Development of Methods of Assessing the Land Market Value

Abstract:

This article discusses methods for assessing the market value of land plots used in a comparative and income approaches. The comparative approach includes the sales comparison approach, the method of allocation and the method of distribution. The income approach includes the method of capitalization of land rent, the balance (residual) method and the method of intended use. The work analyzes the content of normative legal acts used to determine the market value of this type of property. Basically this is the provisions of the Guidelines (methodological recommendations) for determining the market value of land plots. As a result of the analysis, the authors suggest the main directions for the development of existing methods used in valuation activities.

• Periodical: Materials Science Forum (Volume 931)
• Pages: 1137-1141
• DOI: https://doi.org/10.4028/www.scientific.net/MSF.931.1137
• Online since: September 2018
• Authors: Sergey V. Kolankov*, Svenlana P. Voronova, Ulia A. Golikova
• Keywords: Allocation Method, Balance (Residual) Method, Comparative Approach, Income Approach, Land Plot, Land Rent Capitalization Method, Market Value, Method of Prospective Use, Real Estate, Regulations, Sales Comparison Method, Valuation Methods

References

[1] Resolution of the Ministry of Property Relations of the Russian Federation Methodical recommendations (guidelines) for determining the market value of land, No 568-r (07.03.2002). Information on: http://www.consultant.ru/ (In Russian).

[2] Federal Law of the Russian Federation About appraisal activity in the Russian Federation, No 135, (29.07.1998). Information on: http://www.consultant.ru/ (In Russian).

[3] The Order of the Ministry of Economic Development of the Russian Federation Approval of the Federal Standard Assessment. Real Estate Assessment, (FES No. 7) No 611 (25.09.2014). Information on: http://www.consultant.ru/ (In Russian).

[4] V.V Kossov, V.N Livshits, A.G Shakhnazarov, Methodological recommendations (guidelines) for assessing the effectiveness of investment projects, Second ed., Ministry of Economy of the Russian Federation, Ministry of Finance of the Russian Federation, Civil Code for the construction of architectural and housing policy, JSC NPO" "Economy,, Moscow, 2000. (In Russian).

DOI: 10.20953/1817-7646-2021-2-22-34

[5] Resolution of the Government of the Russian Federation The basic principles of determining the rent for the lease of land plots in state or municipal ownership, and the Rules for determining the amount of rent, as well as the procedure, conditions and terms of rental payment for the land owned by the Russian Federation, No 582 (16.06.2009). Information on: http://www.consultant.ru/ (In Russian).

[6] Temporary methodological recommendations for assessing commensurate payment for easement, approved by the Federal Land Cadastre Service 17.03.2004. Information on: http://www.consultant.ru/ (In Russian).

[7] Decree of the State Construction Committee of Russia MDS 81-35.2004. Method of determining the value of construction products in the territory of the Russian Federation,. No. 15/1 (05.03.2007). Information on: http://www.consultant.ru/ (In Russian).