Methods for determining the market value of a land plot

Real estate is one of the most strategically significant parts of commercial relations, which is accounted for, controlled and taxed at the state level. Why is the exact market value of a land plot necessary?

When alienating non-residential buildings, purchasing land, exchanging or renting premises, inheriting or donating an apartment, you need to navigate the price segment.

Market value: what is it, what is it for?

When carrying out various transactions with real estate, the question of its value arises. The price that the owner can put forward when selling depends on the assessment. In addition, many banks, based on appraisal documents, formulate amounts for home mortgages, and courts resolve controversial issues regarding the division of property. The most important point, depending on the assessment sheet, is the assessment of taxes to the state treasury.

Market value is a competitive price set by the owner based on market demand. It depends on many factors, the main ones:

• location of the land;
• the presence of buildings directly on the plot and next to it;
• communication messages;
• the current economic situation of the region;
• traffic flow, etc.

In other words, this is the analyzed value of a specific property on the real estate market. It is offered by the owner without prejudice to his interests, and the client agrees without unnecessary costs to himself.

Market value is used for:

• carrying out purchase and sale transactions;
• establishing the amount of payment for renting premises;
• determining the amount of commission for notary transactions;
• judicial debates, etc.

It should be taken into account that this type of assessment is determined without including taxes and the cost of the transaction registration procedure.

When may a land value assessment service be required?

Cases when it is necessary to establish the market value of land area:

1. When the plot is the subject of a mortgage loan or is used as collateral
2. If the area is added to the company’s balance sheet
3. When is an auction sale planned?
4. If the owner rents it out and needs to determine the price of this territory
5. During the conclusion of a purchase and sale transaction

For business representatives, the service may be useful when investing in the purchase of land. For example, to attract new investors.

What factors influence land valuation

A number of factors that influence the final price of a land plot:

• Rights of tenants
• Duration of the right to property
• Encumbrances signed by the lease agreement
• Rights of other persons who claim the area subject to assessment
• The intended purpose of this space.

The final cost may be influenced by the likely amount of income that the owner can receive by entering into a land lease agreement. Then the use of this area will be as efficient as possible.

During the assessment work, our specialists take into account a lot of various factors; not a single detail will be left unattended:

1. The location of this site, as well as the presence and nature of engineering communication lines
2. The ability to connect existing communications to others, or to connect from scratch when construction is planned on the area
3. Information on engineering-geological surveys
4. Information on engineering and geodetic research
5. Market conditions characteristic of a given area at a given time
6. The amount of expected profit and the timing of its receipt - if the site is planned to be operated as efficiently as possible
7. As well as other details that may affect the final price of this area

Over time, the price of each specific plot on the market changes. It can either increase or decrease. Therefore, the assessment report is generated for a specific date. In addition, the cost may change if the nature of the intended use of the site changes

All the subtleties in actions with assessment are known to the specialists of our company. We offer our services for carrying out objective and prompt assessment of any land plots.

Stages of assessment work

The assessment process takes place in several stages:

• Drawing up an agreement with a client for the valuation of a land plot
• Collection of the necessary objective factual information about the legal and physical condition at a given time
• Analysis of this information
• Selecting the most preferred assessment method
• Directly determining the market value of a given area of ​​land
• Formation of an official documentary report on all procedures performed

Of course, the listed stages may change depending on each specific situation. In any case, after the assessment is completed, the owner of the site will be given a detailed written report on all procedures performed. This report has evidentiary value, for example, in the event of litigation.

The main requirements for the regulations of the procedures themselves, as well as for the rules for preparing the final report, are written down in the Federal Law and in the Evaluation Standards.

Entrust all necessary appraisal work to real professionals with extensive experience in this field.

Submit an application for land assessment

About the author Vladislav Vetoshkin

Industrial safety expert

Differences from the cadastral price, the relationship of concepts

The cadastral value of real estate is calculated based on the norms of Federal Law No. 52 of 02/07/2008, which regulates real estate valuation activities in the Russian Federation.

The main difference in determining these types of prices is that the cadastral valuation does not take into account some conditions that influence the formation of the market price. For example, to establish the cadastral value, the time of year, the presence of consumer demand, or the economic situation of the territory where the object is located do not play a role. But this type of pricing is directly influenced by the location address, the intended purpose of land use and the year of construction.

