Assessment and determination of the market value of private houses. Basic methods

When is a house and site assessment required?

An appraisal of the house and plot is required to establish the market value of the property. When concluding a purchase and sale transaction, the procedure is carried out on a voluntary basis.

The involvement of an appraiser is provided for by law in the following cases:

Registration of inheritance. It is necessary to determine the value of the home so that the notary’s office can issue a certificate confirming the right to dispose of the property.
Bank deposit. A credit institution does not issue money without formalizing an encumbrance. To do this, you need an expert opinion on the value of the property.
Real estate insurance. To calculate the amount of insurance, it is necessary to obtain data on the value of the property for which the insurance policy is issued.
Damage assessment. The amount of the amount for repair work is determined.
Drawing up a gift agreement. The amount of the state duty depends on the value of the property.
Valuation of a house for trial. In case of divorce or disputes between heirs, determining the value of real estate helps resolve property disputes.

IMPORTANT! The assessment of a residential building is carried out to calculate contributions to the authorized capital of the enterprise. The founders have the right to contribute money or transfer personal property to the company.

Suburban real estate valuation process

The assessment implies the availability of all rights to the building and site. According to the Code of the Russian Federation, property rights include the possibility of ownership, use, and disposal. The owner has every right to take any actions in relation to the home. If the procedure for assessing the structure was carried out, then the specialist issues a report on the work done and certifies that he personally carried out the work and the facts correspond to reality. A similar operation with architectural structures occurs in this way:

an agreement is concluded with the customer;
then the necessary information is collected to carry out the required work;
after that, all documentation provided by the customer is studied;
the characteristics of the home are established;
market monitoring is carried out;
the verification method is determined;
all results are summarized and the final cost is determined;
a report is prepared for the customer.

The main purpose of determining the market value of private houses is to identify a fair assessment of the value of the property. If both parties (seller and buyer) agree with the assessment, then the sale and purchase transaction itself will not cause any unpleasant surprises; it will be enough to complete all the paperwork. Otherwise (if an assessment is not carried out), if the parties disagree, there may be a variety of consequences - from financial losses all the way to trial.

Who has the right to evaluate a house and land plot?

Independent specialists - persons licensed to conduct expert activities - have the right to evaluate a house. Appraisers are members of the SRO and have a civil liability insurance policy in the amount of at least 300 thousand rubles.

Property owners choose an expert on their own, taking into account prices for services, reputation and other parameters. However, lending institutions refer borrowers to certain appraisers when issuing a mortgage loan.

ADVICE! SROs that cooperate with credit institutions draw up a report in accordance with the requirements of the bank. This eliminates the risk of sending the document for revision or re-registration.

What are the stages of the process of assessing a residential building with a plot of land?

In the process of assessing a residential building for sale, trial, obtaining a mortgage and other purposes, expert appraisers perform a voluminous range of work. It includes:

detailed inspection of a country property;
studying the provided documentation;
choosing the optimal approach for assessing a house;
detailed analysis of information from open and closed sources;
calculation of the value of the assessed object using developed calculation models.

To evaluate residential buildings, including when performing examinations for the court, Vostok-Center LLC specialists use three approaches:

Comparative. This valuation method is based on comparing the house with similar residential properties, the price of which is already known.
Profitable. This approach allows you to calculate the potential profit that the owner can receive during the operation of the building and site.
Expensive. The technique involves summing up the cost of land, as well as the materials and work required for the construction of a similar structure.

Sometimes one method is enough to calculate the cost. However, in the vast majority of cases, a comprehensive assessment of suburban real estate is required, which is carried out using all approaches. This is the only way to get the most reliable information about how much the house and land cost.

Experts from Vostok-Center LLC have extensive experience in the field of assessing residential buildings and other suburban real estate. The assessment report they prepare is an official document that is accepted by notary, judicial and government authorities. Thus, you can order works not only for personal needs, for example for sale, but also in cases where an appraisal report is needed for a notary, for a court, etc. The document is carried out in full compliance with the requirements of regulatory legislation and approved assessment standards, and therefore is accepted by all authorities. The assessment report for a residential building is valid for 6 months from the date of its preparation by experts.

