Rights valuation of real property objects; location; Area, Lay-out, the quality of construction; Rent, financing or financial condition; and Characteristics of the law.
In the valuation of real property, Evaluation can use the data market comparison approach, cost approach and income approach and methods related to the approach.
Assessors are obliged to identify the nature of the property involved in any valuation of real property, include among others:
location, physical description data and the data judicial, economic aspects or economic parameters and financial parameters for income producing properties;
interests of the legal valuation of real objects;
Personal property, business equipment (trade fixtures), or the part that does not exist is not real property;
The existence of the restriction, obstruction or obstacles, rental agreements (covenants) are known, or the imposition of a special tax on property matters or other special; and
What is the object valuation is right or partial ownership of the land parcels larger.
Special considerations that affect the valuation of the real property is obliged to disclose, among others:
The need to analyze the possibility of consolidating ownership (or assemblage Marriage value) or the separation of ownership rights (component value);
The influence of the possibility of regulatory changes in land and infrastructure development, such as expanding the system of public utilities or access corridor; and
Market conditions are not stabilized, which was characterized by weak demand, excess supply and lack of sales transactions, difficult market value estimate, based on historical data and the latest data.
Market Data comparison approach in the valuation of Real Property
market data comparison approach to set boundaries on the market value of real property to examine the data base with a market price that is usually paid by the buyer to similar properties. Assessors need to have confidence that the buying and selling transactions occur between parties who have a common motivation. The sale price reflects the motivation of the perpetrators is not common market compulsory excluded;
Objects valuation than the price (transaction and bidding), there are similar properties on the market. The selling price of the units analyzed by applying the comparison and appropriate adjustments made for differences based on the factors relevant adjustments;
Evaluation required notice of the ownership rights that were considered to ensure that the right of ownership of the object is the same with the valuation of the property comparison. In the case of differences, Evaluation obliged to make adjustments to the data from an object valuation and
Evaluation obliged to know the limitations of the data market comparison approach which is when the change occurs quickly in the market or the market is not stable (volatile), or if applied in the valuation of specific properties.
Revenue in the approach to the use of the Real Property Valuation
Income capitalization approach set the market value of real property based on the capacity to generate income or the expectations of the benefits in the future.
income capitalization consider the income and expenditure data for a comparison of income (operational) net valuation of the object. Capitalization done better with the implementation of the single capitalization rate (capitalization rate or overalls all risk yield) on a yearly income, and with the implementation of yield or discount rate on a series of income during the projection period.
method that can be used in the approach of income capitalization method is direct (direct capitalization) and the method of discounted cash flow.
Given that investors normally focused on considering the level of investment, or the input assumptions that underlie the estimated value generated from the income capitalization approach can be compared with the performance of alternative investment property and other financial investment.
Revenue especially with the approach of using the method of Direct Capitalization (land residual Technology) to assess the empty land can be used only if the conditions are met, among others: Value of building or buildings have been known or can be estimated accurately; net operating income related to property has been known or can be estimated accurately, and level of capitalization building or buildings available in the market.
The cost approach in the use of the Real Property Valuation
cost approach with the cost calculation method to set the value of real property with estimation cost of land acquisition and development of new replacement cost above with a utility or adapt properties comparable with the use of the same, without considering, among other costs due to delays in the development time and cost of overtime.
In case the property is the property referred to the older, the cost calculation method calculates obligatory depreciation estimate, including physical depreciation and functional obsolescence. Construction cost and depreciation is determined to make a mandatory referral to the analysis of costs and accumulated depreciation are based on market data.
In terms of cost calculation methods applied in the estimation of market value, all the required elements, the method of data taken from the market.
In this approach by applying the cost of Depreciation Replacement Cost method (DRC), which combine the elements that are based on market data with the elements is not the data market, can not be considered as market value.
Given the estimation of the value generated from the fee calculation methods present value of the rights of property ownership in a "freehold", when referred to the property rented to other parties, or is the object of partial ownership rights, Evaluation obliged to make adjustments to reflect the type of ownership rights of the votes.
Assessors do compulsory inspection in implementing the valuation of real property inspection provisions of the guidelines have been submitted
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