Assessment of land
Typically, when it comes to land valuation, required to determine a market value of the land, or the market value of the right to lease land. Obviously, the assessment of the property such as land, primarily depends on its location and the influence of external factors, as well as supply and demand in the marketplace and the nature of competition for buyers and sellers, and can not exceed the most probable cost for the purchase of another plot of equivalent value.
The market valuation of the land also depends on the expected amount, duration and probability of generating income from its operation for a certain period of time when the most effective use of land without regard to income from other factors of production, attracted to the object for business.
Please note that the market value of land varies in time and land valuation is always done on a specific date, in this case, if you change the target destination site (permitted uses), the market value of land also varies.
With regard to determining the market value of lease rights, it mainly depends on the powers the tenant, the term of law, unencumbered by the lease, the rights of other persons on the valued object and purpose (permitted uses) of land.
Cost of lease rights to land is also dependent on the expected magnitude, duration and likelihood of receiving income from the right to lease the property for a certain period of time when the most effective use.
Determining the market value of land is made for the contribution to capital of enterprises, registration of a pledge (mortgage), determining the price in the sale, as well as for other purposes permitted by applicable law. Appraisal carried out in respect of land settlement, industrial and agricultural lands. Evaluation of the right to lease the land can also be a property contribution to capital of the society.
Earth settlements (towns, villages and other settlements) are estimated based on an analysis of market data on sales transactions, rents, prices of the proposals for the properties (including undeveloped land); information about engineering and transport infrastructure, social amenities services, environment, landscape and recreational value of the territory.
Assessment of agricultural land is determined based on the actual yield of main agricultural crops, pasture productivity, perennial plantings, the crop pattern, prices of products and the necessary costs of production of major crops.
Valuation of land in suburban cooperatives and horticultural associations is based on an analysis of transaction prices. Sale or offer price of undeveloped land and the presence and intensity of traffic, availability of electricity, gas and water supply; remoteness from the centers of the infrastructure, the environmental situation on the ground, as well as other factors affecting the definition of market value of land.