The purposes for using values ​​are also different.

IMPORTANT! The market price regulates property transactions, and the cadastral price is needed for taxation.

When a new property is put into operation, it is assigned a cadastral number and assigned a valuation. Data on the work performed and registration are stored in the Rosreestr databases.

For all other premises, cadastral valuation is carried out once every five years. However, it is not necessary to do this more often than once every three years. The period may be changed by a court decision or at the request of authorized bodies.

Bodies authorized to carry out market valuations

To carry out transactions of purchase, sale, donation, re-registration, inheritance and other legal actions in relation to residential and commercial assets, it is necessary not only to operate with knowledge of the estimated value, but also to have documentary evidence of it.
The professional activities of price specialists are sanctioned by the Law on Valuation Activities.

In accordance with it, the following categories of specialists have the right to assess the market value of a land plot:

1. Evaluation Bureau. When contacting an appraisal office, you must make sure that it is listed in the register of self-regulatory organizations and does not provide related legal services.
2. Law Firm. Most law firms, in addition to performing the main activity of providing legal protection to the client, carry out examination and assessment of business entities. In addition to providing documents confirming the cost of the site, you can additionally receive professional legal advice to resolve specific issues.
3. Autonomous private appraiser. Based on a license that allows the provision of individual assessment services, and on the regulatory framework of the Russian Federation, a private person can draw up a calculation and confirm it in accordance with legal requirements. A prerequisite is the availability of specialized professional education.
4. Real estate agency. In order to optimize the production process, large agencies have their own appraiser on staff. By contacting the company directly to sell property, you can get an expert price opinion.

IMPORTANT! Check eligibility to provide expert assessment services.

APPRAISAL COMPANY PRO-ASSESSMENT IS YOUR INDEPENDENT APPRAISER

According to Art. 130 of the Civil Code of the Russian Federation (Civil Code of the Russian Federation), immovable things (real estate, real estate) include: land plots, subsoil plots, isolated water bodies and everything that is firmly connected to the land, i.e. objects the movement of which is impossible without disproportionate damage their purpose, including: forests, perennial plantings, buildings. structures.

Land plots are part of the enterprise as a property complex, while the enterprise is the object of civil rights and is also recognized as real estate. In accordance with the assessment methodology, the expression “assessment of a real estate property” implies an assessment of both buildings (structures) and land plots occupied by these buildings (structures).

Legal aspects

The Land Code of the Russian Federation (LLC RF) establishes the following possible types of real and obligatory rights to land plots in the Russian Federation:

• ownership;
• right of permanent (unlimited) use;
• right of lifelong inheritable ownership;
• lease right;
• easement;
• right of free temporary use.

Ownership and other real rights to real estate, restrictions on these rights, their emergence, transfer and termination are subject to state registration in accordance with Federal Law No. 122-FZ “On State Registration of Rights to Real Estate and Transactions with It” dated June 21, 1997 ., which came into force on January 31, 1998. In accordance with this law, state acts, certificates and other documents certifying rights to land plots and issued before January 31, 1998 are valid. However, it should be borne in mind that only the person to whom the land belongs by right of ownership. Therefore, in order to make any transaction, it is necessary first of all to register ownership of the land.

The following should be especially emphasized. Firstly, the Land Code of the Russian Federation (entered into force on October 25, 2001) provides citizens with the right to acquire ownership of a land plot in their permanent (perpetual) use free of charge once, while the collection of additional amounts of money in addition to the fees established by federal laws is not allowed (Clause 5, Article 20). The transfer into the ownership of citizens of land plots previously provided to them for permanent (indefinite) use, lifelong inheritable possession, in the cases established by the Land Code, is not limited by time.

