When you need to make a real estate transaction, an assessment of its value is necessary. It is almost impossible to complete this procedure without special knowledge - “by eye”, since for this you need to correctly use assessment tools - approaches and methods regulated by Federal standards. The figure presented by the expert in the report must be accurate. For this purpose, specialists find and analyze large volumes of information, while all their actions comply with established working algorithms.

Choosing an Approach

A specific set of approaches containing several methods is applied to each type and type of real estate. Analyzing the object of assessment, the expert selects the appropriate tools for work that are optimally suited for studying the specific and standard characteristics of a particular property. For typical objects that have a huge number of comparable analogues in Moscow, a comparative approach is used. The use of the method is also advisable when assessing land plots, private houses.

If, for example, work is carried out with a unique object, rare in its architectural design, or with structures, a costly approach is acceptable. In such cases, find properties with similar characteristics in open market It’s almost impossible, so experts only estimate construction costs. The income approach is applied to commercial properties. Let's consider the features of each approach separately.

Comparative approach

If a specialist is faced with the task of comparing an appraised object with many similar or the same objects, information about the market value of which is in open access on the Internet, or listed in periodicals, analogues are compared. This definition is specified in Federal Standard No. 1 (clause 12). Clause 13 of the same FSO states that information on the prices of completed transactions or offer prices can be used for calculations. If information about documented completed transactions is confidential and is in a database that is not accessible, the appraiser cannot collect data at the first stage of work. For this reason, experts use information from open sources, but not about sales prices, but about prices in offers.

The analogue must be comparable to the object of evaluation in terms of several characteristics that determine the value: technical, economic, social and material. The most similar real estate should belong to the same market segment and be comparable to the real estate in terms of factors that form the price.

Certain requirements apply to the properties being compared:

Type and class of building;
Geographical location;
Square;
Floor;
Condition, quality of finish;
Construction characteristics;
Materials of walls, finishing, additional elements;
Landscaping of the territory;
Infrastructure development;
The prestige of the area and much more.

It is very important to select analogues that are located in buildings of the same type and class as the property being assessed. If, in some respects, similar real estate differs from the property being valued, then their value is adjusted during the calculation process.

In search of analogues, appraisers use data published in the media, on real estate websites, in specialized services, and also cooperate with large real estate agencies that provide information from their databases.

Methods

The comparative analysis method is one of the tools comparative approach, based on work with sales transactions of similar real estate.
Method for modeling market pricing. As part of the method, a specialist forms linear or cartoon dependencies by analyzing a large number of statistical data of completed transactions with comparable objects.

Income approach

This approach to determine the market value consists in calculating forecasts of the income expected by the buyer from the object. This technique is applied only to real estate that generates speculative income throughout its entire life. It is based on 4 principles: effective use, expectation, supply and demand, substitution. Value is calculated by capitalizing the property's current 365-day income or by discounting the expected future income. The period predicted by the appraiser is at least 5 years. Profits from possible resale of commercial goods are also taken into account. immovable object.

The result is a target market value figure that reflects the profitability of real estate as an efficiently operating asset and an enterprise that generates income for its owners. The income approach takes into account the development potential of the property - investment programs, opportunities for the development of the market and other economic components that may affect this real estate in terms of receiving from it permanent income. Among them are exchange rates, inflation, changes in the legislation of the Russian Federation - all this has a positive and negative impact, so the income approach allows you to evaluate options economic development object.

The procedure for calculating real estate using the income approach is a technically complex process, since all the profit that the expert analyzes is distributed over time. When analyzing, it is possible to use forecast as well as retrospective data taken during any periods of taxation of the object. The main condition for the calculations is that the study of comparable and appraised real estate must take place on the same basis.

Income approach methods

Capitalization of income

The method is determined by determining income when using property for 1 year by dividing by the numerical capitalization multiplier, or multiplying it by the period necessary for the payback of the object and obtaining capital.

2. If the income received as a result of the commercial use of the object is unstable, the discounting method is used cash flows. Using the method, a specialist evaluates real estate based on the value of financial receipts at the moment. The basis for calculating the value of current income is the residual value and projections of future cash flows.