Do you need an assessment and examination of country real estate for court, inheritance or sale? Contact: +7 (964) 570-96-01.

The procedure for assessing a house with land

The procedure for assessing a country house consists of a number of stages. The home owner negotiates the terms of cooperation with the appraiser and sets deadlines for the examination. A corresponding agreement is drawn up.

After signing the contract, the owner of the property gives the expert the documentation for the house and agrees on the date of the specialist’s visit. During the inspection process, the appraiser takes photographs of the housing and inspects the building for illegal redevelopment.

An independent assessment of the house and site is carried out based on one of the methods:

Analog. The essence of the examination is to compare prices for such transactions throughout the year. Based on the results of the analysis, the appraiser identifies the value of the current object. This technique is used in large populated areas.
Expensive. A special feature of the methodology is the assessment of expenses incurred by the homeowner during repair and construction work. Cost expertise is used to establish the cost of country cottages.
Profitable. Used to evaluate city apartments and commercial real estate. Market value is determined by assessing the return on investment in real estate.

When examining a private house and plot, the appraiser pays attention to the following parameters:

Location of the property (infrastructure development, type of settlement, etc.).
Condition of the building (year of construction, number of floors, area, type of building materials, condition of communications).
The presence of encumbrances on the site and dacha.

ATTENTION! If the property being sold was purchased using borrowed funds and the loan is not repaid, the owner needs to remove the encumbrance from the house and order an updated extract from the Unified State Register.

The validity period of the report for housing purchased with a mortgage is six months. If not only a house, but also a plot of land was purchased on credit, an additional assessment of the land is required.

Basic methods of housing assessment

There are three approaches to assessing suburban real estate, these include:

market (comparative);
profitable;
expensive.

Which analysis technique to choose depends on the object and the general situation of a particular property.

When using the cost method , the cost of a country house is estimated based on the costs of acquiring the site, connecting communications to it, the cost of constructing the building itself, and the exterior and interior decoration performed. They also additionally take into account the mandatory payments made to the village management company (if there is one), what confirmed costs were incurred for taxes and other deductions during construction.

Income method - in this case, the object is evaluated based on its payback period. Although this method is not very popular in suburban housing, it is more often used in commercial real estate, where it is possible to calculate rental income for several years in advance. In the case of a residential property that is not rented out, discounting models are used (what income the property would generate year by year if it were rented out).

The income method is, first of all, an analysis of future cash flows, which are generated from the profit from a house or plot. The size of the stream depends on improvements and other parameters. It is important to take into account the depreciation of real estate: an old house built 5-10-15 years ago cannot bring the same profitability as a recently built one. In addition, incorrect use of formulas can introduce significant inaccuracies in the final result.

To evaluate private houses, the comparative method of evaluation is most often used. Since this is a type, it is a whole complex of research and identification of the real cost of construction. When assessing buildings, one object is compared with others that are similar in parameters and location.

This process is based on supply and demand. These two factors are related to each other. Since when demand is low, supply decreases and vice versa. It is understood that no real buyer would dare to pay more than the object is actually worth.

In order to apply a comparative approach, land plots along with objects should be assessed, accordingly, a specialist must have the necessary information. If there is no data, then you can use information about sales offers for similar buildings.

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Each of these approaches has certain advantages, but it is best to use all three. Only for compelling reasons, two methods can be used. The use of several options is due to the fact that each of them is unique and pays attention only to specific indicators, reducing the volume of data review.

In the cost option, the main thing is to estimate the costs of independent construction. In comparative terms, it is necessary to pay attention to the market situation. And in the profitable case, attention is removed from prospects and profitability forecasting.

How are calculations made?

Typically, specialists use all methods; this is also required by the standards of procedure. But the results obtained after each approach differ from each other. Therefore, you should use a mathematical approach and weigh all the results.

Weighing is a tool that helps calculate the final figure, taking into account the completeness and reliability of the data that was used for a particular method.

