Methodological guide for real estate appraisal. Textbook for the course "Real estate appraisal

INTRODUCTION

Evaluation activity provides an information basis for making economic management decisions, contributes to the restructuring of the economy, the formation of a competitive market environment, and activation of investment processes. An independent valuation is designed to ensure equal rights for all members of society, through a fair assessment of their property rights and obligations. The development of appraisal activities is an integral part of the overall process of economic reform and the creation of the rule of law.

With the development of the real estate market in Russia, the demand for the profession of an appraiser has increased. The main task of the appraiser is related to the appraisal of value. Cost is important to both the buyer and seller in determining a reasonable transaction price.

The state remains the largest owner in the Russian Federation. Assessment of the value of objects of state property and the rights to use it is a prerequisite for effective management of state property. In the case of transactions with objects of appraisal, which are fully or partially owned by the state, the appraisal is mandatory.

Legal entities and individuals are also interested in appraisal services when determining the value of land and buildings in disputes in court, when concluding a real estate insurance contract, and when performing many transactions with real estate, an appraiser's conclusion may be not only desirable, but also strictly mandatory.

A professional assessment helps to more reasonably make various transactions, in particular the purchase and sale and lease of real estate. Assessment is also necessary in the case of division of property in a divorce, when drawing up marriage contracts.

Based on the foregoing, it can be concluded that in a market economy, the profession of an appraiser is increasingly in demand.

In the practice of real estate transactions, there are a variety of situations in the appraisal of objects. At the same time, each situation has its own approaches that are adequate only for it. For the correct choice of approaches, it is necessary to determine the criteria for their adequacy to the corresponding situation. To carry out a high-quality appraisal of the value of real estate, theoretical knowledge and the acquisition of practical skills in determining the value of real estate on practical examples are required.

This tutorial aims to summarize the existing theoretical material in the field of real estate valuation and show the application of theoretical methods in the framework of approaches to valuation using practical examples.

Chapter 1. BASIC CONCEPTS OF REAL ESTATE VALUATION

1.1. Real estate concept

Real estate –these are physical objects with a fixed location in space and everything that is inseparably connected with them both below the surface and above the surface of the earth or everything that is a service item, as well as the rights, interests and benefits arising from the ownership of objects. Physical objects are understood as indissolubly interconnected land plots and structures located on them.

Differences in the concept of real estate as an object of appraisal and in the definition of the Civil Code (Article 130) are reflected in Fig. 1.1.

Rice. 1.1. The concept of real estate as an object of appraisal and in the definition of the Civil Code

Under real estate object it is understood, firstly, the enterprise as a whole as a property complex, and secondly, a land plot, an integral part of which can be:

· a building (structure) or a group of buildings (structures) located on this site, underground structures related to this site;

· isolated water bodies, perennial plantations;

· engineering structures and networks that connect the land plot and buildings (structures) located on it to the infrastructure of a quarter or city. This also includes ownership shares in engineering infrastructure facilities that are jointly operated by the owners of real estate in a quarter or city;

· stationary land improvement facilities;

· elements of economic, transport and engineering support related to this property, but located outside the boundaries of its land plot;

· other objects that, in combination with the above-mentioned components of real estate, constitute an indissoluble structural or functional whole.

1.2. The cost of real estate and its main types

Real estate is in free civil circulation and is the object of various transactions, which gives rise to the need to assess its value, i.e. in determining the monetary equivalent of various types of real estate at a particular point in time.

Depending on the purpose of the appraisal, the completeness of the assessed rights to real estate, various types of value can be combined into three main groups (Figure 1.2):

· value in exchange as an expression of exchange value;

· value in use as an expression of value in use;

· special types of value.

Each of the listed types of cost has its own area of ​​application and limitations.

First group–value in exchange –characterize the ability of a property to be exchanged for money or other goods, is objective and underlies the conduct of transactions with real estate in the market: purchase and sale, pledging, including loans, leasing, contributions to the statutory funds of enterprises etc.

Rice. 1.2. Property value groups

Forms of manifestation of value in exchange:

· Market;

· Liquidation;

· Recycling.

According to the Federal Law "On appraisal activities in the Russian Federation", the market value of the appraised object is understood as the most probable price at which this appraisal object can be alienated in the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and on the value the transaction prices do not reflect any extraordinary circumstances, that is, when:

· one of the parties to the transaction is not obliged to alienate the subject of valuation, and the other party is not obliged to accept performance; the parties to the transaction are well aware of the subject of the transaction and act in their own interests;

· the subject of assessment is presented to the open market in the form of a public offer;

· the price of the transaction is a reasonable remuneration for the object of valuation and there was no coercion to complete the transaction with respect to the parties to the transaction from any party;

· the payment for the subject matter is expressed in monetary terms.

According to the Valuation Standards, mandatory for application by the subjects of appraisal activity, the market value of the appraisal object is the most probable price at which the appraisal object can be alienated in the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and on the value of the transaction price does not reflect any extraordinary circumstances.

The market value is determined based on the best use of the property.

Liquidation value of the subject of appraisal –the value of the appraised object in the event that the appraised object must be alienated in a period shorter than the usual exposure period of similar objects.

In other words, the liquidation value–the cost that the seller has to agree with in the forced sale of real estate in a limited period of time, which does not allow a significant number of potential buyers to familiarize themselves with the object and the terms of sale.

Utilization value of the object of appraisal –the value of the appraised object, equal to the market value of the materials that it includes, taking into account the costs of disposal of the appraised object.

Second group–cost in use –are determined by the usefulness of the real estate object for a certain variant of its use and is subjective in nature, reflecting the existing possibilities for the operation of the object by a specific owner, not related to the purchase and sale of the object and other market operations.

Assessment of the value in use of a real estate object is made based on the existing profile of its use and those financial and economic parameters that were observed in the initial period of the object's operation and are predicted in the future.

Forms of manifestation of value in use:

· with existing use;

· Investment;

· value for tax purposes.

Cost of the subject matter in existing use –the value of the appraisal object, determined on the basis of existing conditions and the purpose of its use.

Investment value of the object of appraisal –the value of the appraisal object, determined on the basis of its profitability for a specific person for a given investment purpose.

The calculation of the investment value is based on a subjective assessment of the discounted costs and income of the investor expected from the use of this property in a promising investment project.

The investment value of real estate for a particular investor differs from its market value as a result of different assessments of the required rate of return, prestige, location prospects, and the possibility of obtaining a "spiritual" effect. It is calculated when building vacant land plots, expanding and reconstructing real estate objects, making real estate objects as a contribution to the authorized capital of enterprises and in other cases.

The value of the object of appraisal for tax purposes –the value of the object of appraisal, determined for calculating the tax base and calculated in accordance with the provisions of regulatory legal acts (including the inventory value).

In countries with economies in transition, this value usually does not correspond to the market value. Thus, in the Russian Federation, the law establishes tax calculation based on the book value, i.e. the value of assets included in certain items of the balance sheet of enterprises and organizations.

According to the Tax Code, the taxation of land plots will be carried out on the basis of the cadastral value of the land or its standard price.

The third group of cost –special types of the value of objects of appraisal.

In accordance with the Valuation Standards mandatory for subjectsappraisal activities, approved by the Decree of the Government of the Russian Federation No. 519 of July 6, 2001, special types of values ​​can be distinguished:

The value of the appraisal object with a limited market –the value of the object of appraisal, the sale of which on the open market is impossible or requires additional costs in comparison with the costs necessary for the sale of goods freely traded on the market.

Special cost of the object of appraisal –value, for the determination of which conditions are stipulated in the valuation agreement or regulatory legal act that are not included in the concept of market or other value specified in the valuation standards.

