Types of assessment: initial, restorative, residual. Cost-based approach to determining the value of real estate

The essence of the cost approach is that the value of real estate is determined by the costs of acquiring a plot of land, its improvement and the construction of the assessed property (buildings and structures) on it. The cost approach is based on the concept of replacement cost or replacement cost.

- cost of land teacher,

Replacement cost,

- total accumulated wear and tear

Replacement cost is the cost of reproduction (the cost of creating an exact copy of the valued object).

Replacement cost is the cost of creating an object of a functional analogue.

Comparative unit method

C - construction cost (from the UPPVS collection)

V is the volume of a building or area.

K-coef. constructive differences (price indexation, etc.)

The RFP involves determining the replacement cost or replacement cost of the property being assessed. Those. the amount of costs for the construction of an exact copy of the property or its functional analogue is determined. And although the costs of creating an object are not directly related to the amount of projected income, this method has a certain scope of application. In particular, in accordance with the principle of substitution, the cost determined by the RFP is its upper limit (remember the uniqueness of the location).

Situations for using the PO:

Evaluating the effectiveness of investments. Feasibility study of new construction. The costs of constructing and operating the facility are compared with the projected profitability and profitability.

Renovation and repurposing of real estate is based on the cost of improvement calculation.

The implementation of the principle of the best and most efficient use of real estate involves calculating the estimated cost of construction for various land use options.

Valuation of special-purpose buildings and real estate in “passive” market segments. Those. For those objects that have no analogues, a cost approach is used.

Real estate valuation for insurance purposes is most often carried out according to the PO.

The ZP is currently used for the purposes of taxation of property of individuals and legal entities.

The implementation of the RFQ for real estate valuation involves the following sequence of calculations:

determining the market value of the land plot on which the property being assessed is located;

calculation of the replacement cost of the property;

assessment of all types of depreciation of the property;

calculation of the current value of a property using the formula C t = C h + C b – ΣI i.

Methods for estimating replacement cost.

Comparative unit (unit cost) method. According to reference books and consolidated standards ud. Cost indicators per consumer unit of construction products determine the cost of construction of a unit of measurement of a particular object (m 2, m 3, etc.). Tech. The cost of construction of a real estate property is determined by the formula: C b1 = C unit * K unit, where C unit is the cost of the unit; K unit – quantity of a unit. This is the simplest way to estimate replacement cost, but also the most approximate.

Element-by-element method (method of breaking down into components). The creation of an object and its construction are divided into a sequence of individual types of construction work. For each type of work, units of measurement and volumes of these works are determined. The calculation of construction costs is carried out at the beginning for a separate type in accordance with the table.

Then all types of work are calculated and adjustments are made for overhead costs and other payments.

The estimate method consists in the preparation by specialists - estimators of object-by-object and consolidated construction estimates of the assessed object as if it were being built again today. This is the most accurate method for determining replacement cost, but also the most labor-intensive.

The index method consists of recalculating the book value of the valued object into the current one based on the use of inflation indices, which are determined in accordance with the “regulations on the procedure for revaluation of fixed assets of enterprises and organizations”, approved by the Government of the Russian Federation No. 1233 of November 25, 1993.

Depreciation is a decrease in the value of a property due to various factors.

In appraisal activities, depreciation is considered as the main factor for determining the current value of the appraised object. By the amount of wear and tear, the current cost is less than the replacement cost. In valuation activities, physical, functional and external (economic) wear and tear are distinguished.

Physical wear reflects a change in the physical properties of an object from scratches to complete destruction. This type of wear occurs in two cases: 1-under the influence of operation, 2-under the influence of the environment. There are 4 ways to assess physical wear and tear:

Expert. The physical wear and tear of the entire building is determined as avg. value for all elements of the building. The percentage of wear and tear of each element is determined based on the “rules for assessing the physical wear and tear of residential buildings.” Total physical wear and tear is calculated in accordance with the table

I f = (ΣU in i * %sum) / 100%

The cost method for determining physical deterioration is based on calculating the costs of reproduction of worn-out building elements. In this case, the elements of the building are divided into long-term (foundation, walls, etc.) and wear-and-tear (roof, paint, etc.). For fast-wearing elements, wear is considered removable, i.e. the costs of overcoming it are less than the added value of the property. Otherwise, wear is considered irreparable (inappropriate from an economic point of view). As a rule, irreparable wear and tear is characteristic of long-term building elements. Wear using this method is determined based on the table

And = Σ5graph /100

The normative method for determining the physical deterioration of buildings is based on the use of the current “unified norms of depreciation charges for the complete restoration of the Federal Fund of the Russian Federation,” approved by Resolution of the USSR Council of Ministers dated December 29, 1990 No. 1072. Depreciation and wear are different economic processes. If depreciation is the transfer of the cost of a physical object to manufactured products during operation, then wear and tear is the physical destruction of a physical object, their obsolescence. Since these processes go together, it can be assumed in some cases that the amount of depreciation = the amount of wear. This is true if the wear and tear of the OF proceeds evenly, just like depreciation. This method is simple, but approximate.

The physical life span (PLL) of a real estate property is the period of time from the moment of commissioning until complete physical wear and tear, i.e. as long as you can live and work in the building.

Economic life span method.

The economic life of a real estate object is the period of time during which the real estate object may used to make a profit from it during this period of time, investments in the property contribute. If this does not happen due to the general obsolescence of the property, its economic life ends

Chronological age (CA) of a real estate object is the period of time from the date the object was put into operation until the moment of its assessment.

Effect. the age of a property (EV) is based on an assessment of its appearance, technical. condition, economic factors influencing its value (income generated by the property).

EV corresponds to its physical Condition and takes into account the possibility of its sale. If it is subjected to intensive exploitation and serious destructive effects of the external environment, its EF is greater than its CV.

ХВ = EV / service level; EV = ХВ * operating speed; I = (VS * EF) / SEJ; I= (VS-HR) / SFJ.

Functional wear and tear (obsolescence of a property) means that it or its certain elements do not meet modern standards of architectural, planning and design and construction conditions. This may manifest itself in the outdated architecture of the building, in the convenience of planning, spatial volumes, engineering support, etc. This type of wear is due to the influence of scientific and technological progress in the field of architecture and construction. Functional wear m.b. removable and not. For an approximate calculation of FI, you can determine the adjustment coefficient to the replacement cost of the building, either expertly based on its assessment by a specialist, or calculated, comparing the cost of new modern design solutions with the replacement cost of outdated ones.

External economic wear and tear is a decrease in the value of buildings due to negative features or negative changes in the external environment. Negative features include dangerous ecology. The situation, the general decline of the district, the actions of the Government or the district administration, etc. In most cases, such wear cannot be eliminated; its value is determined using the method of paired sales, when comparison. the price of similar objects, one of which is located in a favorable external environment, while the other has signs of external wear and tear. The difference in their price will be the amount of external wear. The current cost of the objects being valued according to the salary is determined as the difference between the restoration cost and the sum of all types of wear and tear.

Depending on the purpose of the assessment and, as a consequence, the underlying accuracy of the calculation procedures, there are several ways to determine the replacement cost:

Comparative unit method.

Component breakdown method.

Quantitative survey method.

Comparative unit method . The value of the appraised property is determined by multiplying the number of selected units of measurement (units of measurement can be 1 m3, 1 m2, 1 km, 1 pc., etc.) of the appraised object by the cost of one unit of measurement on the valuation date. The costs of units of measurement of standard objects are known and are contained in special information and analytical collections (Bulletin "KO - INVEST" and Collections of integrated indicators of replacement cost - UPVS).

An important step when using this method is the selection of a typical object (analog). When selecting an analogue, it is necessary to take into account a single functional purpose, similarity of physical characteristics (class of structural systems), comparable chronological age of the objects being compared and other characteristics. Since in most cases the basis for comparison is the cost of a comparative unit not of an identical object, but of a close analogue, the cost of an object calculated using the comparative unit method will be considered replacement cost.

