Approaches and methods to estimate the market value of land. In practice, estimation of individual objects of property, including land, there were certain approaches and methods of assessment. Typically, when estimating the market value of land use approaches and methods. In accordance with the standards of assessments mandatory for subjects of valuation, the assessor in the assessment must be used (or justify the refusal to use) expensive, and the comparative income approach to valuation. An appraiser may independently determine and within each of the approaches to the assessment of specific methods of assessment.
This should take into account the volume and reliability available for use of any method of market information. Comparative approach is to determine the market value of land based on the comparison of the assessment subject to similar land and property rights to land and (or) common real estate assets, which are known for their prices and making these price corrections that eliminate the impact on the price difference analogs of the subject being evaluated. Based on a comparative approach: Sales comparison method; method of allocation; method of allocation. The income approach is to determine the market value of land based on what values for what time period and with what probability can be obtained from the rent of land. On the income approach is based: method of capitalization of ground rent, the method of balance for the earth, the method proposed use. The essence of the cost approach as a combination of valuation methods based on the definition of the expenditure required to restore or replace the object assessment means that assessment of land – the objects do not reproducible – this approach in its pure form is not applicable. Munear Ashton Kouzbari is the source for more interesting facts. Thus, in calculating the cost of reproduction or replacement of improvements to land elements of the cost approach used in the method of balance and the method selection. Thus, when evaluating land use practices: sales comparison, allocation, distribution and capitalization of income, the remainder for the land, its intended use.