Property Valuation - FM Consulting
(055) 827 63 31
(012) 404 85 21
Operativ, Qərəzsiz, Dəqiq !
(055) 827 63 31
(012) 404 85 21
Operative, Indecent, Accuracy !
(055) 827 63 31
(012) 404 85 21
Operative, Indecent, Accuracy !
Operative, Indecent, Accuracy !
(055) 827 63 31
(012) 404 85 21
Operative, Indecent, Accuracy !
Property Valuation
The appraisal of an apartment- is the most
common and popular service for today, provided by the evaluation company «FM
Consulting». This is due to the fact that the majority of residents live in
apartments (according to statistics, there are 425 apartments per thousand
inhabitants of the country), which leads to a huge number of situations when it
is necessary to assess this type of real estate.
The estimation of the room according to its initial data and methods of determining the cost is similar to the estimation of the value of the share and the evaluation of the cost of the apartment. It relies on the features of the evaluated object and its characteristics. However, the evaluation of the room has a number of differences.
In our country, the phenomenon, which is called a communal apartment, is still widespread, despite the fact that every year more and more citizens acquire their own housing. Therefore, such a service as the evaluation of a room in an apartment is quite in demand and concerns many people.
Any living quarters may be in common shared ownership, then each of its owners has a certain share in the rights to it. The owner has the right to use, own and determine the legal fate of his shares in the same way as in the case of any object of movable property: he has the right to donate, exchange, sell or alienate in any other way. All this means that the share has its own value, so the evaluation of the share in the apartment has a separate direction and features.
DOCUMENTS REQUIRED FOR EVALUATION
Credentials / documents of law
Certificate of state registration of the right to real estate, or other documents that confirm or establish the rights to the appraised apartment, for example, contracts (purchase and sale, share in construction, donation, barter, etc.).
A floor plan is a schematic drawing that reflects the layout of the apartment. A floor plan can be included in documents such as the Technical Passport of a dwelling (apartment) or the Technical Passport of a residential apartment building (in the form of a floor plan layout), sometimes a floor plan is included in the Cadastre Passport or compiled separately.
Explication - information and reference document, which is a table indicating the premises (and their areas) that make up the appraised apartment.
Certificate of state registration of the right to real estate, or other documents that confirm or establish the rights to the appraised apartment, for example, contracts (purchase and sale, share in construction, donation, barter, etc.).
A floor plan is a schematic drawing that reflects the layout of the apartment. A floor plan can be included in documents such as the Technical Passport of a dwelling (apartment) or the Technical Passport of a residential apartment building (in the form of a floor plan layout), sometimes a floor plan is included in the Cadastre Passport or compiled separately.
Explication - information and reference document, which is a table indicating the premises (and their areas) that make up the appraised apartment.
Passport data of the customer evaluation
The first page of the passport is turned, as well as the page with registration at the place of residence (stay).
THE ASSESSMENT PROCESS1. Coordinate with our managers a convenient time to inspect the appraised apartment and choose a convenient method of payment.
2. Inspection of the appraised apartment.
3. Calculate the market value and prepare a report on the evaluation of the apartment.
4. Delivery report on the evaluation of the apartment.
2. Inspection of the appraised apartment.
3. Calculate the market value and prepare a report on the evaluation of the apartment.
4. Delivery report on the evaluation of the apartment.
PRICING FACTORS
The main value-creating factor affecting the value of real estate is the location. The area in which the evaluation object is located, its prestige, infrastructure development, transport accessibility, ecological cleanliness, etc., all this has a determining value on the value of real estate.
• An important factor is the type
of house in which the assessment object is located. Square meters of real
estate in elite houses can cost many times more expensive than in typical and
budget houses. The material of the walls of the house, the floors, the
deterioration of the building, etc. are of importance.
• The condition of the adjacent territory - the conditions for parking cars, the presence of a children's playground, security.
• Floor location.
• Number of rooms in the apartment.
• And many others
• The condition of the adjacent territory - the conditions for parking cars, the presence of a children's playground, security.
• Floor location.
• Number of rooms in the apartment.
• And many others
AİM OF EVALUATION
• Conducting transactions for the sale or purchase of an apartment on the open market. These kinds of transactions are currently predominant in the real estate market, and their numbers are increasing day by day. This leads to such a popularity of services for the evaluation of apartments. The owner of the apartment must know the actual market value of his property in order to profitably sell it. The buyer, in turn, should be sure that the price offered by the seller is not too high.
Evaluation of the apartment for the court in the event of various property disputes. So, for example, one of the most common cases in practice, are disputes over the division of an apartment left in the inheritance. To allocate a stake in a disputable situation, it may be necessary to evaluate it.