Component breakdown method . The difference between this method and the previous one is that the cost of the entire building is calculated as the sum of the costs of its individual building components - foundations, walls, ceilings, etc. The cost of each component is obtained based on the sum of direct and indirect costs required to construct a unit of volume. The cost of the entire building is calculated using the formula:

Szd =

where Сзд is the cost of construction of the building as a whole;

Vj is the volume of the j-ro component;

Cj - cost per unit volume;

n is the number of allocated building components;

Kn - coefficient taking into account the existing differences between the assessed object and the selected typical structure (for an identical object Kn-1);

Quantitative survey method . This method is based on a detailed quantitative and cost calculation of the costs of installation of individual components, equipment and construction of the building as a whole. In addition to calculating direct costs, it is necessary to take into account overhead costs and other costs. In other words, a complete estimate for the reconstruction of the assessed object is drawn up.

The quantitative survey method is the basis for applying the above methods for calculating replacement cost and shows the most accurate results in comparison with them, however, it is the most labor-intensive and requires the appraiser to have in-depth theoretical training and significant practical experience.

Determining the wear and tear of a property

Depreciation is characterized by a decrease in the usefulness of a property, its consumer attractiveness from the point of view of a potential investor and is expressed in a decrease in value (depreciation) under the influence of various factors over time.

As the facility is used, the parameters characterizing the structural reliability of buildings and structures, as well as their functional compliance with current and, especially, future use associated with human life, gradually deteriorate. In addition, the value of real estate is no less influenced by external factors caused by changes in the market environment, the imposition of restrictions on certain uses of buildings, etc.

Depreciation (I) is usually measured as a percentage, and the monetary expression of depreciation is depreciation (O).

Depending on the reasons causing the depreciation of a property, the following types of wear and tear are distinguished: physical, functional and external.

Classification of depreciation of real estate objects:

Each type of wear is characterized by its division: removable and irremovable.

Removable wear- wear, the elimination of which is physically possible and economically feasible. At the same time, economic feasibility lies in the fact that the costs incurred to eliminate one or another type of wear and tear should help increase the value of the object as a whole.

Fatal wear– wear and tear that is either physically impossible or economically impractical.

When all designated types of wear are identified, they speak of the total accumulated wear and tear of the property. In monetary terms, total depreciation is the difference between the replacement cost and the market price of the valued object. Based on the essence of these definitions, it can be argued that the total accumulated wear and tear is, first of all, a function of the lifetime of the object. Taking this circumstance into account, let us consider the essence of the main evaluative concepts characterizing this indicator:

Physical life building ( VF ) - determined by the period of operation of the building, during which the condition of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). The physical life of an object is laid down during construction and depends on the capital group of the buildings. Physical life ends when the object is demolished.

Chronological age (HV)- this is the period of time that has passed from the date the facility was put into operation until the date of assessment.

Economic Life (EJ) - determined by the operating time during which the object generates income. During this period, improvements made contribute to the value of the property. The economic life of an object ends when the operation of the object cannot generate the income indicated by the corresponding rate for comparable objects in this segment of the real estate market. In this case, the improvements made no longer contribute to the value of the object due to its general wear and tear.

Effective age (EV) ) - determined on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the valuation date that influence the value of the assessed object. Depending on the operating characteristics of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) operation of a building, the effective age is usually equal to the chronological age.

Remaining economic life (REL) ) of a building is the period of time from the date of valuation until the end of its economic life.

Wear calculation methods:

1. Physical deterioration - represents a gradual loss of the technical and operational qualities of an object originally laid down during construction under the influence of natural and climatic factors, as well as human activity.

The following methods for calculating the physical deterioration of buildings are distinguished:

Standard (for residential buildings);

Cost;

Lifetime method.

Standard method for calculating physical wear and tear

The normative method for calculating physical wear and tear involves the use of various normative instructions at the interindustry or departmental level. An example of such instructions is the “Rules for assessing the physical deterioration of residential buildings” VSN 53-86 of Gosgrazhdanstroy (State Committee for Civil Construction and Architecture under GOSSTROE of the USSR. Moscow 1990), used by the Bureau of Technical Inventory for the purpose of assessing the physical deterioration of residential buildings during technical inventory , planning major repairs of the housing stock, regardless of its departmental affiliation.

These rules describe the physical wear and tear of various structural elements of buildings and their assessment.

The physical wear and tear of a building should be determined using the formula:

Fф =

where Ff is the physical wear and tear of the building, (%);

Fi - physical wear i-ro of the structural element (%);

Li is the coefficient corresponding to the share of the replacement cost of the i-ro structural element in the total replacement cost of the building; n is the number of structural elements in the building.

The shares of the replacement cost of individual structures, elements and systems in the total replacement cost of the building (in%) are usually taken according to the aggregated indicators of the replacement cost of residential buildings approved in the prescribed manner, and for structures, elements and systems that do not have approved indicators - according to their estimate cost.

Cost method for determining physical wear and tear

Physical wear and tear at the time of its assessment is expressed by the ratio of the cost of objectively necessary repair measures to eliminate damage to structures, an element, a system or a building as a whole, and their replacement cost.

The essence of the cost method for determining physical depreciation is to determine the costs of recreating building elements.

The described methodology allows you to calculate the wear and tear of elements and the building as a whole immediately in cost terms, which is more preferable than other methods for calculating physical wear and tear. In addition, since the impairment calculation is based on the reasonable actual cost of bringing worn-out items to “substantially new condition,” the result of this approach can be considered fairly accurate. Among the disadvantages inherent in this method, it is necessary to note the mandatory detail and accuracy of calculating the costs of repairing worn-out elements of the building.

Determination of physical deterioration of buildings using the lifespan method

Based on the essence of the previously discussed basic evaluative concepts characterizing the total accumulated wear and tear of a building from the point of view of its operation time, it can be argued that physical wear and tear, effective age and economic life are in a certain ratio. This relationship can be expressed by the following formula (1):

where: I(%) - wear as a percentage;

EV - effective age, determined by an expert based on the technical condition of the elements or the building as a whole;

VF - typical period of physical life;

RSFZ - the remaining period of physical life.

Or according to formula (2):

where: And (%) - wear as a percentage;

VF is a typical period of physical life.

The percentage of depreciation of elements or the building as a whole calculated in this way can be translated into monetary terms (depreciation):

O= BC *(I/100);

where: And - wear as a percentage; BC - replacement cost.

2 .

Signs of functional wear and tear in the building being assessed, as a rule, are the non-compliance of its space-planning and/or design solutions with modern standards, including various equipment necessary for the normal operation of the structure in accordance with its current or intended use.

Depending on the physical possibility and economic feasibility of eliminating the causes that caused functional wear, it is divided into removable and irreparable. The cost expression of functional wear is the difference between the cost of reproduction and the cost of replacement, since the calculation of the latter, based on its definition, obviously excludes functional wear from consideration.

Removable functional wear

Removable functional wear and tear is usually determined by the cost of necessary reconstruction to facilitate more efficient operation of the property.

Reversible functional wear is considered to be caused by:

Disadvantages that require adding elements,

Disadvantages requiring replacement or modernization of elements,

Super improvements.

Disadvantages that need to be added, refer to elements of a building and equipment that are not present in the existing environment and without which it cannot meet modern operating standards. Depreciation due to these items is measured by the cost of adding these items, including their installation.

Disadvantages requiring replacement or modernization of elements, include positions that still perform their functions, but no longer meet modern standards (water and gas meters, etc.). Depreciation for these items is measured as the cost of existing elements, taking into account their physical wear, minus the cost of returning materials, plus the cost of dismantling existing ones and plus the cost of installing new elements. In this case, the cost of returning materials is defined as the cost of dismantled materials and equipment when used at other facilities (revisable residual value).

Towards super improvements include positions and elements of the structure, the availability of which is currently inadequate to modern requirements of market standards. Removable functional wear and tear in this case is measured as the current replacement cost of the “over-improvement” items minus physical wear and tear, plus the cost of dismantling and minus the salvage value of the dismantled elements.

An example of over-improvement would be a situation where the owner of a house, adapting it for himself, made some changes for his own convenience (investment value) that were not adequate from the point of view of a typical user. These include, for example, the redevelopment of the usable area of ​​​​premises for a specific use, determined by the owner’s hobbies or his occupation. Removable functional wear in such a situation is determined by the current cost of bringing the changed elements to their original state. In addition, the concept of over-improvement is closely related to a segment of the real estate market, where the same improvements can be considered both appropriate for a specific segment and excessive from the point of view of a typical user.

Unrecoverable functional wear

Irremovable functional wear and tear is usually caused by outdated space-planning and/or structural characteristics of the buildings being assessed relative to modern construction standards. First of all, the economic inexpediency of spending on eliminating these shortcomings allows us to judge the sign of irreparable functional wear. In addition, it is necessary to take into account the market conditions prevailing at the date of assessment in order for the building to be adequately architectural for its purpose.

