Methodology for determining market price. Basic methods for assessing the market value of real estate Methodology for calculating market value

Establishing the cost of goods, works or services so that the tax authorities do not have any complaints about its validity is a very non-trivial task. Especially if we are talking about products that have no analogues on the market.

The general principle for determining the price of any transaction for tax purposes is its compliance with the level of market prices. And that, based on paragraph 4 of Article 40 Tax Code the price established by the interaction of supply and demand on the market of identical (and in their absence, homogeneous) goods, works, services in comparable economic conditions is recognized.

The features of calculating the market price, as well as cases when tax authorities have the opportunity to intervene in the pricing process, are quite clearly stated in the mentioned article. However, disputes regarding the application of certain of its provisions are also not uncommon. And most of them are related specifically to the procedure for determining the market price of a product.

We are looking for identical products

So, if transactions with identical (homogeneous) goods, works or services take place on the relevant market, then their market price is determined on the basis of information provided in official sources (clause 11 of article 40 of the Tax Code). This may be official information about stock quotes on the exchange closest to the location of the seller or buyer, as well as quotes from the Ministry of Finance for government securities and obligations. Information from government statistics bodies and bodies regulating pricing is also suitable, as well as information on market prices published in printed publications or means mass media. In addition, the assessment of the market price for goods, works or services can be carried out in accordance with the Law of July 29, 1998 No. 135-FZ “On appraisal activities in the Russian Federation" by a licensed appraiser.

As follows from paragraph 9 of Article 40 of the Tax Code, when determining market prices, information on transactions with identical or similar goods under comparable conditions is taken into account. This means that transaction terms such as the quantity of goods supplied, deadlines for fulfilling obligations, payment terms and other conditions must be taken into account if they may influence the formation of prices.

The obligation to take into account the terms of transactions when implementing price control is confirmed by arbitration practice. Most cases involving additional tax assessments based on market prices were lost by the tax authorities precisely because they were unable to provide compelling evidence of the existence of comparable terms of transactions, committed by the company– a taxpayer, and transactions in which the market price was used (see, for example, the resolution of the Federal Antimonopoly Service of the North-Western District dated June 3, 2005 in case No. A56-43517/04, the resolution of the Federal Antimonopoly Service of the West Siberian District dated March 12, 2008 No. F04-1672/2008 (1943-A03-42)).

Paying for “uniqueness”

The main difficulties in checking the price for compliance with the market level will arise for companies selling goods, work or services that have no analogues. If there are no transactions for identical goods on the relevant market, or determination of the market price is impossible due to the absence or inaccessibility of information sources, then the subsequent sales price method is used to determine it.

The essence of the subsequent sale price method is to determine the market price of the assets being sold based on the buyer setting their resale price using the following formula:

C1 = C2 – (Z2 + P2),

Ts1– market price of the product;

Ts2– selling price (resale) of the goods to subsequent buyers;

Z2– costs incurred by the buyer of the product during its further sale (resale) and promotion to the market (excluding the purchase price of the product);

P2– the usual profit of the buyer of the product upon its further sale (resale).

As the name suggests, the resale price method can only be used if there is a fact of resale of goods, works or services. If this method cannot be applied, then “on extreme case"The company has the right to use the cost method. Its use comes down to determining the market price of a product using the following formula:

C = Z + P,

C– market price of the product;

Z– direct and indirect costs of the seller for the production (purchase) and (or) sale of goods, as well as costs of transportation, storage and other similar costs;

P– the seller’s usual profit.

It should also be noted that both of these methods have a significant drawback: they do not take into account the impact of inflation on the level of market prices. And in conditions of significant price increases, the values ​​obtained using these methods must be adjusted to changes in the price index. However, the Tax Code does not provide for the possibility of such an adjustment. Another “stumbling block” is the fact that the tax legislation does not have clear definitions of such terms as “ordinary costs” or “normal profit for a given type of activity.”

It would seem to avoid possible errors When independently calculating certain indicators, the most logical thing for a company in this situation would be to turn to an independent appraiser. However, in their recent letter dated July 2, 2008 No. 03-02-07/1-243, specialists from the Ministry of Finance prohibited this, voicing an opinion that boils down to the fact that it is necessary to carry out an assessment of the market price of a product, work or service that has no analogues in the market , independent appraisers cannot.

However, the same clarifications leave the court the right to take into account any factors that are important for determining the results of the transaction, not limited to the circumstances listed in Article 40 of the Tax Code. Moreover, what is interesting is that arbitration judges had previously come to similar conclusions (resolution of the Federal Antimonopoly Service of the Ural District dated April 11, 2006 No. F09-2564/06-S6 in case No. A76-5970/2005).