Substitution cost of the appraised item –the sum of the costs of creating an object similar to the object of appraisal at market prices existing at the date of the appraisal, taking into account the depreciation of the appraisal object.

Reproduction cost of the appraised object –the amount of costs in market prices existing on the date of the valuation for the creation of an object identical to the valuation object, using identical materials and technologies, taking into account the depreciation of the valuation object.

The replacement cost and reproduction cost are used as part of the cost approach to real estate appraisal.

1.3. Basic approaches and principles of real estate appraisal

The theoretical basis of the assessment process is a system of assessment principles. In world practice, it is customary to distinguish four groups of valuation principles(fig. 1.3):

1st group:principles based on the ideas of the potential owner;

2nd group:principles related to land, buildings and structures;

3rd group:principles conditioned by the operation of the market environment;

4th group:the principle of the best and most efficient use.

These principles are interrelated. When analyzing and evaluating a specific real estate object, several principles can be simultaneously involved. One principle may be given the most importance at the expense of another, depending on the specific situation.

Rice. 1.3. Principles of real estate appraisal

Principles based on the ideas of the potential owner.

Utility principle means that the more the property is able to satisfy the owner's need, the higher its utility and value.

Real estate has value only if it is useful to some potential owner and may be needed for the implementation of a certain economic function, for example, for the operation of an industrial enterprise or for growing crops. Real estate can be useful as someone is willing to pay rent for the temporary ownership of that property. Utility–it is the ability of the property to meet the needs of the user in a given location and for a given period of time. In the case of income-generating property, the satisfaction of the user's needs can ultimately be expressed as a stream of income.

Substitution principle means that in the presence of a certain number of homogeneous (in terms of usefulness or profitability) real estate objects, the objects with the lowest price will be in the highest demand.

The rational buyer will not pay more for a property than the minimum price charged for another property of the same utility. Accordingly, it would be unwise to pay more for an existing object if another object with similar utility can be reproduced without undue delay at a lower cost.

Substitution principle states that the maximum value of a property is determined by the lowest price or value at which another property of equivalent utility can be acquired.

Waiting principle is determined by what income (taking into account the amount and timing of receipt) or what benefits and convenience from the use of the property, including proceeds from the subsequent resale, the potential owner expects to receive. future income and their present value.

The value of income-generating objects is determined by the net proceeds from the use of the asset, as well as from its resale, the potential buyer expects. The size, quality and duration of the expected future income stream are important to the investor. However, revenue stream expectations can change. For example, people's opinion of a particular property can be influenced by things like the announcement of a new regional airport or highway being built nearby.

Valuation principles related to land, buildings and structures.

These principles include: residual productivity, contribution, progression and regression (rising and falling income), balance, economic magnitude, and economic division.

Residual productivity.

The value of land is based on its residual productivity. Any kind of economic activity usually requires four factors of production. Each factor must be paid for from the net income generated by this activity.

Since land is physically immovable, labor, capital and entrepreneurship must be attracted to it. This means that these three factors must first be paid, and only then the rest of the income is paid to the landowner as rent. Economic theory says that land has a "residual value" and is of any value only when there is a balance after all other factors of production have been paid.

Residual productivity is measured as net income attributed to land after labor, capital and entrepreneurship costs have been paid.

Residual productivity can occur because the land allows the user to maximize revenue, minimize costs, meet amenity needs, or a combination of the three.

Contribution principleinvolves an analysis of how the value of an economic object or net income from it increases or decreases due to the presence or absence of any additional factor of production.

Contribution –it is the sum of the increase in the value of the economic object as a result of the introduction of a new factor, and not the actual costs of this factor itself. Several factors increase the value of the property by more than the associated costs, although there are some that actually reduce the value. For example, re-painting a house from the outside can improve its appearance and make it more attractive. However, in the event that the color of the paint does not meet market standards, the value of the house may decrease.

If we consider the action of this principle in dynamics, in relation to an expanding object, then the value of each subsequent contribution may not correspond to the specific costs of creating the component under consideration, since the total value of real estate does not always act as a simple sum of the values ​​of individual constituent elements. For example, the cost of setting up an underground car park in the amount of $ 100,000 could add $ 250,000 to the value of a multi-storey apartment building.

The contribution principle is often used to identify redundant or missing improvements when analyzing the best and most effective use.

The principle of progression and regression or the principle of increasing and decreasing income states that as resources are added to the main factors of production, net income will increase at an increasing rate up to the point from which total income, although growing, is already at a slower pace. This slowdown occurs until the cost gain becomes less than the cost of the added resources.

Usually landowners have to answer the question of how intensively the land they own should be built up. For example, company X owns 0.3 hectares of land. Below is the calculation of the profit for buildings of different densities:

If the company builds one house, it will have a profit of $ 10,000. As more houses are built on this site, the cost of land per house will decrease, but the market price of each house will decrease from - for reducing the size of the land plot belonging to it. When up to two houses are built, profits increase at an accelerated rate due to "economies of scale". Then, while the profit per house declines, as the building density increases to 4 or 5 houses, the developer's total profit rises. However, as soon as the company builds the sixth house, it starts to lose overall profit.

Balance principle : any type of land use corresponds to the optimal sums of various factors of production, when combined, the maximum value of the land is achieved.

If too few factors of production are applied to the land, then it is underdeveloped. If too much–overloaded with buildings. In both cases, the land is used inefficiently, and in accordance with the principle of residual productivity, its value is reduced. All factors of production must be in proper proportion to each other in order for the total income from the land to be maximized.

In the example above, Company X found that the maximum return could be obtained by building four or five houses on its land. In both cases, the profit would be $ 40,000. However, if the construction of four houses yields the same profit, but with less risk than the construction of five houses, then the principle of balance suggests that four houses will give the optimal building density. When building a plot with four houses, the risk is lower, since the number of transactions required to generate the same amount of profit is less.

The principle of balance is also applicable to the region. To achieve a balance between the private and public sectors, there must be reasonable cooperation, as well as competent planning, thoughtful application of zoning regulations.

The principle of economic magnitude provides for the existence of a certain size of land necessary to achieve the optimal scale of land use in accordance with the market conditions in a given location.

The optimal scale of land development is determined by the conditions of market competition and the needs of users. A plot of land with a good location, which, however, is too small or too large for potential users, may lose value in the market. For example, a lot at a crossroads might be the perfect location for a gas station. But if it is too small, then there will be problems with access, there will be a shortage of space for service and storage. If it is too large, then the surplus land will not bring additional revenue to the operating station. Economic size principle–it is the same principle of balance, albeit viewed from a different plane.

An example of the application of the principle of magnitude is the incremental value of a single piece of land. It takes place when a greater number of small plots are combined into a single array, the cost of which exceeds the sum of the values ​​of the individual plots that make up the array. For example, imagine that a developer can buy Lot A for $ 15,000 and Lot B–for $ 10,000. If you combine the two lots, the new land plot will cost $ 33,000. The incremental cost is $ 8,000, as shown in the following calculations:

The cost of a single array is $ 33000

Minus: the cost of lot A– 15000

Minus: the cost of lot B– 10000

Additional value $ 8000

Economic size–it is the amount of land required to achieve the optimal scale of land use in accordance with market conditions at a given location.

When considering possible options for increasing the efficiency of using a real estate object, it is necessary to take into account the principle of separating elements of real estate and property rights to them.

The principle of economic separation means that the physical elements of real estate and property rights to them can be separated and connected in such a way as to achieve the maximum value of the property.

When separating the physical elements of real estate and property rights to them, the following options are possible:

· spatial division: division of rights to airspace, to the soil layer of the earth, to underground space with subsoil, to water resources of coastal strips, dividing the land mass into separate areas, dividing a building into a basement, floors, etc .;

· division by types of property rights: lease, limited use, mortgage, contribution to the statutory funds of enterprises, emission support for the issue of shares;

· division by time of ownership or use: short-term and long-term lease, perpetual use, life-long ownership, the right of economic management, operational management.