A simple weighing option is to calculate the average price between three results. Accordingly, the operation takes place with equal initial data. But if these numbers are for different methods, then it is necessary to justify why one or another method has less or more weight. The practical application of different analysis options allows a professional to be accurate, since the procedure requires taking into account all the data that affects the cost indicators of the structure.

What indicators are taken into account?

There are quite a lot of indicators that should be taken into account in a comparative analysis. During the analysis, you should remember the main factors influencing pricing. If there is an encumbrance, then the house will not be worth much. There is also a decrease in value if there are restrictions on ownership rights. If a private house, when compared with other structures, does not have any shortcomings or nuances, then it is rated higher.

You should not forget about the terms of sale. They are taken into account if the residential premises have characteristic features. A cheap price may be caused by such cases as:

Bankruptcy or difficult financial situation of the seller. In this case, he wants to sell his house as quickly as possible and is ready to reduce the price. The cost will be much lower than that of objects with the same characteristics;
A sharp change in family circumstances: divorce, death of one of the spouses, departure of children, emigration;
It happens that the seller wants to save on tax payments.

Factors that increase the assessment of the cost of suburban housing include:

prestige of the area;
developed infrastructure;
availability of parking;
availability of all communications;
quality of building materials, architecture;
possibility of registration;
possibility of permanent year-round residence (permanent residence);
the presence of nearby attractions and architectural monuments;
distance from Moscow and other cities near Moscow.

Negative factors that reduce the price level include:

significant distance from the city;
lack of infrastructure;
poor environment, as well as nearby factories, etc.

The valuation of a home also decreases if the sale is made through intermediaries rather than directly with the owner.

What documents need to be provided

To determine the value of a home, the following documentation is required:

A duplicate of the identity card and TIN of the owner of the property.
Cadastral passport and topographic plan of the site.
A document confirming ownership of the house.

When purchasing housing in a building under construction, an agreement with the developer is required.

Evaluation report

The real estate inspection report is prepared in writing. The pages are numbered, the report is stapled, certified with a stamp and signature of the SRO representative. The report averages thirty pages.

The document contains the following information:

information about the expert and the customer;
information about methods for assessing housing;
information about the house being inspected;
real estate market analysis;
identification of the market value of the object.

The report for the bank when applying for a mortgage loan contains:

documentation for housing;
photographs taken during the examination process;
market price of real estate;
liquidation value (the amount for which the bank will be able to sell the house if the borrower fails to fulfill its obligations).

If the bank client independently chose an appraisal company, additionally the following should be attached to the report:

Diploma in Evaluation;
document confirming membership in the SRO;
civil liability insurance policy.

ADVICE! The assessment customer needs to carefully study the expert’s completed report while in the company’s office. This will help you quickly resolve possible issues and understand the nuances.

In what situations are the services of an independent appraiser necessary?

Most often, information about the real (current) market value of an object is necessary before completing a purchase and sale transaction. In this case, the initiator is the property owner.

However, in a number of situations, conducting an appraisal examination is mandatory by law:

Upon entry into inheritance rights. Based on the results of the appraiser’s work, the notary calculates the amount of state duty, without payment of which it is impossible to obtain a certificate of inheritance.
When applying for a loan or mortgage secured by real estate. The assessment report must indicate not only the market value, but also the liquidation value of the property - it is at this value that, in the event of the debtor’s refusal to pay the funds for the obligations, it will be possible to sell the pledged property.
To draw up an insurance contract. Data on the value of the home is the basis for calculating insurance benefits and monthly payments.
To assess the damage and, if possible, obtain fair compensation from the culprit.
When drawing up a gift agreement, the amount of the state duty is calculated based on the value.
For the court - when resolving property disputes, for example, during divorce proceedings or division of property between heirs.

In addition, an appraisal of a cottage or residential building is ordered when the property is added to the authorized capital of the company. According to current legislation, founders can make contributions not only in money, but also by transferring personal property to the organization.

What can the assessed value affect?

The SRO expert’s report affects the following lending conditions:

size of the amount;
loan term;
interest rate.

If the real value of the property, as determined by the appraiser, is lower than the market value, the bank does not issue the required amount. In such a situation, the borrower needs to: