales (paired sales);
the economic life span.