Secondly, legal entities (with the exception of those specified in paragraph 1 of Article 20 of the Land Code of the Russian Federation) were obliged to re-register the right of permanent (perpetual) use of land plots to the right to lease land plots or acquire land plots as their own at their own request until January 1, 2004. (Clause 2, Article 3 of Federal Law No. 137-FZ “On the implementation of the Land Code of the Russian Federation” dated October 25, 2001, hereinafter referred to as the Introductory Law). Subsequently. December 8, 2003. The President of the Russian Federation signed Federal Law No. 160-FZ “On Amendments to Art. 3 of the Federal Law “On the Enforcement of the Land Code of the Russian Federation””, providing for the extension of the deadlines for the mandatory re-registration of the right of permanent (perpetual) use of land plots for legal entities persons before January 1, 2006, i.e. the right is limited to a specific period. On December 16, 2005, the State Duma extended the deadline for the mandatory re-registration of the right to perpetual use of land plots for legal entities until January 1, 2008.

One of the reasons for the repeated extension of the deadlines for re-registering the right to use land plots for the right to lease or acquire land plots into ownership is the high land rental rates established by individual local authorities, or their reluctance to re-register the right of redemption. Many legal entities do not have the financial capacity to re-register rights to land plots at current rental rates.

It is necessary to pay attention to the fact that this provision of paragraph 2 of Art. 3 of the Introductory Law does not quite correctly agree with paragraph 3 of Art. 20 of the Land Code of the Russian Federation, according to which the right of permanent (indefinite) use of land plots that arose for legal entities before the entry into force of the Land Code of the Russian Federation is preserved, and no restrictions on the term of this right are provided for in the Land Code. Laws and other legal acts must not contradict the Constitution of the Russian Federation. which has the highest legal force, direct effect and is applied throughout the territory of Russia (clause 1 of article 15 of the Constitution of the Russian Federation).

According to paragraph 3 of Art. 35 of the Constitution of the Russian Federation, no one can be deprived of their property except by a court decision. Since the right to permanent (indefinite) use of a land plot is a property right and, accordingly, relates to property, and the Introductory Law does not provide for a judicial procedure for its termination, this provision of the Introductory Law directly contradicts the Constitution of the Russian Federation. Due to this:

1. Any organization retains the right previously acquired on the basis of a decision of a state or municipal body for permanent (indefinite) use of the site; this organization has the right not to enter into a land lease agreement and not to acquire ownership of it if it does not wish to do so, especially since, according to paragraph .3 tbsp. 154 of the Civil Code of the Russian Federation, in order to conclude any agreement, including the lease and purchase and sale of land, it is necessary to express the agreed will of the two parties. The consequences of failure to fulfill this obligation are not described in the Introductory Law.

2. The methods used in some subjects of the federation for calculating the amount of payment for the right to conclude a lease agreement for a land plot (for enterprises created before the adoption of the Land Code of the Russian Federation) and the corresponding “excesses” are also questionable and should be abolished.

3. The right of permanent (indefinite) use of land plots when the owner of buildings and structures changes is subject to re-registration for the right to lease land plots, or land plots must be acquired in ownership in accordance with the provisions of the Land Code of the Russian Federation at the choice of buyers (upon sale) of buildings, structures, structures (Article 3, paragraph 2 of the Introductory Law).

4. The rent for the use of these land plots must be established in accordance with the decision of the Government of the Russian Federation (which has not yet been implemented) (Article 3, paragraph 2 of the Introductory Law).

The provision of land in accordance with the right of lifelong inheritable ownership after the entry into force of the Land Code of the Russian Federation is also not allowed. But for citizens who own land on the basis of the right of lifelong inheritable ownership, such a right is preserved (Article 21, paragraph 1 of the Land Code of the Russian Federation). Land, which is in lifelong inheritable ownership, can also be purchased free of charge for a one-time ownership at any time. The right of the heir (and not the transfer of the right) is subject to state registration on the basis of a certificate of the right to inheritance (Article 21, paragraph 2 of the Land Code of the Russian Federation).

Calculation of the market value of the exclusive right to lease (or purchase) land plots

The exclusive right to privatize land plots or acquire the right to lease land plots has citizens and legal entities - owners of buildings, structures, structures in the manner and under the conditions established by the Land Code of the Russian Federation (Article 36, paragraph 1). Such a right “to something costs”, although this is not taken into account in the methods for calculating the amount of payment for the right to conclude a lease agreement for a land plot (for organizations created before the adoption of the Land Code of the Russian Federation).

The fact that the right is exclusive means that only the owner of the building, structure, structure can decide to re-register the right of permanent (perpetual) use to the right to lease or purchase a land plot.