3. External (economic) wear and tear

External depreciation is the depreciation of an object due to the negative influence of the external environment in relation to the object of assessment: the market situation, easements imposed on a certain use of real estate, changes in the surrounding infrastructure, legislative decisions in the field of taxation, etc. External wear and tear of real estate, depending on the reasons that caused it, in most cases is irreparable due to the unchanged location, but in some cases it can “remove itself” due to a positive change in the surrounding market environment.

Comparative approach to real estate valuation

The comparative approach to real estate valuation is based on information about recent transactions with similar properties on the market and comparison of the property being valued with analogues. Next, amendments are made to take into account the differences between the evaluated object and its analogues. This allows you to determine the selling price of each analogue as if it had the same basic characteristics as the property being valued.

Considering that this approach to real estate valuation is based on a comparison of sales, it is called comparative. Due to the fact that the approach under consideration uses data on transactions on the market, it is also called market-based.

The fundamental principle of the comparative approach to real estate valuation is the principle of substitution.

The following main ones can be identified assessment stages real estate using a comparative approach:

1. At the first stage, the state and development trends of the real estate market and especially the segment to which the property belongs are studied. Properties that are most comparable to the property being valued and that have recently been sold are identified.

2. At the second stage, information on analogue objects is collected and checked; the collected information is analyzed and each analogue object is compared with the one being assessed.

3. At the third stage, amendments are made to the sales prices of comparable objects.

4. At the fourth stage, adjusted prices of analogous objects are agreed upon and the final value of the market value of the property is derived based on a comparative approach.

At the first stage of real estate valuation, a comparative approach is used to study the state of the real estate market and its development trends, segment it and determine which market segment the property being valued belongs to. Further, in this segment, according to certain criteria, objects that are most comparable to the one under study are identified (analogue objects).

Market segmentation is the process of dividing the market into sectors (segments). The division occurs into sectors that have similar objects and subjects.

Objects must be similar in purpose of use, quality, transferred rights, and location.

Subjects must be similar in solvency, financing capabilities, and investment motivation.

Comparable properties must belong to the same segment of the real estate market as the one being valued; transactions with them must be carried out on conditions typical for this segment.

Exposure period- this is the time that an object must be on the market in order to be sold. The exposure period differs for different market segments.

So, in Moscow for residential apartments it is approximately one month, for office buildings - from one and a half to three months. If the object was sold for a period of time much shorter than the standard exhibition period, this most likely indicates that the price was underestimated. Conversely, if an item has been on the market significantly longer than the standard exposure period, the price is likely to be overpriced. In both cases, the transaction is not typical for the market segment and should not be considered comparable.

The main criteria when choosing comparable objects (analogues) are:

1) Ownership rights to real estate.

2) Financing terms.

3) Terms and time of sale.

4) Location.

5) Physical characteristics.

1. Property rights

Basically, real estate transactions involve the purchase of transferable rights to own and dispose of property. Full ownership is determined by market rent and current financing available. The title adjustment is nothing more than the difference between the market rent and the contract rent.

2. Terms of financing the transaction

If the conditions for financing a purchase-sale transaction of a real estate property are atypical (for example, in the case of full financing of a purchase-sale transaction), then in this case a thorough analysis is necessary, as a result of which an appropriate amendment is made to the price of this transaction.

3. Terms of sale and time of sale

The same can be said in relation to the conditions of sales themselves. Since it is difficult to calculate adjustments for financing and tax conditions, as well as for transferred legal rights and restrictions, conditions of sale, it is better, if possible, not to consider similar transactions for analysis and comparison. Otherwise, adjustments for these characteristics are made first.

Timing of sale is one of the main elements of comparable sales comparison. To adjust for this characteristic in the selling price of an analogue, it is necessary to know the trends in price changes in the real estate market over time.

4. Location

Location is also a very significant element in comparable sales comparisons. Making adjustments to location has a fairly significant effect on the value of the property being assessed.

Physical characteristics

The physical characteristics of the property mean the size, type and quality of materials, condition and degree of deterioration of the property and other characteristics, which are also adjusted.

Units of comparison

Because properties often vary in size and number of units, it can be difficult to compare sold properties with the property being valued; therefore, the available data must be reduced to a common denominator. This common denominator can be either a physical unit (price per sq. m.) or an economic one.

Different units of comparison are used by different segments of the real estate market.

Land comparison units:

Price per 1 ha;

Price per hundred square meters;

Price for 1 frontal meter:

Price per 1 sq. m.

Units for comparison of built-up areas:

Price per l sq. m. total area;

Price per 1 sq. m. net area to be leased;

Price for 1 cubic meter m.

The gross rental multiplier or the overall capitalization ratio can be used as an economic unit of comparison when evaluating projects based on the ratio of income to sales price.

Classification and essence of amendments

Depending on the method of calculation and making adjustments for differences between the object being valued and a comparable analogue, the amendments are divided into:

1. Interest

2. Cost

Percentage adjustments , as a rule, are entered by multiplying the sales price of an analogous object or its unit of comparison by a coefficient reflecting the degree of differences in the characteristics of the analogous object and the object being valued. The reasoning here boils down to the following: if the valued object is better than a comparable analogue, then an increasing factor is added to the price of the latter. Otherwise, a reduction factor is applied to the price of a comparable analogue.

Percentage adjustments include, for example, adjustments for location, wear and tear, and time of sale.

Cost adjustments

A) Monetary adjustments made to the unit of comparison (1 hectare, density unit, 1 hundred square meters) change the price of the sold analogue object by a certain amount, which is estimated at the difference in the characteristics of the analogue object and the object being valued. A positive adjustment is made if the valued object is better than a comparable analogue. Otherwise, a negative adjustment is applied to the price of the comparable product.

Monetary adjustments made to the unit of comparison include adjustments for physical condition, as well as adjustments calculated by statistical methods.

b) Monetary adjustments made to the price of the sold analogue object as a whole change it by a certain amount, which is estimated at the difference in the characteristics of the analogue object and the object being valued. The reasoning for using positive or negative corrections is similar to the reasoning in point "a".

Monetary adjustments made to the price of the sold analogue object as a whole should include adjustments for the presence or absence of additional improvements (warehouse extensions, parking lots, etc.).

Calculation and amendments

To calculate and make corrections, many different methods are used, among which are the following:

Methods based on the analysis of paired sales;

Expert methods of calculation and amendments;

Statistical methods.

Paired sales method

A paired sale means the sale of two objects, ideally being an exact copy of each other with the exception of one parameter (for example, location), the presence of which explains the difference in price of these objects. This method allows you to calculate the adjustment for the above-mentioned characteristic and apply it to adjust the sales price of an analogue object comparable to the object of evaluation for this parameter.

The limited use of this method is explained by the complexity of selecting objects for paired sales, searching and processing a large amount of information.

Expert methods of calculation and amendments

The basis of expert methods for calculating and making adjustments, usually percentages, is the subjective opinion of an expert appraiser about how much worse or better the valued object is than a comparable analogue.

Let us denote the value of the valuation object as X, and take the selling price of a comparable analogue as equal to 1.0.

In this case, the reasoning boils down to the following: 1. The object is 15% better than the analogue, then the price of the analogue should increase by the same 15%:

X = 1.0 + 15% x 1.0 = 1.0 x (1 + 0.15) = 1.15

2. The object being evaluated is 15% worse than its analogue, the price of the analogue will decrease:

X = 1.0 - 15% x 1.0 = 1.0 x (1.0 - 0.15) = 0.85.

3. The analogue is 15% better than the evaluated object. The price of the analogue should decrease:

1.0 = X + 15% x X = X(1 + 0.15), X = 1/0.87.

4. The analogue is 15% worse than the object being evaluated. The price of the analogue should increase:

1.0 = X - 15% x X = X x (1.0 - 0.15), X = 1/0.85 = 1.18.

Expert calculation and adjustment methods are usually used when it is not possible to calculate sufficiently accurate dollar adjustments, but there is market information about percentage differences.