Cost-effective approach

If there is a need to value certain improvements and conversions created on a property, the valuation is carried out using the specified approach. The technique allows you to isolate one component in the single cost of one object. The cost is calculated taking into account the costs that are needed to improve the condition of the property under current conditions. The wear and tear of the object is also assessed, which is subsequently included in the assessment using the necessary adjustments. To find out the amount of costs, the expert figuratively creates an exact copy of the object through calculations, repeating all its characteristics, and calculates its cost. This technique is called replacement cost. The replacement cost is also realized, the concept of which is determined by the amount of expenditure to reproduce “doubles” of the valued object in terms of its benefits, material characteristics and any other matches.

To determine the degree of deterioration of a real estate object, the expert conducts a study of its physical condition, and also checks how well the structure corresponds to the utility obtained from its operation. Not only the aging of material elements is taken into account, but also economic irrelevance and inconsistency with functional performance.

Can be done necessary measures to eliminate wear, removing its consequences, but in some cases it is irremovable. If the value of the property on the free market does not increase when the depreciation is eliminated, it is considered illiquid and removable. If the amount of value has increased, since the elimination of depreciation has added to the improvement, the conditions for eliminating depreciation are favorable.

Depending on the objectives of the appraisal procedure and the type of real estate, a suitable technology is selected.

Cost approach methods

Carrying out an assessment using a cost-based approach, INEX specialists use the residual and allocation method. If other methods are used, the expediency of their use must be disclosed in the reporting document.

When working with the cost approach in business valuation, 2 methods are used: the liquidation value method and the net assets. If the valuation of land plots is carried out, the following methods are used: allocation, comparable sales, capitalization of land rent, remainder technique, site development method, transfer method.

Using the allocation method, the expert calculates the value of the object on the market by subtracting from this value the amount spent on transformations. This practice is common in land valuation and involves collecting information on prices for analogues where there is standard construction.
Sales comparison is actively used in the comparative approach. The method is based on the selection and analysis of transactions with analogues of the object being valued, as well as making adjustments to the value.
Capitalization of profits received as a result of leasing land is based on the method of capitalization of land rent.
The remainder technique is similar to the previous method. But in in this case the amount of profit is calculated by deducting from the total income from the most profitable use of the object.
If during operation one land plot is divided into several individual objects, the expert equates the value of the land to the value of the discounted cash flow, which is the difference between the profit from the sale of the land and the cash expenses for its development.
Using the transfer technique, the specialist looks for property that has recently been sold on the market, which has a plot of land similar to the property being assessed. The figure obtained upon sale is divided by the value of the land and buildings located on its territory.
When assessing buildings and structures using the cost approach, several separate techniques are used, namely:

1. Element-by-element assessment of spending. The expert determines the cost of all elements of the building, such as the foundation, floors, facade, etc. The wear and tear of each of them is taken into account.

2. Comparative unit method. Unit costs are calculated, on the basis of which the cost of construction is determined. In turn, the amount of specific spending is correlated with comparison units that measure the consumer properties of the object.

3. Estimation method. The expert compares construction costs taken from old estimates with current prices.

Our services

Any real estate transaction requires an individual approach, since the process always has unique nuances and conditions. Select the optimal set of methods for assessing an object, based on professional knowledge and a set of laws, only a highly qualified expert can. The INEX company offers you real estate valuation at good prices in Moscow and the region. You will receive not only a well-written assessment report, but also a complete legal support in matters of any complexity.

In real estate valuation, there are three generally accepted approaches to determining value: cost, market and income. Each approach has its own established methods, techniques and procedures.

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

Cost-effective approach

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

The cost approach assumes that the costs required to create the property being valued in its existing condition or to reproduce its consumer properties correspond to the market value of this property. The cost approach allows you to calculate the cost of construction of an object in current prices (as of the valuation date) minus the total accumulated (total) depreciation.

1. Calculation of the cost of acquisition or long-term lease of free and available land for the purpose of its optimal use;
2. Evaluation replacement cost the building being assessed. The calculation of replacement cost is based on the calculation of the costs of recreating the object in question, based on current prices and manufacturing conditions of similar objects on a certain date;
3. Determination of the amount of physical, functional and external wear and tear of the property;
4. Estimation of the amount of business profit (investor profit);
5. Calculation of the final cost of the appraised object by adjusting the replacement cost for wear and tear, followed by increasing the resulting value by cost land plot.