Group of valuation principles related to the market environment include: dependence, conformity, supply and demand, competition and change.

The dependency principle states that the value of a particular property is influenced by and itself influences the nature and value of the value of other properties in the area of ​​its location.

Location is one of the most important factors affecting the value of a property. The quality of the location depends on how the physical parameters of the site correspond to the type of land use adopted in the area, as well as on its proximity to the economic environment. Together, these two characteristics constitute the situs, or economic location of the property.

Situs is defined by the interaction of a particular land use option and the economic environment at at least four levels. These four levels are marked with concentric circles that represent the adjoining area, the immediate vicinity, the shopping area and the entire region. For some types of land use, such as large manufacturing enterprises, levels of dependency may exist nationally or internationally.

If changes occur in the surrounding land use system or in the economic environment of a property, this can affect its value. Some examples of changes in the surrounding land-use system include: the construction of a shopping center near the site, the construction of a school, or the opening of a waste disposal facility. These changes can have both a positive and a negative impact on the value of the property. The extent of this impact is determined by the magnitude of the new land use option and the links between the innovation and the property being assessed.

Communication is measured by the cost of access from the assessed object to its serving objects to achieve a specific goal. Connections can be measured in terms of time, distance, or money. Some of these relationships are difficult to measure. For example, if a plot has a scenic view, then this relationship can be estimated as the difference in value between a plot with a scenic view and another.- without it.

Compliance principle determines the extent to which the architectural style and the levels of amenities and services offered by the land development meet the needs and expectations of the market.

A project that does not meet market standards is likely to lose financially. A project made up of two-room apartments will face opposition in the market if the rent is the same as for three-room apartments. Moreover, this will happen even if a two-room apartment has the same area as a three-room apartment. Therefore, to sell less attractive properties on the market, it may be necessary to reduce their rental rates.

Real estate development projects must be consistent with the type of land use in the area concerned. This does not mean that all houses should be built in the same architectural style. However, the architectural styles must be consistent with the land use type. Imagine the consequences of building a Victorian house in a block of country houses.

Associated with the correspondence principle are the principles of regression and progression. Regression occurs when a piece of land becomes overloaded with development in a given market. For example, if a $ 175,000 home is built on a block where other homes cost between $ 70,000 and $ 80,000, then the market value of the more expensive home will not reflect the actual cost of building it. The selling price is likely to be below construction costs. Progression occurs when the value of the property being valued rises due to the high value of neighboring properties. For example, if several stores are reconstructed in a shopping area, then the value of all stores in the area may increase.

The principle of supply and demand means that the price of real estate changes as a result of the interaction of supply and demand.

Property has value if it is useful to some user or group of users. However, utility is not the only factor affecting cost. Real estate should also be relatively scarce. Offer–it is the number of properties available on the market at certain prices. Demand is based on the desire of potential buyers with the necessary funding sources to purchase real estate.

Since real estate markets are imperfect, supply and demand do not always dictate the price at which a change of ownership occurs. The ability to negotiate the terms of the transaction, the number and sophistication of participants, emotions, cost of financing and other factors also play a role in setting sales prices.

In the long run, supply and demand are relatively effective factors in determining the direction of price changes. However, in short periods of time, supply and demand factors sometimes lose their effectiveness in the real estate market. Market distortions can result from monopoly control over land by private owners. In addition, government controls affect markets. For example, local governments can restrain market or rental growth, or change the mechanism of the market in many other ways.

If there is an oversupply or a lack of demand in the market, then the price and rent levels are reduced. In the short term, the supply of real estate is relatively inelastic. This means that long-term planning is required to increase supply: even if prices have increased, supply cannot be increased very quickly. It is also difficult to reduce the supply of real estate. If too many objects of one particular type have been created, then the load level will remain low for an extended period of time. This creates an excellent opportunity for hunters to bargain as prices remain low or even fall.

Opposite pressure on prices occurs when there is insufficient supply or high demand. Demand is usually more volatile than supply. It responds more easily to changes in prices. Changes in money supply, interest rates, surges in emotional assumptions, fear, and other factors can influence the nature of demand at any given time.

When supply and demand are in balance, the market price usually reflects the value (costs) of production. If market prices are higher than the cost of production, more and more real estate will be put into operation until equilibrium is reached. If market prices are lower, new construction will slow down or stop altogether until demand rises due to higher market prices.

The principle of competition. The intensification of competition will lead to an increase in the supply of this type of real estate in the area. If demand does not increase at the same time, then the average net income from all real estate of this type will decrease. If competition is excessive, profits can drop below normal or, in some cases, disappear altogether.

When market profits exceed the level required to pay for factors of production, competition in that market intensifies, which, in turn, leads to a decrease in the average level of net income.

This principle is important for the analyst trying to estimate the value of a stream of income that exceeds the market rate. Unless earning excess profits is due to a long-term lease or some other reason, the income stream should be treated with caution. Basically, the analyst can take one of two approaches. First, excess profits can be separated from normal profits and treated as a separate stream of income.

Change principle: the value of real estate objects usually does not remain constant, but changes over time.

Objects gradually wear out. Some businesses open, others–close. Land use patterns are changing under the influence of the state and the private sector. Money supply and interest rates fluctuate. Economic conditions open up new opportunities. International events affect the cost of commodities. New technology and social behavior create new demand for real estate. Demographic development generates needs for various types of housing. Human aspirations and tastes are changing. The environment of the object's location goes through phases of growth, maturity, decline and renewal. All of these factors and many others can change the usefulness of a property in a given location.

Analysts need to track events that are likely to impact real estate. Conditions that existed in the past may not necessarily continue in the future. To correctly estimate the value of future real estate income, you need to carefully reconcile the underlying assumptions about future revenue and costs. As events and conditions are constantly changing, appraisers adhere to a professional standard–make an assessment for a specific set date.

The fourth group of valuation principles (LNEI) means that from the possible options for using the real estate object, the one is selected in which the functionality of the land plot with improvements is most fully implemented. This option is used to assess the value of real estate.

The appraiser makes an allowance for losses in collection of payments by analyzing the retrospective information on a specific object with the subsequent forecasting of this dynamics and thus can determine the option that brings the maximum possible income from the land plot, regardless of whether the plot is built up or not and what buildings are on it at the date conducting an assessment.

LNEI is defined as the use of real estate that:

a) is legally permitted, i.e. complies with legal norms, including orders on zoning and environmental protection norms, urban planning restrictions, requirements for the protection of historical monuments, landscaping of the adjacent territory, etc.;

b) physically feasible, i.e. the size and shape of the land plot, its transport accessibility, the existing buildings make it possible to implement the selected use case;

c) financially justified from the point of view of the return on investment capital, i.e. use provides income in excess of capital costs, operating costs and financial commitments;

d) provides the highest value or profitability of real estate.

LNEI is considered in two stages: firstly, a land plot as free, and secondly, a plot of land with existing improvements. If the site is free of buildings, then it is determined which object is most efficient to build, taking into account legal, urban planning, environmental and other restrictions, as well as taking into account the prospects for the development of the area.

LNEI can develop over time under the influence of market standards and external changes. If a highway has recently been laid near the land, then its best use may be the construction of a gas station, fast food or car service.

In practice, the LNEI principle is the initial premise on which the choice of a specific type of assessed value of real estate is based and a conclusion is drawn about its value.

The existing administrative restrictions and zoning in Russia today often do not reflect the requirements of the developing real estate market, and therefore the actual use of the land plot with improvements often does not correspond to the best option.

