FEDERAL STANDARD
ASSESSMENTS "ASSESSMENT FOR BAIL PURPOSES (FSO No. 9)"

I. General provisions

1. This Federal Valuation Standard has been developed taking into account international valuation standards and federal valuation standards “General concepts of valuation, approaches and requirements for valuation (FSO N 1)”, “Purpose of valuation and types of value (FSO N 2)”, “Requirements for assessment report (FSO N 3)" (hereinafter referred to as FSO N 1, FSO N 2, FSO N 3), other federal assessment standards governing the assessment of certain types of assessment objects, approved by the Ministry of Economic Development of Russia, and determines the requirements for the assessment of the object ( hereinafter also - property) that is the subject of a pledge or is planned to be transferred as security in the form of collateral for alleged or existing monetary obligations (hereinafter - the purposes of the pledge).

2. This Federal Valuation Standard is mandatory for use when evaluating objects of evaluation for collateral purposes, including evaluation for mortgage lending purposes. This Federal Valuation Standard develops, supplements and specifies, when valuing for collateral purposes, the requirements established by FSO No. 1, FSO No. 2, FSO No. 3, and other federal valuation standards governing the valuation of certain types of valuation objects, approved by the Ministry of Economic Development of Russia.

II. Object of assessment

3. For the purposes of this Federal Valuation Standard, the object of valuation means objects of civil rights in respect of which the legislation of the Russian Federation establishes the possibility of their participation in civil circulation and the pledge of which is not prohibited by the current legislation of the Russian Federation.

III. General requirements for conducting an assessment for collateral purposes

4. When concluding an agreement to conduct an assessment for the purposes of a pledge (hereinafter referred to as the agreement), the customer may inform the appraiser about the existing or potential pledgee. If the pledgee has publicly available special requirements for valuation for the purpose of collateral that do not contradict the legislation of the Russian Federation and the requirements of federal valuation standards, the appraiser must inform the customer about the existence of such special requirements.

The appraiser takes into account these special requirements of the mortgagee if this is specified in the appraisal assignment.

5. For the purposes of this Federal Valuation Standard, when determining the value for the purpose of collateral, the market value is determined. If there are appropriate requirements, the assessment task may determine the investment and (or) liquidation value in addition to the market value.

6. When assessing property associated with a common functional purpose (hereinafter referred to as the property complex), it is necessary to analyze the possibility of independent functioning and sale of the property separately from other assets that are part of the property complex.

7. When assessing property that is part of a property complex, based on the assumption that the sale of this property will be carried out as part of the property complex, the value of the valuation object is determined as the part in the cost of the property complex attributable to the property being valued during the sale of the entire property complex. This assumption is specified in the assessment assignment. The cost of specialized property, which for the purposes of this Federal Valuation Standard means property that cannot be sold separately from the entire complex of property of which it is a part, due to its uniqueness due to its specialized nature, purpose, design, configuration, composition, size, location or other properties (hereinafter referred to as specialized property), is determined as part of the cost of the property complex.

8. The assessment report must contain the following additional results to those specified in FSO No. 3:

• the value (value) of the valuation object in accordance with the types of value provided for in paragraph 5 of this Federal Valuation Standard;
• other calculated values, conclusions and recommendations prepared by the appraiser in accordance with the assessment assignment.

Conclusions about the liquidity of the assessment object are necessarily indicated in the report, but are not considered as the result of the assessment.

9. As a characteristic of the liquidity of the valuation object, the report indicates the typical (estimated) period of its market exposure on the open market, during which it can be sold at market value. In the case of valuation of specialized property as part of a complex of property, the liquidity of such property can be determined as the liquidity of the complex of property of which it is an integral part. This assumption is specified in the appraisal assignment and appraisal report.

When determining the liquidity of the object being assessed, the appraiser must justify the conclusions drawn by citing the results of an analysis of significant factors affecting the liquidity of the object.

10. The assessment task must contain the following information, additional to that specified in FSO No. 1, as well as in other federal assessment standards governing the assessment of certain types of assessment objects approved by the Ministry of Economic Development of Russia:

• features of the inspection of the object being assessed or grounds that objectively impede the inspection of the object, if any;
• the procedure and timing for the customer to provide the materials and information necessary for the assessment;
• the need to involve industry experts (specialists with the necessary professional competencies in issues that require analysis when conducting an assessment). If, at the stage of preparing the assessment task, any of the parties to the contract determines (identifies) the need to involve industry experts, then such a condition must be included in the assessment task.

11. In the assessment assignment, the customer or the mortgagee (if he is a party to the agreement), in agreement with the appraiser, may indicate other calculated values ​​additional to the assessment results specified in paragraph 8 of this Federal Valuation Standard, including:

• forecast of changes in the value of the property being assessed in the future;
• the amount of costs required when foreclosure on the property being assessed.
• In this case, the indicated calculated values ​​and conclusions based on the results of additional studies are included in the report, but are not the result of the assessment.

IV. Valuation assumptions for collateral purposes

12. Assumptions used in the assessment must be agreed upon by all parties to the contract.

13. Assumptions used in the assessment regarding the prospects for the development of the subject of assessment must be justified by market data and trends. The use of forecast data from the customer or owner of the valuation object without checking their feasibility and compliance with market data independent of the customer is not allowed.

14. When making forecasts based on several scenarios or analytical data, it is advisable to refrain from using the most optimistic forecasts that lead to maximizing the value of the valued object.

15. All advantages that the owner has in relation to the object of evaluation and the conditions of ownership and use of the object of evaluation, which differ from market conditions, cannot be taken into account when assessing for the purposes of a pledge, unless they remain undisputed when the ownership of the object of evaluation is transferred to another person.

16. All encumbrances and obligations, information about which is in the public domain and (or) presented to the appraiser by the parties to the contract, affecting the value of the property being appraised, must be taken into account when conducting the appraisal. Requirements for taking into account the influence of these factors on the value of the valuation object are specified in the assessment assignment. If encumbrances are identified before signing the contract, the appraiser is obliged to inform the parties to the contract about this, who are indicated in the assessment task. If encumbrances are identified during the assessment process, the appraiser is obliged to indicate the presence of encumbrances in the report and take them into account in the calculations, unless otherwise specified in the assessment assignment.

17. Conducting an assessment of the object being assessed under the assumption of its use other than for its current purpose is subject to mandatory agreement with the parties to the contract and is included in the assessment task. When assessing an object of assessment under the assumption of a change in its current use, all costs necessary for the implementation of alternative use are subject to mandatory accounting.

18. If it is necessary to conduct research for the purpose of collateral during the assessment that requires special knowledge, it is necessary to involve industry experts with such knowledge. The appraiser is obliged to inform the customer about the impossibility of conducting an assessment without the involvement of industry experts. In this case, the need to involve such industry experts is indicated in the assessment assignment.

V. Special requirements for valuation for collateral purposes

19. When determining the liquidation value as a factor in the forced sale of the valuation object and when choosing the exposure period, one should consider the conditions for the sale of the valuation object, corresponding to the procedures for foreclosure on the subject of collateral established by the legislation in force on the date of valuation or stipulated by the contract. Based on the available information about the valuation object, other factors of forced sale and expected assumptions in the period of exposure of the object on the open market can be selected. Such factors and assumptions are subject to justification and must be indicated in the assessment report.

20. When assessing objects proposed for creation or in the process of creation, when determining the market value of objects in their condition as of the date of assessment, in the absence of an assumption of a change in the use of the object, the market value may, in accordance with the terms of the contract, be additionally determined taking into account the assumption of the completion of the object as of the date assessments.

VI. Final provisions

21. In case of discrepancies between the requirements of this Federal Valuation Standard with the requirements of FSO No. 1, FSO No. 2, FSO No. 3 and other federal valuation standards governing the evaluation of certain types of valuation objects approved by the Ministry of Economic Development of Russia, this Federal Standard takes precedence.

Russian legislative practice regulates the use of comparative, cost and income approaches when assessing real estate.

The choice of one approach or another depends on the nature of the property being valued, its market environment, the essence of the typical motivations and actions of potential landlords and tenants, the availability and quality of the necessary initial information.

To form the market value of a property, it is necessary to complete the following stages of work:

1. carry out an analysis of the commercial real estate market;

2. form an opinion about the advantages and disadvantages of the location of the assessment object;

3. analyze the best and most effective use (as part of the assessment of real estate for collateral purposes, this analysis is used in certain situations, but in most cases is not required, since it is assumed that the object will be pledged based on its current use);

4. choose approaches to assessment;

5. perform calculations within the selected approaches;

6. form a final conclusion about the cost.

Let us dwell on the main points that must be taken into account within each of the above stages when assessing real estate for collateral purposes.

Market analysis

High-quality market analysis largely determines the reliability of the final assessment result.

Market analysis is closely linked to liquidity analysis. For example, when assessing a production facility, it is necessary to analyze the demand for production premises (demanded areas, design and condition), as well as an analysis of the supply of similar facilities.

It should be noted that when assessing for the purpose of collateral, liquidity is an important characteristic of the collateral and in many cases allows us to judge how quickly the loan debt can be repaid by exercising the rights of the mortgagee to the collateral. Correctly forming a conclusion about the degree of liquidity of a real estate object allows you to obtain an informed opinion about its value and make a decision on the amount of the collateral discount.

Significant factors affecting the liquidity of real estate are: location, physical characteristics of the object (wear and tear, condition of utilities), size of the object, state of the real estate market in a given region and locality. It should be noted that compliance with these factors will, to a greater or lesser extent, determine the assignment of an object to a particular class.

As indicators of liquidity, the average exposure time in a specific locality is used for objects of the same market segment as the one being considered and similar in basic characteristics.

The following gradation of property liquidity is proposed depending on the timing of sale:

The main tasks within the framework of market analysis are:

· forming an objective opinion about which transactions are represented to a greater extent for objects similar to the one being valued (lease transactions or purchase and sale transactions);

· identification of analogues for calculating the rental rate (with the income approach) and for the comparative approach;

· identification of the ratio between rental rates of various types of objects (rental rate for retail space in relation to the rental rate for office space, etc.).

When generating a Report on the assessment of a commercial real estate property for the purpose of collateral, the text part of this section of the Report must contain the following information:

1. a brief description of the segments of the city’s commercial real estate market;

2. characteristics of the local market segment (average rental rates and sales prices per 1 sq.m. as of the current date, growth dynamics compared to last year, average market level of underutilization, average level of operating costs for similar facilities (in absolute or relative terms);

3. the presence of investment projects in the city related to the construction or reconstruction of objects of this type (description, characteristics, developer, total investment costs, current condition).

Description of the location of the assessment object

Location is one of the key parameters that determines the possible profitability of an object. Incorrect determination of this parameter may lead to the formation of an unreliable value of the property being valued.

The main factors that need to be taken into account when describing the location of the property being assessed are:

For an office property - location in the “business” district of the city (more liquid property) or vice versa, location in the depths of an industrial site (possible difficulties with implementation), availability of convenient transport accessibility, etc.;

for a retail property - location in a retail corridor (or, conversely, deep in a “dead-end” street), traffic intensity, popularity of the place, etc.;

for a warehouse property - transport accessibility, availability of infrastructure (railway line, etc.), availability of all necessary communications in sufficient quantities (electricity, gas, water, etc.).

When describing the location of the assessment object, it is quite clear to present graphical information, on the basis of which you can understand where the assessment object is located,

The source of this information can be electronic and paper maps of the city. Let us give an example of a graphic image and a brief text description of the location of the assessment object.

Best and Best Use Analysis

Since the appraisal activity involves determining the market value, the analysis of the most effective use identifies the most profitable and competitive use of a particular property.

Analysis of the most effective use of a property involves conducting a detailed study of the market situation, the characteristics of the property being valued, identifying options in demand by the market that are compatible with the parameters of the property being valued, calculating the profitability of each option and estimating the value of the property for each use option. Thus, the final conclusion about the most effective use can only be made after calculating the cost.

The best and most efficient use of a property is the use of a vacant or developed plot of land that is legally possible and properly designed, physically feasible, provided with appropriate financial resources and provides maximum value.