Income approach

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

The main stages of the assessment procedure in this approach:

1. Drawing up a forecast of future income from renting out the estimated areas for the period of ownership and, based on the data obtained, determining the potential gross income (PVI), which is calculated according to formula (1):

PVD=S x Na, (1)

where S is the area rented out, sq.m.

Na - rental rate per 1 sq.m.

3. Determination, based on market analysis, of losses from underutilization of space and during collection rent, calculation of actual gross income (DVI). As a rule, the owner in the long term does not have the opportunity to constantly rent out 100% of the building's area. Rent losses occur due to under-occupancy of the property and non-payment of rent by unscrupulous tenants. The degree of vacancy of an income-producing property is characterized by an underutilization coefficient, determined by the ratio of the amount of unleased space to the amount total area to be rented out. Calculation of actual gross income (DVI) is carried out according to formula (2):

DVD = PVD * Kz * Ks, (2)

where DVD is the actual gross income,

PVP - potential gross income,

Kz - space utilization factor,

Kc - payment collection ratio.

It should be noted that to the DVD calculated in the above manner, it is necessary to add other income received from the operation of the facility in addition to rental payments (for example, for the use additional services- car parking, etc.).

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

Thus, calculated value operating expenses are subtracted from the DV, and the resulting figure is the net operating income (NOI).

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

The procedure for assessing a property begins with its inspection. Before starting the inspection, it is recommended to familiarize yourself with the existing technical documentation about the facility, as well as conduct a conversation with the technical service specialists responsible for its operation.

Comparative approach

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

The comparative approach is based on three basic principles of real estate valuation: supply and demand, substitution and contribution. Based on these principles of real estate valuation, the market-based approach uses a range of quantitative and qualitative methods to isolate comparators and measure adjustments to market data for comparable properties to model the value of the property being appraised.

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

The main difficulties in applying market approach methods are related to opacity Russian market real estate. In most cases, the actual prices of real estate transactions are unknown. In this regard, when conducting an assessment, often the prices of offers for objects put up for sale are used.

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

The application of the sales comparison method consists of sequentially performing the following steps:

1. Detailed market research in order to obtain reliable information about all factors related to objects of comparable utility;
2. Determining suitable units of comparison and conducting a comparative analysis for each unit;
3. Comparison of the assessed object with the selected objects of comparison in order to correct them sales prices or exclusion from the list of compared;
4. Bringing a number of adjusted indicators of the value of comparable objects to the market value of the property being assessed.

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

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

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

This method is most effective for regularly sold objects. Quantitative and qualitative methods are used to identify elements for measuring adjustments.

Quantitative methods include:

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

Qualitative methods include:

classification (comparative) analysis (the method is similar to the analysis of paired sales, except that adjustments are not expressed as a percentage or monetary amounts, and in the categories of fuzzy logic);

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

Reconciliation of results

The final stage of the assessment is the harmonization of the results obtained by various methods within the framework of the approaches used. The purpose of such approval is to obtain the final total cost.

The three valuation approaches are independent of each other, although each is based on the same economic principles. In an ideal (open and competitive) market, all three approaches should result in the same amount of value. However, most markets are imperfect; supply and demand are not in equilibrium. Potential users may be misinformed and manufacturers may be ineffective. For these and other reasons, approaches may produce different value indicators, which the appraiser compares with each other during the approval procedure.

As stated in the Federal Valuation Standards (FSO No. 1), the reconciliation method chosen by the appraiser, as well as all judgments, assumptions and information used by the appraiser when reconciling the results must be justified.

The most preferable option for carrying out the procedure for reconciling the results obtained in order to obtain the final value of the cost is considered to be weighted averaging. The appraiser weighs the extent to which this or that approach corresponds to the purpose of evaluating the object in question, whether the calculations carried out are supported by market data, whether they contradict them, and in making the final conclusion, relies more on the value indicator that is obtained on the basis of the most ideal of all approach points of view.