The cost of redemption of land plots From redemption is calculated using the formula

S w = S w * F * K m * K n,

Where

• C zn - land tax rate per unit area, rub./m2;
• F is the area of ​​the land plot;
• Kt is the multiplicity factor, established by the administration of each subject of the Federation depending on the population (p. 2 of the Introductory Law);
• K p - correction factor taking into account the main types of use; the values ​​of this coefficient are approved by the Government of the Russian Federation in the amount of 0.7 to 1.3 (Article 3 of the Introductory Law).

In Moscow, land plots are not purchased; the main form of land use is rent. Resolution of the Moscow Government dated July 27, 2004 No. 522-PP approved the Methodology for calculating fees for the right to conclude a lease agreement for a land plot in the city of Moscow. The author’s opinion about this methodology (in terms of organizations created before the adoption of the RF Land Code) is stated above, therefore this methodology is not considered in this article.

The market value of the exclusive right to purchase land P spv can be determined according to the following expression:

RS pv = R s – S in

Where

• Рс — market value of the land plot;
• C in - the cost of the right to purchase a land plot.

The market value of the exclusive right to lease a land plot Pc na can be determined by the formula

RS pv = R sa – N c

Where

• R sa - market value of the right to lease a land plot;
• Nc is the standard price of a land plot.

The introductory law established that in cases where the cadastral value of land has not been determined, for tax purposes the normative price of land is applied (Article 65 of the Tax Code of the Russian Federation).

For tax purposes and in other cases provided for by the Land Code of the Russian Federation (Article 65, paragraph 5), and federal laws, the cadastral value of a land plot is established.

In accordance with the Decree of the Government of the Russian Federation of March 15, 1997 No. 319 “On the procedure for determining the standard value of land”, the standard price of land is determined by the executive authorities of the constituent entities of the Russian Federation. The standard price of land should not exceed 75% of the market price level for typical land plots for the corresponding purpose.

The relationship between the standard price, the value of the lease right and the market value of land can be represented as follows:

R s > R s a > N c.

The market value of the exclusive lease right R p a can also be determined according to the expression

P s = P s – C a dog

where C adog is the cost of the lease right under the agreement.

The market value of the lease right is determined according to the market data for the lease rights of analogous objects in a specific zone (region) on the date closest to the valuation date.

To assess the market value of land lease rights, the Ministry of Property Relations of the Russian Federation, by order of April 10, 2003 No. 1102-R, approved Methodological Recommendations for determining the market value of land lease rights. I believe they should be used taking into account the Land Code of the Russian Federation (Article 20, paragraph 3, Article 36), i.e., except for organizations (enterprises) created before the adoption of the Land Code.

The market value of the right to lease a land plot depends on the powers of the tenant, the validity period of the right, the encumbrance of the lease right, the rights of other persons to the land plot, the intended purpose and permitted use of the land plot.

Three approaches

As a rule, when assessing the market value of land lease rights, traditional approaches are used, provided for by the “Valuation Standards Mandatory for Application by Subjects of Valuation Activities,” approved by Decree of the Government of the Russian Federation No. 519 of July 6, 2001, namely: cost, comparative and income. d" Methods for comparing sales, allocation and distribution are based on the comparative approach; methods for capitalizing income, balance and intended use are based on the income approach. Elements of the cost approach in terms of calculating the cost of reproduction or replacement of improvements to a land plot are used in the residual and allocation methods.

Of all the listed methods, the sales comparison method (the so-called “market” method) and the income capitalization method deserve the greatest attention.

Sales comparison method

The sales comparison method is used to evaluate lease rights to land plots, both occupied by buildings, structures and structures, and undeveloped. The condition for applying the method is the availability of information on transaction prices or offer (demand) prices for land lease rights.

When applying the method, perform the following steps.

• The elements by which the object of evaluation is compared with analogous objects are identified (hereinafter referred to as the elements of comparison).
• For each element of comparison, the nature and degree of differences of each analogue from the assessed land plot are determined.
• For each comparison element, adjustments to the prices of analogues are found, corresponding to the nature and degree of differences of each analogue from the land plot being valued.
• The prices of each analogue are adjusted for each element of comparison, smoothing out their differences from the land plot being assessed.
• The market value of land lease rights is calculated by reasonably summarizing the adjusted prices of analogues.