The optimal use of a piece of land is determined by the competing factors of the particular market to which the property being valued belongs, and is not the result of the subjective speculation of the owner, developer or appraiser. Therefore, the analysis and selection of the most effective use is, in fact, an economic study of market factors that are significant for the object being valued.

In most cases, a best and best use analysis is not required to evaluate for collateral purposes. When assessing for collateral purposes, this analysis is carried out only in the event of a clear inconsistency between the property being assessed and its existing use. In this case, an assessment taking into account a change in the intended purpose of the object should be carried out if such a purpose has already been determined and explicitly. (http://www.audit-it.ru/articles/appraisal/a109/188103.html).

In accordance with Federal Valuation Standard No. 1, approved by Vympelz of the Ministry of Economic Development of Russia dated July 20, 2007 No. 256, the procedure for assessing market value is carried out using three approaches:

Income approach (capitalization or income discounting approach to real estate valuation);

Cost-based approach;

Comparative approach (market approach to real estate valuation).

Before calculating the value of the valuation object for each of the approaches, the applicability of the approaches to valuation is justified.

The choice of one or another approach, as well as the method in each of the approaches, is made based on the specifics of the object being assessed, the characteristics of a particular market and the composition of the information contained in the collected information. Evaluation approaches, as a rule, are interrelated and complementary.

Cost-based approach to real estate valuation for collateral purposes

The cost approach is a set of methods for estimating the value of an appraised object, based on determining the costs necessary to restore or replace the appraised object, taking into account its wear and tear.

This approach when assessing for collateral purposes is, as a rule, used quite rarely. However, in some cases, for example, in the absence of a sufficiently developed market and information about it, a cost-based approach may be the only one.

The use of the cost approach can definitely be abandoned when valuing objects for which a sufficiently large amount of market information can be found, as well as when valuing fairly “aged” objects. Valuation using the cost approach in this case does not form a sufficiently reliable opinion about the possible selling price of such an object on the market.

When assessing relatively new properties, an estimate can be used as a fairly good guide in the absence of the proper amount of market information, but it is necessary to carefully analyze the calculation provided by the owner (it may differ significantly from the average market indicators).

The logic for performing work within the cost approach involves performing the following actions:

assessment of the replacement cost of the appraised building (or replacement cost);

assessment of the amount of business profit (investor profit);

calculation of identified types of wear;

assessment of the market value of the land plot;

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.

This logic can be described in the form of the following formula, which allows us to obtain a conclusion about the value of a commercial real estate object:

Object cost = Sun * (I -- I) + Earth, where

ВС - replacement cost of the valuation object (or replacement cost) taking into account the profit of the entrepreneur;

I is the amount of identified wear of the object;

Szem. -- the value of property rights to a land plot.

Replacement cost assessment

Replacement cost (RC) is the cost of construction of the property being assessed as new, calculated in current prices, without taking into account wear and tear, and correlated. by the date of assessment.

Replacement cost can be calculated based on reproduction cost or replacement cost.

The cost of reproduction is understood as the cost of construction in current prices on the actual date of valuation of an exact copy of the building being valued, p. using the same building materials, standards and design.

Replacement cost is determined by construction costs at current prices on the actual date of assessment of an object of equal utility using modern materials, standards, designs and architectural solutions.

As can be seen from the above definitions, the calculation of replacement cost is more preferable, since in the second case the costs of constructing a building that differs from the one assessed by characteristics are calculated, while the assessment of the difference in the utility of the compared buildings is very subjective.

On the other hand, the choice of calculating replacement cost may also be justified if the building being assessed has a number of signs of functional wear and tear, which cannot but reduce its commercial attractiveness for a potential buyer.

In general, the choice between the cost of “reproduction” and the cost of “replacement” depends on many factors: the purpose of the assessment, the quantity and quality of information collected about the object of assessment, its physical characteristics, etc.

Sources of information for calculating the cost of “reproduction” or cost of “replacement”:

estimate calculations (local estimates, object estimates, consolidated estimate calculations);

UPVS collections (collections of aggregated indicators of the replacement cost of buildings and structures for the revaluation of fixed assets by sectors of the national economy) UPSS collections (costs are given in 1969 prices):

collections produced by the Co-Invest company (industrial, residential, public buildings, etc.) (cost in 2009,2010 prices);

Construction cost indices (Gosstroy decrees, Co-Invest collections), etc.

In valuation practice, the following methods are used to determine the full replacement cost:

1) Comparative unit method,

2) Method of breakdown by components,

3) Quantitative survey method.

The choice of method is determined by the purpose of the assessment and the required calculation accuracy.

Comparative unit method is based on the use of the cost of construction of a comparative unit (1 square meter, 1 cubic meter) of a similar building. The cost of a comparative unit of an analogue requires adjustment to the identified differences between it and the object being evaluated (physical parameters, availability of easily installed equipment, financing conditions, etc.).

The full replacement cost of the assessed object is determined by multiplying the adjusted cost of a comparison unit by the number of comparison units (area, cubic capacity). To determine the amount of costs, various reference and regulatory materials are usually used, for example, “Aggregated indicators of construction costs”, “Aggregated indicators of the cost of replacement cost.”

The following formula is used for calculation:

Sn= S.s. H So H TO 1 H TO 2 H TO 3 H TO 4 H TO 5,

Where: Sn-- the cost of the object being assessed;

S.s.-- cost of 1 sq. or cubic meter of a typical structure on the base date;

So-- number of comparison units (area or volume of the object being assessed)

TO 1 -- coefficient taking into account the identified differences between the assessed object and the selected typical structure in area, volume, and other physical parameters;

TO 2 -- correction factor for the location of the object;

TO 3 -- coefficient of change in the cost of construction and installation work in the period between the base date and the date at the time of assessment;

TO 4 -- coefficient taking into account the developer's profit;

TO 5 -- coefficient taking into account VAT (%).

This method is based on the cost of a comparison unit of a typical object or analogue, when choosing which it is necessary to observe the similarity of the functional purpose, physical characteristics, class of structural systems, date of commissioning of the object and other characteristics.

The comparative unit method estimates the value of an item at replacement cost. This is due to the fact that the cost of a comparative unit used in the calculations, as a rule, represents not an identical object, but a close analogue.

Component breakdown method based on the use of qualitatively different information. Individual construction components of a building: foundation, walls, floors, etc. - are assessed according to cost indicators, including direct and indirect costs necessary for the construction of a unit of volume of a specific component. The cost of the entire building is calculated as the sum of the costs of all components using the formula:

where Szd. - cost of construction of the building as a whole;

Vj-- volume j- th component;

Cj-- cost per unit of volume;

N-- number of allocated building components;

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

Ki is a coefficient that takes into account total wear and tear.

The component breakdown method has several varieties:

Subcontracting method;

Breakdown by work profile;

Allocation of costs.

Subcontracting method is based on the use of information on the cost of work performed under subcontracts concluded by the general contractor with specialized construction organizations - subcontractors. The full replacement cost is calculated as the sum of the costs of all subcontracted construction and installation work.

Profile method involves assessing the full replacement cost as the sum of the costs of hiring individual construction specialists (masons, plasterers, carpenters, etc.)

Dedicated Cost Method involves the systematic use of units of comparison to evaluate various components of buildings, after which the results of individual assessments are summarized.

Quantitative survey method involves the creation of a new estimate for the valued object in prices as of the valuation date. For these purposes, a detailed quantitative and cost analysis is carried out, as well as cost calculations for construction and installation work of individual components and the building as a whole. The calculation takes into account direct costs, overhead costs and other costs that represent the full estimate for the construction of the assessed facility.

The quantitative survey method gives the most accurate result of the total replacement cost, but is the most labor-intensive and requires the appraiser to have practical knowledge in the field of design and estimate business.

Estimates of the value of entrepreneurial profit (investor profit)

The profit of an entrepreneur (investor) is the reward that a typical investor (builder, developer) requires for the risk associated with the construction of a project similar in structure to the property being valued.

In fact, this value reflects the average investor’s profit that the implementation of a project can bring, including the costs of management and organization of construction, general supervision and construction-related risk. As a rule, when forming this indicator, they do not pay attention to the stage of the life cycle at which the segment of the commercial real estate market is located, which includes the object being assessed, to the dependence of its value on the volume and timing of construction, on whether the functions of the investor (customer) and the builder are separated (contractor), from other factors. Accordingly, when considering the Report, it is important to clearly identify the range of profit of the entrepreneur (investor) and establish the range of the current average market value.

It should be noted that the amount of profit of an entrepreneur, depending on the degree of development of the real estate market and the life cycle in which a given segment of the commercial real estate market is located, can vary within a significant range. For example, in the commercial real estate market of Moscow in 2005, but according to the largest analytical agencies, the profit of an entrepreneur in the retail real estate segment ranged from 25 to 40%; in 2006 and 2007, a decrease and stabilization of this indicator was observed . In practice, it is difficult to obtain market data on profits, since they are most often a trade secret.

Calculation of identified types of wear

Wear and tear is characterized by a decrease in the usefulness of the property and its consumer attractiveness from the point of view of a potential investor.

As a rule, depreciation is expressed in the decrease in value (depreciation) of an object over a certain period due to the influence of various factors.

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

Physical deterioration. Reflects changes in the physical properties of a property over time (for example, defects in structural elements). Physical wear is of two types: the first occurs under the influence of operational factors, the second - under the influence of natural and natural factors.

There are four main methods for calculating the physical depreciation of buildings: expert, cost, regulatory (or accounting) and the method of calculating the life of the building.

The percentage of physical deterioration of an object assessed by an expert method is determined on the basis of the Rules for assessing the physical deterioration of residential buildings. The service life of buildings as a whole depends on the durability of its components. The physical wear and tear of building elements is calculated as the product of the specific weight of a structural element of the building and the percentage of wear of this element, divided by 100. The physical wear and tear of the entire building is determined as the weighted average of all elements of the building. The expert method of determining physical deterioration is usually used when inventorying real estate.

There is removable and irreparable physical wear and tear. Removable physical wear assumes that the costs of current repairs are less than the added value of the facility. Unrecoverable physical wear and tear is considered when the cost of correcting the defect exceeds the cost that will be added to the object. All building elements are divided into two categories: long-term (foundations, walls, ceilings, etc.) and wear-and-tear (roofing, decorative trim, painting, etc., i.e. those elements that can be repaired (restored) during ongoing repairs) .

The cost method involves determining the costs of reproduction of building elements. Through inspection, the percentage of wear and tear of each element of the building is determined, which is then translated into value terms. A more accurate, adjusted cost estimate of physical depreciation is obtained when the percentage of depreciation is determined as a weighted average.

The standard (or accounting) method for determining the physical deterioration of buildings involves the use of Unified depreciation rates for the complete restoration of fixed assets.

When using the building life calculation method, a number of terms are used.

Economic life is the time during which an object can be used for profit. During this period, improvements contribute to the value of the property; The economic life of a property ends when improvements made do not contribute to the value of the property due to its general obsolescence.

The physical life of an object is the period during which the building exists and can be lived or worked in. The physical life span ends when the object is demolished.

Effective age is based on an assessment of the appearance, technical condition, and economic factors affecting the value of the object.

Chronological age is the period that has passed from the date the object was put into operation to the date of assessment.

The remaining economic life of the building is the period from the date of valuation to the end of the economic life of the property. Renovating and upgrading a property increases its remaining economic life.

Standard service life (or typical physical life) is the service life of buildings and structures determined by regulations.

Functional wear and tear of the object. Functional obsolescence is when an object does not meet modern standards in terms of its functional usefulness. Functional obsolescence can manifest itself in the outdated architecture of a building, in the convenience of its layout, volume, engineering support, etc. Functional obsolescence is due to the influence of scientific and technological progress in the field of architecture and construction. Functional wear and tear in domestic practice is called obsolescence.