Real estate valuation is one of the most important mechanisms, without which it is impossible to organize effective management property. Independent assessment real estate is the process by which a disinterested appraiser determines the market value of a piece of real estate or a right to of this object.

Basic approaches to real estate valuation.

There are several approaches to the valuation of any type of real estate used by professional appraisers: - comparative approach; - cost approach; - income approach.

Each of the 3 approaches has its own specific techniques.

The income approach to real estate valuation is based on determining the value of a property based on the calculation of expected income from the ownership (use) of this property. This indicator is very important because it allows you to predict the cost of an object in the future.

The income approach is one of the most used methods of real estate valuation in valuation practice today.

According to modern economist Vishnevetsky A.V., this approach is also called “marginal” (from the English term “margin”, often used in Russia as an analogue of the concept of “profit”). The applicability of the margin approach is clearly expressed during the period economic growth in the state. The income approach is an integral part of the procedure" Due Diligence"(due-dimmligence).

The income method is mainly based on determining the value of real estate by calculating the discounted income stream (from the ownership or use of this object). This method is based on the principle of expectation - establishing the current value of income and other benefits that may be received in the future from owning this property. It is logical that the owner of the property will not give up his property for less than the amount that he could receive by continuing to exploit it, and the buyer will not pay more than the amount that the subsequent use of this property will bring him. commercial purposes. Thus, the price of the property is determined based on the value of future income through an agreement between the parties.

When calculating using the income approach, the following methods are used: capitalization of income and discounting of cash flows. These techniques are the main ones in this method.

1) In accordance with the technology of the direct capitalization method, the value is determined by the ratio of net operating income before tax to the capitalization rate. The capitalization rate is determined by the appraiser based on the base rate by adjusting it for risks.

2) The discounted cash flow method is used when cash flows are uneven (unstable income), or when using different capitalization ratios. According to the methodology, the cost of the object is determined as the sum of discounted income for the project. To do this, it is necessary to determine a cash flow model with a forecast of expenses and investments for the selected period. The discount rate is determined taking into account the same parameters as with the capitalization method.

The essence of the method is that the income approach estimates the value of real estate as the current value of future cash flows. Moreover, this approach reflects the level of risk for the property being assessed, as well as the quality and quantity of income that the property being assessed can bring during its service life. The main advantage of the income approach is that it allows you to take into account future investment risks now.

The disadvantage of the method is that future income - the predicted value of income from rent and the amount of future resale of the property - is determined by the appraiser by analyzing a number of factors, and therefore may contain a certain error, since it is impossible to absolutely accurately determine the state of the real estate market for the long term. The cost approach (asset-based approach) is a set of valuation methods in which the value of an object is equal to the sum of the value of the land plot and the cost of reproduction (replacement) of all improvements, minus accumulated depreciation, and the value of liabilities, that is, the value of the object being assessed depends on the cost of creation similar object. This approach is used to evaluate detached buildings, households, and enterprises.

The comparative approach is a set of methods for assessing the value of an appraised object, based on a comparison of the appraised object with objects - analogues of the appraised object, for which information on prices is available. An object - an analogue of a valuation object for valuation purposes - is an object that is similar to the valuation object in terms of basic economic, material, technical and other characteristics that determine its value.

Basic methods of real estate valuation.

Income capitalization method (formula 1)

The essence of the income capitalization method is that the value of a real estate property is determined by converting the annual net operating income (NOI) into the current value

Where: C -- cost of the property (monetary units)

NOI -- Net operating income (NOI)

R_k -- Capitalization ratio

Capitalization ratio is an indicator reflecting the ratio of expected annual income (ANI) to the value of real estate (formula 2):

R_k = R_n + N_v (2)

Where: R_k -- capitalization ratio

R_n -- the investor's rate of return on invested capital -- the rate of return expected by the investor from investing, taking into account the risk in the market.

N_v -- capital return rate -- interest rate which provides a return on the initial investment. The rate divides the income into two parts: compensation capital investments in real estate and receiving income from owning the property.

In valuation practice, 3 methods are used for calculating the rate of return on capital: the Ring method, the Inwood method and the Hoskold method.

Ring Method This method is used when the principal amount is expected to be repaid in equal installments. The return rate is an annual share initial capital, deducted to the interest-free compensation fund. This share is at 100% return of capital.