All of the above principles of real estate appraisal are closely interrelated and, depending on the type and specifics of the appraised object, on the appraisal method used, they can play a main or auxiliary role.

These principles represent the theoretical basis for real estate valuation. Three fundamental approaches to real estate appraisal are based on them.– profitable, comparative and costly.

1.4. The main stages of the real estate appraisal process

Real estate appraisal includes a system of sequential actions of the appraiser–from setting an assignment for an appraisal, to transferring to the customer a written report on the appraisal of the market value of the real estate object, expressed in monetary units.

Stages of real estate appraisal:

1st stage. Setting the assignment for assessment.

1.1. The purpose of the assessment.

12 . The type of value to be determined.

1.3. Establishment of assessed property rights.

1.4. The date of the assessment.

2nd stage. Drawing up a plan and contract for the assessment.

2.1. Assessment schedule.

2.2. Sources of information.

2.3. Choice of assessment methods.

2.4. The cost of the assessment.

2.5. Monetary remuneration for the assessment.

2.6. Drawing up an appraisal contract.

3rd stage. Collection and analysis of information.

3.1. Inspection of the object and the surrounding area.

3.2. Legal description of the property.

3.3. Physical characteristics and location.

3.4. Economic information.

3.5. Checking the accuracy of the information collected.

3.6. Analysis and processing of information.

4th stage. Analysis of the best and most effective use.

4.1. Analysis of the land plot as conditionally free.

4.2. Analysis of the land plot with improvements.

5th stage. Calculation of the appraised value of the property based on three approaches.

5.1. Cost estimation based on the income approach.

5.2. Cost estimation based on a comparative approach.

5.3. Cost estimation based on the cost approach.

6th stage. Coordination of the results obtained and the derivation of the final value of the value of the property.

6.1. Verification of the received data on the value of the cost.

6.2. Assumptions and limiting conditions due to the completeness and accuracy of the information used.

6.3. Derivation of the total value of the cost.

7th stage. Preparation of the assessment report.

Setting the assignment for assessment.

Setting the assignment for assessment is the initial stage at which the basic parameters of the assessment assignment are determined and formulated. A clear statement of the task is necessary for a complete and unambiguous interpretation of the nature of the assessment assignment, the choice of assessment methods and the interpretation of the results reflected in the report. The most important components of an assessment assignment include:

· identification of the property;

· identification of property rights subject to assessment;

· purpose (scope) of the assessment results;

· selection and determination of the type of value;

· clarification of the date of the assessment;

· a description of the scope of the assessment;

· clarification of other restrictions.

Real estate identification includes a description of characteristics such as address, full legal description, exact location and boundaries of the property.

The identification of a real estate object represents its precise legal description, which is advisable to draw up on the basis of the information provided by the customer. The required information can be obtained from the state register of land survey data in accordance with local and state legislation.

A correct legal description should take into account the specific regional system for surveying and describing land plots, which consists of a description of their boundaries, a state survey system, and a procedure for describing and mapping parcels and neighborhoods.

Identification of property rights subject to assessment. A feature of real estate appraisal is an integrated approach, which simultaneously considers real estate both as a real physical object and as a set of rights of individuals or legal entities that they can have or claim on property, as well as the use of land plots and buildings.

The object of appraisal can be real estate with full or partial property rights due to the separation or division of property rights. In the process of determining the market value of real estate, the appraiser takes into account such restrictions on property rights as a lease, easements, restrictions caused by a lien on real estate, claims to property rights, as well as rights to dispose of airspace or land territory.

Scope or purpose of the assessment results –it is an economic procedure that is subsequently carried out by the customer on the basis of the cost result obtained by the appraiser.

Property valuation is carried out to determine:

· purchase and sale prices;

· the amount of collateral for lending;

· tax bases;

· the terms of the lease;

· bases of fair compensation in case of alienation of property rights;

· bases of the insurance contract.

Elucidation of the method for the subsequent use of the resulting valuation result is necessary to select the optimal valuation procedure.–from collecting and analyzing the necessary information to applying the most effective assessment methods and principles of harmonization of results. If the client does not provide information on the scope of use of the results of the evaluation report, the evaluator, on his own initiative, should discuss the issue with him and make sure that the client adequately understands the problem. This procedure will save the appraiser from possible misunderstandings and the need to redo the work.

Selection and determination of the type of value. The purpose of the appraisal is to determine the value of real estate, which, in accordance with the current international and Russian valuation standards, manifests itself in various forms. The type of value of the appraisal object is dictated by a number of factors, which include the property rights being assessed, the scope or purpose of the appraisal results, and the scope of the appraisal assignment.

In accordance with the current Russian valuation standards, the following types of value can be used:

· market value;

· the value of the subject of assessment with a limited market;

· replacement cost;

· reproduction cost;

· cost in existing use;

· value for tax purposes;

· investment value;

· liquidation value;

· disposal cost;

· special cost.

The type of cost selected by the appraiser in agreement with the customer and third parties, users of the report, must be indicated in the assignment for the appraisal. In addition, it is necessary in writing in the assessment report to give a definition (formulation) of the indicated value, which should not contradict the standards adopted in the assessment.

The type of value used in the process of evaluating a specific object of appraisal affects the content of individual stages within the framework of a universal appraisal model. The type of value determines the composition, collection, preparation and analysis of information for assessment purposes. The choice of approaches and methods for real estate appraisal is derived from the type of value being determined; so, for example, when determining the insurance value, it is inappropriate to apply the methods of the income approach. The type of value determines the logic and validity of the agreement on the final results of the assessment.

Clarification of the date of the assessment. Clarification of the date on which the assessment will be carried out and, therefore, the result of the assessment will be valid, is necessary for a number of reasons. Any type of determined value is inherently market value, since even the costs of reproduction and replacement are calculated in prices for construction products in effect at a certain moment, since they are constantly changing under the influence of inflation, competition, changes in consumer preferences, etc.

In the assessment process, it is necessary to take into account numerous pricing factors, the composition, priority and degree of influence of which are unstable. The market value reflects the perception of market participants about the state of its conjuncture. Due to the fact that the market situation is constantly changing, the market value is based on the analysis of information collected on a specific date, market data at a specific time. Changes in the alignment of market forces have a significant impact on the valuation result and the resulting value.

The valuation date used in valuation practice is represented by three types:

· Current;

· retrospective;

· Future.

In the vast majority of cases, the date of the assessment–this is the date closest to the date the appraisal assignment was determined and the appraisal work was carried out. However, in some cases, it becomes necessary to derive the market value for some date in the past or in the future.

An assessment of the market value as of a retrospective (past) date is required for taxation of inheritance (date of death), calculation of income tax (date of purchase), insurance compensation (date of insured event), legal action (date of damage), etc. The availability of retrospective market information allows the appraiser objectively and reasonably carry out all the necessary calculations.

Valuation at a future date can be carried out for properties that are under construction, design, or decisions on the feasibility of construction. The time gap arising in this case between the date of the appraisal work and the moment the property reaches its design capacity, conquering the market segment that provides the estimated value of the cash flow, requires determining the market value at the date of completion of construction.

Description of the scope of the appraisal work. The scope of the appraisal work is established by the appraiser to determine the composition of the data used, information support, the need to involve third-party experts, methods of verifying the reliability of information, as well as the completeness of the inclusion of intermediate and auxiliary information in the final report.

The formulation of the scope of the assessment helps to protect the interests of third parties who make decisions based on the results of the assessment. The evaluator must clearly state not only what is supposed to be done, but also what will not be done, with specific reasons, especially if only a limited amount of information was available.