Functional wear, like physical wear, can be removable or irreparable. Removable functional wear can include the restoration of built-in cabinets, water and gas meters, plumbing equipment, flooring, etc. The criterion for whether wear is removable or not is a comparison of the amount of repair costs with the amount of additional value received. If the additional value obtained exceeds the cost of restoration, then functional wear is removable. The amount of removable wear and tear is determined as the difference between the potential value of the building at the time of its assessment with updated elements and its value at the date of assessment without updated elements.

Irremovable functional wear and tear refers to a decrease in the value of a building due to factors related to the quality characteristics of the building. Moreover, there can be either an excess or a lack of quality characteristics. For example, in the rental market, two-room apartments are in greater demand compared to one-room apartments. The amount of this type of depreciation is calculated as the amount of losses from rent when renting out these apartments, multiplied by the multiplier of the gross monthly rent typical for this type of apartment. Thus, the amount of irreparable functional wear and tear is determined by capitalizing rental losses.

External (economic) wear and tear- this is a decrease in the value of a building due to a negative change in its external environment, caused either by economic or political factors, or other external factors. The reasons for external wear and tear may be, for example, the general decline of the area in which the object is located, actions of the government or local administration in the field of taxation, insurance and other changes in the market for employment, recreation, education, etc. Significant factors influencing the amount of external wear are the immediate proximity to “unattractive” natural or artificial objects: swamps, wastewater treatment plants, restaurants, dance floors, gas stations, railway stations, hospitals, schools, enterprises, etc. Wear from external influences in most cases irremovable.

Assessment of the market value of a land plot

Valuation of a land plot, as a rule, is a rather complex and time-consuming task.

Let's consider the main points that need to be paid attention to when assessing the market value of developed land plots as part of a single real estate property, which is most often found in “collateral” situations.

When analyzing a land lease agreement, you need to pay attention to:

· contract time;

· the presence of encumbrances and easements, which must be further analyzed to take into account encumbrances when calculating the market value of the property.

When analyzing the Cadastral Plan, you need to pay attention to:

Boundaries of the land plot;

There are no direct restrictions on the possibility of additional development.

The Valuation Report must record the category of land specified in the certificate of ownership or cadastral plan of the site attached to the lease agreement.

When determining the assessed right to a land plot, the following types of rights may exist:

ownership;

right of perpetual use;

right to lease (long-term, short-term).

Choosing a method and method for calculating the market value of a land plot

The main methods for valuing land plots are given in the “Methodological recommendations for determining the market value of land plots”, approved by Order of the Ministry of Property of Russia dated March 6, 2002 No. 568-r.

It should be noted that before starting to calculate the cost of a land plot, one should form a conclusion about the “development density coefficient” and an opinion about the “adequacy” of the land plot for the full functioning of the facility.

When forming a conclusion, it is necessary to identify the ratio of the area of ​​the land plot and the building area. The source of information about the building area can be a certificate from the Owner, or data from Technical Data Sheets. BTI of buildings located on this land plot.

In this situation, the question arises of how to allocate the necessary adjacent territory. To form an informed opinion about the “adequacy” of a land plot, you can “start” from existing SNIPs (if they remain relevant in relation to modern objects) or from the requirements of professional developers implementing investment projects related to commercial development.

Comparative approach to real estate valuation for collateral purposes

The comparative approach is one of the most commonly used approaches when assessing real estate for collateral purposes.

This valuation approach is based on the principle of substitution. It is based on the assumption that a prudent buyer will not pay more for an object put up for sale than that for which one of similar quality and suitability can be purchased. The comparative approach is based on the dependence of the value of the valued object on the sale price of similar objects. Each comparable sale is compared to the subject property. Adjustments are made to the comparable sales price to reflect significant differences between them.

The comparative approach involves several steps.

1st stage. The state and development trends of the market and especially the segment to which the assessed object belongs are studied. Objects that are most comparable to what is being assessed are identified.

2nd stage. Information on analogue objects is collected and verified; the collected information is analyzed and each analogue object is compared with the object being evaluated.

3rd stage. Based on the identified differences in the pricing characteristics of the compared objects, adjustments are made to the sales prices of comparable analogues.

4th stage. The adjusted prices of analogous objects are agreed upon and the final value of the market value of the assessed object is derived based on a comparative approach.

The main advantage of the comparative approach is that it focuses on the actually achieved purchase and sale prices of similar objects.

In general, the possibility of applying the comparative approach depends on the presence of an active market, since the approach involves the use of data on actual transactions, as well as on the openness of the market and the availability of financial information.

The question of the correctness of using the comparative approach in the absence of market transactions is quite complex. As a rule, this situation can be observed in small settlements where the market is poorly developed and available sources of information do not contain information on purchase and sale transactions of comparable objects.

In this case, the following algorithm can be used as an acceptable solution:

“similar” cities located in the same region, region, etc. are identified. (comparability criteria may include the number and level of income of the population, the presence of a developed housing market, location in relation to a “key” transport route, etc.);

search for data on comparable transactions:

calculations are carried out and, if necessary, appropriate adjustments are made.

It is important to note that this approach should be used with a fair degree of caution. This method can be used as an auxiliary approach to understand whether the value of an object obtained within the framework of other approaches (income and cost) is in a comparable range or not.

When applying this approach, it is important to avoid the mistake of incorrectly identifying the degree of liquidity of the valuation object and, as a consequence, valuing a completely illiquid object with the subsequent passing off of a “desirable” result as a “real” one.

The main stages of real estate valuation using a comparative approach:

selection of analogues and collection of information on analogues;

choice of comparison unit;

making adjustments for identified differences in the pricing characteristics of the compared objects;

formation of the final cost value.

Let's consider the main points that need to be paid attention to within each stage.

The selection of analogues and the collection of information on analogues is the first and, in fact, the key stage in using the comparative approach.

To select analogues, the following basic elements of comparison can be used:

Functional purpose;

location;

Physical characteristics (size, condition of the object, etc.).

Functional purpose is one of the key elements of comparison. The biggest mistake can be choosing objects of a completely different functional purpose as analogues.

It is necessary to approach the selection of analogues with great care if the object is potentially subject to demolition or reconstruction. When choosing analogues, it is important to understand what underlies the buyer’s motivation. As a rule, in such a situation, the motivation may primarily be the acquisition of rights to construct a new facility. Accordingly, as analogues, it is advisable to focus on objects subject to demolition with a comparable location and pay attention to the possible permitted use of rights to a land plot.

Sources of information for creating a list, analogues and obtaining the information necessary for the assessment are:

Preliminary data obtained as a result of an Internet search;

Data provided by analytical agencies and real estate companies;

Own databases maintained by the appraisal company.

A fairly typical situation is when information is used that does not contain all the necessary data that allows one to form a conclusion that the choice of analogues was made correctly.

In case of incomplete information about the values ​​of the main pricing factors of objects offered as analogues, an external inspection of these objects is necessary. Of course, the application of photographs of analogues and drawing analogue objects on a city map along with the object of assessment will provide even more complete visual information.

After selecting analogues and collecting information, you should comparison unit selection stage.

The most commonly used units of comparison can be:

1 sq.m. total area;

1 sq.m. usable or rentable area.

It is necessary to note the importance of correctly choosing a unit of comparison and determining the cost characteristics of this parameter.

After choosing the units of comparison, adjustments are made.

In the theory of real estate valuation, the following types of amendments are distinguished:

Interest (for example, adjustments for location, wear and tear, time of sale, etc.);

Cost (for example, corrections for qualitative characteristics, as well as corrections calculated by statistical methods). Monetary adjustments made to the price of a sold analogue object as a whole should include adjustments for the presence or absence of additional improvements (warehouse extensions, parking lots, etc.);

Absolute

Relative.

Let us dwell in more detail on the main points that must be taken into account when forming amendments.

There are ten basic comparison elements (which are actually adjustments) that must be taken into account in the sales comparison method:

1. transferred property rights;

2. financing conditions (in Russian practice it is used quite rarely);

3. terms of sale;

expenses incurred immediately after purchase;

market conditions;

location;

physical characteristics (size, quality of building materials, condition of the building);

economic characteristics (operating costs, terms of the lease agreement, administrative expenses, composition of tenants, etc.);

type of use;

10. components of value that are not part of the real estate.

In fact, the above comparison elements are criteria for selecting analogues. How. The more accurately the analog corresponds to the specified characteristics of the object of evaluation, the fewer amendments will be made and the more reliable the result will be obtained.

Let's take a closer look at each of these elements.

Transferable property rights. The transaction price depends on the transferred property rights. A fairly typical situation is when there are valid lease agreements for the areas of the property being assessed. In this case, when determining the value of an object, amendments should reflect the differences between the income potential of the valued object and its analogue.

Financing terms. The presence of a borrowed source of financing can also affect the value of the property. To calculate the amendment, it is necessary to have complete information about the financing scheme adopted in a particular case. Based on the conditions prevailing on the Russian market, this adjustment is used quite rarely.

Terms of sale and time of sale. The adjustment to the terms of sale reflects the motivation of the buyer or seller (for example, a transaction between related persons, etc.). Exposure period - the time during which an object is on the market, differs for different market segments and depends to a large extent on the quality of the objects. If an object was sold over a period of time much shorter than the standard exhibition period, this indicates an undervalued price. If an object has been on the market significantly longer than the standard exposure period, the price is inflated. In both cases, the transaction is not typical for the market segment and should not be considered comparable.

Expenses incurred immediately after purchase. These expenses include the costs that the buyer incurs immediately after purchasing the object and which are actually taken into account when determining the cost of the transaction, for example, the costs of demolition or dismantling of one of the objects at the production site, re-registration of land relations, etc.

Location. This amendment is necessary if the location characteristics of the assessed and comparable objects differ.

physical characteristics(size, quality of building materials, condition of the building). Physical differences include: size, quality of construction, age and condition, functional utility, lot size, curb appeal, etc.

Economic characteristics. Attributes of an object that affect its income. For example, operating costs, quality of administration, terms of the lease agreement, etc.

Components of value not included in real estate. These may include movable property, the cost of which was included in the structure of the transaction (equipment, household appliances, furniture, inventory, etc.)

When conducting an assessment, it is necessary to make adjustments for components that are not part of the property being assessed.

Based on the purpose of the object, the list of amendments can be specified taking into account the specifics of a commercial real estate object of a certain type.

For example, when assessing an office property, the main amendments may be:

Property law;

Physical characteristics (condition of the object, ratio of usable and total area (%), ratio of parking spaces to rentable area, etc.);

Economic characteristics (load level, cost level, etc.).

When assessing a real estate property for warehouse purposes, the main amendments may be:

Property law;

Location;

Availability of the necessary infrastructure (railway line, road, convenient, access, etc.);

Physical characteristics (condition of the facility, ratio of administrative and warehouse space (%), height, presence of heating, presence of all necessary communications and free capacity, etc.);

Economic characteristics (utilization level, cost level).

When using a comparative approach, it is necessary to pay attention to the following aspects:

Analogues and the object of evaluation must belong to the same real estate market, market segment and have comparable location, technical condition and area;

When making calculations, it is necessary to indicate references to the sources from which information about analogues of the valuation object was obtained. In case of incomplete information about the values ​​of the main pricing characteristics of objects offered as analogues, an external inspection of these objects is necessary;

Adjustments must correspond to the real differences between the object of assessment and analogues; it is unacceptable to make several adjustments that eliminate the same difference between the object and the analogue (for example, adjustments for the year of construction, the technical condition of the building and the level of repairs performed);

The cost values ​​obtained using the comparative approach must be within the cost range identified during the market analysis.

Income approach to real estate valuation for collateral purposes

The income approach is a set of methods for assessing the value of the valuation object, based on determining the expected income from the valuation object.

The application of the income approach is based on the concept of present value: the value of any asset is the present value of the expected future cash flows from the asset, discounted at a rate corresponding to the degree of risk of investing in this asset.

When assessing real estate from the perspective of the income approach, income is the main factor determining the value of the property. The greater the income generated by the object, the greater the value of its value, all other things being equal. In this case, the duration of the period of obtaining possible income, the degree and type of risks accompanying this process are important.

The income approach is often used to evaluate real estate that could potentially be rented or leased.