Statistical methods for calculating corrections

It must be said that when valuing real estate using the method of comparative sales analysis, in the process of making adjustments for differences between the object being valued and its analogue, it is not always possible to make a relatively accurate calculation of the likely price of the object. If you do not use methods for calculating corrections such as correlation regression analysis, you should introduce as few adjustments as possible for differences in the characteristics of the objects being compared. This primarily concerns corrections for physical differences (in particular scale corrections).

The essence of the method of correlation-regression analysis is the permissible formalization of the relationship between changes in the prices of a real estate object and changes in any of its characteristics.

The final stage The comparative approach to real estate valuation is the analysis of the calculations made in order to obtain the final value of the value of the property being valued. In this case it is necessary:

1. Carefully check the comparable sales data used for the calculation and their adjusted values.

2. Reconcile the adjusted values ​​of comparable sales by calculating the weighted average.

The weighted average value calculated by the appraiser will be the probable sale price of the appraised object, which can be rounded within acceptable limits in each specific case.

Despite the wide range of estimate standards used for construction design purposes, it should be borne in mind that when assessing real estate, specific assessment approaches are a priority.

First of all, reliable data on construction contracts for the construction of similar buildings should be considered as a source of information on the cost of new construction. In the absence of direct access to contract terms and conditions, this information can be obtained from local construction contractors.

It should be noted that in Russia, work is currently underway to create a specialized database for assessment. One of the areas of such work is the use of the domestic regulatory and methodological framework, developed specifically for revaluation purposes and called “Aggregated indicators of the replacement cost of buildings and structures for the revaluation of fixed assets (UPVS).” The UPWS includes 39 industry and interindustry collections containing cost indicators for the construction of a unit of measurement - 1 m2 of area, 1 m3 of construction volume - for various standard buildings and structures. UPVS take into account the average costs in the volume of all chapters of the consolidated construction cost estimate. The scope of application of UPPVS are buildings and structures erected according to standard designs, mainly in the period 1930-80.

Based on the system of estimate standards discussed above, in modern real estate valuation practice, four main methods are used to determine the cost of new construction. They also form the basis for estimating the cost of restoration. (Often these methods for determining the COST OF RESTORATION are illiterately considered as a classification of cost approach methods.

In fact, their use implements only one specific stage of the cost approach algorithm, namely the stage of estimating the replacement cost. In real estate valuation, the cost approach is represented by only one (of the same name) method - cost).

Among them:
- basis-index method;
- resource method (or cost, cost calculation, estimate, unit prices);
- modular method (method of breakdown into components);
- method of comparative unit (method of aggregated indicators). Let's consider them sequentially.

Basis-index method involves the use of design and estimate documentation data at the base price level (1955,1969,1984,1991, 1994 or 1998-1999) and the use of a system of prescriptive (recommended by the regional center for pricing in construction - RCCP) corrective conversion factors (indices) from the base prices to current prices recommended by regional centers for pricing in construction. Reduction to the level of current prices is carried out by multiplying the base cost by type of work or elements of direct costs by the corresponding index. The 1984 database is mainly used as the most complete and detailed. In this case, both integral conversion factors can be used for the entire complex of construction and installation works for various types of buildings, as well as differentiated conversion factors that take into account all types of work, including separately the increase in the cost of materials, basic wages and operation of machines and mechanisms. As applied research shows, the difference in the values ​​of replacement cost calculated using integral and differentiated coefficients is 10-15%.

Basis-index method in the presence of ready-made estimates, it is effective for practical use. However, it requires knowledge of estimating, and when using it, it is advisable to involve specialist estimators from design or contract construction organizations.
The resource method for estimating replacement cost is based on determining the physical volumes of structural elements of buildings and structures, the consumption of building materials, calculating the cost of these materials (or structural elements) in current regional market prices with the subsequent addition of the cost of remuneration of key workers, operation of machines and mechanisms, limited and other costs, as well as planned savings.

Construction cost the entire building (including built-in equipment) is calculated as the sum of the costs of all construction and installation components according to the formula

The volumes of material resources are determined either from project documentation or from the results of measurement work. Labor costs and the duration of operation of machines and mechanisms are determined according to regulatory data, and their current market value is taken as the cost of a unit of volume of each resource.

Resource method, based on the assessment of elements of direct costs (resources) at current market prices, provides a better approximation to the market value of the building (structure) than the base-index one. However, the resource method of assessing the value of real estate requires a lot of labor, high qualifications and significant experience of appraisers.

Despite the fact that many software packages have now been developed for the preparation and issuance of estimates, the resource method is of limited use in the practice of valuation activities, since it involves a labor-intensive determination of the volume of construction and installation works, the costs of building materials, the cost and operating time of construction machines. However, in modern conditions, this method is gaining priority in construction design.

It is also necessary to pay attention to the following feature of the resource method. Since it uses current market prices and rates that take into account modern work technology, modern materials and modern machinery and mechanisms, it can be stated that when valuing objects with a chronological age of at least five years, the resource method determines replacement cost, not cost recovery. This also fully applies to the base-index method using territorial unit prices of 1999 (EPC-99).

You should also keep in mind two additional circumstances related to both the resource and the basis-index method.

Firstly, when using indices to the total cost of construction and installation work by type of work or current market prices of resources, the shares of structural elements and engineering systems in the total replacement cost are redistributed (due to different degrees of increase in the cost of elements). Secondly, when calculating wear, you should carefully use available regulatory data on the service life of the assessed structural elements and engineering devices made from modern materials, since the durability of the latter may not correspond to the durability characteristics of the materials contained in the regulatory data. At the same time, determining the physical wear of the structural elements of an object based on standard service life may be incorrect.

Taking into account the above, the use of the resource method in determining the full costs of new construction of existing facilities is possible with two reservations:

1) the replacement cost is actually determined;
2) the use of standard service lives of elements when calculating the amount of physical wear may be incorrect.

A variation of the resource method is the resource-index method, characterized in that resource prices are taken not at the current level, but at the base level, for example, as of January 1, 1984; January 1, 1991; July 1, 1999 or others. In this case, the cost of resources is also obtained at the base level. To move to the current price level, it is necessary to multiply the base costs of resources by the corresponding indices, and then sum up the results to obtain the value of direct costs at the current price level.

The second variety is a simplified version of the resource method, characterized in that the costs of wages of the main workers and the operation of construction machines are determined not on the basis of elemental estimate standards or resource indicators, but as a percentage of the cost of building materials based on the average statistical data of construction organizations or a specific contractor (for a certain type of building).

Modular method (method of breakdown by components) consists in dividing all types of construction and installation work into enlarged sections (modules). Such modules are: excavation work, foundations, frame, walls, floors, partitions, roofing, windows, doors, interior decoration, internal sanitary work, electrical work, etc.

The share of any (any) of the main (capital) modules in the total cost of the object is determined as a percentage. This information can be obtained from the technical passport of the object, and in its absence - from collections of enlarged estimate standards

(UPSS, Price Lists) and aggregated indicators of replacement cost (UPVS). Prices for the relevant types of work (modules) are selected from the available estimate documentation or from consolidated estimate standards (USN, UPBS BP, UPSS, Price Lists, etc.). In the absence of such prices, local estimates for the corresponding types of work are drawn up using the basis-index or resource method.

The cost of construction of the entire building is calculated as the sum of the costs of all components (modules) according to the formula

It is advisable to use the modular method for an approximate assessment when there is a lack of initial information. In this case, it is enough to determine the costs for one or several main modules in order, based on their approximate specific contribution, expressed as a percentage, to find the total cost of construction and installation work.

Carrying out estimate calculations using consolidated standards requires the performer to have professional skills in estimate work.

Comparative unit method involves the use of data on the current cost of any parameter, for example, 1 m2 of total area, 1 m3 of construction volume, etc., in buildings of a certain type at the current or basic price level, obtained at the average actual cost of construction in the region. Current prices are taken from statistical data on the average actual cost of construction in a given region, for example from RCTS bulletins, base prices - from collections of enlarged estimate standards (UPSS, Price Lists), aggregated indicators of replacement cost (UPVS).

Comparative unit method convenient to use in cases where the object being valued occupies part of a building (structure), and establishing its share (share) in the total cost is difficult due to significant differences in the layout and height of floors, structures, quality and degree of exterior and interior decoration, as well as differences in engineering equipment and technical systems.

The cost of new construction in this method is determined by the formula

The method is the least labor-intensive and provides an accuracy of about 15-20%.
UPWS collections were developed in 1970-1972. and were intended for the revaluation of buildings and structures of all sectors of the national economy as of January 1, 1972.