The elements of comparison include the factors of the value of the lease rights of the property being assessed (factors, the change of which affects the market value of the lease rights) and the characteristics of transactions with the rights to lease land plots that have developed in the market.

The most important factors in the value of leasehold rights are generally the same as when assessing the market value of land plots (discussed below).

When assessing the market value of lease rights to a land plot using the sales comparison method, the following factors must be taken into account, among others:

• the period of time remaining until the end of the lease agreement;
• the amount of rent stipulated in the lease agreement;
• the procedure and conditions for payment (including frequency) and changes in rent provided for in the lease agreement;
• the need to obtain the consent of the owner to complete a transaction with the right to lease;
• whether the tenant has the right to buy out the leased land plot;
• the tenant has a pre-emptive right to conclude a new lease agreement for the land plot upon expiration of the lease agreement.

The characteristics of transactions with land lease rights include:

• conditions for financing transactions with land lease rights;
• the circumstances of the transaction with the rights to lease land plots;
• change in prices for the right to lease land plots for the period from the date of conclusion of a transaction (agreement) with an analogue to the date of assessment.

Adjustments to the prices of lease rights of analogues by comparison elements can be determined both for the price of lease rights of a unit of comparison of an analogue (ha, mg), and for the price of lease rights of an analogue as a whole.

The value of the lease right of the assessed land plot in some cases can be determined as the difference between the market value of the lease right and the standard rental price of the land plot.

We will consider the market value of the right to lease a land plot using a specific example based on market data. For this purpose, an analysis of official data on analogue objects in periodicals was carried out (newspaper “From Hand to Hand”, magazine “Real Estate and Prices”, “Reforma”, RWAY and etc.).

It should be noted that the rental market is still poorly developed, since the Land Code of the Russian Federation, which provides for the turnover of land, was adopted relatively recently. However, the appraisers were able to identify three analogous objects providing for the right to lease land plots (Table 1).

In order for analogue plots to be comparable with the object of assessment, it is necessary to carry out their adjustments. When considering the comparability of sites, comparison elements were used to make adjustments to the prices of analogous sites.

Correction for the reliability of information. This adjustment takes into account the difference between the offer price and the actual transaction price. It is being introduced forcedly, since in the undeveloped real estate market in Russia there is no sufficient and reliable information on transactions.

Since information is used on the prices of supply of lease rights, and not the sale of lease rights of similar plots, an adjustment for this factor is necessary. According to available data, real transaction prices are 10...15% lower than offer prices due to bargaining. For further calculations we take the average value - 12%.

Offer period adjustment. This is an adjustment to account for changes in supply and demand and inflation from the time the comparable was sold to the valuation date. When comparing the valuation date to the sale (offer) date of comparable properties, be aware that market conditions change from time to time. This adjustment determines whether the comparable sale was made under the same or different conditions. Judgments regarding adjustments for the time of sale are made based on a study of market conditions at the time of valuation, then these conditions are taken into account and compared with the conditions existing at the time of sale of the comparable property.

Adjustments for site size and other physical characteristics. During the comparative assessment process, only major physical similarities and differences are identified and considered. Main points when comparing physical characteristics:

• -size of the plot;
• -difference between rectangular and polygonal areas;
• - the difference between a flat plot, convenient for development, and a plot with a large slope;
• - the presence of surplus land sufficient for the construction of any improvements.

It should be noted that the published information contains mainly data on the size of the site, other physical characteristics are missing. As a result of this adjustment, the comparable site is made as similar to the subject site as possible.

Location. Many types of differences in location, such as physical, social, economic and political environmental factors, differences in transaction restrictions (restrictions on use, easements, etc.), zoning, should be taken into account and, if recognized by the market, made appropriate amendments.

Financing terms. Sales prices for similar plots may differ due to differences in financing conditions for transactions. If conventional financing is typical for this category of plots, then sales under unusual financing conditions (100% financing of the transaction, special contracts, etc.) require special analysis. If such special conditions determine a sales price different from that which would have occurred under normal financing, an appropriate adjustment must be made. Since in this case the appraisers did not identify any special financing conditions, this adjustment is not applied.