Using the income approach as part of the valuation of highly specialized real estate (for example, a steel smelting shop) requires careful consideration of the choice of valuation approach.

In practice, either the discounted cash flow method or the capitalization method is used. Below are the main points that you need to pay attention to within each of these methods.

Discounted Cash Flow Method

The discounted cash flow (DCF) method is used when valuing a property in case of unstable income streams from its operation.

Its use is advisable in the following cases:

The property is under construction or has just been built and is being put (or put) into operation;

It is assumed that future cash flows will differ significantly from current ones due to reconstruction, renovation, redevelopment, etc. object;

Income and expense flows are seasonal;

The property being assessed is a large multi-functional commercial property.

The discounted cash flow method estimates the value of a property based on the present value of the income, consisting of projected cash flows and residual value.

To apply the DCF method, the following data is required:

1. duration of the forecast period;

2. forecast values ​​of cash flows, including residual value (reversion) - proceeds from the sale of the property at the end of the ownership period;

3. discount rate.

Determining the forecast period depends on the amount of information sufficient for long-term forecasts. The calculation period can be a month, quarter, year, etc. The calculation horizon can range from 3 to 5 years, or be equal to the number of periods required for the object to reach a sustainable income level.

When determining the forecast period, it is important to understand how long the life of the property being assessed can last based on its current condition and the year of commissioning.

Understanding this allows you to correctly determine the duration of the forecast period and choose an approach to determining the value of an object at the end of the post-forecast (residual) period.

In fact, the forecast period cannot be longer than the life of the asset.

The next stage is to determine cash flows during the forecast period and determine the value of the object at its end.

With cash flow, several levels of income from the object are calculated (for each forecast year):

1. potential gross income (PVI);

2. actual gross income (DVD);

3. net operating income (NOI);

4. cash flow before taxes (BCF);

5. cash flow after taxes (AFPT).

Two quantities are most often used as the discounted income level:

CHOD - if you need to estimate the cost of the object as a whole, the cost of all invested capital without regard to its sources;

DPDN - if you need to estimate the value of equity capital invested by the owner.

DPDN and CHOD - differ in the amount of debt servicing costs (mortgage loan).

Potential gross income. When forming the VDP, it is necessary to pay attention to the following main parameters involved in calculating the cost of the object:

Correct accounting of the area of ​​the object, taken as a calculated value;

Correct determination of the rental rate based on the selected area of ​​the property;

Checking for the inclusion of utility costs in rental rates by analogues (taking into account utility costs, excluding utility costs) and checking for the presence of an encumbrance in the form of a long-term lease agreement.

Types of facility areas:

gross measured area -- includes the entire internal area of ​​all floors of the building;

Gross Rentable Area - The gross measured area of ​​a building minus major vertical openings (such as elevator shafts, ventilation, staircases);

the common area of ​​the building, or the public area of ​​the building (Building Common Area), is the area of ​​the building intended for common use by all tenants of the building, but not included in the office areas and retail areas (the main hall of the building, fire corridors of the first floor, etc. .);

usable area is the rentable area of ​​the building, excluding common areas on floors and all common areas of the building.

Lost rentinclude losses from non-payment and underloading, which are taken into account as actual values ​​based on the Client’s data and medium-term values.

If underloading is detected, it is necessary to analyze the reasons for this. An essential point is the objective impossibility of loading an object, for example, by 75% (at the current loading level of 25%), due to its specific characteristics. Underestimation or incorrect consideration of this factor can lead to an overestimation of the cost of the object.

Operating expenses

It should be noted that the sources may use different principles for the formation of operating expenses.

To determine the amount of operating expenses, the appraiser can use both the average market indicator (range of indicator values) of such expenses (specific absolute per unit of measurement of the valuation object or relative to the value of the object’s income) for the market segment to which the valuation object belongs, as well as element-by-element analysis of operating expenses for object of assessment.

Operating expenses per 1 sq.m of an object, as a rule, correspond to the market average, otherwise it is necessary to analyze due to what factors there is a deviation from the average market level and what reasons this deviation is caused by.

Operating expenses - periodic expenses to ensure the normal functioning of the property and the reproduction of actual gross income - can be classified into one of three groups:

fixed costs;

variable expenses:

replacement costs.

Fixed expenses include expenses that do not depend on the occupancy rate of the facility. For example, tax payments (property tax, tax or payments for land, etc.).

Variables include costs associated with the intensity of use of the facility and the level of services provided:

management costs;

expenses for concluding lease agreements;

wages for service personnel;

Communal expenses;

cleaning costs;

operating and repair costs;

expenses for maintaining the territory and parking lot;

security costs, etc.

Quite often we come across the concept of operating costs, which mean:

costs associated with maintaining the normal functioning of building structures;

costs associated with maintaining the design functioning of engineering systems, taking into account the replacement of failing equipment;

expenses for security of the building and premises, fencing of the building and surrounding areas, snow removal and roof cleaning, window cleaning;

utility costs, etc.

When determining the amount of operating expenses, one should “start” from their average market value (the share of the internal income or internal income can be used as a reference value).

A typical situation is when the owner declares the amount of expenses to be significantly less than the market average. In this case, the appraiser must conduct a detailed analysis to identify the reason for the cost reduction.

For example, if the owner built his own boiler room and thereby achieved a significant reduction in costs, then this must be emphasized in the Report and all necessary calculations must be carried out correctly, taking this fact into account.

In addition, if such a fact is identified, it is necessary to consider in more detail the issue related to the formation of the collateral mass (for example, it may be advisable to additionally collateral the boiler room, including equipment).

A separate question is whether or not to include utility bills in the total amount. It should be noted that there is no clear opinion on this issue, while different regional markets have developed their own practices when concluding lease agreements. However, it is necessary to pay attention to the existence of judicial practice on the issue of including utilities related to the operation of the property in the rent.

In accordance with the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation “Review of the practice of resolving disputes related to rent” dated January 11, 2002, Vol. No. 66: “the rent does not include payments for the use of utilities in connection with the operation of the property.” It is assumed that utility, operating and administrative expenses will be reimbursed under a separate service agreement. Rent is a payment directly to the owner of the property for benefiting from the useful properties of the thing (real estate). Utility and other listed payments are the costs of maintaining the leased property, which can be assigned by the lease agreement to both the tenant and the lessor (clause 2 of Article 616 of the Civil Code of the Russian Federation).

Actual Gross Income-- this is potential gross income minus losses from idle space that could not be leased and rent arrears, plus other income from the normal market use of the property (for example, income from paid parking lots or garages).

DVD = PVD -- Losses + Other expenses

The actual gross income should reflect the real situation in terms of the current level of workload of the facility.

Replacement costs include the periodic replacement of wearing parts of a structure. These components include:

Roofing, flooring, and other building elements with a short service life:

Sanitary and electrical fittings and devices;

mechanical equipment;

pedestrian paths, access roads, etc.;

expenses for cosmetic repairs of rented premises before a new tenant moves in, if the repairs are paid by the owner.

When assessing market value, replacement costs are taken into account whether they actually occur during the holding period or not.

It should be noted that the “older” the year of commissioning of the property, the more significant the amount of replacement costs should be included in the calculations.

Net operating income - Actual gross income less operating expenses (OR) for the year (excluding depreciation and amortization).

When checking the correctness of the obtained result, it is sometimes useful to use the average value of the share of Net operating income in Potential gross income based on the type of object (offices, retail, warehouses) and its technical condition (year of construction, major repairs, etc.).

The obtained value for the valued object allows one to come to a conclusion about the degree of “adequacy” of the formed value of the market value of the object.

Calculation of return on capital (discount rates)

The calculation can be performed using the cumulative construction method and the market extraction method.

Calculation of the return on capital (reversion) at the end of the forecast period

Determining the value of an object at the end of the forecast period presupposes an understanding of what will happen to the object next.

In most cases, a sustainable growth model is used:

Reversion;

Net operating income in the first post-forecast period;

rate of return on capital;

Stable rate of income growth.

An approach that can also be used is to predict the most likely sales price at the end of the forecast period based on the existing and (or) market expected sales prices for similar real estate by the end of the forecast period.

Taking into account this point becomes of fundamental importance if the object of assessment is sufficiently worn out and at the end of the forecast period, based on the existing and (or) expected by the market, by the end of the forecast period it may cease to exist. Obviously, in this case, the use of sustainable growth is advisable.

Calculation of the market value of a property by summing the current values ​​of flows during the forecast period and the current value of the post-forecast value

To form a correct opinion about the current value of cash flows, it is advisable to use discount factors for the middle of the period

The final value of a property within the framework of the income approach is the sum of the current values ​​of cash flows of the forecast and post-forecast periods.

Income capitalization method

The capitalization method is a special case of the discounted cash flow method.

The income capitalization method is used if:

· income streams are stable over a long period and are positive;

· income streams are growing at a steady pace.

The result obtained by this method is the value of the entire property, consisting of the cost of buildings, structures and the cost of land.

The value of the property is determined by dividing the net operating income by the capitalization ratio.

The income capitalization method involves performing the following actions:

determining expected net operating income;

calculation of capitalization ratio;

determining the value of a property by dividing the NPV by the capitalization ratio.

The main points that need to be paid attention to when calculating net operating income were indicated above (when considering the discounted cash flow method). Let's take a closer look at calculating the capitalization ratio.

Capitalization rate consists of two parts:

1. discount rate (rate of return on investment), which is the compensation that must be paid to the investor for the use of funds, taking into account the risk factor and other factors associated with specific investments;

2. capital standards, i.e. repayment of the initial investment. Moreover, this element of the capitalization ratio applies only to the depreciable part of assets (i.e., to buildings and structures, but not to land, which is not subject to depreciation).

The rate of return on capital is constructed using the cumulative construction method.

Rate of return on capital (discount rate) = = Risk-free rate of return + Risk premium + Premium for low liquidity of real estate + Investment management premium.

Note that managing real estate investments is considered a more complex and risky activity than managing investments in financial assets, which necessitates the need for an additional premium.

In practice, the use of such calculation logic is associated with significant “conditionality” in the formation of the evidentiary part.

As risk-free rate You can use the average effective yield to maturity of long-term government bonds of the Russian Federation with a maturity of 10 to 14 years.

As a rule, in practice, the premium for the listed risks in relation to the selected property is assessed by experts. Nevertheless, it is advisable to form a base based on the regional market and derive these amendments taking into account the specifics of the market.

Low liquidity premium real estate takes into account the impossibility of immediate return of investments made in real estate. When determining the amount of the adjustment for low liquidity, we proceed from the premise that the period of exposure of the object from the moment it is put up for sale is long. The riskier and more complex the investment, the more competent management it requires.

Investment Management Award fluctuates mainly from 1% to 5%. It is advisable to calculate the premium for investment management taking into account the underutilization rate and losses when collecting rental payments.

Calculation of the various components of the risk premium:

The premium for low liquidity takes into account the impossibility of investment; according to expert estimates from most sources, it is usually taken at the level of 3-5 percentage points;

The premium for the risk of investing in real estate takes into account the possibility of accidental loss of the consumer value of the object and can be accepted in the amount of the norm of insurance contributions in insurance companies of the highest category of reliability;

The premium for investment management is determined by taking into account the fact that the more risky and complex the investments, the more competent management they require, which means the higher the value of this premium will be.

The rate of return on capital can be calculated in one of the following three ways.

Straight-line return of capital (Ring method);

Return of capital based on the replacement fund and the rate of return on investment (Inwood method). It is sometimes called the annuity method.

Return of capital based on the compensation fund and the risk-free interest rate (Hosksld method).

Let us give a brief description of each of these methods.

Ring's method. This method is appropriate to use when it is expected that the principal amount will be repaid in equal installments. The annual rate of return on capital is calculated by dividing 100% of the asset's value by its remaining useful life, i.e. It is the reciprocal of the asset's service life. In this case, it is considered that the funds allocated to the compensation fund are not reinvested. The capitalization ratio formula takes the following form:

Rk = Rd + 1/n, where:

n is the remaining economic life.