The scope of the appraisal work and the degree of detail in the report depend on the significance of the appraisal assignment and the agreement reached with the client. This section allows you to determine the total amount of labor, the cash costs of information support, which ultimately affects the cost of appraisal work. The appraiser is responsible for the conformity of the formulated scope of the appraisal work and the actual results.

Clarification of other restrictions. The Uniform Professional Appraisal Standards (118APAP), published by the Appraisal Foundation, distinguish between full and limited appraisal. The limited assessment is carried out in accordance with the "Statement of Restricted Procedures" of the Uniform Standards. In this case, as a rule, a limited amount of information is used. An example of such an appraisal is a real estate appraisal carried out on the basis of a comparative approach only, as well as an appraisal carried out to update past appraisals.

However, even a complete appraisal may contain a number of limiting conditions that must be formulated in the appraisal task, along with such parameters as identification of real estate, property rights, date of appraisal, scope of appraisal results, and type of value. The introduction of the composition of limiting conditions into the report allows not only to protect the appraiser from possible future claims, but also to promptly inform the customer and other users of the report. For example, a limiting condition may include a clause on obtaining information from insufficiently reliable sources, on the impossibility of conducting a technical survey of real estate.

After setting the assignment for assessment, a contract is drawn up.

Collection of information and preliminary analysis of data.

The composition and amount of information required, the procedure for its processing and analysis, the number of appraisers involved, including the specialists involved, as well as the time required to process the data, depend on the task set, the type of property being evaluated and the selected valuation methods.

The effectiveness of this stage depends on the thoroughness of the preliminary organizational work, which requires determining the nature and volume of the required data, information sources, as well as scheduling work, which is especially necessary for the appraisal of large real estate objects.

Depending on the type of object and the scope of work, the assessment can be carried out by one appraiser or by a group of specialists. The evaluator's work plan is built in accordance with the structure of the future evaluation report and the time required to complete each stage.

To determine the market value of the appraised real estate, the necessary information is classified according to a number of characteristics.

In relation to the evaluated object, the information array is divided into external and internal data.

Depending on the nature of the information, general and special data are distinguished, as well as information on competitive demand and supply. general information reflect the dynamics of social, economic, political and environmental factors affecting the state of the real estate market. The considered type of information should take into account the ongoing changes at the regional level and a specific segment of the real estate market to which the evaluated object belongs.

Special data contain the legal, physical, geographic and economic characteristics of real estate. This type of information should be collected for comparable properties and the property being valued.

Information on competitive supply and demand allows you to assess the competitiveness of the appraised real estate in its market segment. Information about the offer allows one to assess the existing competitive real estate fund, taking into account its load, the prospects for its expansion through new construction and reconstruction, as well as information about the market capacity. Demand data should reflect the economic capabilities of potential property owners and users.

The information used in the assessment process must be sufficiently complete, representative and reliable. It should help the appraiser determine the most important pricing factors, analyze the state of the economy in general and, in particular, the real estate market, including territorial and segmental aspects. The appraiser must get an idea of ​​the physical properties of the appraisal object and its surroundings, collect data for economic and appraisal calculations. The characteristics of the information collected and used at various stages of the assessment should be appropriately reflected in the report.

Analysis of the best and most effective use.

The analysis of the best and most effective use of real estate is carried out in order to adequately assess the existing use case of the assessed object, develop recommendations for its optimal use in order to determine the maximum possible value.

The concept of the most efficient use of real estate is a market concept that is of key importance for the analysis of value. The most effective is the type of use that meets four criteria: legal admissibility or permissibility, physical feasibility, financial security and the maximum cost of the object.

To determine the most effective use of the land plot, the appraiser uses two schemes, according to which the plot is considered as undeveloped (conditionally vacant) and the most effective option for its use with existing buildings is analyzed.

Analysis of the most effective use of an undeveloped site involves considering options for maintaining the current purpose, building a new facility, redevelopment of the land plot (division or enlargement), as well as sale.

The most effective use of a land plot with existing buildings is to compare options for retaining the purpose of the object as at the date of the assessment, reconstruction plans that ensure restoration, expansion and re-profiling, complete (partial) demolition, and a combination of these options.

The financial feasibility test requires the calculation of the costs of implementing each considered use case. The assessment of maximizing the value of alternative uses is based on an analysis of variables such as the value of the land, the rate of return adequate to the risk of a particular use case, and the capitalized total value of the property.

Conclusions on the optimal use of real estate should be reflected in the appropriate section of the report. The appraiser must reasonably formulate the most effective use case and support it with calculations of the time period required for real estate re-profiling, market development, and also indicate the participants in the investment process: investors, potential owners, users, creditors, etc.

Selection and application of acceptable approaches and methods for real estate appraisal.

Property valuation is usually carried out from the standpoint of three main approaches:

· costly approach;

· comparative approach;

· profitable approach.

Cost approach proceeds from the assumption that a prudent investor will not pay for real estate more than the amount at which it will cost him to purchase a similar land plot and build a building with similar consumer properties.

Comparative approach based on the assumption that a reasonable buyer will not pay for an item more than the amount for which he can purchase an item of similar utility on the open market. Determination of the cost is based on data on recently completed purchase and sale transactions with similar objects.

Income approachis based on the assertion that a reasonable buyer will not pay more than the amount that the property being valued will bring in the future in the form of net income adjusted for investment risk. In this case, the value of an object is determined by its ability to generate income in the future. Cash flows generated by real estate, including the cost of reversion, can be converted to the current total value.

Each assessment approach includes a number of methods. Appraiser, depending on the type of value, characteristics of the appraisal object, information on the appraisal object and similar real estate, etc. selects one or more assessment methods within each approach. The choice of assessment methods should be reasoned and described in the assessment report.

Coordination of the preliminary results of the assessment and the derivation of the final value of the cost.

Harmonization of the results obtained on the basis of different approaches and methods is the last stage in determining the value of the property being assessed. At this stage of the assessment, first of all, it is necessary to check the results obtained in order to identify mathematical and logical errors that increase the degree of discrepancy between the results of the income, cost and comparative approaches.

The procedure for agreeing the verified results is determined by the content of the assessment task, the approaches and assessment methods used, the completeness and reliability of the information used, the identification of the advantages and disadvantages of the methods used.

The determining criteria for the hierarchy of each result is the ability to reflect the actual intentions of a potential seller or buyer, the quality of the information on the basis of which the analysis is carried out, the ability of each method and approach to take into account market fluctuations and specific pricing features of the object, such as location, size, potential profitability.

Taking into account the above, the evaluator accepts the coefficients of the weight of the intermediate results obtained on the basis of the use of various approaches. The weight value of each approach can be calculated using both expert and mathematical methods.

When preparing the report, the appraiser must explain the reasons for the discrepancy in the values ​​of the cost, as well as justify the procedure.

Preparation of the assessment report.

At the last stage of the appraisal, a written appraisal report is handed over to the customer, which is documentary evidence of the appraiser's proper performance of his duties. The evaluation report has an expanded form.

The summary report contains limited information about the appraisal assignment, the property, the methods used and the result obtained, and allows the client to understand the actions behind the appraiser's conclusions regarding value.

The detailed form sets out in detail and reasoning the assignment for the assessment, characterizes the selected and reasoned information, justifies the applied assessment methods and the calculations performed, and also determines the final cost result, represented by a single value, or range.

The value indicated in the report is the subjective opinion of the appraiser about the most probable cash equivalent of the proposed transaction, based on the study and analysis of the necessary information, calculations and depending on his experience and qualifications.

The Law on Valuation Activity in force in the Russian Federation in Article 11 establishes general requirements for the content and design of the report. The style of presentation of information, justifications, definitions and calculations should not be ambiguous.

The appraisal report, drawn up in a timely manner in writing and handed over to the customer, is evidence of the proper performance by the appraiser of his obligations imposed on him by the contract. The report is personally signed by the appraiser and certified by his seal.

The report must indicate the date of the assessment, the assessment standards used, the goals and objectives of the assessment of the subject of assessment, as well as other information that provides a full and unambiguous interpretation of the assessment results reflected in the report. For example, if it is not the market value that is determined, but other types of value, the assessment criteria and the reasons for the deviation should be indicated in the report. When preparing a report, you must specify the following points:

· date of preparation and serial number of the report;

· the basis for the appraiser to evaluate the appraisal object;

· the legal address of the appraiser;

· information about the license issued to him to carry out appraisal activities;

· an accurate description of the property being appraised and its book value;

· details of the legal entity;

· valuation standards to determine the appropriate type of value;

· a list of data used in the assessment, indicating the sources of their receipt,

· assumptions made in the assessment;

· the sequence of determining the cost and its final value;

· limitations and limits of application of the obtained result;

· the date of determining the value of the subject of assessment;

· a list of documents used by the appraiser and establishing the quantitative and qualitative characteristics of the appraisal object.

Valuation standards obligatory for application by the subjects of valuation activities, approved by the Decree of the Government of the Russian Federation No. 519 of July 06, 2001.

Valuation standards obligatory for application by the subjects of valuation activity, approved by the Decree of the Government of the Russian Federation No. 519 of July 06, 2001.

Friedman J., Ordway Nick. Analysis and valuation of income-generating real estate. M .: Delo, 1997.

The manual gives an idea of ​​the theory and practice of the functioning of the real estate market as the most important area of ​​entrepreneurial activity, systematized information about the economic processes associated with real estate of individuals and legal entities, about the functioning of the real estate market, methods of real estate management that ensure the effectiveness of this area of ​​activity. It highlights the main areas of activity related to real estate. The tutorial examines the concept, essence, signs and classification of real estate; essence, functions and main characteristics of the real estate market; basic operations of the real estate market and their legislative regulation; methods for evaluating various real estate objects; basic principles of real estate management in modern conditions.

The textbook is intended for students, graduate students and teachers of economic universities, students of business schools, economists, managers and other interested parties.

1. BASIC CONCEPTS AND DEFINITIONS OF REAL ESTATE ECONOMY
1.1. Concept, essence and main characteristics of real estate
1.2. Legal foundations of real estate.
1.2.1. Ownership
1.2.2. Types of transactions (transactions) with real estate
1.2.3. State registration of transactions (transactions) with real estate

3. REAL ESTATE VALUATION
3.1. Types of property values
3.2. Principles of real estate appraisal.
3.3. Factors affecting the value of real estate.
3.4. Real estate appraisal technology.
3.5. Approaches to real estate appraisal.
3.5.1. Comparative (market) approach
3.5.2. Cost approach
3.5.3. Income approach
3.6. Determination of the total cost of the object of assessment
3.6.1. Reconciliation of assessment results
3.6.2. Hierarchy structuring

4. LENDING OF REAL ESTATE.
4.1. The emergence and development of mortgage lending
4.1.1. Development of mortgage in Russia
4.1.2. Mortgage as a way of securing obligations
4.1.3. Features of mortgage lending
4.1.4. Features of mortgage capital markets
4.2. The main stages of mortgage lending
4.3. Real estate mortgage lending methods
Loan with increasing payments
Canadian rollover
4.4. Types of real estate lending for special purposes
4.4.1. New construction financing methods
4.4.2. Financing methods for housing under construction
4.4.3. Funding methods for land development projects
4.4.4. Financing real estate by selling in installments

5. ECONOMY OF LAND USE
5.1. Features of land use
5.1.1. Land as a natural resource
5.1.2. Land as an economic category
5.1.3. Land management as a tool for the formation of economically sound land use
5.1.4. State land cadastre as an economic and legal system for the functioning of real estate objects
5.1.5. Land protection. Environmental restrictions on land use

Denis Shevchuk

Experience in teaching various disciplines at leading universities in Moscow (economic, legal, technical, humanitarian), two higher educations (economic and legal), Member of the Union of Moscow Lawyers, Member of the Union of Journalists of Russia, Member of the Union of Moscow Journalists, Fellow of the Government of the Russian Federation, experience in banks , commercial and government structures (including in management positions), Deputy General Director of INTERFINANCE (www.deniskredit.ru).

Graduated from Moscow State University of Geodesy and Cartography (MIIGAiK), Faculty of Economics and Territorial Management (FEUT), Manager (organization management) and Moscow State University. M.V. Lomonosov, French University College (Law), PhD in Finance, Monetary Circulation and Credit.

When writing the work, the author was provided invaluable assistance: Shevchuk Vladimir Alexandrovich (three higher educations, Chairman of the Supervisory Board of INTERFINANCE, experience in banks, commercial and government structures, including in executive positions), Shevchuk Nina Mikhailovna (two higher educations, experience work in commercial and government structures, including in leadership positions), Shevchuk Alexander Lvovich (has great achievements in scientific and practical activities).

1. Real estate

1.1. Real estate as an investment object

Real estate - land and all improvements permanently attached to it (buildings, structures, construction in progress).

In Russia, the term "immovable and movable property" first appeared in legislation during the reign of Peter I in the Decree of March 23, 1714 "On the procedure for inheritance in movable and immovable property." Land, land, houses, factories, factories, shops were recognized as real estate. Real estate also included minerals located in the ground, and various structures, both towering above the ground and built under it, for example: mines, bridges, dams.

Economic reforms in Russia, the consolidation of property on the basis of property rights for individuals and legal entities, led to the need to divide property into movable and immovable (for more details see Shevchuk DA Organization and financing of investments. - Rostov-on-Don: Phoenix, 2006; Shevchuk D.A. Fundamentals of banking. - Rostov-on-Don: Phoenix, 2006; Shevchuk D.A. Banking operations. - Rostov-on-Don: Phoenix, 2006).

Since 1994, according to Art. 130 of the Civil Code of the Russian Federation, “immovable things (immovable property, real estate) include land plots, subsoil plots, isolated water bodies and everything that is firmly connected with land, that is, objects, the movement of which is impossible without disproportionate damage to their purpose, including forests, perennial plantings, buildings, structures. "

Real estate also includes aircraft and sea vessels subject to state registration, inland navigation vessels, and space objects.

Other property can also be classified as real estate. So, according to Art. 132 of the Civil Code of the Russian Federation, "an enterprise as a whole as a property complex used for entrepreneurial activities is recognized as real estate." Items that do not belong to real estate, including money and securities, are considered movable property.

The following features of real estate can be distinguished:

- the property cannot be moved without causing damage to the object;

- real estate is firmly connected with land, not only physically, but also legally;

- longevity of the investment object;

- each specific property is unique in terms of physical characteristics and in terms of investment attractiveness;

- real estate cannot be stolen, broken or lost under normal conditions;

- the cost of real estate is high, and its division into property shares is difficult, and in other cases it is impossible;

- information about real estate transactions is often unavailable;

- loss of consumer properties or transfer of value in the production process occurs gradually as wear and tear;

- the usefulness of real estate is determined by the ability to meet a specific human need for residential and industrial space;

- the possibility of a positive or negative impact of new construction on the cost of adjacent land, buildings;

- there is a tendency for the value of real estate to increase over time;

- there are specific risks inherent in real estate as an investment object: the risk of physical damage under the influence of natural and man-made factors, the risk of accumulation of external and functional depreciation, financial risk associated with the terms of rent revision;

- strict state regulation of real estate transactions.

1.2. Property types

There are three main types of real estate: land, housing and non-residential premises.

The basic property is land.

Along with the division into types, real estate is classified according to a number of characteristics, which contributes to a more successful study of the real estate market and facilitates the development and application of methods for evaluating various categories of real estate and managing them. The classification according to the most common features is presented in table. 1.1.

There are the following forms of income from real estate investment:

- an increase in the value of real estate due to changes in market prices, the acquisition of new and the development of old objects;

- future periodic cash flows;

- income from the resale of the object at the end of the holding period.

The attractiveness of investing in real estate is explained by the following factors:

- at the time of real estate acquisition, the investor receives a package of rights, while many investment objects do not entail ownership rights;

- the safety of the invested funds in general (under normal conditions, real estate cannot be lost or stolen) and inflation in particular (inflationary processes are accompanied by an increase in real estate prices and income from it);

- the ability to receive income from real estate in monetary terms and other useful effect of living, the prestige of owning a certain object, etc.

Table 1.1

General classification of real estate

Investments in real estate have such positive features as the possibility of long-term use of the object and the preservation of capital.

1.3. Real estate market

Real estate market - it is a set of relationships around transactions with real estate: buying and selling real estate, mortgages, leasing real estate, etc.

The main segments of the real estate market are the land market, the housing market and the non-residential market.

Separately, the market for profitable real estate is distinguished, which is segmented by the functional purpose of the objects:

- the market for office objects;

- the market for commercial objects;

- the market for production and storage facilities;

- the market of hotel services;

- the market for construction in progress.

Depending on the legal rights to real estate, which are the object of the transaction between the seller-buyer, the real estate market is divided into purchase and sale and lease markets.

In the market for buying and selling, in exchange for the corresponding equivalent, full ownership is transferred, including the right to dispose, while in the lease market, the object of the transaction is a partial set of rights that exclude the right to dispose.

The following features of the real estate market can be distinguished:

- locality;

- low interchangeability of objects;

- seasonal fluctuations;

- the need for state registration of transactions.

When financing real estate, there are three groups of costs:

- the costs of maintaining the property in a functionally fit condition;

- annual tax on real estate ownership;

- high transaction costs in real estate transactions.

Fluctuations in supply and demand in the real estate market occur slowly, since in the presence of demand, an increase in the number of real estate objects occurs over a long time period, determined by the construction period of the building. In case of an excess of real estate, prices remain low for several years (for more details, see the book by DA Shevchuk Buying a house and a land plot: step by step. - M .: AST: Astrel, 2008).

The main factors affecting supply and demand:

– economic: the level of income of the population and business, the availability of financial resources, the level of rental rates, the cost of construction and installation work and building materials, tariffs for utilities;

– social: change in the number, population density, educational level;

– administrative: tax rates and zonal restrictions;

– ecological: susceptibility of the area where the property is located to droughts and floods, deterioration or improvement of the environmental situation.

Real estate is a financial asset, as it is created by human labor and capital investment. The acquisition and development of real estate is accompanied by high costs and, accordingly, the often arising need to attract borrowed funds, etc. Therefore, the real estate market is one of the sectors of the financial market.

Financial market - it is a complex economic system that includes a set of institutions and procedures aimed at implementing interaction between buyers and sellers of all types of financial documents.

The real estate market is one of the most important parts of the financial market.

There is a close relationship between the financial market and the real estate market: the growth of investments in real estate revives the real estate market, while the decline curls it up. Economic instability is holding back both Russian and foreign creditors and investors. Government support is needed to boost financing for real estate investments.

1.4. Participants and sources of the real estate financing process

Traditionally, participants in the real estate financing process are divided into the following categories:

- federal and local authorities and administrations;

- credit and financial institutions;

- investors, etc.

Federal and local governments and administrations provide economic and legal relations between the participants in the process of financing real estate. The state ensures compliance with the rules and regulations related to the functioning of the real estate market; regulates issues of zoning, urban development and registration of property rights to real estate objects; establishes benefits or imposes restrictions (legal restrictions, taxation peculiarities) on investments in real estate. In addition, the state acts as the owner of many real estate objects.

Financial institutions provide capital to investors who do not have sufficient funds.

The investors are individuals and legal entities (residents and non-residents) who purchase real estate and maintain it in a functionally suitable condition.

Investors can be divided into two types:

1) active - finance and are engaged in the construction, development or management of the facility;

2) passive - they only finance the project without taking further part in it.

Currently, the real estate market has developed development - a special type of professional activity in the management of an investment project in the field of real estate, one of the tasks of which is to reduce the risks associated with real estate development. Developer - an organizer, whose activities can be divided into three stages:

1) analysis of the possibility of project implementation: the state and trends of changes in legislation, consumer preferences, financial and economic conditions, prospects for the development of the region are taken into account;

2) development of a project implementation plan: the area of ​​the land plot required for the implementation of the project is determined, a location with the appropriate environment, communications is selected, and the effectiveness of the project is assessed. Then the sources of financial resources are determined, a building permit is obtained, etc.;

3) implementation of an investment project: attracting financial resources, design and construction organizations, monitoring the progress of construction, renting or selling an object in whole or in parts.

Sources of financing capital investments: state funds, local budget funds (municipal), own financial resources of enterprises and individuals, attracted funds, investors' funds.

1.5. The benefits of investing in real estate

Investing in income generating real estate is the most profitable. The attractiveness of the acquisition of profitable real estate lies in the return on investment after paying off operating expenses. However, in this case, the risk is higher due to the low liquidity of the real estate and the long payback period of the investment.

Investment methods in the real estate market can be direct and indirect.

Direct- acquisition of real estate at auction in accordance with a private contract, purchase and leaseback.

Indirect- purchase of securities of companies specializing in real estate investments, investments in real estate-backed mortgages.

Investments in real estate, like investments in corporate securities, are long-term.

Advantages real estate investment in relation to securities:

1. Unlike corporate securities, such as shares, on which dividends are paid quarterly, ownership of real estate provides the investor with monthly cash, since the monthly rental payment leads to monthly payments to the investor.

2. The cash flow of income from real estate ownership (the difference between cash income from rent and the cost of maintaining the property plus capital investment) is less dynamic than the cash flow of income of corporations with a high proportion of leveraged capital:

- the cash flow of income of corporations depends on the volume of product sales, which depend on the daily decisions of consumers, and income flows from real estate are more stable, because they are based on lease agreements;

- the sources of corporate cash income may change over time, and the sources of income from real estate are more predictable, since buildings are immobile, assets are fixed both physically and legally.

3. The rate of return on corporations is generally lower than on real estate. This is due to the fact that the intensive work of real estate assets is comparable to most areas of business. To recover the cost of fixed capital invested in real estate, a higher level of return is required, since the expected income for the investor must exceed the cost of operating the real estate. The rate of return should be higher than when investing in financial assets, which should correspond to the higher risks of investing in real estate.

4. Investments in real estate are characterized by a greater degree of safety, security and the ability to control the investor than investments in stocks.

The sources and amount of investments in real estate are influenced by:

- expected return on investment;

- bank interest rate;

- tax policy in general and in the investment sphere in particular;

- the rate of inflation;

- the degree of risk of investment in real estate.

Reasons for the attractiveness of real estate investments in the context of inflation:

- rapid depreciation of money with insufficient reliability of their safety in credit institutions;

- frequent discrepancy between the bank rate and the inflation rate;

- limited areas of more profitable investment;

- residual availability and ease of investment in housing;

- an investor in income-generating real estate can, in these conditions, increase the rent, thereby preserving the invested funds.

On the other hand, in conditions of inflation, there are circumstances that stimulate investment in other areas: real incomes fall, it is difficult for an investor to predict the ratio between costs and expected benefits, it is more difficult to obtain a long-term loan at an acceptable interest rate, which leads to a lack of financial resources from potential buyers.

At the present stage of development of the Russian economy with high inflation rates, investment activity is subject to significant risks, which leads to a decrease in investment activity in the real estate market. The limited investment resources led to the process of curtailing construction in almost all sectors of the economy (for more details, see the book Shevchuk DA Real estate appraisal and property management. - Rostov-on-Don: Phoenix, 2007).

Yet the real estate market is attractive to potential investors for the following reasons:

- investments in real estate are characterized by a significant degree of safety, security and the ability to control the investor;

- at the time of real estate acquisition, the investor receives a package of rights, while most other investment objects do not entail ownership;

- the real estate market, which is large, is little developed;

- investments in real estate are accompanied by an acceptable profitability of operations in this market.

As of today, investment activity in the real estate market has been reduced in Russia. Even the housing market, which is the most active segment of the real estate market, was not provided with appropriate credit and financial mechanisms that would support the effective demand of the population and make it possible to improve the living conditions of the population on a massive scale. Balancing the interests of all participants in the real estate financing process is a necessary component of the normal functioning of the real estate market.

1.6. Mortgage credit lending

Under the "mortgage" understand the mortgage of real estate as a way of securing obligations. The presence of a mortgage lending system is an integral part of any developed system of private law. The role of mortgages especially increases when the state of the economy is unsatisfactory, since a well-thought-out and effective mortgage system, on the one hand, helps to reduce inflation, drawing on temporarily free funds of citizens and enterprises, on the other hand, it helps to solve social and economic problems.

The emergence of mortgages. The first mention of mortgages dates back to the 6th century. BC NS. In Greece, a mortgage meant the liability of the debtor to the creditor of certain land holdings. On the border of the land area owned by the debtor, when the obligation was drawn up, a pillar was placed, called the "mortgage".

The first acts of pledge that have come down to us in Russia date back to the 13th – 14th centuries, and legislative norms first appeared at the very end of the 14th or early 15th centuries. in the Pskov Judicial Charter, in which, along with the most ancient method of collection - personal - there is a collection of property.

In the late XIX - early XX centuries. the process of lending against the security of land plots, which the borrower was going to acquire, was actively going on. This process developed with the assistance of peasant land banks, which were created in almost all provinces of Russia and contributed to the allotment of land to impoverished peasants.

From 1922 to 1961 in Russia the Civil Code of the RSFSR was in force, Art. 85 of which defined the pledge as a right of claim, which allows the creditor, in the event of default by the debtor of the obligation, to receive preferential satisfaction over other creditors at the expense of the value of the pledged property (without division into movable and immovable).

As such, the institution of mortgage, due to various economic and legal obstacles, has not yet acquired significant distribution in Russia, therefore it is regulated by a relatively small number of regulations.

In 1992, the Law of the Russian Federation "On Pledge" was adopted, which secured the possibility of mortgages as a way of securing obligations. The Civil Code of the Russian Federation (Part I) clarified some provisions on pledge (Articles 334-358). In Art. 340 it is stipulated that the mortgage of a building or structure is allowed only with a simultaneous mortgage under the same contract of a land plot on which this building or structure is located, or of a part of this plot that functionally ensures the mortgaged object, or of the right to lease this plot or its corresponding part owned by the pledgor. And in case of a mortgage of a land plot, the right of pledge does not apply to the buildings and structures of the pledger located or being erected on this plot, unless the agreement provides otherwise.

Registration of real estate is the most important function of the state, without the proper execution of which a stable turnover of real estate is impossible, is regulated by the Federal Law of 21.07.1997 "On state registration of rights to real estate and transactions with it." The actual implementation of the bank's mortgage rights is possible within the framework of the Law "On Enforcement Proceedings". Separate special rules, which, however, should be taken into account when concluding mortgage agreements, are scattered under the relevant laws.

In 1998, the Federal Law "On Mortgage (Pledge of Real Estate)" was adopted, according to which, under an agreement on pledging real estate (agreement on mortgage), one party - the mortgagee, who is a creditor for an obligation secured by a mortgage, has the right to receive satisfaction of its monetary claims to the debtor under this obligation from the value of the mortgaged real estate of the other party - the mortgagor, mainly to the other creditors of the mortgagor, with the exceptions established by law. The pledger may be the debtor himself under the obligation secured by the mortgage, or a person who does not participate in this obligation (a third party). The property on which the mortgage is established remains with the mortgagor in his possession and use (Article 1).

The discipline "Real estate appraisal" is designed to provide training of highly qualified specialists who meet the latest trends in the development of the Russian economy and, in particular, the real estate market.
The purpose of studying the discipline "Real estate appraisal" is to provide students with the necessary theoretical knowledge about the nature of real estate objects and their role in the functioning of the real estate market and the Russian economy, as well as practical skills in determining the market value of real estate objects.
In this regard, the main goal of this textbook: to give students - future economists-appraisers - systematized knowledge about the economic processes associated with real estate and entities operating in the real estate market (individuals and legal entities), the main approaches and methods for determining the value of real estate ...

In Russia, the influence of valuation activities has recently increased. This can be seen as the fact that Russia is recognized as a country with a market economy. An economy with a developed market mechanism, understanding by all business entities both of their role in effective production management, satisfaction of consumers with goods and maximizing financial results, and the role of the company itself in the economy of a particular industry, on a regional scale or the entire country as a whole.
The perfect market is chaotic and poorly predictable. However, this stops a few. Some people try to make transactions for the sale and purchase of goods at their own peril and risk, relying on their own intuition or emotions, while others, having some experience and sufficient information, can look inside this mechanism, trying today to predict the further impact of this transaction on the market situation in the future, thereby motivating the market to further improve its mechanism (making transactions), but this time in their own interests.

CONTENT
Credits 4
Introduction 5
Topic 1. The concept and classification of real estate, expertise and description 7
1.1. Real estate concept 10
1.2. Classification of real estate objects 12
1.3. Technical expertise of real estate objects 16
1.4. Features of the appraiser's work during the examination of the appraisal object 18
1.5. Description of the object of assessment when drawing up the report 19
1.6. Information support of real estate appraisal 24
Questions 29
Topic 2. Features of the functioning of the real estate market 31
2.1. General characteristics and structure of the real estate market 32
2.2. Objectives of real estate market analysis, supply and demand factors 35
2.3. Determining the capacity of the real estate market 38
2.4. Common features and differences in the development of the real estate and capital markets 41
2.5. Risk level in the real estate market 42
Questions 44
Topic 3. Features of the process of real estate appraisal in the modern market 47
3.1. Types of value 48
3.2. Real Estate Valuation Principles 55
3.3. Assessment process 65
3.4. Assessment of investment attractiveness of real estate objects 68
Questions 81
Topic 4. Legal aspects of real estate appraisal 83
4.1. Legal concept of real estate 84
4.2. Regulation of appraisal activities 101
4.3. Cost standards used 114
Questions 116
Topic 5. Approaches to real estate appraisal 119
5.1. Income approach 121
5.2. Comparative Approach 144
5.3. Cost approach 152
5.4. Investment and mortgage analysis 165
5.5. The impact of environmental factors on real estate valuation 168
5.6. Land valuation methods 171
Questions 175
Topic 6. Real estate appraisal for tax purposes 179
6.1. Collecting information and forming a table of observations 186
6.2. Choosing a valuation model 190
Practical exercises 201
Tests 215
Normative documents 227
1. Federal Law "On appraisal activities in the Russian Federation" 227
2. Mandatory Valuation Standards 244
3. Land Code of the Russian Federation 246
4. Guidelines for determining the market value of land plots 290
5. Service life and depreciation of buildings 297
6. Code of Conduct (Ethics) Appraiser 302
Coursework topics 306
Glossary of Basic Terms 307
References 353

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