The Inwood method is used if the amount of capital return is reinvested at the rate of return on investment. In this case, the rate of return as a component of the capitalization ratio is equal to the recovery fund factor at the same interest rate.

The Hoskold method is used in cases where the rate of return on the initial investment is somewhat high and reinvestment at the same rate is unlikely. Reinvested funds are expected to receive income at a risk-free rate.

This method is used if the income streams are stable over a long period and are significant, and also if the income stream is growing at a steady pace.

The method is not applicable in a situation where the property being assessed is an unfinished construction project or requires significant reconstruction, that is, it cannot generate stable income in the near future.

The “information opacity” of the Russian market makes it difficult to calculate Net Operating Income and Capitalization Rate due to the lack of information on real deals sales, operating payments, etc.

Discounted Cash Flow Method

The discounted cash flow (DCF) method is more complex, detailed and allows you to evaluate an object in case of receiving unstable cash flows from it, modeling the characteristic features of their receipt.

The DCF method is used when:

Future cash flows are expected to differ significantly from current ones;

Data is available to justify the size of future flows Money from real estate;

Income and expense flows are seasonal;

The property being assessed is a large multifunctional commercial facility;

The property is under construction or has just been built and commissioned: (or put into operation).

The discounted cash flow method is the most universal method for determining the present value of future cash flows. Cash flows can change arbitrarily, flow unevenly and differ high level risk. This is due to the specifics of such a concept as real estate. Real estate is purchased by an investor primarily for certain future benefits. An investor views a property as a bundle of future benefits and evaluates its attractiveness in terms of how the monetary value of those future benefits compares to the price at which the property can be purchased.

The DCF method allows you to estimate the value of real estate based on the present value of income, consisting of projected cash flows and residual value.

Basic approaches to real estate valuation (cost-based, income-based, comparative)

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

Cost-effective approach

The cost approach to the valuation of real estate is based on a comparison of the costs of creating a real estate object with the cost of the valued or comparable objects. The approach is based on studying the investor’s capabilities in purchasing real estate and is based on the principle of substitution, which states that the buyer will not pay more for the property than what it would cost to obtain the appropriate building plot and construct an object similar in purpose and quality in the foreseeable period without significant delays.

1. Calculation of the cost of acquisition or long-term lease of free and available land for the purpose of its optimal use;
2. Estimation of the replacement cost of the appraised building. The calculation of replacement cost is based on the calculation of the costs of recreating the object in question, based on current prices and manufacturing conditions of similar objects on a certain date.
3. Determination of the amount of physical, functional and external wear and tear of the property;
4. Estimation of the amount of business profit (investor profit);
5. Calculation of the final value of the appraisal object by adjusting the replacement cost for wear and tear, followed by increasing the resulting value by the cost of the land plot.

The cost approach is most appropriate when assessing objects that have recently been put into operation; it leads to the most convincing results in the case of a sufficiently justified cost of the land plot and insignificant accumulated wear and tear of improvements. The cost approach is legitimate when assessing the cost of planned objects, objects special purpose and other property, transactions for which are rarely concluded on the market, can be used in the assessment for insurance purposes. This approach when assessing objects subject to reconstruction makes it possible to determine whether construction costs will be compensated by an increase in operating income or proceeds from the sale of property. Application cost approach in this case, it avoids the risk of excess capital investment.

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

Determining the value of a land plot

In accordance with Art. 35 of the Civil Code of the Russian Federation, when the ownership of a building, structure, structure located on someone else’s land plot is transferred to another person, he acquires the right to use the corresponding part of the land plot occupied by the building, structure, structure and necessary for their use, on the same conditions and in the same amount as the previous owner.

Of all the land valuation methods, the method of comparative sales analysis is of decisive importance.

The replacement cost of construction of the property being valued is calculated at current prices as new (without taking into account accumulated depreciation) and in relation to the valuation date. The basis for determining the replacement cost is the calculation of the costs associated with the construction of the facility and its delivery to the customer. Depending on the order of accounting for these costs in the cost of construction, it is customary to distinguish direct and indirect costs.