Inwood method used if the return on capital is reinvested at the rate of return on the investment. In this case, the rate of return as a component of the capitalization ratio is equal to the replacement fund factor at the same interest rate as for investments:

Rk = R + SFF(n,Y), where:

SFF - compensation fund factor;

Y = R - rate of return on investment.

Hoskold method used in cases where the rate of return on the initial investment is somewhat high, making reinvestment at the same rate unlikely. For reinvested funds, it is assumed that income will be received at a risk-free rate:

Rk = R + SFF(n,Yb), where:

Yb - risk-free interest rate.

The lowest rate of return is obtained using the Inwood method, the highest - according to the Ring method. When the price of an asset falls, regardless of whether the rate of return is calculated using the Ring, Hoskold or Inwood method, the rate of return on investment is less than the capitalization rate Rk > R.

Rint's method is most applicable for “old” objects.

Another way to calculate the capitalization ratio is the market squeeze method (market extraction method).

IN market squeeze method there is no separate accounting of return on capital and return on capital, and the growth rate of income is not taken into account separately. These components are taken into account in the overall capitalization ratio on an “all-inclusive” basis and do not require separate analysis, which is one of the advantages of this method.

Based on market data on sales prices and NAV values ​​of comparable properties, capitalization rates are calculated using the following formula:

Where CHOD is the net operating income of the i-th analogue object;

Vi is the sale price of the i-th analogue object.

Calculating the capitalization ratio using the market squeeze method allows one to reduce the subjectivity of the appraiser to a minimum. In addition, the capitalization ratio determined in this way takes into account the rate of return of capital and the expected changes in the value of similar objects - on an all-inclusive basis. Accordingly, there is no need to carry out a separate calculation of these components of the capitalization ratio, an error in the calculation of which using the cumulative method can significantly affect the result. And the accumulated error in the cumulative method of determining risks can further affect the result.

When determining the capitalization ratio, it is also necessary to pay attention to taking into account the tax component (if the NIR is before tax, then the capitalization ratio should be calculated for income before tax: or vice versa, the NIR and the capitalization ratio are calculated as “after tax”).

When choosing a technique and calculating the market squeeze (extraction) method, it is important to correctly generate information on net operating income and the sales price of analogues.

When using the income approach, you need to pay attention to the following points:

Compliance with the rental rate used in calculations of the market rental rate for similar properties;

Information about analogues for rental rates must be supported by an indication of the sources from which it was obtained, in a form accessible for verification. The report must be accompanied by printouts of databases of real estate companies or copies of pages of printed publications containing advertisements for the rental of similar objects;

The forecast rate of growth of rental rates in the long term should not be unreasonably high, even with the existing local growth. The growth rate of industrial production can be used as a guide;

An unreasonably low discount rate or capitalization rate should not be used in calculations. As a criterion for comparison, the ratio of the annual rent per 1 sq.m to the offer/sale price of 1 sq.m of similar properties can be used;

It is not allowed to add the separately calculated value of the land plot to the value of the property calculated using the income approach.

Reconciliation of results

The market value of the valuation object is determined as the weighted average value between the results of calculations obtained within the framework of the income, cost and comparative approaches.

The cost approach reflects the amount of funds required to create an object similar to the object being assessed in modern conditions, but does not reflect the market reaction to these assets. The result obtained by the cost approach, if the appraiser correctly took into account the factor of external wear and tear, should be very close to the results obtained by other approaches.

A comparative approach in market conditions allows you to most accurately determine the value of the property being assessed if there are suitable analogues available on the market. The share of the results of this approach in a developed market should be greatest.

The income approach is based on data on rental rates for similar properties. The presented database of rental rates for similar properties in a developed market allows us to sufficiently fully identify the influence of pricing factors on currently existing rental rates. However, income income comes with risks in forecasting future earnings. The weight of the results of this approach should be lower than (or equal to) the results of the comparative approach.

Key points to pay attention to when agreeing on results:

Correctly carry out weighing if there is a significant discrepancy in results; the cost may be considered different from the result of the most adequate approach if its value contradicts the results of other approaches;

There is no need to carry out weighting using complex procedures such as hierarchy analysis. In most cases, simple averaging is sufficient, since if there are no contradictions in the results obtained by different approaches, the weighing procedure will not have a significant impact on the final result.

It should be noted that the motivation of players in the real estate market can be multidirectional, depending on further actions with the object of the transaction.

For a potential “player” in the real estate purchase and sale market, two actions are possible:

Acquisition of an object with subsequent resale (in a “warmed up” market), for example, the Sochi market in 2007 until the decision was made to hold the Winter Olympic Games;

Purchasing a property for the purpose of purchasing a stable cash flow.

When conducting an assessment for collateral purposes, one should, first of all, be based on the results of the approach that will be most adequate in relation to the specific practical situation.

The results obtained using individual approaches cannot differ significantly from each other - the presence of this fact in the Report indicates the incorrectness of taking into account significant factors within the framework of the income, cost or comparative approaches.

Valuation for collateral purposes

Valuation for collateral purposes - this is a procedure for determining the actual market value of the collateral, which makes it possible to determine a fair and satisfactory ratio between the value of the collateral and the loan amount that suits both parties. It is also carried out with the aim of resolving disagreements between the parties to the transaction that arise during foreclosure of the pledged property.

The company "Active Business Consultations" offers high-quality valuation for collateral purposes, in compliance with international and Russian standards, standards for preparing reports and conducting examinations.

What do we mean by bail?

Pledge is the most effective way to ensure the fulfillment of obligations, since in its presence the creditor no longer depends on the financial condition of the debtor or guarantor. This allows you to actually increase the obligations to the creditor at the expense of the property, which is the subject of collateral.

The creditor, under an obligation secured by a pledge, in the event of failure by the debtor to fulfill these obligations, has the right to satisfy his claims from the value of the pledged item, preferentially before other creditors of the pledgor, with the exception of exceptions regulated by law. For collateral to be a truly effective means of securing obligations, the following points must be taken into account:

The pledgor must be the owner of the pledged item, or have the right of economic management. A potential borrower must provide his lender with documentary evidence of rights to the pledged property - such documents include: the agreement on the basis of which the pledged property was acquired, along with evidence of the transfer of ownership rights (invoice, acceptance certificate), as well as a registration certificate. In practice, quite often a situation arises when the mortgagor does not have an agreement to purchase property due to the loss of time. In such cases, according to the current legislation of the Russian Federation, that citizen or legal entity that has owned real estate in good faith for 15 years or other property for 5 years, but is not its owner, automatically acquires the right to this property.
Lease rights or other rights to someone else’s property can also be used as collateral - however, in this case, the written consent of the owner or the person holding such ownership right is required.

The subject of the pledge can be any property, including things and property rights, with the exception of that property that has been withdrawn from circulation, as well as those claims that are related to the person of the creditor (alimony, compensation for damage to health, and other rights, the assignment of which is prohibited law). There is also a list of types of property that cannot be recovered - and, as a result, they cannot be the subject of collateral. A complete list of such property is given in Article 446 of the Civil Procedure Code of the Russian Federation.

The pledge begins to take effect upon the entry into force of the contract, and based on the circumstances listed in it, in accordance with the law, in order to secure obligations to the creditor, the property is recognized as being pledged. In this case, the pledge can also be transferred - this is allowed if it is not prohibited by the agreement concluded with the creditor. Violation of this requirement entails recognition of the subsequent pledge as invalid.

The conclusion of a pledge agreement must be carried out in writing, which is drawn up in the form of a single document, and also in the case of an exchange of pledges between persons, it must be carried out using postal, telephone, electronic or other communication that makes it possible to establish that the document was sent by one of the parties to the agreement.

What real estate is subject to collateral?

The bank has fairly simple requirements for collateral: value, liquidity. These indicators are closely interrelated - for example, market value often reduces liquidity, and liquidation value, on the contrary, increases it. That is why the bank is primarily interested in the latter type of value, since if the loan is not repaid, the collateral is alienated at a price 10-30% below the market value. To insure against such risks, banks accept collateral whose market value is at least 30% higher than the amount of financing.

It is much easier to obtain a secured loan if the property rights are properly registered and there are no legal claims against the collateral. The liquidity of the property is also important - there is a greater likelihood of receiving a positive decision if the property is a profitable business, and the amount of this profit is assessed and documented in an independent expert report. But, it should be taken into account that commercial real estate objects can become the subject of a pledge only if the company separates them from all the company’s assets into an independent object of the pledge agreement. Those objects that are recognized as unsafe and have not passed state registration and inventory are not accepted as collateral.

Valuation for collateral purposes commercial real estate in the company "Active Business Consultations" is primarily aimed at satisfying the interests of the bank - and creditors are primarily interested in the presence in the report of information about actually concluded transactions. It is here that not only the size of the transaction and the number of leased or purchased premises are indicated, but also other factors - the terms of the transaction, the level of profitability, technical characteristics. Banks need a clear justification for profitability in relation to the property being assessed - but if we are talking about a newly built facility, the construction cost estimate is assessed.

What do we mean by valuation for collateral purposes?

Valuation for collateral purposes occurs with the participation of three parties: the bank, the borrower, and independent experts from the Active Business Consulting company. The purpose of the participation of our specialists in the lending process is to protect the commercial interests of participants and create more transparent conditions for the provision of lending services.

We offer services assessments for collateral purposes creditor banks and borrowers (both legal entities and individuals), working both with the assets of the enterprise and in relation to rights to intangible assets. It should be noted that indicating the exact cost is a mandatory part of providing a loan secured by property - this is provided for in the Civil Code of the Russian Federation, namely in Article 339.

Valuation for collateral purposes can be done in several ways:

Comparative approach;

Income approach;

Cost-effective approach.

Active Business Consulting company in valuation for collateral purposes uses an integrated approach that involves a comprehensive study of the object, its characteristics and cost.

When conducting assessments for collateral purposes A detailed analysis of the object is carried out, all possible ways of effectively using the collateral are identified. Careful study is also carried out on the property that is pledged not as a single property complex capable of generating profit - but only partially, but at the same time maintaining independence. In progress assessments for collateral purposes specialists of the company "Active Business Consulting" determine the possibility of element-by-element sale of collateral; options for gradually reducing the value of the collateral, which is only a link in a single production chain, are considered in the event of a break in target ties.

The main criterion assessments for collateral purposes is the reliability of the mortgagor implementing the project. Moreover, it is advisable for the owner to show his “positive intentions” and confirm the movement of financial flows to the bank.

It is a huge plus for banking institutions when a client provides them with the necessary understanding of the business and how profits are made. After all, even despite the collateral, the lender will ask to provide financial documents, information on the number of clients and partner suppliers, and to confirm the stability of financial flows. Our company “Active Business Consultations” will help the borrower with this, which will develop a report in accordance with all the preferences and interests of the creditor bank - after all, if he sees that the client’s business is stable, then even during disruptions in activity and untimely ones for a short period of time payments, the borrower will definitely pay off his loan obligations.

Also relevant assessment for collateral purposes and in mortgage lending. It is a mandatory procedure for the purpose of resolving possible disputes, and is regulated in Article 8 of the Federal Law “On Valuation Activities in the Russian Federation”. Thus, based on a simple study of modern legal requirements, we can conclude that independent assessment for collateral purposes is a solid and fair basis for both parties for further successful and favorable cooperation.

Valuation results for collateral purposes

As a result assessments for collateral purposes A report is drawn up that will include answers to the following questions:

What is the fair market value of the potential collateral?

What is the length of the marketing period? And how much does this factor affect the value of the collateral?

Is it possible to sell the collateral property element by element? And what is the degree of reduction in value when target ties in property complexes are broken?

The presented report also contains complete information about the subject of the pledge - depending on whether it is private real estate or a commercial asset, the main emphasis is on:

The degree of liquidity of the collateral and the possible timing of its sale;

The size of the borrower’s cash flows, the stability of his business and the amount of income;

Development prospects.

The company "Active Business Consulting" is a professional assessment for collateral purposes using all possibilities to best resolve your problems.