Evaluation of an apartment to be pledged for lending. Ensure the loan taken in the bank you can have your real estate, in particular, an apartment. In order to confirm its current value, you will need to present an assessment report to the bank. At the same time, the appraiser determines not only the market value of the apartment, but also the liquidation value - the value for which it can be alienated within a short period of time.
• Conclusion of the marriage contract. To make a marriage contract, you need to know the market value of all property, including real estate.
• The section of common property between the former spouses. A similar situation occurs during the divorce process, when it is necessary to determine the market value of all property of former spouses.
• Receiving an apartment by inheritance. When you enter into the inheritance, you will need to submit a report on the appraisal of the real estate to the notary.
• Conclusion of a contract for home insurance. When making a contract with an insurance company in order to accurately determine the insurance amount of compensation in the event of an insured event, you need to determine the value of the insured object.
•And many others.
Evaluation of the apartment for the court in the event of various property disputes. So, for example, one of the most common cases in practice, are disputes over the division of an apartment left in the inheritance. To allocate a stake in a disputable situation, it may be necessary to evaluate it.
Evaluation of an apartment to be pledged for lending. Ensure the loan taken in the bank you can have your real estate, in particular, an apartment. In order to confirm its current value, you will need to present an assessment report to the bank. At the same time, the appraiser determines not only the market value of the apartment, but also the liquidation value - the value for which it can be alienated within a short period of time.
• Conclusion of the marriage contract. To make a marriage contract, you need to know the market value of all property, including real estate.
• The section of common property between the former spouses. A similar situation occurs during the divorce process, when it is necessary to determine the market value of all property of former spouses.
• Receiving an apartment by inheritance. When you enter into the inheritance, you will need to submit a report on the appraisal of the real estate to the notary.
• Conclusion of a contract for home insurance. When making a contract with an insurance company in order to accurately determine the insurance amount of compensation in the event of an insured event, you need to determine the value of the insured object.
•And many others.
MORE ABOUT THE SERVICE EVALUATION OF APARTMENT
Due to the large number of questions our clients are
applying to us, we decided to talk in more detail and in simple terms about
such a complicated and multifaceted process as assessing the market value of an
apartment, highlighting the most important and frequently arising issues. In
the future, we will try to add even more information, we hope that it will help
to better understand and deal with emerging issues, however, you can always
contact us and get a free consultation with a specialist.
More details on the documents required to evaluate the apartment. By and large, you can evaluate the apartment without documents at all. Often, such situations arise if an appraisal of an apartment for a court takes place.
For example, in the division of property, when one of the parties in every way prevents the other, restricts access to the object of evaluation, etc. In such cases, the evaluator uses data provided by the customer in the form of a certificate or even orally. However, it must be borne in mind that the evaluator prescribes in the report sources of information used in the preparation of the report, assumptions and restrictive conditions. Thus, the degree of confidence in the evaluation report, the data of which is based on documentary sources, is much higher, but this does not mean that the absence of any documents is an obstacle to the assessment.
In general, in order to evaluate an apartment, you will need legal title documents (proofs), that is, those that confirm or establish the rights to the appraised apartment (ideally an extract from the Unified State Register), as well as technical documents that contain data about the object of evaluation , first of all the total area. It does not matter which BTI document contains this data, whether it is the technical passport of the dwelling, the technical passport of the apartment building or the cadastral passport.
More details on the documents required to evaluate the apartment. By and large, you can evaluate the apartment without documents at all. Often, such situations arise if an appraisal of an apartment for a court takes place.
For example, in the division of property, when one of the parties in every way prevents the other, restricts access to the object of evaluation, etc. In such cases, the evaluator uses data provided by the customer in the form of a certificate or even orally. However, it must be borne in mind that the evaluator prescribes in the report sources of information used in the preparation of the report, assumptions and restrictive conditions. Thus, the degree of confidence in the evaluation report, the data of which is based on documentary sources, is much higher, but this does not mean that the absence of any documents is an obstacle to the assessment.
In general, in order to evaluate an apartment, you will need legal title documents (proofs), that is, those that confirm or establish the rights to the appraised apartment (ideally an extract from the Unified State Register), as well as technical documents that contain data about the object of evaluation , first of all the total area. It does not matter which BTI document contains this data, whether it is the technical passport of the dwelling, the technical passport of the apartment building or the cadastral passport.
If the appraisal of an apartment is for a mortgage, then in accordance with the requirements of banks, the appraiser must indicate the correspondence of the actual planning to the BTI plan, so in the case of an appraisal of an apartment for a mortgage, a floor plan of the BTI is needed.