Terms of sale. They are determined by the circumstances in which the seller and buyer make their decisions regarding the sale or purchase of a particular property. An obvious example of such circumstances is bankruptcy and forced sale. If the terms of sale differ from those that applied to the property being valued, then a comparable sale cannot be used. In this case, the company being valued is not bankrupt; at the same time, it is not the owner of the land plot. Therefore this adjustment does not apply.

The sale price (offer) of a comparable analogue plot is adjusted in order to eliminate differences between it and the assessed plot. In this way, the comparable site is “made” as similar to the one being assessed as possible.

Rental valuation

The price per 1 m2 in US dollars was taken as a unit of comparison. Conversion into Russian rubles was carried out at the rate of 1 US dollar on the valuation date (December 31, 2005) - 28.78 rubles.

The results of adjusting factors for comparable sales (offers) are given in table. 2. Adjustment values ​​are indicated as percentages.

Table 2. Adjustment of factors for comparable sales (offers)

As a result of the adjustments, the market value of the right to lease 1 m 2 of the assessed plot was established in the amount of 12.7 US dollars (365 rubles).

Decree of the Government of the Moscow Region of February 6, 2001 No. 23/5 “On the standard price of land in the Moscow Region in 2001” The standard price for renting land in Yegoryevsk is set at 190 rubles. for 1 m2.

In subsequent years, the standard price of land in the Moscow region was indexed by decrees of the Government of the Moscow region:

• in 2002 - 1.25 (No. 143/13 of April 17, 2002);
• in 2003 - 1.25 (No. 485/30 of August 18, 2003);
• in 2004 - 1.10 (No. 295/20 of May 26, 2004);
• in 2005 - 1.10 (No. 775/50 of December 20, 2004);
• in 2006 - 1.10 (No. 961/52 of December 26, 2005).

Thus, the standard price for renting land in Yegoryevsk in 2005 was 359 rubles. per 1 mg (190 * 1.25 * 1.25 * 1.10 * 1.10).

Consequently, the market value of the priority right to lease a land plot under a building site with an area of ​​10,760 m2 is equal to 64,560 rubles. {(365 - 359) * 10,760), which is 6 rubles per 1 m2.

The established market value of the priority right to lease a land plot is taken into account in the market value of individual fixed assets in proportion to their building area.

Income capitalization method when assessing land lease rights

In the absence of information on transactions with similar land plots occupied by buildings, structures and structures, and on transactions with leased plots, the most appropriate method for estimating the value of the lease right is the income capitalization method. It is used to evaluate the lease rights of developed and undeveloped land plots. The condition for its application is the possibility of obtaining, over equal periods of time, income equal in magnitude or changing at the same pace from the assessed right to lease a land plot.

When applying the method, perform the following steps.

• They calculate the income for a certain period of time created by the right to lease a land plot when it is used most effectively by the tenant.
• Determine the appropriate income capitalization ratio.
• Find the market value of the right to lease a land plot by capitalizing the income created by this right.

Capitalization of income is understood as the definition, as of the date of valuation, of all future income values ​​that are equal to each other or changing at the same rate for equal periods of time. The calculation is carried out by dividing the income for the first period after the date of assessment by the appropriate capitalization ratio determined by the appraiser. Methods for finding the discount rate and capitalization rate require separate consideration.

When assessing the market value of the right to lease a land plot, the income from this right is calculated as the difference between the land rent and the amount of rent provided for in the lease agreement for the corresponding period. In this case, land rent can be calculated as income from renting out a land plot at market rental rates (the most probable rental rates at which a land plot can be leased on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and the rental rate does not reflect any extraordinary circumstances).

For many enterprises leasing land plots from the state, the rental amount under the contract, as a rule, corresponds to the market average

rental rates for the use of land plots in the region under consideration. Then the ground rent will be equal to the rent provided for in the existing land lease agreement. In this case, the right to lease a land plot does not provide an additional contribution to the market value of the real estate being assessed.

Assessment of the market value of land plots

It is advisable to assess the market value of land plots in accordance with the Methodological Recommendations for determining the market value of land plots; approved by order of the Ministry of Property Relations of the Russian Federation No. 568-R dated March 7, 2002.