Thus, even if the company has to face claims from the tax authorities, it is not at all necessary to “accept fate” unless there are really compelling reasons for doing so. There is always the opportunity to defend one’s interests with the help of judges, who often find themselves on the side of the taxpayer when it comes to the methodology for determining the market price for tax purposes.

Since 1994 Russian legislation refers to real estate land plots and everything that is inextricably linked with them: structures built or under construction on the ground, buildings that are difficult to move from place to place without causing them disproportionate harm, subsoil areas. This category of real estate is truly immovable.

Another category of real estate is movable vehicles transporting people and cargo by water, in the air and in space: sea and river vessels, aircraft, artificial earth satellites.

IN special category includes property complexes connected by a single technological cycle - enterprises. They differ from the organizations (often of the same name) and entrepreneurs operating on their basis in that they are an object and not a subject of law.

Each of the listed categories has a separate legal basis. The listed groups of objects have in common their similar qualities as objects of law: all of them must be registered in the relevant government agencies and are legally tied to the place of their registration, intended for many years of use.

In an accounting sense, they refer to fixed assets, are not included in the cost of production entirely, as revolving funds, but by calculating depreciation. Real estate items are valued as single objects, having a value that is not equivalent to the sum of the value of the things of which they are composed.

When assessing such objects, it can be calculated types of cost:

The issues of market valuation of real estate are of greatest interest to the population. in the residential sector. These are residential buildings, their parts and all real estate inextricably linked with housing: infrastructure, personal plots, green spaces.

When evaluating them market value can be most fully complied with free market conditions, virtually unlimited competition between supply and demand.

General information

Attraction appraiser For market valuation of real estate it is usually necessary in the following cases:

1. If real estate is seized in .
2. When a bank or other lender determines the value of the collateral, for example, for the purpose of concluding mortgage agreement.
3. To calculate the ownership of real estate received by the owner free of charge.
4. To calculate the value of the bankrupt's property.
5. When adding an object to authorized capital company in the form of a non-monetary contribution.

Market valuation differs dates, as of which it is carried out:

Market value from the appraiser’s point of view, the estimated transaction price when:

1. The parties have comprehensive information about the condition of the object, the market situation and reasonably take this information into account.
2. One party is not obligated sell object, and the other buy.
3. The object is put up for free sale through a public offer.
4. The parties agree to set the price without coercion.
5. Payment for the facility is set in cash.

What is the method?

Object cost the appraiser determines using three different approaches.

Expensive

Assumes that the buyer is reasonable and will not buy the property for a large amount than he would need to create a similar object on his own within a timeframe acceptable to him.

It will have the most significant reliability coefficients for new construction; reconstruction; special objects with a limited market; insurance purposes.

The coefficient decreases when assessing physically or morally worn-out objects. Land valuation this method is carried out separately from building assessments on her.

Comparative

The approach is to study the results recent transactions with similar objects.

The appraiser assumes that the buyer is reasonable and will not pay more than similar object, also on the market.

In this case, the cost is calculated by dividing the object into elements that are most taken into account when setting the price. For example, in the price of an apartment main role play by the size of the living area, its location, floor, material from which the house is built. Based on their combination closest to the object being studied, those similar to it are determined.

Reliability of this method on the Russian market is decreasing the widespread opacity of real transactions. Also the method is explicitly doesn't fit for the evaluation of special objects that are not represented or have a limited presence on the market.

Income approach

Based on the thesis that the acquired object must pay for yourself income received from its use within an acceptable period. For example, if the purchased housing (apartment) is intended for, it is necessary to calculate what benefits can be obtained from this.

If it’s for living, wouldn’t it be more profitable for this purpose? The objectivity of such an assessment again rests on opacity Russian market. Real prices Renting real estate is not easy to find out. Moreover, if we assume receiving income in the future.

With this approach, it is also necessary to forecast at what price a given property can be sold in the future, whether the price of real estate in a given area is increasing or decreasing, how it will be affected by the upcoming wear and tear of the object.

Reasonable market value is considered when:

After research using all three approaches, the appraiser justifies the establishment of their significance coefficients expertly or mathematically and presents final result as a single figure or as a set of numbers reflecting maximum and minimum values market value depending on the expected effect of certain factors.

Customer of the study can choose of the proposed results, the one that most closely corresponds to the real situation, and most importantly, its valid intentions that may differ from those officially stated in terms of reference.