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• INTRODUCTION
• CHAPTER 1.
• 1.1 REAL ESTATE AS AN OBJECT OF COLLATERAL
• 1.2
• CHAPTER 2. ASSESSMENT OF THE MARKET VALUE OF REAL ESTATE FOR THE PURPOSE OF PLEDGE USING THE EXAMPLE OF A WAREHOUSE BUILDING
• 2.1 DESCRIPTION OF THE OBJECT OF ASSESSMENT
• 2.2 MARKET ANALYSIS OF THE OBJECT OF VALUATION
• 2.3 DETERMINATION OF THE MARKET VALUE OF THE OBJECT OF VALUATION
• CHAPTER 3. RECOMMENDATIONS FOR IMPROVING ACTIVITIES VALUATION OF REAL ESTATE PROPERTY FOR COLLATERAL PURPOSES
• CONCLUSION
• BIBLIOGRAPHY
• APPLICATIONS
• INTRODUCTION

Real estate valuations are relevant now and will be relevant as long as the property exists. In Russia, there is an active formation and development of the real estate market and an increasing number of citizens, enterprises and organizations are participating in real estate transactions.

For many transactions with real estate and other objects of assessment, an appraiser’s conclusion may be not only desirable, but also strictly mandatory. Valuation activity as an object of legal regulation represents, on the one hand, the service of an appraiser - an independent expert in determining market value, and on the other hand, a legal factor that establishes the value of the appraisal object for the purposes specified in the appraisal agreement.

Valuation for collateral purposes is one of the most relevant aspects of the practical use of valuation theory, because is one of the most popular types of services in the appraisal market.

When choosing assets for collateral purposes, real estate objects are the most attractive. This “attractiveness” is explained primarily by the reliability of the pledged object, both in the physical aspect - the impossibility of moving it, and in the legal aspect - the mandatory state registration (the presence of a pledge does not allow the sale of the object without informing the Pledgee).

Errors in collateral valuation are quite costly for the bank, and errors in both one and the other direction lead to negative consequences. An overvalued collateral is fraught with losses in case of default; an undervalued one limits the volume of lending (at least in many banks) and, accordingly, leads to a loss of income. That is, the bank is most interested in an objective assessment of the value of the collateral, contrary to the popular belief that it is beneficial for the bank to underestimate the value.

The arguments presented above determined the relevance of the chosen topic.

The subject of the thesis was the assessment of the market value of real estate for collateral purposes.

The object of research in the thesis was a warehouse building.

Date of determining the market value of the warehouse building: 07/01/2010

Date of compilation of the thesis: 09.12.2010

The purpose of this thesis was to analyze the theoretical foundations of real estate valuation and their practical implementation using the example of the valuation of a warehouse building, taking into account the peculiarities of using the valuation results for collateral.

To achieve this goal, the following tasks were solved:

Analyze the theoretical foundations of real estate valuation for collateral purposes;

Illustrate the applications and limitations of methods and approaches to valuing real estate for collateral purposes.

Analyze the initial information, group the data obtained, compile a brief overview of the real estate market at the valuation date;

Justify and coordinate the results of assessing the market value of the warehouse building for collateral purposes;

CHAPTER 1.THEORETICAL FRAMEWORKS FOR VALUATION OF REAL ESTATE PROPERTY FOR THE PURPOSE OF COLLATERAL

1.1 REAL ESTATE AS AN OBJECT OF COLLATERAL

The concept of “real estate” includes a fairly wide range of objects. It includes: real estate objects for office, retail, warehouse purposes: objects used by service sector enterprises (car dealerships and car services, car washes, hotels, etc.); production facilities (workshops and factory buildings, etc.). All of the above objects can be considered by the owners as collateral, acting as security for a credit transaction.

It should be noted that in addition to assessment issues, the pledge affects a significant area of ​​the legal field. Therefore, before considering the range of issues related to the assessment of the market value of real estate for the purpose of collateral, we will determine the boundaries of the legal field.

Legal framework in the field of collateral of real estate objects

The main regulatory documents regulating the pledge of real estate are:

Civil Code of the Russian Federation, Part One;

Land Code of the Russian Federation;

Federal Law “On state registration of rights to movable property and transactions with it” No. 122-FZ;

Federal Law of July 16, 1998 No. 102-FZ “On Mortgage (Pledge of Real Estate).”

In accordance with the current legislation (Federal Law “On Valuation Activities in the Russian Federation”, Article 8), in relation to lending purposes, conducting an assessment of the objects being assessed is mandatory in the following cases:

Involvement in a transaction of appraised objects owned in whole or in part by the Russian Federation, constituent entities of the Russian Federation or municipalities, including when determining the value of appraised objects owned by the Russian Federation, constituent entities of the Russian Federation or municipalities, as a subject of pledge;

When assigning debt obligations associated with valuation objects belonging to the Russian Federation, constituent entities of the Russian Federation or municipalities;

When transferring valuation objects belonging to the Russian Federation, constituent entities of the Russian Federation or municipalities, as a contribution to the authorized capital, funds of legal entities, as well as when a dispute arises about the value of the valuation object, including in mortgage lending to individuals and legal entities in cases the emergence of disputes about the value of the mortgaged property.

Definition of a property

The definition of real estate is given in the Civil Code of the Russian Federation. According to Art. 130 of the Civil Code of the Russian Federation “...Immovable things (real estate, real estate) include land plots, subsoil plots, and everything that is firmly connected to the land, that is, objects whose movement without disproportionate damage is impossible, including forests, perennial plantings, buildings” structures, unfinished construction projects. Real estate also includes aircraft and sea vessels, inland navigation vessels, space objects subject to state registration.”

According to the MCO, “real property includes land and all things that are naturally attached to the land -- such as trees and minerals, and all things that are added to by people, such as buildings and improvements to the property. All permanent attachments to buildings, such as plumbing systems, heating and cooling systems, electrical wiring, and built-in facilities such as ski lifts and elevators, are also part of the real estate. The property includes all connections - both underground and above ground."

The following real estate objects cannot be objects of collateral:

1. Buildings of undetermined purpose;

2. Structures recognized in accordance with the established procedure as unsuitable for use (emergency, located in mined areas, in waste areas of thermal power plants, in karst zones, damaged due to natural disasters or fire);

3. Unauthorized and ownerless objects;

4. Buildings that have not passed state registration in the prescribed manner.

It should be borne in mind that the Pledge Agreement for real estate (mortgage) comes into force from the moment it is registered in the territorial division of the Federal Registration Chamber. An agreement that has not passed state registration is invalid.

Simultaneously with the pledge of the property, a pledge of the rights of use (ownership, including shared ownership, economic management or lease) of the land plot is registered, which ensures the functioning of the building in the event that these rights belong to the owner of the building.

Article 62 of the Federal Law “On Mortgage (Pledge of Real Estate dated July 16, 1998 No. 102-FZ) indicates land plots that may be the subject of a pledge (mortgage):

1. Land plots may be mortgaged under a mortgage agreement to the extent that the corresponding lands on the basis of the Federal Law are not excluded from circulation or are not limited in circulation.

1.1. if a land plot is transferred under a lease agreement to a citizen or legal entity, the tenant of the land plot has the right to pledge the lease rights of the land plot within the term of the land plot lease agreement with the consent of the owner of the land plot;

2. in case of common shared or joint ownership of land plots specified in paragraph 1 of this article, a mortgage can only be established on a land plot owned by a citizen or legal entity, allocated in kind from lands that are in common shared or joint ownership.

Article 63 lists land plots that are not subject to mortgage:

· mortgage of lands that are in state or municipal ownership in accordance with this Federal Law is not allowed;

· mortgage of a part of a land plot is not allowed, the area of ​​which is less than the minimum size established by the regulations of the constituent entities of the Russian Federation and regulations of local governments for lands for various purposes and permitted uses.

Current judicial practice indicates the possibility of pledging a real estate property without simultaneously pledging a land plot “... when the mortgagor is not the owner or tenant of the land plot, he has the right to pledge only the building (structure). Such an agreement is not invalid."

In this case, it is necessary to document the absence of such rights from the owner of the building. Such confirmation may be an extract from the Unified State Register or (in the absence of Unified State Register information) a certificate from the land authority. When pledging premises, a pledge of land use rights is required if the owner of the premises has such rights (with or without allocation in kind).

In Table. 1 describes the possible options for having the right, ownership of a land plot, and provides relevant comments indicating the main points that need to be paid attention to when forming the collateral mass and carrying out work to assess the value.

Table 1

	Possible options	Comments
	Land legal relations are not formalized	If the ownership rights to the building and land use rights belong to different persons, registration of a pledge of land use rights is not required, but documentary evidence of the absence of such rights from the owner of the building is required. For such confirmation, an extract from the Unified State Register or (in the absence of information in the Unified State Register) a certificate from the land authority is required. . When pledging premises, a pledge of land use rights is required if the owner of the premises has such rights (with an allotment in kind or allotment)
	Land legal relations are formalized
	Own	The most preferred option for collateral. It is necessary to pay attention to the compliance of the intended use of the object with the current one and the presence of encumbrances
	Permanent (indefinite) use	A plot of land owned by the mortgagor with the right of ownership (perpetual) use is not the subject of a mortgage.* According to clause 2 of article 3 of the Federal Law “On the entry into force of the Land Code of the Russian Federation” dated October 25, 2001 No. 137-FZ, legal entities, with the exception of those specified in clause 1 of art. 20 of the Land Code of the Russian Federation, legal entities are required to re-register the right of permanent indefinite use of land plots to the right to lease until January 1, 2010 in accordance with the rules of Article 36 of the Land Code of the Russian Federation. When pledging such objects, it is necessary to provide that in the event of re-registration of land use rights, the owner or tenant of the land plot must enter into an additional agreement to the mortgage agreement, according to which either the right to lease the land plot or the right of ownership is transferred as collateral along with the building or premises
	Rent (long-term or short-term)	The length of the lease must be taken into account when making the assessment.
Should be considered:	If the land plot is larger than the building area. An analysis is required to determine whether there is additional value of the land plot if its area is greater than the area necessary for the full functioning of the facility.
	If only a development site has been registered, then in such a situation it is necessary to carefully and reasonably approach the issues of forming the value of the object. The text provides an example of a similar situation that arises when evaluating a shopping center
*According to clause 1 of Art. 6 of the Federal Law “On Mortgage (Pledge of Real Estate)” dated July 16, 1998 No. 102-FZ, a mortgage can be established on property that belongs to the mortgagor by right of ownership or by right of economic management, i.e. the right of permanent (indefinite) use is not included among the rights transferred as collateral. At the same time, in accordance with paragraph 4 of Article 36 of the Land Code of the Russian Federation, citizens or legal entities who own land plots with the right of permanent (perpetual) use do not have the right to dispose of these land plots, and the transfer of property as collateral presupposes the disposal of such property. Land plots transferred to citizens and organizations for permanent (indefinite) use are state or municipal property, and mortgages of land plots in state or municipal ownership are not allowed (Article 63 of the Federal Law “On Mortgage (Pledge of Real Estate)”).

1.2 ANALYSIS OF APPROACHES TO ASSESSING THE VALUE OF REAL ESTATE PROPERTY FOR THE PURPOSE OF COLLATERAL

Russian legislative practice regulates the use of comparative, cost and income approaches when assessing real estate.

The choice of one approach or another depends on the nature of the property being valued, its market environment, the essence of the typical motivations and actions of potential landlords and tenants, the availability and quality of the necessary initial information.

To form the market value of a property, it is necessary to complete the following stages of work:

1. carry out an analysis of the commercial real estate market;

2. form an opinion about the advantages and disadvantages of the location of the assessment object;

3. analyze the best and most effective use (as part of the assessment of real estate for collateral purposes, this analysis is used in certain situations, but in most cases is not required, since it is assumed that the object will be pledged based on its current use);

4. choose approaches to assessment;

5. perform calculations within the selected approaches;

6. form a final conclusion about the cost.

Let us dwell on the main points that must be taken into account within each of the above stages when assessing real estate for collateral purposes.

Market analysis

High-quality market analysis largely determines the reliability of the final assessment result.