The aggregated indicators given in the collections are compiled in prices introduced on January 1, 1969.
In total, 39 collections of UPVS from various sectors of the national economy were developed. UPVS are grouped by types of buildings and structures and contain the replacement cost of 1 m³ of building volume or 1 km of pipeline, 1 km of highway, etc. depending on a number of parameters (their purpose, design, capital, landscaping, size and location in a particular territorial zone, taking into account the type of climatic region through appropriate correction factors).

UPVS include:
- all direct costs;
- overhead costs and planned savings;
- general site expenses for preparation and development of the site;
- cost of design and survey work;
- costs associated with carrying out work in winter;
- costs for temporary buildings and structures;
- the cost of maintaining the management of the enterprise under construction, etc.

If the object being assessed was built earlier than the base year (depending on the collection used), then to determine the cost of construction of the object, the replacement cost indicator (1 m³, 1 m², 1 linear meter), selected from the appropriate table of the collection, must be multiplied by the construction cost object volume, correction factors and price increase indices according to the formula

If the valued property was built later than the base period used in the calculation, then the replacement cost of the base period must be adjusted to the replacement cost of the valued object on the date of its commissioning. In this case, the magnitude of the adjustment is determined by the influence of scientific and technological progress (STP) on the cost of construction. This influence is twofold.

On the one hand, scientific and technical progress leads to improvement and increased efficiency of construction technology, which causes a reduction in costs per unit of construction product.

On the other hand, NTP leads to additional costs in construction (more complex finishing of the facility according to modern standards, equipping it with modern types of communications, communication, maintenance, etc.).

Thus, according to Glavgosexpertiza, as a result of the NTP, the cost of construction increased by 5-6% per year, and its cost decreased by 3-4% per year. The result of this was the letter of the USSR State Construction Committee dated October 5, 1981 No. 79-D “On amendments to the cost of construction, taking into account changes in pricing factors.” This letter allowed the amount of the upward adjustment to be up to 3%.

Thus, in order to improve the accuracy of the assessment, it is recommended to adjust the replacement cost of the base period* at the rate of 2% per year.

For example, a real estate object put into operation on January 1, 1974 is being assessed. Its replacement cost, determined according to the collection of UPVS, is equal to 100,000 rubles. as of January 1, 1969. In this case, the cost of its construction as of January 1, 1974 should be taken equal to 100,000 x (1 + 0.02)5 - 408 rubles.

In general, the UPVS method is recommended for the assessment of buildings built in 1930-1980.
The comparative unit method is very widely used by appraisers, but it must be used very carefully, since the named sources of information (UPSS, Price Lists, UPVS) contain many features that need to be known and taken into account (for example, what costs are included in the unit cost).

D. V. Vinogradov

DETERMINATION OF RECOVERY COST (REPLACEMENT COST). COST APPROACH TO ASSESSING THE VALUE OF REAL ESTATE OBJECTS. REAL ESTATE ASSESSMENT IN ACCORDANCE WITH INTERNATIONAL STANDARDS. REAL ESTATE ECONOMICS: TUTORIAL

Determination of the replacement cost (replacement cost) of the appraised building based on the inclusion of direct and indirect costs in the cost of new construction.

Direct costs are costs directly associated with construction and generally include:

• cost of building materials, products and equipment;
• cost of operating construction machinery and mechanisms;
• basic wages for construction workers;
• the cost of temporary buildings, structures and utility networks;
• contractor's profits and overheads.

• costs for preparing the construction site;
• costs of design and survey work;
• other costs and work;
• maintenance of the directorate (technical supervision) of an enterprise (institution) under construction, costs of designer supervision;
• other types of indirect costs.

Direct cost calculations can be made in one of two ways:

• recalculation of a known value of the estimated cost of construction using indices;
• by drawing up a restoration estimate for the property being assessed.

In the absence of design and estimate documentation for the assessment object, the estimate should be restored in one of two ways:

• according to enlarged estimate standards (comparative unit method);
• according to collections of unit prices and price lists (method of quantitative analysis).

For the purposes of assessing the market value of real estate, the following types of aggregated indicators are used:

• aggregated indicators of estimated cost (UPSS);
• enlarged estimate standards (USN) for buildings, structures, structures and types of work;
• price lists for the construction of buildings and structures (PRES);
• aggregated indicators of replacement cost for the purposes of revaluation of fixed assets.

Indirect cost values ​​are typically determined as a percentage of direct costs based on market data.

Entrepreneur's profit defined as the amount an entrepreneur expects to receive as a premium for using his capital. The value of the entrepreneur's profit is taken according to market data.

Determining the wear and tear of the building being assessed

Wear is a decrease in the value of a property due to various reasons. Depreciation is usually measured as a percentage, and the monetary expression of depreciation is impairment.

Accumulated (cumulative) depreciation of an object of assessment is the totality of all possible types of depreciation, which is characterized by a decrease in the usefulness of the property, its consumer attractiveness from the point of view of a potential investor and is expressed in a decrease in value over time (impairment) under the influence of various factors. As the facility is used, the parameters characterizing the structural reliability of buildings and structures, as well as their functional compliance with current and, especially, future use associated with human life, gradually deteriorate. In addition, the value of real estate is no less influenced by external factors caused by changes in the market environment, the imposition of restrictions on certain uses of buildings, etc.

Depreciation in valuation practice must be distinguished in meaning from a similar term used in accounting (depreciation). Estimated depreciation is one of the main parameters that allows you to calculate the current value of an appraised object on a specific date.

Thus, taking into account the depreciation of an object is a kind of adjustment to the cost of a newly reproduced building (reproduced using the cost approach) in order to determine the value of the assessed object.

The cumulative accumulated wear is a function of the object's lifetime. Let us consider the basic evaluative concepts that characterize this indicator (Fig. 3).

Rice. 3 Life periods of a building and evaluation indicators characterizing them

Chronological age (CA)– the period of time that has passed from the date of commissioning of the facility to the date of assessment.

Economic Life (EJ)– the period of operation during which the object generates income. During this period, improvements made contribute to the value of the property. The economic life of an object ends when the operation of the object cannot generate the income indicated by the corresponding rate for comparable objects in a given segment of the real estate market. At the same time, the improvements carried out no longer contribute to the value of the object due to its general wear and tear.

Effective age (EA) calculated on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the valuation date that influence the value of the assessed object. Depending on the operating characteristics of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) operation of a building, the effective age is usually equal to the chronological age.

Remaining Economic Life (REL) building - the period of time from the date of valuation until the end of its economic life.

The subjectivity of determining such indicators as economic life and effective age requires the appraiser to be quite highly qualified and have considerable practical experience.

To determine the amount of accumulated wear, I use the following methods:

• sales comparison method;
• accounting;
• breakdown method.

In monetary terms, total depreciation is the difference between the replacement cost and the market price of the valued object:

Let's determine the accumulated depreciation of the property. The calculations are presented in the following table:

Thus, the accumulated depreciation of the assessed property is approximately 31.9%.

The cost approach is a set of methods for assessing the value of a property based on determining the costs necessary to restore or replace a property, taking into account its wear and tear. The cost approach is based on the principle of substitution, which assumes that a reasonable buyer would not pay more for a property than the cost of constructing a property of similar utility to the property being valued.

According to the cost approach, the total cost of a real estate object (Cv) is determined as the sum of the cost of a plot of land (Suz) and the replacement cost (cost of replacement or reproduction) of the real estate object (Cvs) minus the accumulated depreciation (Ciz):

Application of the cost approach to real estate valuation consists of the following steps:

• assessment of the market value of the land plot;
• assessment of the replacement cost (replacement cost) of the building being assessed, including an assessment of the amount of business profit;
• calculation of identified types of wear;
• calculation of the final value of the appraisal object by adjusting the replacement cost for wear and tear, followed by increasing the resulting value by the cost of the land plot.

Determining the value of a piece of land, included in the real estate valued by the cost method, is based on the assumption of its best and most effective use as free from development.

To assess the market value of land, the following methods are used:

• sales comparison method;
• distribution method;
• selection method;
• method of dividing into sections;
• residue technique for land;
• capitalization of net ground rent.

Sales comparison method given the necessary information is the most preferred and generally applicable. The main elements of comparison for land are:

• ownership;
• financing conditions;
• terms of sale;
• market conditions;
• location;
• physical characteristics;
• accessible utilities;
• zoning conditions;
• best and most effective use.