Procedure

It includes the following steps:

1. Determination of the purpose, date, subject of assessment, type of value.
2. Drawing up an agreement between the appraiser and the customer, including approval of the schedule and work plan, costs for their implementation and the amount of remuneration.
3. Collection of information about the object and market conditions.
4. Analysis of the possibilities of optimal use of the facility.
5. Determination of cost using three approaches separately.
6. Harmonization of results from different approaches. Establishment of reliability coefficients for each of them, Calculation of the final value.
7. Drawing up and approval of the report by the parties.

How is the market price of residential real estate assessed?

Using the cost approach, the appraiser first determines market price of the plot, where the object is located, as undeveloped.

Then calculates cost of materials and work required at the valuation date to create such an object.

Calculates the percentage of wear of an object using standards or through expert analysis. Defines residual value object as the sum of the cost of land and buildings minus depreciation.

Acting comparison method, the appraiser separately collects information on transactions with similar plots of land, then information on transactions with similar objects in other areas, minus the value of the land under them. Then it is calculated weighted average result.

Approaching the definition of value from the point of view income prospects, the appraiser determines what average annual income can be received from a given object, calculates the capitalization rate and predicts at what price it can be sold at the end of its useful life, taking into account wear and tear and market development prospects. At the end of the work, the weighted average result is determined and written report.

Compiled by the deadline specified in the contract and accepted by the customer report is evidence of work done conscientiously. Appraiser personally signs the report and certifies with his seal.

The methodology for determining the market value of real estate and other property is based on the identity of the goods and the principle of comparability of commercial conditions. What factors should be taken into account? What methods exist in this approach for assessing objects? Let's consider the main options for calculating market value.

Calculating the cost of an object so that in the future control authorities do not recognize the contract as invalid, and the tax base as underestimated or overestimated, is not an easy task. Market value assessment is carried out to justify the contract price to the current market conditions for homogeneous products. Be it transactions with a business as a property complex, or the sale of real estate, or the sale securities There are many more situations when you need to find out the price.

How is market value determined and why can’t cadastral registration data be used? The answer is very simple - the purpose of the price indicated in the documentation of Rosreestr or BTI is completely different and is necessary for registering the object, as well as subsequent taxation. Market value allows you to set the real price of any product in monetary terms for the current period. This indicator may change and, first of all, depends on the economic situation in the country, on demand and available supply.

The exact definition is given Federal standards, where it is stated that the objective of the assessment may be to determine the market value, that is, the most likely selling price of the asset at the moment. In this case, the following mandatory conditions must be met:

• The subject of the agreement is available for circulation on the free market.
• The transaction is concluded on voluntary terms, without coercion in relation to the buyer and/or seller.
• The price in the contract is established without the pressure of force majeure.
• Information about the contract is considered comprehensive.

The final result of the calculations is influenced by many factors, including the territorial location of the real estate; availability of transport, communication and social infrastructure; environmental well-being of the areas, condition, size and technical specifications property, etc.

Methods for determining market price:

1. Comparative is a convenient and simple method of evaluation, in which the entire array of sales data for the current period for identical objects is taken as a basis. During the event, the following stages are carried out: research and data collection, analysis and comparison of information on objects of interest, adjustment of indicators to influencing factors. Public resources are taken as data sources: publications, government information, real estate databases, etc. When selecting identical objects, the appraiser is guided by criteria - by ownership, location, contract terms, physical characteristics of the property, place and time of sale. If necessary, special coefficients that reduce or increase the price are applied, as well as adjustments to market realities in Russia.
2. Cost-effective - optimally suited for analyzing the price of new and recently commissioned real estate, for insurance, reconstruction and selection of the maximum effective option use of property. Based on assessment total expenses to create an identical object. The process applies the principle of substitution, that is, the assumption that the buyer should not overpay for a finished object if he can get a new one with similar quality parameters for the same money. Provides for calculating the price of land (purchase or lease), assessing the volumes of required restoration work, determination of wear (physical and functional, external), final calculation of the amount of cost adjusted for the amount of wear. The assessment of plots is carried out independently of the real estate.
3. Capitalization of income (rent) - this method is used to evaluate existing facilities. The market value of real estate is calculated based on the conditions that the property does not require additional financing for reconstruction and/or repairs. Based on the possible amount of benefit when renting out the property. Calculations are made using the capitalization rate derived from current market data in the first year, and then forecasts are made for subsequent periods. The method cannot be considered reliable enough for Russian conditions unlike foreign ones due to opacity domestic market and difficulties in collecting true information. Moreover, when we are talking about several years, forecasts become very relative.