Inspection of the object of evaluation is required as one of the data collection points necessary to evaluate the apartment. The evaluator receives information about the condition of the apartment, the availability of repairs, the level of finishing improvements, as well as data about the view from the window, the environment, the infrastructure, etc. In addition, during the inspection, the object is photographed, and the resulting photographs will be included in the evaluation report.
Is it possible to evaluate an apartment without inspection? It is unlikely that the bank will accept a report on the valuation of the apartment, which was not inspected. However, there are cases when the evaluation is conducted without an inspection, for example, if there is a need to evaluate an apartment on a date in the past (a retrospective assessment), or to inspect an object for some reason is impossible. In such cases, the appraiser prescribes an appropriate assumption in the report.
Evaluation of the apartment for the court and its features. Most often, the need for such an assessment arises in property disputes, when it is required to understand how much the property costs. Therefore, the main distinctive criterion for assessing apartments for a court is the presence of a second party, which has its counterarguments, and can also provide an assessment report. In some cases, in order to understand which of the reports contains the correctly calculated market value, the court assigns an expert examination. In any case, the success in the court will depend on how convincing will be the data stated in the report. Therefore, the appraisal of an apartment for a trial must be carried out by experienced specialists, the information included in the evaluation report must be reliable, calculations are verifiable and justified
Evaluation of an apartment for a notary is necessary when it is required to determine the market value for transactions with property that are subject to mandatory notarial registration, for example, to enter into the rights of inheritance. At the same time, the assessment is usually made on a date in the past, that is, on the date of death, thus, the appraisal of the apartment for a notary is made without inspection. In addition, in almost all cases, the notary has a short conclusion about the market value instead of a full report, which allows reducing the cost of valuation services.
Inspection of the object of evaluation is required as one of the data collection points necessary to evaluate the apartment. The evaluator receives information about the condition of the apartment, the availability of repairs, the level of finishing improvements, as well as data about the view from the window, the environment, the infrastructure, etc. In addition, during the inspection, the object is photographed, and the resulting photographs will be included in the evaluation report.
Is it possible to evaluate an apartment without inspection? It is unlikely that the bank will accept a report on the valuation of the apartment, which was not inspected. However, there are cases when the evaluation is conducted without an inspection, for example, if there is a need to evaluate an apartment on a date in the past (a retrospective assessment), or to inspect an object for some reason is impossible. In such cases, the appraiser prescribes an appropriate assumption in the report.
Evaluation of the apartment for the court and its features. Most often, the need for such an assessment arises in property disputes, when it is required to understand how much the property costs. Therefore, the main distinctive criterion for assessing apartments for a court is the presence of a second party, which has its counterarguments, and can also provide an assessment report. In some cases, in order to understand which of the reports contains the correctly calculated market value, the court assigns an expert examination. In any case, the success in the court will depend on how convincing will be the data stated in the report. Therefore, the appraisal of an apartment for a trial must be carried out by experienced specialists, the information included in the evaluation report must be reliable, calculations are verifiable and justified
Evaluation of an apartment for a notary is necessary when it is required to determine the market value for transactions with property that are subject to mandatory notarial registration, for example, to enter into the rights of inheritance. At the same time, the assessment is usually made on a date in the past, that is, on the date of death, thus, the appraisal of the apartment for a notary is made without inspection. In addition, in almost all cases, the notary has a short conclusion about the market value instead of a full report, which allows reducing the cost of valuation services.
Estimation of the land plot
Estimation of the value of the land
plot is another direction of real estate valuation, which the FM Consulting
appraisal company is engaged in. In this case, the object of evaluation is a
land plot, that is, a part of the surface with boundaries described and
certified in the manner prescribed by law. The rights to the land plot of the
owner are certified in a special document - a certificate of ownership of a
land plot, in which there is information about making an entry in the Unified
State Register of Enterprises.