As a rule, when assessing the market value of land plots, methods of comparison of sales, allocation, capitalization of ground rent, balance and intended use are used. Each of the methods can be used depending on the specific situation and initial information, but the most commonly used methods are comparisons of sales, balance and capitalization.

When using the sales comparison method, the sequence of actions is the same as when assessing the market value of land lease rights. Analogue objects are considered similar to the object of evaluation.

The most important cost factors include:

• location and environment;
• intended purpose, permitted use, rights of other persons to the land plot;
• physical characteristics (relief, area, configuration, etc.);
• transport accessibility;
• infrastructure (presence or proximity of utility networks and conditions for connecting to them, social infrastructure facilities, etc.).

The characteristics of transactions with land plots are the same as transactions with lease rights to land plots (listed above).

As a result of determining and making adjustments, prices of analogues (units of measurement of analogues), as a rule, should be close to each other. If there are significant differences in the adjusted prices of analogues, it is advisable to choose other analogues; elements for which comparison is made; adjustment values.

Remainder method

The method is used to evaluate built-up and undeveloped land plots if it is possible to develop the assessed land plot with income-generating improvements.

When using Lletod, perform the following steps.

• The cost of reproduction or replacement of improvements corresponding to the most efficient use of the assessed land plot is calculated.
• Determine the net operating income from a single property for a certain period of time based on market rental rates.
• Find the market value of a single property by capitalizing net operating income for a certain period of time.
• The market value of a land plot is calculated by subtracting the cost of reproduction or replacement of improvements from the market value of a single property.

The algorithm and calculation results were obtained in relation to a real estate property (administrative building with a total area of ​​1,074 m2, building area - 457 m2), located at the following address: Moscow region, Domodedovo, st. Station (Table 3).

Method of capitalization of income (ground rent)

The method is used to evaluate built-up and undeveloped land plots if it is possible to obtain land rent from the land plot being assessed.

When applying the method, perform the following steps.

• Calculate the land rent generated by the land plot.
• Determine the appropriate coefficient of capitalization of land rent.
• Find the market value of a land plot by capitalizing land rent.

Capitalization of land rent is understood as the determination, as of the date of valuation, of all future values ​​of land rent that are equal to each other or changing at the same rate for equal periods of time. The calculation is carried out by dividing the land rent for the first period after the date of assessment by the appropriate capitalization coefficient determined by the appraiser. Methods for finding the discount rate and capitalization rate require separate consideration.

Table 3. Calculation of the market value of a land plot using the residual method as of December 2005.

* PVD - potential gross income equal to the product of the rental rate of 1 m 2 by the total area of ​​the building F. 6, m 2; Km is the coefficient of underutilization of area; OP - operating expenses; F 3 - building area, m 2.

** Exchange rate of 1 US dollar as of December 31, 2005 - 28.78 rubles. RF.

Within the framework of this method, land rent can be calculated as income from leasing a land plot under the conditions prevailing in the land market.

The main ways to determine the capitalization ratio:

• dividing the land rent for similar land plots by their selling price;
• an increase in the risk-free rate of return on capital by the amount of the premium for the risk associated with investing capital in the assessed land plot. At the same time, the risk-free rate of return on capital is understood as the rate of return for the least risky investment14 of capital (for example, the rate of return on deposits of banks of the highest category of reliability or the rate of return to maturity on government securities).

Taxation when assessing the value of land

We are talking about value added tax (VAT) for land transactions. Unfortunately, at the moment there is no uniform approach.

The Ministry of the Russian Federation for Taxes and Duties in letter No. VG-9-03/40 dated February 19, 2003, referring to the Civil Code of the Russian Federation, Art. 130, according to which land plots are classified as real estate, considers that operations for the sale of land plots, including those purchased in the process of land privatization, are subject to value added tax. The tax payer is the person who acts as the seller in the land purchase and sale agreement.

However, there is a resolution of the Presidium of the Supreme Arbitration Court No. 5607/04 dated November 2, 2004, which recognizes that sales contracts in terms of increasing the price of land plots by the amount of value added tax do not comply with the requirements of current legislation (see “ Economy and Life" No. 50-2004, section "Dossier", p. 9/30). At the same time, the Presidium of the Supreme Arbitration Court of the Russian Federation took into account Art. 146 clause 2. pp. 3 of the Tax Code of the Russian Federation, according to which the transfer of property of state and municipal enterprises purchased through privatization is not recognized as an object of taxation.