When valuing land, you can use multiple units of comparison, adjusting the price of each and ending up with multiple values ​​that define a range of values.

Distribution method is based on the proposition that for each type of real estate there is a normal relationship between the cost of land and the cost of buildings. This relationship is most reliable for new improvements that reflect the best and most efficient use of the land.

Example 27. Determine the cost of a land plot if it is known that: vacant plots in the area have not been sold for a long time; the price of a typical house with a plot ranges from 200 to 300 thousand rubles; the cost of a similar-sized land plot in the immediate vicinity of the property being assessed is 90 thousand rubles; direct costs for the construction of a standard house - 100 thousand rubles; entrepreneur's profit and indirect costs - 80 thousand rubles.

1. Determine the share of the cost of the land plot in the total cost of the property:

2. Determine the cost of the land plot:

The cost of a plot can range from 67 thousand rubles. up to 100 thousand rubles. (1/3 of the range of real estate values, respectively from 200 and 300 thousand rubles).

Selection method is a type of distribution method. The value of the land is separated from the value of the property by subtracting the cost of improvements, taking into account their depreciation. This method is used to evaluate suburban areas for which the contribution of improvements to the total cost is small and fairly easily determined.

The method is used in the absence of information on sales of vacant plots in the immediate vicinity.

Subdivision method used in cases where dividing a plot into several smaller plots represents the best and most efficient use of the land. At the same time, external and internal improvements to the sites created during the breakdown provide conditions for the best and most efficient use of the land.

Improvement costs include:

• expenses for laying out, clearing and grading sites;
• expenses for the construction of roads, sidewalks, utility networks, drainage;
• taxes, insurance, salaries of engineers;
• marketing expenses;
• contractor's profits and overheads;
• entrepreneur's profit.

Example 28. Determine the cost of the land mass if it is known that the developer plans to divide it into 30 plots and then sell each plot for 25 thousand rubles. for 4 years (it is assumed that net income will flow evenly, the rate of return is 10%). In this case, the following costs will occur: planning, cleaning, utilities, project - 180 thousand rubles; management - 10 thousand rubles; overhead costs and contractor's profit - 60 thousand rubles; marketing - 20 thousand rubles; taxes and insurance - 10 thousand rubles; entrepreneur's profit - 40 thousand rubles.

1. Let’s determine the potential income from the sale of prepared plots:

30 · 25 = 750 thousand rubles.

2. Let’s determine the costs for improvements and site arrangement:

180 + 10 + 60 + 20 + 10 + 40 = 320 thousand rubles.

3. The present value of the land mass, taking into account the uniform receipt of net income over 4 years and a return rate of 10%:

where 3.1699 is the coefficient of the present value of the annuity.

Thus, the cost of the land mass is 340 thousand rubles.

Residue technique for land applies in the absence of data on sales of vacant land plots.

Net ground rent capitalization method is based on the principle of incremental productivity, according to which, after distribution among all factors of production of regular income from a business sold on a property, part of this income can be attributed to the land plot.

If a leased land plot is valued, its value can be determined by (12). In this case, rent is used as net operating income.

Determination of the replacement cost (replacement cost) of the appraised building based on the inclusion of direct and indirect costs in the cost of new construction.

Direct costs are costs directly associated with construction and generally include:

• cost of building materials, products and equipment;
• cost of operating construction machinery and mechanisms;
• basic wages for construction workers;
• the cost of temporary buildings, structures and utility networks;
• contractor's profits and overheads.

Indirect costs are expenses that are associated with, but not directly related to, construction. Indirect costs usually include:

• costs for preparing the construction site;
• costs of design and survey work;
• other costs and work;
• maintenance of the directorate (technical supervision) of an enterprise (institution) under construction, costs of designer supervision;
• other types of indirect costs.

Determining direct cost values is based on the application of general rules for determining the estimated cost of construction set out in current regulatory and guidance documents.

Direct cost calculations can be made in one of two ways:

• recalculation of a known value of the estimated cost of construction using indices;
• by drawing up a restoration estimate for the property being assessed.

If design and estimate documentation is available for the object being assessed, the value of direct costs is determined as the value of the estimated cost of construction, recalculated as of the date of assessment using indices that take into account the ratio of the current price level in construction to the prices of 1984, accepted as the base (index method).

In the absence of design and estimate documentation for the assessment object, the estimate should be restored in one of two ways:

• according to enlarged estimate standards (comparative unit method);
• according to collections of unit prices and price lists (method of quantitative analysis).

The use of aggregated estimate standards for calculating direct costs is acceptable for standard design solutions for buildings and structures, as well as re-used individual economic projects.

For the purposes of assessing the market value of real estate, the following types of aggregated indicators are used:

• aggregated indicators of estimated cost (UPSS);
• enlarged estimate standards (USN) for buildings, structures, structures and types of work;
• price lists for the construction of buildings and structures (PRES);
• aggregated indicators of replacement cost for the purposes of revaluation of fixed assets.

In this case, the cost of construction and installation work can be broken down by type of work and complexes of building structures (method of breakdown into components).

Indirect cost values ​​are typically determined as a percentage of direct costs based on market data.

Entrepreneur's profit defined as the amount an entrepreneur expects to receive as a premium for using his capital. The value of the entrepreneur's profit is taken according to market data.

Wear is a decrease in the value of a property due to various reasons. Depreciation is usually measured as a percentage, and the monetary expression of depreciation is impairment.

Accumulated (cumulative) depreciation of an object of assessment is the totality of all possible types of depreciation, which is characterized by a decrease in the usefulness of the property, its consumer attractiveness from the point of view of a potential investor and is expressed in a decrease in value over time (impairment) under the influence of various factors. As the facility is used, the parameters characterizing the structural reliability of buildings and structures, as well as their functional compliance with current and, especially, future use associated with human life, gradually deteriorate. In addition, the value of real estate is no less influenced by external factors caused by changes in the market environment, the imposition of restrictions on certain uses of buildings, etc.

Depreciation in valuation practice must be distinguished in meaning from a similar term used in accounting (depreciation). Estimated depreciation is one of the main parameters that allows you to calculate the current value of an appraised object on a specific date.

Thus, taking into account the depreciation of an object is a kind of adjustment to the cost of a newly reproduced building (reproduced using the cost approach) in order to determine the value of the assessed object.

The cumulative accumulated wear is a function of the object's lifetime. Let us consider the basic evaluative concepts that characterize this indicator (Fig. 1).

Rice. 1. Life periods of the building and the assessment indicators characterizing them

Physical life of the building (PL)- the period of operation of the building, during which the condition of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). The physical life of an object is laid down during construction and depends on the capital group of the buildings. Physical life ends when the object is demolished.

Chronological age (CA)- the period of time that has passed from the date of commissioning of the facility to the date of assessment.

Economic Life (EJ)— the operating time during which the object generates income. During this period, improvements made contribute to the value of the property. The economic life of an object ends when the operation of the object cannot generate the income indicated by the corresponding rate for comparable objects in a given segment of the real estate market. At the same time, the improvements carried out no longer contribute to the value of the object due to its general wear and tear.

Effective age (EA) calculated on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the valuation date that influence the value of the assessed object. Depending on the operating characteristics of the building, the effective age may differ from the chronological age up or down. In the case of normal (typical) operation of a building, the effective age is usually equal to the chronological age.

Remaining Economic Life (REL) building - the period of time from the date of valuation until the end of its economic life.

The subjectivity of determining such indicators as economic life and effective age requires the appraiser to be quite highly qualified and have considerable practical experience.

To determine the amount of accumulated wear, I use the following methods:

• sales comparison method;
• accounting;
• breakdown method.

Sales comparison method is based on determining the amount of accumulated depreciation as the difference between the cost of new construction and the cost of the structure on the valuation date, while the availability of reliable data on sales of similar objects and the cost of vacant land is a necessary condition.

In monetary terms, total depreciation is the difference between the replacement cost and the market price of the valued object:

Example 29. Determine the accumulated depreciation of a real estate object (cottage), if the following information about analogue objects is known:

Let's determine the accumulated depreciation of the property. The calculations are presented in the following table:

Thus, the accumulated depreciation of the assessed property is approximately 31.9%.