Market analysis is closely linked to liquidity analysis. For example, when assessing a production facility, it is necessary to analyze the demand for production premises (demanded areas, design and condition), as well as an analysis of the supply of similar facilities.

It should be noted that when assessing for the purpose of collateral, liquidity is an important characteristic of the collateral and in many cases allows us to judge how quickly the loan debt can be repaid by exercising the rights of the mortgagee to the collateral. Correctly forming a conclusion about the degree of liquidity of a real estate object allows you to obtain an informed opinion about its value and make a decision on the amount of the collateral discount.

Significant factors affecting the liquidity of real estate are: location, physical characteristics of the object (wear and tear, condition of utilities), size of the object, state of the real estate market in a given region and locality. It should be noted that compliance with these factors will, to a greater or lesser extent, determine the assignment of an object to a particular class.

As indicators of liquidity, the average exposure time in a specific locality is used for objects of the same market segment as the one being considered and similar in basic characteristics.

The following gradation of property liquidity is proposed depending on the timing of sale:

The main tasks within the framework of market analysis are:

· forming an objective opinion about which transactions are represented to a greater extent for objects similar to the one being valued (lease transactions or purchase and sale transactions);

· identification of analogues for calculating the rental rate (with the income approach) and for the comparative approach;

· identification of the ratio between rental rates of various types of objects (rental rate for retail space in relation to the rental rate for office space, etc.).

When generating a Report on the assessment of a commercial real estate property for the purpose of collateral, the text part of this section of the Report must contain the following information:

1. a brief description of the segments of the city’s commercial real estate market;

2. characteristics of the local market segment (average rental rates and sales prices per 1 sq.m. as of the current date, growth dynamics compared to last year, average market level of underutilization, average level of operating costs for similar facilities (in absolute or relative terms);

3. the presence of investment projects in the city related to the construction or reconstruction of objects of this type (description, characteristics, developer, total investment costs, current condition).

Description of location I object of assessment

Location is one of the key parameters that determines the possible profitability of an object. Incorrect determination of this parameter may lead to the formation of an unreliable value of the property being valued.

The main factors that need to be taken into account when describing the location of the property being assessed are:

-- for an office property - location in the “business” district of the city (a more liquid property) or vice versa, location deep in an industrial site (possible difficulties with implementation), convenient transport accessibility, etc.;

for a retail property - location in a retail corridor (or, conversely, deep in a “dead-end” street), traffic intensity, popularity of the place, etc.;

for a warehouse property - transport accessibility, availability of infrastructure (railway line, etc.), availability of all necessary communications in sufficient quantities (electricity, gas, water, etc.).

When describing the location of the assessment object, it is quite clear to present graphical information, on the basis of which you can understand where the assessment object is located,

The source of this information can be electronic and paper maps of the city. Let us give an example of a graphic image and a brief text description of the location of the assessment object.

Best and Best Use Analysis

Since the appraisal activity involves determining the market value, the analysis of the most effective use identifies the most profitable and competitive use of a particular property.

Analysis of the most effective use of a property involves conducting a detailed study of the market situation, the characteristics of the property being valued, identifying options in demand by the market that are compatible with the parameters of the property being valued, calculating the profitability of each option and estimating the value of the property for each use option. Thus, the final conclusion about the most effective use can only be made after calculating the cost.

The best and most efficient use of a property is the use of a vacant or developed plot of land that is legally possible and properly designed, physically feasible, provided with appropriate financial resources and provides maximum value.

The optimal use of a piece of land is determined by the competing factors of the particular market to which the property being valued belongs, and is not the result of the subjective speculation of the owner, developer or appraiser. Therefore, the analysis and selection of the most effective use is, in fact, an economic study of market factors that are significant for the object being valued.

In most cases, a best and best use analysis is not required to evaluate for collateral purposes. When assessing for collateral purposes, this analysis is carried out only in the event of a clear inconsistency between the property being assessed and its existing use. In this case, an assessment taking into account a change in the intended purpose of the object should be carried out if such a purpose has already been determined and explicitly. (http://www.audit-it.ru/articles/appraisal/a109/188103.html).

In accordance with Federal Valuation Standard No. 1, approved by Vympelz of the Ministry of Economic Development of Russia dated July 20, 2007 No. 256, the procedure for assessing market value is carried out using three approaches:

Income approach (capitalization or income discounting approach to real estate valuation);

Cost-based approach;

Comparative approach (market approach to real estate valuation).

Before calculating the value of the valuation object for each of the approaches, the applicability of the approaches to valuation is justified.

The choice of one or another approach, as well as the method in each of the approaches, is made based on the specifics of the object being assessed, the characteristics of a particular market and the composition of the information contained in the collected information. Evaluation approaches, as a rule, are interrelated and complementary.

Cost-effective approach to real estate valuation for collateral purposes

The cost approach is a set of methods for estimating the value of an appraised object, based on determining the costs necessary to restore or replace the appraised object, taking into account its wear and tear.

This approach when assessing for collateral purposes is, as a rule, used quite rarely. However, in some cases, for example, in the absence of a sufficiently developed market and information about it, a cost-based approach may be the only one.

The use of the cost approach can definitely be abandoned when valuing objects for which a sufficiently large amount of market information can be found, as well as when valuing fairly “aged” objects. Valuation using the cost approach in this case does not form a sufficiently reliable opinion about the possible selling price of such an object on the market.

When assessing relatively new properties, an estimate can be used as a fairly good guide in the absence of the proper amount of market information, but it is necessary to carefully analyze the calculation provided by the owner (it may differ significantly from the average market indicators).

The logic for performing work within the cost approach involves performing the following actions:

assessment of the replacement cost of the appraised building (or replacement cost);

assessment of the amount of business profit (investor profit);

calculation of identified types of wear;

assessment of the market value of the land plot;

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.

This logic can be described as the following formula,
allowing to obtain a conclusion about the cost of: a commercial real estate object:

Object cost = Sun * (I -- I) + Earth, where

ВС - replacement cost of the valuation object (or replacement cost) taking into account the profit of the entrepreneur;

I is the amount of identified wear of the object;

Szem. -- the value of property rights to a land plot.

Replacement cost assessment

Replacement cost (RC) is the cost of construction of the property being assessed as new, calculated in current prices, without taking into account wear and tear, and correlated. by the date of assessment.

Replacement cost can be calculated based on reproduction cost or replacement cost.

The cost of reproduction is understood as the cost of construction in current prices on the actual date of valuation of an exact copy of the building being valued, p. using the same building materials, standards and design.

Replacement cost is determined by construction costs at current prices on the actual date of assessment of an object of equal utility using modern materials, standards, designs and architectural solutions.

As can be seen from the above definitions, the calculation of replacement cost is more preferable, since in the second case the costs of constructing a building that differs from the one assessed by characteristics are calculated, while the assessment of the difference in the utility of the compared buildings is very subjective.

On the other hand, the choice of calculating replacement cost may also be justified if the building being assessed has a number of signs of functional wear and tear, which cannot but reduce its commercial attractiveness for a potential buyer.

In general, the choice between the cost of “reproduction” and the cost of “replacement” depends on many factors: the purpose of the assessment, the quantity and quality of information collected about the object of assessment, its physical characteristics, etc.

Sources of information for calculating the cost of “reproduction” or cost of “replacement”:

estimate calculations (local estimates, object estimates, consolidated estimate calculations);

UPVS collections (collections of aggregated indicators of the replacement cost of buildings and structures for the revaluation of fixed assets by sectors of the national economy) UPSS collections (costs are given in 1969 prices):

collections produced by the Co-Invest company (industrial, residential, public buildings, etc.) (cost in 2009,2010 prices);

Construction cost indices (Gosstroy decrees, Co-Invest collections), etc.

In valuation practice, the following methods are used to determine the full replacement cost:

1) Comparative unit method,

2) Method of breakdown by components,

3) Quantitative survey method.

The choice of method is determined by the purpose of the assessment and the required calculation accuracy.

Comparative unit method is based on the use of the cost of construction of a comparative unit (1 square meter, 1 cubic meter) of a similar building. The cost of a comparative unit of an analogue requires adjustment to the identified differences between it and the object being evaluated (physical parameters, availability of easily installed equipment, financing conditions, etc.).

The full replacement cost of the assessed object is determined by multiplying the adjusted cost of a comparison unit by the number of comparison units (area, cubic capacity). To determine the amount of costs, various reference and regulatory materials are usually used, for example, “Aggregated indicators of construction costs”, “Aggregated indicators of the cost of replacement cost.”

The following formula is used for calculation:

Sn= S.s. H So H TO 1 H TO 2 H TO 3 H TO 4 H TO 5,

Where: Sn-- the cost of the object being assessed;

S.s.-- cost of 1 sq. or cubic meter of a typical structure on the base date;

So-- number of comparison units (area or volume of the object being assessed)

TO 1 -- coefficient taking into account the identified differences between the assessed object and the selected typical structure in area, volume, and other physical parameters;

TO 2 -- correction factor for the location of the object;

TO 3 -- coefficient of change in the cost of construction and installation work in the period between the base date and the date at the time of assessment;

TO 4 -- coefficient taking into account the developer's profit;

TO 5 -- coefficient taking into account VAT (%).

This method is based on the cost of a comparison unit of a typical object or analogue, when choosing which it is necessary to observe the similarity of the functional purpose, physical characteristics, class of structural systems, date of commissioning of the object and other characteristics.

The comparative unit method estimates the value of an item at replacement cost. This is due to the fact that the cost of a comparative unit used in the calculations, as a rule, represents not an identical object, but a close analogue.

Component breakdown method based on the use of qualitatively different information. Individual construction components of a building: foundation, walls, floors, etc. - are assessed according to cost indicators, including direct and indirect costs necessary for the construction of a unit of volume of a specific component. The cost of the entire building is calculated as the sum of the costs of all components using the formula:

Where WITH building - cost of construction of the building as a whole;

Vj-- volume j- th component;

Cj-- cost per unit of volume;

N-- number of allocated building components;

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

Ki is a coefficient that takes into account total wear and tear.

The component breakdown method has several varieties:

Subcontracting method;

Breakdown by work profile;

Allocation of costs.

Subcontracting method is based on the use of information on the cost of work performed under subcontracts concluded by the general contractor with specialized construction organizations - subcontractors. The full replacement cost is calculated as the sum of the costs of all subcontracted construction and installation work.

Profile method involves assessing the full replacement cost as the sum of the costs of hiring individual construction specialists (masons, plasterers, carpenters, etc.)

Dedicated Cost Method involves the systematic use of units of comparison to evaluate various components of buildings, after which the results of individual assessments are summarized.

Quantitative survey method involves the creation of a new estimate for the valued object in prices as of the valuation date. For these purposes, a detailed quantitative and cost analysis is carried out, as well as cost calculations for construction and installation work of individual components and the building as a whole. The calculation takes into account direct costs, overhead costs and other costs that represent the full estimate for the construction of the assessed facility.

The quantitative survey method gives the most accurate result of the total replacement cost, but is the most labor-intensive and requires the appraiser to have practical knowledge in the field of design and estimate business.

Estimates of the value of entrepreneurial profit (investor profit)

The profit of an entrepreneur (investor) is the reward that a typical investor (builder, developer) requires for the risk associated with the construction of a project similar in structure to the property being valued.

In fact, this value reflects the average investor’s profit that the implementation of a project can bring, including the costs of management and organization of construction, general supervision and construction-related risk. As a rule, when forming this indicator, they do not pay attention to the stage of the life cycle at which the segment of the commercial real estate market is located, which includes the object being assessed, to the dependence of its value on the volume and timing of construction, on whether the functions of the investor (customer) and the builder are separated (contractor), from other factors. Accordingly, when considering the Report, it is important to clearly identify the range of profit of the entrepreneur (investor) and establish the range of the current average market value.

It should be noted that the amount of profit of an entrepreneur, depending on the degree of development of the real estate market and the life cycle in which a given segment of the commercial real estate market is located, can vary within a significant range. For example, in the commercial real estate market of Moscow in 2005, but according to the largest analytical agencies, the profit of an entrepreneur in the retail real estate segment ranged from 25 to 40%; in 2006 and 2007, a decrease and stabilization of this indicator was observed . In practice, it is difficult to obtain market data on profits, since they are most often a trade secret.

