We evaluate the land. Find out the cost.

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Earth is the most important natural resource, the basis of life. And that is the only reason why it is priceless. For many, the very question of the price of land seems fundamentally unacceptable. Jean-Jacques Rousseau exclaimed: “...you will perish if you forget that the fruits of the earth are for everyone, and that the earth itself is no one’s.” And one of the most prominent thinkers and writers in the United States, Ralph Waldo Emerson, Fr.

But people have been selling and buying land for a long time. And one of the urgent needs of the existence of the land market is the assessment of the value of land.

Purposes and types of land valuation

The purposes of land valuation may vary. Since a significant part of land is involved in civil circulation and is a commodity (while still remaining an important natural resource), for the full functioning of the land market, as mentioned above, an assessment of the market value of land, i.e., a monetary valuation of land, is vital. For example, when determining the price for a purchase and sale transaction of a plot.

According to the Land Code of the Russian Federation, payment for the use of land is one of the basic principles of land legislation. The principle of payment is intended to stimulate the rational use, protection and development of land, increase soil fertility, and help level out the socio-economic conditions of management. The main way to implement it is taxation. And in order to calculate the amount of land tax, a universal basic indicator is needed, which is currently established for the cadastral valuation of land (land plots) in the Russian Federation. Therefore, the tax burden as payment for land and land valuation are closely related. According to Federal Law No. 137-FZ of October 25, 2001, in cases where the cadastral value of land is not determined, for the purposes specified in Article 65 of the Land Code of the Russian Federation, the normative price of land is applied.

The normative assessment of land gives reason to recall the Law of the RSFSR of October 11, 1991 No. 1738-1 “On payment for land”. Since January 1, 2004, this law has been declared repealed with the exception of Article 25, which talks about the standard price of land: “The standard price of land is an indicator characterizing the cost of a plot of a certain quality and location, based on the potential income for the estimated payback period.”

The state cadastral valuation of land is carried out in accordance with the Rules for the state cadastral valuation of land, approved by Decree of the Government of the Russian Federation of April 8, 2000 No. 316.

Mandatory for use when determining the cadastral value of land plots, information about which is contained in the state real estate cadastre on the date of assessment, is the Federal Valuation Standard “Determination of Cadastral Value (FSO No. 4)”, approved by the Order of the Ministry of Economic Development of the Russian Federation of October 22, 2010. No. 508.

State land assessment is carried out to determine the cadastral value of land plots for various purposes at least once every five years.

The results of the state cadastral valuation of land are approved by the executive authorities of the constituent entities of the Russian Federation on the proposal of the territorial bodies of the Federal Real Estate Cadastre Agency. The results of the cadastral valuation of land are entered into the state land cadastre.

Cadastral valuation of land is based on the classification of land according to its intended purpose and type of functional use.

The state cadastral assessment of land takes into account data from land, urban planning, forestry, water and other cadastres.

Knowing the cost of land is necessary in a number of other cases. In particular:

when transferring a plot for rent or collateral;
lending;
insurance;
contribution to the authorized (share) capital;
making management decisions;
preparation of financial (accounting) statements;
withdrawal for state needs;
determining the value of the debtor's property during bankruptcy proceedings;
determining the value of property received free of charge;
resolution of property disputes.

Methods for assessing the market value of land plots

In market conditions, there are several types of land value inherent in any real estate property.

When solving practical issues of land use in the Russian Federation, the standard price of land (NLP) is used. Land tax rates are determined by the standard price of land.

The standard price of land is the minimum price of land established by the Government of the Russian Federation. The standard price of land for specific land plots is determined in the amount of fifty times the land tax rate in rubles per unit area of land for the corresponding purpose.

The standard price of land - the cost of a plot of a certain quality and location based on potential income over the estimated payback period - is used when:

— transfer (purchase) of land into ownership;

— establishing the land tax rate taking into account increasing factors;

— establishment of common joint (shared) ownership in excess of the free norm.