Accounting method for calculating depreciation is based on the use of accounting methods, i.e., on determining the ratio of the chronological age of an object to its standard service life, determined on the basis of the “Unified norms of depreciation charges for the complete restoration of fixed assets in the Russian Federation.”

Breakdown method consists in a detailed consideration and accounting of all types of wear, which include (Fig. 2):

• removable and irreparable physical wear and tear;
• removable and irreparable functional wear;
• external wear.

Removable (correctable) wear is wear, the elimination of which is physically possible and economically feasible, i.e., the costs incurred to eliminate one or another type of wear contribute to increasing the value of the object as a whole.

Irremovable (irreparable) wear is wear, the elimination of which is either physically impossible or economically impractical, i.e., the costs incurred to eliminate one or another type of wear do not contribute to increasing the value of the object as a whole.

Rice. 2. Classification of depreciation of real estate objects

To apply the breakdown method when determining accumulated wear and tear, it is necessary to have data on the cost of new construction, broken down by structural elements, as a calculation base.

Physical deterioration— gradual loss of the technical and operational qualities of the object originally laid down during construction under the influence of natural and climatic factors, as well as human activity. Physical deterioration reflects changes in the physical properties of a property over time (for example, defects in structural elements).

There are four main methods for calculating physical depreciation:

• expert (normative);
• cost;
• method for calculating the life of a building.

Expert method for calculating physical wear and tear is based on creating a defective list and determining the percentage of wear of all structural elements of a building or structure. The expert method is the most accurate, but also the most labor-intensive.

This method involves the use of various regulatory instructions at the intersectoral or departmental level. An example is VSN 53-86, used by the technical inventory bureau to assess the physical deterioration of residential buildings during technical inventory and planning major repairs of the housing stock, regardless of its departmental affiliation. These rules describe the physical wear and tear of various structural elements of buildings and their assessment.

The physical wear and tear of a building is determined as follows:

F f — physical wear and tear of the building, (%);

F i — physical wear of the i-th structural element, (%);

L i is the coefficient corresponding to the share of the replacement cost of the i-th structural element (site) in the total cost of the building;

n is the number of structural elements in the building.

The shares of the replacement cost of individual structures, elements and systems in the total replacement cost of the building should be taken according to aggregated indicators of the replacement cost of residential buildings, approved in the prescribed manner, and for structures, elements and systems that do not have approved indicators - according to their estimated cost.

Example 30. Determine the physical wear and tear of a residential building if it is known that its inspection revealed physical wear and tear of all structural elements:

• foundations - 10%;
• walls - 15%;
• overlaps - 20%;
• roofing - 10%;
• floors - 35%;
• windows - 40%;
• finishing coatings - 30%;
• internal plumbing and electrical devices - 50%;
• others - 25%.

1. Let us determine the specific gravity of structural elements in accordance with Sat. No. 28 UPVS.

2. Results of assessing the physical wear and tear of elements and systems, as well as determining their share in terms of replacement cost:

Thus, the physical wear and tear of the building is 23.25%

Cost method for calculating physical wear and tear is based on the assumption that physical deterioration at the time of assessment is expressed by the ratio of the cost of objectively necessary repair measures to eliminate damage to the structure, element or building as a whole, and their replacement cost.

Example 31. Determine the physical wear and tear of a residential building if it is known that the replacement cost of structural elements and the objectively necessary costs for their repair are respectively: foundations - 3,200 thousand rubles, 640 thousand rubles; walls - 4,000 thousand rubles, 1,200 thousand rubles; ceilings - 800 thousand rubles, 160 thousand rubles; other - 8,000 thousand rubles, 2,800 thousand rubles.

Let's determine the amount of physical wear and tear. The results of assessing the physical wear of elements, as well as determining their specific weight at replacement cost:

Thus, the physical wear and tear of the building is 30%

This method allows you to immediately calculate the wear and tear of elements and the building as a whole in cost terms. Since the impairment calculation is based on the reasonable actual costs of bringing worn-out items to “substantially new condition,” the result of this approach can be considered fairly accurate. The disadvantages of the method are the required detail and accuracy in calculating the costs of repairing worn-out building elements.

Method for calculating the life of a building is based on the assumption that the relationship between physical depreciation (PH) and replacement cost (RC) is determined by the ratio between effective age (EA) and typical economic life (EF):

Example 32. Determine the physical wear and tear of a residential building if it is known that the replacement cost, actual age and total physical life of its structural elements are respectively: foundations - 1,200 thousand rubles, 10 years, 15 years; walls - 400 thousand rubles, 5 years, 10 years; ceilings - 300 thousand rubles, 6 years, 15 years; others - 900 thousand rubles, 1 year, 10 years.

Let's determine the amount of physical wear and tear. Results of assessing the physical wear of elements:

Thus, the physical wear and tear of the building is 1210 rubles. or 43.2%.

Determining the amount of physical wear consists of several successive steps:

• determination of the amount of correctable physical wear;
• determination of the amount of irreparable physical wear in short-lived elements;
• determination of the amount of irreparable physical wear in long-lived elements.

Determining the amount of correctable physical wear (it is also called deferred repair, since it is assumed that the typical buyer will make immediate repairs to restore the normal operational characteristics of the structure: cosmetic repairs, restoration of areas of leaking roofing, repair of engineering equipment, etc.) is carried out using cost or expert method of calculating physical wear and tear.

Irreparable physical wear and tear corresponds to items for which repair is currently practically impossible or economically impractical. The amount of this type of wear and tear is determined based on the difference between the total replacement (or replacement) cost and the amount of removable physical wear and tear.

For the purpose of calculating wear, elements of a structure that have irreparable physical wear are divided into long-lived and short-lived.

For long-lived elements, the expected residual life coincides with the residual economic life of the entire structure. Short-lived elements have less residual economic life than the entire structure.

To assess irreparable physical wear and tear in short-lived elements, the method of calculating the life of a building is used: the difference between the total replacement (or replacement) cost of the element and the amount of correctable wear of the element is multiplied by the ratio of the actual age to the total physical life of the element.

In this case, the overall physical life of the element is determined from reference data, taking into account periodic repairs and maintaining normal operational characteristics.

To assess irreparable physical wear and tear in long-lived elements, the method of calculating the lifespan of a building is also used: the amount of correctable physical wear and tear and the sum of the replacement cost of short-lived elements with irreparable physical wear are subtracted from the total replacement (or replacement) cost and the result is multiplied by the residual replacement (or replacement) cost ) long-lived elements, as well as the relationship of actual age to the overall physical life of the building.

The overall physical life of a building is determined depending on the type of main structural elements for different categories of buildings according to durability. The classification of residential and public buildings by durability is given in the regulatory literature.

Example 33. Determine the physical deterioration of a residential building. We will present the initial data as the calculation progresses.

1. Based on the estimate documentation, we will determine the cost of new construction to assess accumulated wear and tear:

2. Determine the amount of correctable physical wear:

Thus, the cost of correctable wear and tear is 3,000 thousand rubles.

2. Let us determine the amount of irreparable physical wear in short-lived elements:

Thus, the cost of irreparable physical wear in short-lived elements is 22,967 thousand rubles, the replacement cost of short-lived elements with irreparable physical wear is 33,000 thousand rubles.

3. Let us determine the amount of irreparable physical wear in long-lived elements:

Thus, the cost of irreparable physical wear and tear in long-lived elements is 22,224 thousand rubles.

3. Let’s determine the amount of total physical wear and tear of the building:

Thousand rub.

Thus, the cost of the total physical depreciation of the building is 48,191 thousand rubles. or 27.6%.

Functional wear is a loss in value caused by the fact that the object does not meet modern standards: in terms of its functional usefulness, architectural and aesthetic, space-planning, design solutions, livability, safety, comfort and other functional characteristics.

The following types of functional wear are distinguished:

• wear and tear is correctable (if the additional value received exceeds the cost of restoration);
• irreparable wear (if the additional value received does not exceed the cost of restoration).

Correctable functional wear is measured by the cost of its correction and is caused by:

• shortcomings that require adding elements;
• deficiencies requiring replacement or modernization of elements;
• "super-improvements."

Disadvantages that require adding elements- building elements and equipment that are not present in the existing building and without which it cannot meet modern operating standards.

A quantitative measure of correctable functional deterioration due to deficiencies requiring addition is the difference between the cost of making the required additions at the time of the assessment and the cost of making the same additions if they had been made during construction of the property being assessed.