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

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

Under the influence of various natural and functional factors, constructed objects lose their performance qualities and are destroyed. In addition, the market value of an object is influenced by external economic influences from the immediate environment and changes in the market environment. At the same time, they distinguish physical deterioration(loss of performance), functional aging (loss of technological relevance and cost due to scientific and technological progress), external or economic wear and tear (change in the attractiveness of an object in terms of changes in the external environment and economic situation in the region). All together, these types of wear constitute accumulated wear, which will be the difference between the replacement cost of the object and the cost of reproduction (replacement) of the valued object.

The most complete and reliable source of information about the technical condition of a building or structure is materials from a natural survey. The first condition for conducting such surveys should be an accurate determination of the functional purpose of the object being assessed: use according to direct purpose or with changes in technological and functional parameters. In this case, it is necessary to present the limits of changes in loads and impacts on bearing structures buildings.

The second condition for conducting research is to obtain complete information about natural and climatic parameters and specific factors affecting the area where the object is located and their changes in the process of man-made activities.

Market approach

The main difficulties in applying market approach methods are related to the opacity of the Russian real estate market. In most cases, the actual prices of real estate transactions are unknown. In this regard, when conducting an assessment, often the prices of offers for objects put up for sale are used.

The application of the sales comparison method consists of sequentially performing the following steps:

1. detailed market research in order to obtain reliable information about all factors relevant to objects of comparable utility;
2. identifying appropriate units of comparison and conducting a comparative analysis for each unit;
3. comparison of the object being valued with selected objects of comparison in order to adjust their sales prices or exclude them from the list of those being compared;
4. bringing a number of adjusted indicators of the value of comparable objects to the market value of the property being assessed.

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

In valuation practice, when determining the value of real estate, the following main elements of comparison are identified: transferred rights to real estate, conditions of financial settlements when purchasing real estate, conditions of sale (purity of the transaction), time of sale, functional purpose of the object, location, convenience of access roads, area of the object, technical condition and level of finishing of the premises.

This method is most effective for regularly sold objects.

Quantitative and qualitative methods are used to identify elements for measuring adjustments.

Quantitative methods include:

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

Qualitative methods include:

- classification (comparative) analysis (the method is similar to the analysis of paired sales, except that adjustments are expressed not in percentages or monetary amounts, but in fuzzy logic categories);
- distribution analysis (comparative sales are distributed in descending order of adequacy, then the place of the valuation object in the series of comparative sales is determined).

Income approach

The advantage of the income approach compared to the cost and market approaches is that it largely reflects the investor’s understanding of real estate as a source of income, that is, this quality of real estate is taken into account as the main pricing factor. The main disadvantage of the income approach is that, unlike the other two approaches, it is based on forecast data.

The main stages of the assessment procedure in this approach:

1. Drawing up a forecast of future income from renting out the estimated areas for the period of ownership and, based on the data obtained, determining the potential gross income (PVI), which is calculated using the formula:

PVD = S * Ca, where

S - area for rent, sq.m;

Sa - rental rate per 1 sq.m.

2. Determination, based on market analysis, of losses from underutilization of space and in the collection of rent, calculation of actual gross income (DVI). As a rule, the owner in the long term does not have the opportunity to constantly rent out 100% of the building's area. Rent losses occur due to under-occupancy of the property and non-payment of rent by unscrupulous tenants. The degree of vacancy of an income-producing property is characterized by an underutilization coefficient, determined by the ratio of the amount of unleased space to the amount of total area subject to rent.

Calculation of actual gross income (DVI) is carried out using the formula:

DVD = PVD * Kz * Ks, where

DVD - actual gross income;

PVP - potential gross income;

Kz - space utilization factor;

Kc - payment collection ratio.

3. Calculation of the costs of operating the property being valued, which is based on an analysis of the actual costs of its maintenance and/or typical costs in a given market. Expenses can be conditionally fixed (property tax, insurance premiums, payments for land), conditionally variable (utilities, routine repairs, wages of maintenance personnel, etc.), replacement costs (costs for periodic replacement of wear-out structural components). building elements).

Thus, the estimated operating costs are subtracted from the DV, and the resulting figure is the net operating income (NOI).

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

The direct capitalization method is a method for determining the market value of an income-generating object, based on the direct conversion of the most typical income of the first year into value by dividing it by the capitalization coefficient obtained based on the analysis of market data on the ratio of net income and the value of assets similar to the valued object, obtained by the market method extraction. This Western classic version of the direct capitalization method, in which the capitalization ratio is extracted from market transactions, should be used in Russian conditions almost impossible due to difficulties encountered in collecting information (most often, the terms and prices of transactions are confidential information). Based on this, in practice it is necessary to use algebraic methods for constructing the capitalization ratio, which provide for a separate assessment of the rate of return on capital and the rate of return.

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

Basic Concepts

Stages of development of appraisal activities in Russia

Sources of errors in estimation

Basic Concepts

Cost-effective approach

Comparative approach

Income approach

Assessment methods

Land valuation began to take shape in Russia from the end of the 15th century, when the estate appeared as a specific type of private feudal conditional land ownership. The main distinctive feature of the valuation of land property until the middle of the 19th century was the valuation of land with a dependent peasant attached to it. The description and assessment of lands were entrusted to a local order specially created in the 16th century - a central state institution. The following dates can be considered the main milestones in the development of land valuation activities:

February 28, 1752 - Elizabeth’s manifesto laid the foundation for nationwide land survey work. The instructions of 1754 determined the rules and procedure for conducting appraisal work.

1779 - to improve the quality of general land surveying and create a professional workforce of land surveyors and appraisers, the Konstantinovsky Land Surveying School was founded in Moscow, transformed in 1835 into the Land Survey Institute.

The beginning of the 19th century - changes in land legislation. The decree of December 12, 1801 grants the right to persons of all free status (merchants, burghers, state peasants) to acquire ownership of land holdings outside the cities without peasants.

1864 - appraisal activities were assigned to the competence of zemstvo provincial and district institutions. Under the leadership of zemstvos in 1860-1880. Massive real estate appraisal work was carried out throughout the territory Russian Empire. The beginning of zemstvo valuation activities was associated with the emergence of valuation statistics, which included work on surveying and assessing land Agriculture for tax purposes.

At the end of the 19th - beginning of the 20th century, we developed economic and statistical methods for collecting and processing initial data necessary to develop fundamental criteria and assessment standards for various purposes: taxation, insurance, mortgages and sales.

Overall in late XIX- at the beginning of the 20th century, land valuation was carried out either by the value of the land or by its profitability. Land was valued both as a source of income and as the subject of a purchase and sale transaction.

The return of appraisal activities to Russia was due to the country's return to the market.

The pioneer of appraisal activities in Russia was Russian Society Appraisers. Currently, there are such public organizations as the National League of Appraisers, the Russian College of Appraisers, and the Moscow Society of Appraisers.

Russian Federation is a Member State of the International Valuation Standards Committee (IVSC). The objectives of the International Valuation Standards Committee (IVSC) are twofold:

- develop and publish in public interest Valuation standards for assessing the value of property and promote their adoption throughout the world.

- ensure harmonization of standards of different countries and identify differences in the wording and (or) application of Standards, if any
place.

International standards Evaluations represent accepted, or best, practice in the Evaluation profession, also known as Generally Accepted Evaluation Principles and Concepts (CEP). It is intended that the International Valuation Standards and the national standards of the relevant IVSC Member States should complement and reinforce each other. The IVSC advocates that differences between the wording and/or application of national and international valuation standards be disclosed.

International valuation standards may sometimes require an approach that differs from local practice and/or national regulation. In situations where discrepancies occur, practitioners are expected to quantify and explain the resulting cost differences. For this reason, the ICSE encourages professional evaluators to be aware of continuing education programs throughout their careers. International Valuation Standards prescribe what Valuers must do, rather than explain how specific procedures or methodologies are applied. IVS recognize that each application is tied to a specific valuation problem, the solution of which depends on the ability of the Valuer to select relevant methods and make appropriate judgment.

In Russia, in addition to the law on valuation activities, a number of regulatory documents:

- Concept for the development of appraisal activities in the Russian Federation.

- Standard for assessing the value of an enterprise (business).

- Standard for real estate valuation.