Market value is the most probable sale price for a property in a competitive and open market with conscious and rational actions in the best interests of the buyer and seller, who are well informed and not under the pressure of extraordinary circumstances.

To assess the market value of a land plot, the following information is required:

a) title of ownership and registration data for the land plot;

b) physical characteristics of the site;

c) data on the relationship of the site with the environment;

d) economic factors characterizing the site.

Sources of this data may be city, district and village land committees and commissions where land transactions are registered, real estate firms specializing in land transactions, mortgage lending organizations, appraisal firms, periodicals and other sources.

There are five main methods for assessing the market value of land.

1. Based on comparable sales.

2. Method of correlation (transfer).

3. Capitalization of land rent.

4. Residue technique for earth.

5. Method of land development.

The most common method of valuing land is the direct comparative sales method, which is based on the principle of substitution.

According to this method:

1) actual sales of plots in the relevant market or its segments are identified;

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2) adjustments are made to take into account differences between the assessed site and each comparable site.

Comparison of the assessed land plot with comparable vacant plots is carried out according to two components:

- by comparison elements;

- by units of comparison.

All factors that can have a significant impact on the costs required for the development of the site are taken as elements of comparison: location of the site, ownership of the land, soil structure, presence of rising waters, swamps, probability of flooding of the site, volume of reclamation work, presence of buildings on the site. the site and the amount of costs associated with their destruction to prepare the site for new development, communication structures on the site and their technical condition, the ecological state of the site, the environment, the presence of monuments and their protection by the state, the availability of amenities and others.

The unit of comparison is taken as:

1) price per 1 hectare - for large areas of agricultural, industrial purposes or for housing construction;

2) price per 1 m2 - in business centers of cities, for offices, shops, etc.;

3) price per 1 frontal meter - for commercial use of land in cities. The cost of a lot is proportional to the length of its border along the street or highway, with the standard depth of the lot accounting for a small portion of the cost;

4) price per lot - standard plots in shape and size in residential areas, country houses, etc.;

5) price per unit of density - the ratio of the building area to the area of the land plot.

For built-up areas, the following can be used as a unit of comparison:

1) price per 1 m2 of total or net area;

2) price per 1 m3 - for warehouses, elevators, etc.;

3) price per unit that generates income - a place in a garage, at a stadium, a parking space, etc.

When using the comparison unit technique, the average or typical cost of the comparison unit for each homogeneous group of sites is determined on the basis of a number of actual sales. The average is determined by calculating the median or average selling price per comparison unit. This technique is used in cases where areas are very different from each other in size, but relatively similar in parameters.

Another technique is based on the analysis of comparable sales of the value of a basic, standard plot, which then serves as a guide for calculating the value of other plots of land. The object of assessment is a real, or hypothetical, base site.

In general, the market price of land can be determined as follows:

Tsr = Tsn • K1 • K2 • K3 • Kn,

where CR is the market price;

Tsn - standard price of land;

K1, Kn - coefficients used to adjust the standard price.

Coefficients are established by expert opinion, if there are no coefficients approved by government agencies.

Correlation (transfer) method - consists of determining the relationship between the total cost of the built-up site and the cost of the land. It has been established that there is a stable connection between the cost of land and the cost of structures erected on it. First, the total cost of the built-up plot is estimated, and then the cost of buildings and structures is subtracted and we get the cost of the land plot. Ratio factors can be applied to assessed areas to determine the value of a comparison unit or base site for a given area.

Residual productivity (residual) method. In the absence of data on the sale of land plots, it is recommended to use the residual technique to evaluate the land, according to which the value of the land plot is determined by the formula:

where is the assessment of the value of the land plot;

- net operating income generated by the property;

— cost of improvements;

— land capitalization ratio;

— capitalization ratio of improvements.

When valuing real estate, it is assumed that the land is treated as a construction site and is not subject to any types of wear and tear, with the exception of economic wear. As a limited resource, land tends to increase in value over time.

All wear and tear is attributed to improvements that are on the ground.