It should also be noted that this provision (Article 146, paragraph 2, as well as paragraph 6) was left unchanged in the new edition of the Tax Code of the Russian Federation, Ch. 21 (as amended by the Federal Law of July 22, 2005 No. 118-FZ, 119-FZ).

On January 1, 2005, clause 6 of Art. 146, ch. 21 of the Tax Code of the Russian Federation, according to which operations on the sale of land plots (shares in them) are not recognized as an object of taxation (subclause additionally included by Federal Law No. 109-FZ of August 20, 2004).

See also:

• Valuation of a going concern: valuation of companies.
• Valuation of a dacha: who can conduct a real estate valuation.
• Valuation of small business: valuation of enterprise funds.
• Valuation of a commercial bank: company valuation.

Duration and cost of the procedure

Based on the current Federal Valuation Standard, there is a time limit for the functioning of valuation documents. Thus, if a citizen does not use the provided documentation within six months, its relevance is considered lost. In this case, to obtain a new market value, it is necessary to order and conduct an examination again.

It should be kept in mind that there is no single specific cost for providing appraisal services. It is formed from the expert’s labor costs, the quantity and complexity of the work performed, the availability of documents provided by the employer (in the absence of the required documentation, it may be requested from the competent authorities, which leads to an increase in the cost of the services provided).

Necessary information and calculation to establish the market value of a land plot

The methodology for calculating market value is authorized at the legislative level and is based on a specific list. Each option is designed for a specific point of view. Based on this, methods of comparative, income or cost approaches are distinguished.

The choice of an appropriate methodology is determined by the plans being pursued, the available background information and the type of subject being assessed.

Methods:

1. Sales comparison method. It is carried out on the basis of available information on the prices of operations for similar areas, houses, premises. If these are not available, the bid and offer prices are taken for calculation. Similar properties are compared, the level of similarity is analyzed, and a conclusion is drawn. Next, the price is adjusted for items that differ.
2. Costly method. It is used for objects that are unique in their characteristics, for which there are no analogues, or to determine the cost of a share of a plot. Future optimization costs are taken into account when calculating the price.
3. Distribution method. It implies the use in calculations of the ratio of the cost of land and the buildings located on it.
4. Normative method. It is based on approved standards when purchasing a plot of land with a mortgage or alienating it in favor of the state.
5. Method of intended use. The tariff calculator becomes the future revenue that this land is capable of providing, depending on the specifics of its use. The fundamental factor in this case is expenses, which are required to maximize the efficiency of use of the allotment.
6. Method of capitalization of ground rent. Potential revenue is forecast based on the current economic situation, subject to the transfer of the property under a lease agreement.
7. The split method. The technique is used when subsequently dividing the area into target shares.

IMPORTANT! A competent and complete assessment of market value is made by combining several methods.

Thus, the market price is determined strictly individually for each object, characterized by the presence of allotment features.

Documents required for land valuation

List of documents that will need to be presented to perform a land assessment:

• Documentation confirming the right to land use
• Information about the territorial boundary of a given area
• Information about existing encumbrances, including collateral, debt obligations, the presence of a tenant and other restrictions on the use of this land plot

The list of documents may be supplemented or changed depending on the circumstances

Features when determining market value

When drawing up documentation justifying the market tariff of a particular land area, experts take into account the features of this price category. They are expressed as follows:

1. The market value can be determined only for those areas that are able to satisfy the user’s requirements in a certain time period.
2. This type of pricing is directly influenced by consumer power and position, as well as competition.
3. The commercial value should not be greater than the possible costs of purchasing an alternative property.
4. The impermanence of value, which is subject to time.
5. The commercial assessment depends on the expected profit, the time to obtain it and the level of additional income from more efficient use of the plot.
6. If the target direction of land use changes, the market valuation must be adjusted.

A professional assessment of market value is a labor-intensive procedure that takes into account many factors. Studying the supply and demand prevailing in a certain area will help you determine the cost of a plot yourself.