Property appraisal is a determinative process of the cost of housing in monetary terms or the calculation of the amount of property ownership. In view of this, the price of an apartment may depend on the technical characteristics or be directly dependent on the value of the ownership of a particular area.
The property valuation is carried by competent persons. Such a person can be an expert from the BTI (Bureau of Technical Inventory), or an independent specialist of a private firm that conducts real estate expertise.
Types of property values:
The cost of housing is a monetary value that triggers the transfer of ownership of property. It is she who is the cause and effect of the emergence of legal relations.
The cost classification can differ according to the method of appraising the apartment. For example, the appraisal of the market value of an apartment will be based on the average price of the same segment. At the same time, individual characteristics: the technical condition and equipment of the dwelling will not be considered. This type of value has become widespread and is called market value.
The investment value is determined taking into account the proposals of interested persons-investors. Such citizens, evaluating real estate by a certain amount, form its price value.
The minimum guaranteed amount of money that is returned upon disposal of property under any circumstances is called the liquidation value. If the market and investment value can be equal, then the liquidation value is always an order of magnitude lower.
The inventory value is calculated based on the technical condition of the property, minus the elements of dilapidation and disrepair. Such an amount is compiled by assessing everything that is, then the depreciation is estimated and a deduction is made.
Assessment of the cadastral value of an apartment is similar to the market system. The difference is the same property cost, depending on the area and additional equipment. This measurement is usually carried out by government agencies for the purpose of determining the tax.
Methods for assessing the value of an apartment for sale:
The appraisal of an apartment for sale has several basic methods.
- Income capitalization method. In common people it is called the income method. This analysis takes into account the total cost of the home as well as the estimated return on ownership. If the profit is seasonal, then discounting is applied, that is, a deduction based on the unevenness of profit.
- Decapitalization method, or costly. It is used when assessing the secondary market or share . Assessment of a share in an apartment for sale is mostly unprofitable, associated with numerous risks. The benefits of a second home are always overshadowed by the costs of conversion and renovation.
- Comparative method. The technique is used to easily analyze the price of real estate in comparison with similar objects.
Such objects can be:
- The area of the apartment or plot.
- General technical characteristics.
- Nearby location of compared objects.
- Monotonous infrastructure nearby.
- Supply Situation.
- Demographic and ecological aspects of the locate
The procedure for self-assessment of the cost of an apartment upon sale:
Before the sale, the owner of a home is wondering how to make an appraisal of an apartment on his own? A competent and accurate examination is possible if the following aspects are observed:
- Analyze the location of the house where the apartment is located. Check out the housing prices for this market segment.
- When calculating the cost, pay attention to the remoteness of the apartment from infrastructure facilities. Nearby metro stations, bus stops, large shops, schools and hospitals will be a positive factor for a successful sale.
- The presence of problems with registration in this living space or the seizure imposed will cause a significant reduction in the amount of money.
- Attention should be paid to the material of manufacture of the structure;
- Technical condition and internal equipment.
- Floor, area, number of rooms – the primary aspect for analysis.
- Security level.
Having analyzed the main characteristics of the housing being sold, they should not be overestimated. An impartial independent assessment by the owner himself will determine the optimal amount for the sale of the property.
Based on characteristics and invoking impartiality, the apartment should be evaluated in stages:
- Having studied a similar market segment, it is necessary to give an answer: how much does an apartment cost on average?
- Considering the nuances of market relations, one should not forget about discounts and concessions. It is necessary to reduce the average amount for a sale, taking into account the discount.
- Analyze the technical condition. In the case of certain defects, find out who does it and what will be the price of the repair. It is more expedient to subtract the amount of repairs from the total cost of the apartment.
- Received value – the price from which to proceed when submitting an advertisement for the sale of housing.
It is also possible to use a calculator for assessing the cost of an apartment, which can be found on the Internet.
Example of appraising the cost of an apartment on sale:
The citizen owns a two-room apartment on the third floor in a panel five-story building. It was decided to evaluate and sell the apartment. The financial question, which pays for the registration of the change of owner was not standing, the buyer will pay. Housing appraisal and preparation of documentation for the seller.
It was decided to make an assessment for confidence in several ways. First, an initial independent calculation was made. To determine the price, ads of similar real estate were examined.
Then they turned for the service to an independent expert, who estimated the property at 81,755.89 GBP.
Finally, to be sure, it was decided to use a new service – real estate appraisal via the Internet.
Putting an advertisement for the sale of the house for 81,755 GBP, almost no response was received. As a result, the apartment was sold for 74,233 GBP.
- Property appraisal is carried out by an independent expert or BTI specialist if it is necessary to obtain certification documentation. A self-assessment is necessary to determine the approximate cost of an apartment for sale.
- Despite the difference in the types of property valuation methods, they all calculate the total amount taking into account the profitability or loss ratio of the object.
- Self-assessment should take into account not only the explicit technical characteristics, but also the hidden aspects of the property.