Calculation of identified types of wear

Wear and tear is characterized by a decrease in the usefulness of the property and its consumer attractiveness from the point of view of a potential investor.

As a rule, depreciation is expressed in the decrease in value (depreciation) of an object over a certain period due to the influence of various factors.

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

Physical deterioration. Reflects changes in the physical properties of a property over time (for example, defects in structural elements). Physical wear is of two types: the first occurs under the influence of operational factors, the second - under the influence of natural and natural factors.

There are four main methods for calculating the physical depreciation of buildings: expert, cost, regulatory (or accounting) and the method of calculating the life of the building.

The percentage of physical deterioration of an object assessed by an expert method is determined on the basis of the Rules for assessing the physical deterioration of residential buildings. The service life of buildings as a whole depends on the durability of its components. The physical wear and tear of building elements is calculated as the product of the specific weight of a structural element of the building and the percentage of wear of this element, divided by 100. The physical wear and tear of the entire building is determined as the weighted average of all elements of the building. The expert method of determining physical deterioration is usually used when inventorying real estate.

There is removable and irreparable physical wear and tear. Removable physical wear assumes that the costs of current repairs are less than the added value of the facility. Unrecoverable physical wear and tear is considered when the cost of correcting the defect exceeds the cost that will be added to the object. All building elements are divided into two categories: long-term (foundations, walls, ceilings, etc.) and wear-and-tear (roofing, decorative trim, painting, etc., i.e. those elements that can be repaired (restored) during ongoing repairs) .

The cost method involves determining the costs of reproduction of building elements. Through inspection, the percentage of wear and tear of each element of the building is determined, which is then translated into value terms. A more accurate, adjusted cost estimate of physical depreciation is obtained when the percentage of depreciation is determined as a weighted average.

The standard (or accounting) method for determining the physical deterioration of buildings involves the use of Unified depreciation rates for the complete restoration of fixed assets.

When using the building life calculation method, a number of terms are used.

Economic life is the time during which an object can be used for profit. During this period, improvements contribute to the value of the property; The economic life of a property ends when improvements made do not contribute to the value of the property due to its general obsolescence.

The physical life of an object is the period during which the building exists and can be lived or worked in. The physical life span ends when the object is demolished.

Effective age is based on an assessment of the appearance, technical condition, and economic factors affecting the value of the object.

Chronological age is the period that has passed from the date the object was put into operation to the date of assessment.

The remaining economic life of the building is the period from the date of valuation to the end of the economic life of the property. Renovating and upgrading a property increases its remaining economic life.

Standard service life (or typical physical life) is the service life of buildings and structures determined by regulations.

Functional wear and tear of the object. Functional obsolescence is when an object does not meet modern standards in terms of its functional usefulness. Functional obsolescence can manifest itself in the outdated architecture of a building, in the convenience of its layout, volume, engineering support, etc. Functional obsolescence is due to the influence of scientific and technological progress in the field of architecture and construction. Functional wear and tear in domestic practice is called obsolescence.

Functional wear, like physical wear, can be removable or irreparable. Removable functional wear can include the restoration of built-in cabinets, water and gas meters, plumbing equipment, flooring, etc. The criterion for whether wear is removable or not is a comparison of the amount of repair costs with the amount of additional value received. If the additional value obtained exceeds the cost of restoration, then functional wear is removable. The amount of removable wear and tear is determined as the difference between the potential value of the building at the time of its assessment with updated elements and its value at the date of assessment without updated elements.

Irremovable functional wear and tear refers to a decrease in the value of a building due to factors related to the quality characteristics of the building. Moreover, there can be either an excess or a lack of quality characteristics. For example, in the rental market, two-room apartments are in greater demand compared to one-room apartments. The amount of this type of depreciation is calculated as the amount of losses from rent when renting out these apartments, multiplied by the multiplier of the gross monthly rent typical for this type of apartment. Thus, the amount of irreparable functional wear and tear is determined by capitalizing rental losses.

External (economic) wear and tear- this is a decrease in the value of a building due to a negative change in its external environment, caused either by economic or political factors, or other external factors. The reasons for external wear and tear may be, for example, the general decline of the area in which the object is located, actions of the government or local administration in the field of taxation, insurance and other changes in the market for employment, recreation, education, etc. Significant factors influencing the amount of external wear are the immediate proximity to “unattractive” natural or artificial objects: swamps, wastewater treatment plants, restaurants, dance floors, gas stations, railway stations, hospitals, schools, enterprises, etc. Wear from external influences in most cases irremovable.

Assessment of the market value of a land plot

Valuation of a land plot, as a rule, is a rather complex and time-consuming task.

Let's consider the main points that need to be paid attention to when assessing the market value of developed land plots as part of a single real estate property, which is most often found in “collateral” situations.

When analyzing a land lease agreement, you need to pay attention to:

· contract time;

· the presence of encumbrances and easements, which must be further analyzed to take into account encumbrances when calculating the market value of the property.

When analyzing the Cadastral Plan, you need to pay attention to:

Boundaries of the land plot;

There are no direct restrictions on the possibility of additional development.

The Valuation Report must record the category of land specified in the certificate of ownership or cadastral plan of the site attached to the lease agreement.

When determining the assessed right to a land plot, the following types of rights may exist:

ownership;

right of perpetual use;

right to lease (long-term, short-term).

Choosing a method and method for calculating the marketcostland plot

The main methods for valuing land plots are given in the “Methodological recommendations for determining the market value of land plots”, approved by Order of the Ministry of Property of Russia dated March 6, 2002 No. 568-r.

It should be noted that before starting to calculate the cost of a land plot, one should form a conclusion about the “development density coefficient” and an opinion about the “adequacy” of the land plot for the full functioning of the facility.

When forming a conclusion, it is necessary to identify the ratio of the area of ​​the land plot and the building area. The source of information about the building area can be a certificate from the Owner, or data from Technical Data Sheets. BTI of buildings located on this land plot.

In this situation, the question arises of how to allocate the necessary adjacent territory. To form an informed opinion about the “adequacy” of a land plot, you can “start” from existing SNIPs (if they remain relevant in relation to modern objects) or from the requirements of professional developers implementing investment projects related to commercial development.

Comparative approach to real estate valuation for collateral purposes

The comparative approach is one of the most commonly used approaches when assessing real estate for collateral purposes.

This valuation approach is based on the principle of substitution. It is based on the assumption that a prudent buyer will not pay more for an object put up for sale than that for which one of similar quality and suitability can be purchased. The comparative approach is based on the dependence of the value of the valued object on the sale price of similar objects. Each comparable sale is compared to the subject property. Adjustments are made to the comparable sales price to reflect significant differences between them.

The comparative approach involves several steps.

1st stage. The state and development trends of the market and especially the segment to which the assessed object belongs are studied. Objects that are most comparable to what is being assessed are identified.

2nd stage. Information on analogue objects is collected and verified; the collected information is analyzed and each analogue object is compared with the object being evaluated.

3rd stage. Based on the identified differences in the pricing characteristics of the compared objects, adjustments are made to the sales prices of comparable analogues.

4th stage. The adjusted prices of analogous objects are agreed upon and the final value of the market value of the assessed object is derived based on a comparative approach.

The main advantage of the comparative approach is that it focuses on the actually achieved purchase and sale prices of similar objects.

In general, the possibility of applying the comparative approach depends on the presence of an active market, since the approach involves the use of data on actual transactions, as well as on the openness of the market and the availability of financial information.

The question of the correctness of using the comparative approach in the absence of market transactions is quite complex. As a rule, this situation can be observed in small settlements where the market is poorly developed and available sources of information do not contain information on purchase and sale transactions of comparable objects.

In this case, the following algorithm can be used as an acceptable solution:

“similar” cities located in the same region, region, etc. are identified. (comparability criteria may include the number and level of income of the population, the presence of a developed housing market, location in relation to a “key” transport route, etc.);

search for data on comparable transactions:

calculations are carried out and, if necessary, appropriate adjustments are made.

It is important to note that this approach should be used with a fair degree of caution. This method can be used as an auxiliary approach to understand whether the value of an object obtained within the framework of other approaches (income and cost) is in a comparable range or not.

When applying this approach, it is important to avoid the mistake of incorrectly identifying the degree of liquidity of the valuation object and, as a consequence, valuing a completely illiquid object with the subsequent passing off of a “desirable” result as a “real” one.

The main stages of real estate valuation using a comparative approach:

selection of analogues and collection of information on analogues;

choice of comparison unit;

making adjustments for identified differences in the pricing characteristics of the compared objects;

formation of the final cost value.

Let's consider the main points that need to be paid attention to within each stage.

The selection of analogues and the collection of information on analogues is the first and, in fact, the key stage in using the comparative approach.

To select analogues, the following basic elements of comparison can be used:

Functional purpose;

location;

Physical characteristics (size, condition of the object, etc.).

Functional purpose is one of the key elements of comparison. The biggest mistake can be choosing objects of a completely different functional purpose as analogues.

It is necessary to approach the selection of analogues with great care if the object is potentially subject to demolition or reconstruction. When choosing analogues, it is important to understand what underlies the buyer’s motivation. As a rule, in such a situation, the motivation may primarily be the acquisition of rights to construct a new facility. Accordingly, as analogues, it is advisable to focus on objects subject to demolition with a comparable location and pay attention to the possible permitted use of rights to a land plot.

Sources of information for creating a list, analogues and obtaining the information necessary for the assessment are:

Preliminary data obtained as a result of an Internet search;

Data provided by analytical agencies and real estate companies;

Own databases maintained by the appraisal company.

A fairly typical situation is when information is used that does not contain all the necessary data that allows one to form a conclusion that the choice of analogues was made correctly.

In case of incomplete information about the values ​​of the main pricing factors of objects offered as analogues, an external inspection of these objects is necessary. Of course, the application of photographs of analogues and drawing analogue objects on a city map along with the object of assessment will provide even more complete visual information.

After selecting analogues and collecting information, you should stage choosing a comparison unit.

The most commonly used units of comparison can be:

1 sq.m. total area;

1 sq.m. usable or rentable area.

It is necessary to note the importance of correctly choosing a unit of comparison and determining the cost characteristics of this parameter.

After choosing the units of comparison, adjustments are made.

In the theory of real estate valuation, the following types of amendments are distinguished:

Interest (for example, adjustments for location, wear and tear, time of sale, etc.);

Cost (for example, corrections for qualitative characteristics, as well as corrections calculated by statistical methods). Monetary adjustments made to the price of a sold analogue object as a whole should include adjustments for the presence or absence of additional improvements (warehouse extensions, parking lots, etc.);

Absolute

Relative.

Let's take a closer look at highlights, which must be taken into account when making amendments.

There are ten basic comparison elements (which are actually adjustments) that must be taken into account in the sales comparison method:

1. transferred property rights;

2. financing conditions (in Russian practice it is used quite rarely);

3. terms of sale;

expenses incurred immediately after purchase;

market conditions;

location;

physical characteristics (size, quality of building materials, condition of the building);

economic characteristics (operating costs, terms of the lease agreement, administrative expenses, composition of tenants, etc.);

type of use;

10. components of value that are not part of the real estate.

In fact, the above comparison elements are criteria for selecting analogues. How. The more accurately the analog corresponds to the specified characteristics of the object of evaluation, the fewer amendments will be made and the more reliable the result will be obtained.

Let's take a closer look at each of these elements.

Transferable property rights. The transaction price depends on the transferred property rights. A fairly typical situation is when there are valid lease agreements for the areas of the property being assessed. In this case, when determining the value of an object, amendments should reflect the differences between the income potential of the valued object and its analogue.

Financing terms. The presence of a borrowed source of financing can also affect the value of the property. To calculate the amendment, it is necessary to have complete information about the financing scheme adopted in a particular case. Based on the conditions prevailing on the Russian market, this adjustment is used quite rarely.

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