- Standard for the assessment of machinery and equipment

- Standard for the Valuation of Intangible Archives and Intellectual Property.

Regarding the various Methodological recommendations, actively published in Lately various government and public organizations, then all of them, speaking in Russian, do not belong to methodological foundations, but to narrowly methodological support of specific calculation procedures.

Sources of errors in estimation:

Disadvantages of legislation and assessment standards;

Disadvantages of evaluation methodology;

- “opacity” of Russian business;

Incorrect actions of the customer;

Insufficient qualifications of appraisers;

Disadvantages in the organization of work of the appraisal company.

To the main characteristics cost approach relate:

Grade property complex, consisting of a land plot and improvements created on it, based on the calculation of the costs required to recreate it on a specific date (valuation date);

Accounting for wear and tear (impairment) of assessed improvements during the period of operation under the influence of various factors;

The principle of "substitution".

A necessary condition for using the cost approach is a sufficiently detailed assessment of the costs of constructing an identical (similar) object with subsequent consideration of the wear and tear of the object being assessed.

The use of the cost approach is preferable, and sometimes the only option, in the following cases.

1. When new or recently constructed facilities are assessed. In this case, the cost of construction of such facilities (taking into account the investor's profit) is usually closer to the market value.

2. In the case where an analysis of the best and most efficient use of a land plot is necessary. The best use of land is the use of vacant land or land with improvements that is physically possible, legally permissible, financially feasible and produces the highest possible income.

3. When a feasibility study of new construction is necessary.

4. To evaluate unfinished construction projects.

5. For assessment in order to identify taxable objects.

6. For assessment for insurance purposes.

7. For revaluation of fixed assets of enterprises.

8. If there is a lack of information to use other approaches to assessment.

The main stages of applying the cost approach:

1) assessment of the replacement cost of the building being assessed;

2) assessment of the amount of business profit (investor profit);

3) calculation of identified types of wear;

4) assessment of the market value of the land plot;

5) calculation of the final value of the appraisal object by adjusting the replacement cost for wear and tear, followed by increasing the resulting value by the cost of the land plot.

The main methods for assessing the value of real estate based on the cost approach are shown in Fig. A.1

Comparative approach real estate valuation is based on information about recent transactions with similar properties on the market and comparison of the property being valued with analogues.

The initial prerequisite for applying a comparative approach to real estate valuation is the presence of a developed real estate market. The insufficient development of this market, as well as the fact that the property being valued is specialized or has exceptional benefits or burdens that do not reflect general state market make this approach impractical.

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

Fundamental principle comparative approach to real estate valuation is principle of substitution which states that if there are several similar properties on the market, a rational investor will not pay more than the amount it would cost to purchase real estate of similar utility.

Let's consider the main stages of real estate valuation using a comparative approach.

1st stage. The state and development trends of the real estate market and especially the segment to which this property belongs are studied, real estate objects that are most comparable to the one being valued and sold relatively recently are identified.

2nd stage. Information on analogue objects is collected and verified; the collected information is analyzed and each analogue object is compared with the object being evaluated.

3rd stage. To account for the identified differences in the pricing characteristics of the compared objects, adjustments are made to the sales prices of comparable analogues.

4th stage . The adjusted prices of analogue properties are agreed upon and the final market value of the property is derived based on a comparative approach.

Income approach estimates the value of real estate at a given moment as the present value of future cash flows, i.e. reflects:

The quality and quantity of income that a property can
bring during its service life;

Risks specific to both the object being assessed and the region.
The income approach is used to determine:

Investment value, since the potential investor is not
will pay a greater amount for the object than the current value of future
moves from this object;

Market value.

Within the framework of the income approach, it is possible to use one of two methods:

Direct capitalization of income;

Discounted cash flows.

These methods are based on the premise that the value of real estate is determined by the ability of the property being valued to generate income streams in the future. In both methods, future income from a property is converted into its value, taking into account the level of risk characteristic of this property. These methods differ only in the way they transform income streams. When using the income capitalization method, income for one time period is converted into the value of real estate, and when using the discounted cash flow method, income from its intended use for a number of forecast years, as well as proceeds from the resale of a property at the end of the forecast period, are converted.