The land has a unique distinctive feature - it is practically not subject to deterioration and obsolescence, accordingly, the cost estimate of a land plot is not costly. In most cases, it is possible to estimate the land plot using only one comparative approach, which gives the most accurate measure of market value with sufficient market development. The choice of the valuation methodology will depend on such factors as the availability of buildings on the site, as well as the development level of the market for the sale and lease of plots similar to the estimated
The land has a unique distinctive feature - it is practically not subject to deterioration and obsolescence, accordingly, the cost estimate of a land plot is not costly. In most cases, it is possible to estimate the land plot using only one comparative approach, which gives the most accurate measure of market value with sufficient market development. The choice of the valuation methodology will depend on such factors as the availability of buildings on the site, as well as the development level of the market for the sale and lease of plots similar to the estimated
From the chosen method, in turn, the cost of valuation services will also be hanged. We regularly monitor prices on the market of valuation services, trying to offer the best price, while maintaining the impeccable quality of evaluation reports that can be applied to court, used in the bank, for making managerial decisions, etc. DOCUMENTS REQUIRED FOR EVALUATIONDocuments containing data on quantitative and qualitative indicators will be needed in order to assess the land plot, first of all, title documents (for example, a certificate of state registration of the right) and a cadastral passport, as well as documents with information on encumbrances and restrictions (if any) . If the estimated site is refined, has improvements (buildings), it is necessary to provide information about them. For the preparation of the report and the contract will need data on the customer (passport for individuals and business card for legal entities, for the latter also need information on the book value of the object). To date, part of the data on the land plot can be obtained in the public domain on the site of Rosreestr, for this it is sufficient to know the cadastral number, so to clarify the information necessary for the assessment in the absence of any documents it is best to contact a specialist.
ASSESSMENT PROCEDURE
1. Coordinate with our managers a convenient time to inspect the estimated land and choose a convenient method of payment.
2. Inspection of the estimated land.3. Calculation of market value and preparation of an evaluation report.4. Report delivery. As a rule, the valuation of the land plot takes no more than two days, most often - one day. The timing of the assessment depends on the area of the plot, the category of land and the type of its permitted use (VRI).
EVALUATION OF THE RIGHT TO LEASE OF THE LAND PLOT Representing the basis of real estate, land is of great economic importance, the land can have a huge investment potential. At the same time, the registration of property is not the only legal form permitting the use of land. There are also partial property rights to land, which provide for a smaller scope of rights than full ownership.
Such terminology is actively used in Western appraisal practice to determine rights that differ from property rights, but allow to receive income from the use of land. The right to lease, representing the transfer of property for temporary use with levying fees under the lease, is one of the most common forms of land use, therefore, the evaluation of the right to lease a land plot is quite in demand.
The market value of the right to lease depends on the extent of the right to use the land and the revenues that it is able to generate. The evaluation of the right to lease a land plot can be made using profitable and comparative approaches. The cost and terms are the same as when assessing the market value of ownership.
Such terminology is actively used in Western appraisal practice to determine rights that differ from property rights, but allow to receive income from the use of land. The right to lease, representing the transfer of property for temporary use with levying fees under the lease, is one of the most common forms of land use, therefore, the evaluation of the right to lease a land plot is quite in demand.
The market value of the right to lease depends on the extent of the right to use the land and the revenues that it is able to generate. The evaluation of the right to lease a land plot can be made using profitable and comparative approaches. The cost and terms are the same as when assessing the market value of ownership.
EVALUATION OF LEASE RENT OF THE LAND PLOT
Estimation of the rental rate of a land plot is the determination of the value of the market value of tenure rights expressed in terms of the monthly (annual) rate of rent or the calculation of the fair value of the market value of the lease, i.e. cash payments for a certain time period in accordance with the lease agreement.
Estimation of the rental rate of the land plot provides useful information to both the tenant and the lessor, allowing the first to determine the most likely rental income, and the second, respectively, to predict their future costs.With a sufficiently developed market, a comparative approach is used to calculate the rental rate, otherwise the profit approach methodology is used, which involves determining the market value of the right to use the property through the value of the market value of the property right;
The tool for transferring the market value of ownership to the current market value of the lease right is the capitalization ratio.
Estimation of the rental rate of the land plot provides useful information to both the tenant and the lessor, allowing the first to determine the most likely rental income, and the second, respectively, to predict their future costs.With a sufficiently developed market, a comparative approach is used to calculate the rental rate, otherwise the profit approach methodology is used, which involves determining the market value of the right to use the property through the value of the market value of the property right;
The tool for transferring the market value of ownership to the current market value of the lease right is the capitalization ratio.
OBJECTIVES OF THE LAND PLOTS
ASSESSMENT
• Buying or selling land in the open market.
• Decision to lease the available land plot,
to clarify the rate for future tenants.
• Challenging the cadastral value of a land
plot.
• Acceptance of the land plot as an
inheritance.
• Evaluation of a land plot for a mortgage in
the bank in case of a loan or mortgage.
• Investing in investments, investing in land.
• Property disputes, judicially examined.
• And many others.