Disadvantages requiring replacement or modernization of elements- building elements and equipment that are in an existing building and still perform their functions, but no longer meet modern operational standards.

Correctable functional deterioration due to items requiring replacement or modernization is measured as the cost of existing elements, taking into account their physical deterioration, minus the cost of returning materials, plus the cost of dismantling existing elements and plus the cost of installing new elements. In this case, the cost of returning materials is defined as the cost of dismantled materials and equipment when used at other facilities.

"Super Improvements"- building elements and equipment that are present in an existing building and the current availability of which is inadequate to modern operational standards.

Correctable functional wear and tear due to over-improvement is measured as the current replacement cost of the over-improvement items, minus physical wear and tear, plus the cost of dismantling and minus the return of materials, if any.

If the cost of construction is determined as replacement cost, then there are some peculiarities when determining correctable functional wear and tear. Since in this case there are no “super improvements”, there is no need to determine the share of physical wear and tear that falls on them. However, the cost of fixing “over-improvements” still needs to be considered.

Example 34. Determine the correctable functional wear and tear of an office building if it is known that:

• modern standards require the installation of an air conditioner in a building, the cost of installation of which in an existing building is 150 thousand rubles, and the cost of installation in the same building during its construction is 110 thousand rubles.
• the electrical fittings installed in the building do not meet modern market standards, while the cost of the existing electrical fittings included in the replacement cost is 350 thousand rubles, the physical wear and tear of the existing electrical fittings is 200 thousand rubles, the cost of dismantling the existing electrical fittings is 100 thousand rubles, the cost of returning materials is 10 thousand rubles, the cost of installing new electrical fittings is 190 thousand rubles.
• the building has a warehouse and an analysis of the best and most effective use showed that currently it is advisable to use this area as an office space, while the current replacement cost of the warehouse space is 800 thousand rubles, physical wear and tear is 50 thousand rubles, the cost of liquidation warehouse - 80 thousand rubles.

1. Let’s determine the amount of correctable functional wear caused by deficiencies that require adding elements (in our case, an air conditioner):

Thousand rub.

2. Let’s determine the amount of correctable functional wear caused by deficiencies that require replacement or modernization of elements (in our case, electrical fittings):

Thousand rub.

3. Let’s determine the amount of correctable functional wear caused by “super-improvements” (in our case, items that are functionally inherent in the warehouse):

Thousand rub.

Thus, the cost of correctable functional wear and tear of the building is:

Thousand rub.

Irreparable functional wear is caused by:

• shortcomings due to items not included in the cost of a new one, but which should be;
• shortcomings due to items included in the cost of a new one, but which should not exist;
• "super-improvements."

Incorrigible functional depreciation due to items not included in the cost of new construction is measured as the net loss of income attributable to that deficiency capitalized at the capitalization rate for buildings, minus the cost of those items if they had been included in the cost of new construction.

The calculation of irreparable functional wear and tear due to defects does not depend on whether replacement or replacement costs are taken as a basis.

Irreparable functional wear due to items that are included in the cost of new construction, but which should not exist, is measured as the current cost of the new, minus the attributable physical wear and tear, minus the cost of the added (i.e., the present value of the additional costs associated with the presence of this item).

Irreparable functional wear and tear due to “over-improvement” is determined depending on the type of value that is taken as the basis.

When replacement cost is applied, irreparable functional deterioration due to super improvements is measured as the replacement cost of the super improvements elements minus their physical depreciation, plus the present value (PV) of the owner's costs associated with the presence of the super improvements, minus any added value. At the same time, the owner’s costs include additional taxes, insurance, maintenance costs, utility bills, and the added value includes increased rent, etc. - associated with the presence of a “super-improvement”.

Example 35. Determine irreparable functional wear and tear of an office building if it is known that:

• When determining the cost of new construction for the building in question, the installation of a fire extinguishing system was not taken into account (since the existing building does not have one), and it is assumed that the net loss of income caused by the lack of installation is 20 thousand rubles, the capitalization rate for buildings is 10% , and the cost of installing a fire extinguishing system during the construction of a new building is 150 thousand rubles.
• the appraised building has a high floor height, which from the market point of view on the valuation date is excessive, while the current replacement cost of the existing building is 174,900 thousand rubles, and the current replacement cost of exactly the same building, which has a normal height from the market point of view floor, 172,900 thousand rubles, physical wear and tear is determined at 40%, annually the owner incurs additional costs associated with a high floor height (heating, lighting, etc.) in the amount of 500 thousand rubles, existing capitalization ratio for buildings it is 10%.

1. Let’s determine the amount of irreparable functional wear and tear caused by deficiencies not included in the cost of new construction, but which should be based on market data on income losses caused by the absence of an element or equipment (in our case, a fire extinguishing system)

Thousand rub.

2. Let us determine the value of the incorrigible functional due to “super-improvements” (in our case, a greater floor height):

Thousand rub.

Thus, the cost of irreparable functional wear and tear of a building is:

Thousand rub.

External (economic) wear and tear- depreciation of an object due to the negative influence of the external environment in relation to the object of assessment: the market situation, easements imposed on a certain use of real estate, changes in the surrounding infrastructure and legislative decisions in the field of taxation, etc. External wear and tear of real estate, depending on the reasons that caused it, in most cases cases is irremovable due to the unchanged location, but in some cases it can “eliminate itself” due to a positive change in the surrounding market environment.

The following methods can be used to assess external wear:

• method of capitalizing loss of income attributable to external influences;
• a method for comparing sales of similar objects with and without external influences.

If there is sufficient data, the second approach is more preferable.

Method of capitalization of loss of income involves determining the loss of income of the entire property due to external influences. The building's portion of the loss is then capitalized at the capitalization rate for buildings.

Example 36. Determine the external (economic) wear and tear of the warehouse, if it is known that: net income without taking into account external factors after eliminating correctable physical and functional wear and tear is 25,000 thousand rubles; current net income after eliminating correctable physical and functional wear and tear - 21,000 thousand rubles; land cost - 5,000 thousand rubles, capitalization rate for land - 10%; The capitalization rate for land is 15%.

1. Let’s determine the loss of net income due to external factors:

Thousand rub.

2. Determine the net income related to the building:

Thousand rub.

3. Determine the loss of net income related to the building:

thousand roubles.

Thus, the cost of external (economic) depreciation of the warehouse is:

Thousand rub.

Paired sales method is based on an analysis of available price information on recently sold similar properties (paired sales). It is assumed that the objects of paired sale differ from each other only by the economic depreciation identified and related to the object of assessment.

Example 37. Determine the external (economic) wear and tear of a warehouse located far from the clothing market, if it is known that: the sale price of an analogue object located far from the clothing market is 600 thousand rubles; the sale price of an analogue object located close to the clothing market is 450 thousand rubles; the difference in physical and other differences between analogous objects is 60 thousand rubles.

1. Let’s determine the cost of external (economic) depreciation of the warehouse:

Thousand rub.

The cost approach has a number of advantages and disadvantages.

Advantages of the cost approach:

1. When evaluating new objects, the cost approach is the most reliable.
2. This approach is appropriate or the only possible in the following cases:
   • technical and economic analysis of the cost of new construction;
   • justification for the need to update the existing facility;
   • assessment of special purpose buildings;
   • when assessing objects in “passive” sectors of the market;
   • analysis of land use efficiency;
   • solving problems of object insurance;
   • solving tax problems;
   • when agreeing on the values ​​of a property obtained by other methods.

Disadvantages of the cost approach:

1. Costs are not always equivalent to market value.

2. Attempts to achieve a more accurate assessment result are accompanied by a rapid increase in labor costs.

3. The discrepancy between the costs of purchasing the property being assessed and the costs of new construction of exactly the same property, since during the assessment process accumulated depreciation is subtracted from the cost of construction.

4. The difficulty of calculating the cost of reproduction of old buildings.

5. The difficulty of determining the amount of accumulated wear and tear of old buildings and structures.

6. Separate assessment of the land plot from the buildings.

7. The problematic nature of assessing land plots in Russia.

Literature

1. “On the procedure for assessing state-owned real estate and rights to it.” Order of the Governor of St. Petersburg dated August 1, 1996 No. 113-r.

2. "Unified norms of depreciation charges for the complete restoration of fixed assets in the Russian Federation." Decree of the Government of the Russian Federation