It follows that land is an inexhaustible asset (capital) that does not require recapitalization (return of capital). Consequently, land income can be capitalized at the rate of return on capital V, i.e. the land capitalization coefficient RL is equal to the rate of return on capital V.

The land plot development (development) method is used when it is necessary to determine the cost of a plot suitable for dividing into separate individual plots. Such cases occur in assessment practice.

The main stages of assessment using this method:

1) determination of the size and number of individual plots;

2) calculating the cost of developed plots using the comparable sales method (determining the amount of revenue);

3) calculation of the costs of developing plots and their sales, the development schedule for the expected sales period and the amount of revenue from sales of individual plots;

4) determining the amount of cash flow by subtracting all costs of developing sites from the total revenue from sales of these sites;

5) determination of the discount rate;

6) discounting of cash flow taking into account the time of development and sales of all individual land plots.

When determining the size of individual plots, physical, legal and economic factors are taken into account that influence this decision, but most often the sizes are determined based on the economic capabilities of potential investors (6, 8, 10, 12, 15, 20 and 25 acres).

In practice, developed land plots are those to which underground utilities, roads, electricity, and gas have been installed, and on which houses have been built according to individual designs.

To determine the market value of land, the income capitalization method can be used.

Valuation of land by profitability is done by converting cash income into value using a capitalization rate. In other words, the value of a site can be defined as its ability to generate income in the future.

The cost of land in this case is determined by the formula:

SR3 = ChDZ: R? 100%,

where CP3 is the market value of land;

NHL - net land income, includes rent, land tax, landowner profit and other forms. In the absence of a generally accepted methodology, it can be determined in various ways. Net income is the difference between the value of gross output and the costs of its production;

R is the capitalization coefficient of land revenues. It should be determined differentially by region and within regions by their territories.

For agricultural land, the rate of return from the production and sale of agricultural products can be taken.

For land allocated for the construction of industrial enterprises - the rate of return from the production and sale of industrial products; for banks - on their activities.

In each specific case, the issue of determining capitalization standards should be resolved based on the market interest rate and its adjustment taking into account trends in the development of market conditions.

Considering that the use of land plots is long-term in nature, rates and amounts of payments can be adjusted after certain periods established by a specific agreement.

To make the most efficient use of land, it is recommended to use the residual technique to determine the land value of buildings and structures located on a given site, and then capitalize the income from the land by discounting cash flows.

Cadastral valuation of lands in settlements

The Methodological Guidelines for the state cadastral valuation of land in populated areas, approved by Order of the Ministry of Economic Development and Trade of the Russian Federation dated February 15, 2007 No. 39, help determine the cadastral value of land plots with different types of permitted use on the lands of settlements.

Carrying out a cadastral valuation of land in settlements consists of two stages: creating a list of land plots and calculating their cadastral value.

State cadastral valuation of urban lands, rural settlements, horticultural, gardening and dacha associations is carried out on the basis of statistical analysis of market prices and other information about real estate, as well as other methods of mass real estate valuation.

Cadastral valuation of agricultural land

The state cadastral assessment of agricultural lands outside the boundaries of urban and rural settlements and with the exception of areas located within the boundaries of horticultural, gardening and dacha associations, as well as the assessment of forest lands (forest fund lands), is carried out on the basis of capitalization of estimated rental income.

Order No. 445 of the Ministry of Economic Development of the Russian Federation dated September 20, 2010 approved the Methodological Guidelines for the state cadastral valuation of agricultural land.

The assessment is carried out in three stages:

formation of a list of land plots;
determination of specific indicators of their cadastral value;
cost calculation.

The list of sites is compiled by the regional department of the Federal Service for State Registration, Cadastre and Cartography (Rosreestr) as of January 1 of the year of work. It must contain information about all lands located in the assessed territory.

Specific indicators of land plots depend on the type of their use.

Determining the specific indicators of the cadastral value of land involves, among other things, calculating the costs per unit area for maintaining soil fertility for each crop rotation.