Appraisal of a house with a land plot Lack of confident development in the Russian suburban real estate market has become habitual lately, moreover - the market has long been in a state of stagnation, if not a recession. Crisis phenomena significantly reduce the purchasing power, the modern buyer is an analyst, a marketer, and an appraiser at the same time, he does not hurry, studies, chooses. Sellers without enthusiasm accept the new rules of the game, not wanting to lose, they do not hurry to reduce the price tags of their offers. The result - only successful objects are realized with an initially adequate value, or significantly reduced in the process of bargaining.
In such conditions it becomes difficult for a layman to orient himself in pricing, therefore, the evaluation of a house with a plot, a cottage, performed by a professional and experienced appraiser is the key to the success of any transaction.
The structure of any house, as an object of evaluation, includes the so-called improvements (buildings) and the land itself. Thus, the appraiser calculates the value of the appraisal object as a whole, as well as the value of the land (s) (s) separately (s). Usually, the evaluation of a house with a plot is carried out using a comparative approach, and a cost approach is often used.
For the fastest evaluation work, the following documents are needed:
• Documentation establishing rights;
• Technical documentation of BTI;
• Information about existing (if any) encumbrances (such as making pledge, easements, availability of tenants, etc.).
The spread of prices when estimating a house with a plot is much higher than when estimating urban residential or commercial real estate. This is due to the fact that all cottages, cottages, and other objects are not standard and completely identical. In addition, compared to the apartments, there are many more parameters that in one way or another. Among them are:
Availability of all necessary utilities, their condition
• Distance from the main roads, roads and other access roads.
• Distance from the city.
• Terrain terain.
• The area of the country house and the area of the land.
• Proximity of the forest, lakes, rivers, other water bodies.
• The type of house, the number of floors in it.
• Constructive solutions, planning.
• Wall material, condition of finish.
• Illumination.
• Location and step-by-step availability of shops, pharmacies.
The structure of any house, as an object of evaluation, includes the so-called improvements (buildings) and the land itself. Thus, the appraiser calculates the value of the appraisal object as a whole, as well as the value of the land (s) (s) separately (s). Usually, the evaluation of a house with a plot is carried out using a comparative approach, and a cost approach is often used.
For the fastest evaluation work, the following documents are needed:
• Documentation establishing rights;
• Technical documentation of BTI;
• Information about existing (if any) encumbrances (such as making pledge, easements, availability of tenants, etc.).
The spread of prices when estimating a house with a plot is much higher than when estimating urban residential or commercial real estate. This is due to the fact that all cottages, cottages, and other objects are not standard and completely identical. In addition, compared to the apartments, there are many more parameters that in one way or another. Among them are:
Availability of all necessary utilities, their condition
• Distance from the main roads, roads and other access roads.
• Distance from the city.
• Terrain terain.
• The area of the country house and the area of the land.
• Proximity of the forest, lakes, rivers, other water bodies.
• The type of house, the number of floors in it.
• Constructive solutions, planning.
• Wall material, condition of finish.
• Illumination.
• Location and step-by-step availability of shops, pharmacies.
Estimation of summer residence
Estimation of a summer residence is one of the most demanded directions of an estimation of the inhabited real estate. Under the dacha is usually understood construction in the form of a house with a plot of land located outside the city. The peculiarity of such real estate is that, as a rule, it is not used for permanent residence. The peak of operation of such facilities falls on the summer season.
Assessment of the property complex The property complex is an enterprise and all those objects that are in its ownership and used for entrepreneurial activities. It can be objects such as:
•Land;
• Buildings, structures, structures and other improvements;
• Engineering communications and systems;
• Equipment, processing lines, machine tools;
• Machines, vehicles;
• Raw materials, materials, manufactured products;
•Construction in progress;
• Intangible assets (business reputation, trademarks, brands,
intellectual property and others);
• Receivables, payables;
• Property rights of legal entities to these objects.
FM Consulting, an evaluation company, provides its clients with professional and high-quality services to determine the value of the property complex. So, based on cases in the practice of specialists, the valuation of the property complex is most in demand in the case of:
• registration of an agreement for the purchase or sale of a separate part or a whole set of assets. So, the evaluation of the property complex will help determine the best and reasonable value of the object at the current date.
• obtaining a loan from a banking institution for its confirmation by a pledge. Banks are ready to provide companies with cash on the security of their fixed assets, but a prerequisite is that the recipient of the loan must confirm the value of the property using the valuation report.
• introduction of property in the authorized capital of the enterprise. The legislation establishes that if a non-monetary contribution has a value of more than 200 minimum wages, its independent evaluation is required.
In addition to the above objectives of assessing the property complex, there are others related to the planning of the company's activities and its management. So, the results of the valuation of the property complex can be used for:
• making strategic decisions;
• assessing the effectiveness of the organization's property management;
• conducting tenders and competitions;
• registration of contracts for trust management of property;
• transfer of objects for rent or leasing;
• compensation for damage caused to property;
• attraction of investments;
• settlement of property disputes in courts;
• and another.
Evaluation of the property complex is quite a demanded service these
days, while interested parties in it can be such market participants as:
• The buyer, the seller in the event of concluding contracts for the
sale and purchase of a property complex.
• The lessee and the lessor in determining the amount of rent for the
property.
• Banking organizations when deciding on the possibility of providing
cash to the enterprise on credit.
• State or municipal formation in case of seizure of property for
municipal or state needs.
• Owner or lessee of the land plot when calculating compensation for
work (for example, building a road, building urban utilities) on its territory.
After all the works to determine the value of the property complex, FM
Consulting, a specialist in the appraisal company, will provide you with an
assessment report that fully complies with the requirements of the legislation
and evaluation standards. This document is official, having legal force, and
can be submitted to courts or other institutions to confirm the value of the
property complex.
Office evaluation
Office buildings and premises are some of the most interesting for
evaluation of commercial facilities. They assume an individual approach to
their consideration by a specialist, taking into account a multitude of
parameters that reveal both the features of the object itself and the real
estate market.
FM Consulting offers high-quality and professional office valuation
services for various evaluation purposes. So, an independent evaluation of this
type of commercial property may be needed in a variety of cases. Of these, the
most common are:
• Revaluation of the fixed assets and assets of the enterprise to reduce
the value of property taxes that it pays.
• Receiving a loan from a bank on bail in the form of an office
building, premises.
• Making a transaction for the sale or purchase of a property, or
renting it out to tenants.
• Property insurance of the organization, while the office is an object
of insurance.
• Making a contribution to the charter capital of the company in the
form of real estate.
• Others.
Estimating the cost of the office should begin with the designation,
together with the customer, of the purpose of these works. If the composition
of the required documents and factors affecting the value of the object do not
depend on the purpose of determining the value, then the type of value
(liquidation, market, investment) is determined by the purpose.
Speaking about such a service as the evaluation of the office, great
attention should be paid to the parameters that form the final value of such a
real estate object. There are a lot of them, and they are of a different
nature: technical, economic, social, territorial, political and others. In
addition, they can be typical for a certain object (office, office building),
and for the entire office real estate market.
Very often you can hear the phrase that the eyes - it's a mirror of the
soul. Then the office is the face of every self-respecting company. And with
this statement it's hard to argue, because these are not just words. The
attitude of your customers to you depends on the quality, condition and
appearance of the office of the company. But the market value of the office
also depends on this, because all these are the parameters that determine it.
In general, such pricing factors include:
• The location of the office, the area of the city, its prestige,
access roads, the proximity of other office buildings.
• Availability of parking lots and parking areas, type of parking,
namely: open or closed it, whether there is security.
• View from the office window.
• Physical deterioration, technical condition of the building, quality
of finishing of premises and facade, type of repair.
• The state of engineering networks and communications.
• Availability and technical condition of elevators, air conditioners,
ventilation, security systems, fire systems, telephone, Internet, etc.
• Development of infrastructure inside the building: the presence of an
administrator, a reception, ATMs, copy centers, gyms, canteens, cafeterias, car
repair shops.
In addition to the above, significant parameters are also the year of
putting into operation a building with offices, the completeness and
correctness of the documents available for it, the presence of a professional
company that manages and manages the office building. Very important and the
class of office building in accordance with the classification of foreign
standards, there are only four: A, B, C, D, the first of which is the most
prestigious and popular.
During the evaluation of the cost of the office, the specialist pays much
attention to the liquidity of the property, especially if the value is
determined for use as collateral or sale. Another pricing factor is associated
with liquidity - the demand for the property, expressed in the presence of
permanent tenants, a small factor of underloading (in the case of an office
building that is leased in parts).
In practice, specialists are faced with situations where it is necessary to use other approaches, both costly and profitable. So, the cost approach can be applied in the case of new offices, or vice versa, very old and already unprofitable, when it is necessary to take measures for reconception or renovation. The income approach is used by appraisers in those situations when office real estate is already in operation for a sufficient time, has permanent tenants with long-term contracts, this office is prestigious and in demand, and it is necessary to attract investments into it. Also profitable and costly approaches can be applied when there are not enough analogical objects on the market, or they are not at all, that is, there is nothing to compare the estimated office with.
In the office evaluation report, not only the optimal rental rate or real estate value at the current date may be indicated. This document can also contain any recommendations of specialists on the best and most effective use of the facility for obtaining the highest revenues and increasing the cost of the office.
In order to evaluate the office was possible, the client must provide the entire package of documentation, including:
• Carrying value of the object.
In practice, specialists are faced with situations where it is necessary to use other approaches, both costly and profitable. So, the cost approach can be applied in the case of new offices, or vice versa, very old and already unprofitable, when it is necessary to take measures for reconception or renovation. The income approach is used by appraisers in those situations when office real estate is already in operation for a sufficient time, has permanent tenants with long-term contracts, this office is prestigious and in demand, and it is necessary to attract investments into it. Also profitable and costly approaches can be applied when there are not enough analogical objects on the market, or they are not at all, that is, there is nothing to compare the estimated office with.
In the office evaluation report, not only the optimal rental rate or real estate value at the current date may be indicated. This document can also contain any recommendations of specialists on the best and most effective use of the facility for obtaining the highest revenues and increasing the cost of the office.
In order to evaluate the office was possible, the client must provide the entire package of documentation, including:
• Carrying value of the object.
In appraisal activity in the preparation of reports, three approaches to
evaluation are used:
• comparative
• profitable
• costly
The most effective, often used method, most fully reflecting all the
characteristic features of office real estate, is a comparative approach. Using it, you can most accurately determine
the cost of the office at the current time, taking into account the current
market situation. The appraiser examines all offers on the market for objects
that are analogues to the subject, analyzes the demand and needs of buyers and
tenants and on the basis of this determines the final cost
• Certificate of ownership of the property.
• Documentation for office from BTI: technical passport, floor plans,
explication of all premises.
• In case there were re-planning: documents from self-government bodies,
confirming their legality.
• Information about encumbrances of the object (being in pledge, renting
and others).
• Title documents for a land plot under an office building.
• Carrying value of the object.
Evaluation of premises
Today, such services as valuation of premises, in particular
non-residential ones, are in great demand, despite the fact that their share in
the whole real estate market is much less significant than the share of
residential properties. But this does not prevent commercial premises from
being a profitable asset with a very short payback period for their owners.
If we talk about assessing the cost of the room, then by this concept is most often meant the determination of the cost of premises of a certain purpose. The evaluation company FM Consulting provides services for the evaluation of non-residential premises of the following functional purpose:
If we talk about assessing the cost of the room, then by this concept is most often meant the determination of the cost of premises of a certain purpose. The evaluation company FM Consulting provides services for the evaluation of non-residential premises of the following functional purpose:
• Trading;
• Office;
• Production;
• Warehouse.
The customer of the service must inform the specialist what goals
he pursues, that is why he needs an evaluation of the non-residential premises.
Depending on the goals and tasks set, the valuer will choose a type of value
that will be determined: market, investment or liquidation. The common purposes
of determining the cost of non-residential premises today are:
• Performing transactions for the purchase or sale of commercial real
estate. The specialist of the company will help to choose the most favorable
and adequate price for the sale or purchase of premises in the open market.
• Obtaining a loan on the security of a non-residential premises in a
banking organization. This is one of the most common situations when you need
to determine the value of the property. If you take a large loan from a bank,
you must provide any property as collateral to secure and confirm the repayment
of funds. At the same time, it is also necessary to document the value of the
pledged property. You can do this using an evaluation report ordered from an
independent specialist.
• Decision of property disputes in court. If we talk about this area,
then the most frequent cases when an independent assessment of real estate, in
particular non-residential premises, is necessary are divorce proceedings. To
understand that from jointly acquired property will pass to each of the former
spouses, it is necessary to assess the value of the property.
• Transfer of non-residential premises to inheritance. The evaluation
procedure in this case is a prerequisite for inheritance. Based on the cost of
a commercial premise on the date of death of its former owner, the amount of
the fee that is required to be paid to a notary for its services is determined.
• Leasing commercial premises. Estimation of non-residential premises in
this case is necessary in order to determine what income this commercial real estate
can bring in the short and long term. Also, this procedure can be performed in
order to determine at what rental rate it will be most profitable to lease a
non-residential premises to the lessee (taking into account normal market
conditions).
• The introduction of non-residential premises into the authorized
capital of the enterprise.
• Revaluation of all fixed assets of the company.
• Drawing up an insurance contract for non-residential premises.
It is not necessary that the purpose of assessing the cost of the
premises will be only one. The customer can define several goals for
determining the value of commercial real estate object, for example, an
estimate for the implementation of an investment project and an estimate for
real estate insurance. Such goals are not mutually exclusive, but the market
value and investment value of the premises will not coincide.
The term "enterprise valuation" usually refers to the
calculation of the market value of the operating entity. In turn, an operating
enterprise means an enterprise that does not terminate its activities in the
foreseeable foreseeable period of time.
The value of an enterprise is the value of the enterprise's property complex, expressed in terms of money, taking into account its commercial, social, and industrial indicators. In addition, the value of the enterprise is affected by its specialization, the possibility of future development and further prospects.
The value of an enterprise is the value of the enterprise's property complex, expressed in terms of money, taking into account its commercial, social, and industrial indicators. In addition, the value of the enterprise is affected by its specialization, the possibility of future development and further prospects.
Assessment of the state of the enterprise may include several areas:
1) Assessment of the value of property rights, as well as other rights
that are held by an economic entity.
2) Assessment of liabilities, debts in respect of shares, bonds, other
securities, contributions to the authorized capital.
3) Valuation of the enterprise in the form of a property complex.
FM Consulting, an evaluation company, offers its clients services to
determine the value of an entire enterprise or its elements. Depending on the
purpose of the assessment and the tasks assigned, specialists can determine the
following types of enterprise value:
• market
• investment
• liquidation
• cadastral
The market value of an enterprise is the amount of money for which
it is most likely to be sold on the day of determining the value. At the same
time, the terms of the sale must correspond exactly to the market conditions,
that is, healthy competition must exist, the seller and the buyer must act
reasonably and without compulsion based on correct and true information about
the object. Also, the value of the enterprise should not be affected by any
untypical factors. It means that:
• The seller is not required to sell his business, and the buyer does
not have to purchase it.
• Both sides are aware of the features and characteristics of the
facility, the seller does not hide any facts relating to the subject matter of
the transaction.
• The evaluated enterprise is openly represented on the market, the
offer is a public offer. The exposition period should be large enough so that
all interested legal entities and individuals can get acquainted with the terms
of the transaction and the declared value.
• A certain value is an adequate remuneration for the real estate being
sold, that is, the transaction is committed without coercion from any of the
parties.
• The fee for the object is expressed exclusively in the amount of
money.
From all that has been said above, it follows that the market
value of an enterprise is an objective, reasonable amount of money that does
not depend on either party to the contractual relationship, but only reflects
the current conditions in the real estate market.
In addition, an evaluation of the efficiency of an enterprise can also be conducted to determine its investment value. This type of value reflects the ability of the enterprise to generate revenue to a certain legal entity, or to several legal entities, when investing in it. In this case, the appraiser does not take into account the possibility of selling the enterprise exclusively in a free market. Thus, the assessment of the investment value of the facility shows a certain investor how profitable for it will be the activities for investing in the enterprise. Evaluation of the effectiveness of the enterprise in this case will need to reflect possible risks, prospects for growth and development of the enterprise, as well as the necessary amounts of financing.
In addition, an evaluation of the efficiency of an enterprise can also be conducted to determine its investment value. This type of value reflects the ability of the enterprise to generate revenue to a certain legal entity, or to several legal entities, when investing in it. In this case, the appraiser does not take into account the possibility of selling the enterprise exclusively in a free market. Thus, the assessment of the investment value of the facility shows a certain investor how profitable for it will be the activities for investing in the enterprise. Evaluation of the effectiveness of the enterprise in this case will need to reflect possible risks, prospects for growth and development of the enterprise, as well as the necessary amounts of financing.
The liquidation value of an enterprise is the amount of money for which
the enterprise is most likely to be sold during the exposure period, which is
substantially less than the typical period for such an object from the sale for
sale of an object before its acquisition by the buyer. In this case, a
situation is considered when the owner of an enterprise is forced to sell his
property. In determining this type of value, the appraiser takes into account
the influence of various parameters and circumstances that lead the seller to
the need to sell the enterprise at a value that is below market value.
The last type of enterprise value, cadastral value, is calculated by
specialists mass valuation methods in accordance with the requirements of
regulatory documents that regulate the procedure for cadastral valuation of
property. One of the most common objectives of determining the cadastral value
of an enterprise is the need to optimize taxation.
Specialists of the FM Consulting company are ready to conduct the
determination of any of the company's costs by order of the client. In this
case, the customer is obliged to inform the appraiser of the object evaluation
purpose. The most common objectives of enterprise valuation are:
• The sale or purchase of an enterprise or part thereof on the open
market.
• Development of a plan to increase the efficiency and effectiveness of
the evaluated enterprise.
• Drawing up a business plan by the management of the enterprise.
• Justification of investment for investors.
• Changing the structure of the enterprise, merging with