Determining the market value of an enterprise

Economic activity can bring various surprises to business owners that require obtaining real data on the monetary measurement of objects. Determining the market value of an enterprise's real estate is necessary when making purchase and sale transactions; during the resolution of property disputes, including court proceedings; in the process of approving a mortgage loan or obtaining a line of credit from a financial institution; during reorganization events; to attract third party funding private investors and in many other cases.

The assessment procedure is usually carried out by specialized assessment expert companies with provision official report, but, depending on the final goal, you can carry out necessary calculations independently, confirming the results up-to-date information. At the same time, the assessment of a business as a whole and its objects separately, as well as any other property, consists of the process of determining the real market price for the current period of time. When choosing the optimal method, you should first analyze all the initial conditions and influencing factors.

Calculation of market value of shares

A reliable determination of the market value of shares can be found on open Internet resources. To navigate the data obtained, remember that the stock price is calculated using one of the above methods, taking into account the market situation. The most common is the cost-based method, in which the assets and liabilities of the issuer are taken into account and net income per share is calculated. Revenue (taking into account future income) and comparative methods(comparison with other analogues is carried out). At the latter method publicly available data is taken.

Calculating the market value of a bond - formula

To obtain information about the actual market price of bonds, special formulas are used. One of them is shown below:

Market bond price = Amount of coupon payments x ((1 – 1 / (1 + market rate on current moment) to the power n) / current market rate + Bond value at par / (1 + current market rate).

Amount of coupon payments = coupon rate in % x Bond value at par.

n is the period (in years) until the bond matures.

If you find an error, please highlight a piece of text and click Ctrl+Enter.

The determination of market value is carried out taking into account all factors that significantly influence both the market for the types of property being valued as a whole, and directly the value of the property in question. At the same time, we consider possible ways use of the property and selects the one that gives the maximum income. To do this, an analysis of the best and most effective use. When assessing, approaches common to all types of property are used: cost, comparative, income.

The three approaches result in different cost values. After analyzing the results obtained by different approaches, the market value of the property is established.

1. Methodology of the cost approach:

The cost approach is based on the assumption that the costs of creating an object are an acceptable guide to determining its value.

This approach is based on the principle of substitution, which states that an informed investor will not pay a larger amount for an object compared to the costs of reproduction (acquisition) of a similar object of equal utility with comparable technical and operational indicators.

The basic formula for calculations using the cost approach is written as follows (formula 2):

The amount of wear and tear and obsolescence of the assessed object is determined by the values ​​of physical, functional and economic wear and tear and obsolescence according to formula 3:

2. Methodology of the comparative approach:

The sales comparison approach to valuation is based on a direct comparison of the property being valued with other properties that have been sold or listed for sale. The market value of a property is determined by the price a typical buyer would pay for a property of similar quality and utility.

As part of the comparative approach, the following methods are usually used:

Method comparative analysis sales (sales comparison method);

Method of correlation and regression analysis.

The comparative sales analysis method is most effective for properties for which there is sufficient information about recent sales transactions. If there is no such property on the sales market, the sales comparison method is not applicable. Any difference in the terms of sale of the comparable property from typical market conditions at the valuation date should be taken into account in the analysis.

The application of the sales comparison method consists of sequentially performing the following steps:

Detailed market research to obtain reliable information about all factors relevant to objects of comparable utility.

Determining appropriate units of comparison and conducting comparative analysis for each unit.

Comparison of the object under study with selected comparison objects in order to adjust their sales prices or exclude them from the list of comparable ones.

Bringing a number of indicators of the value of comparable objects to one or to a range of market value of the object under study.

When adjusting the sales prices of comparison objects, all adjustments are made from the comparison object to the valued object.

The method of correlation and regression analysis is used when there is an extensive (statistically significant) database of real estate for a similar purpose, including reliable information on the prices of objects and their pricing parameters.

3. Methodology income approach:

Valuation of real estate by its profitability is a procedure for assessing value based on the expectations of the buyer-investor, focusing on the future benefits from its use and their current expression in a certain amount of money. Another provision of valuation based on its profitability is the principle of substitution, according to which a potential investor will not pay more for real estate than the cost of acquiring other real estate capable of generating similar income.

The basic principle of the income approach is that the value of real estate is determined by the future income of its owner: that is, the recalculation of the future cash flows that real estate provides into the current value.

Since the approach is based on the principle of expectation of future benefits, that is, the right to receive all regular income during ownership, as well as income from the sale of property after the end of ownership (reversion), therefore, when assessing income-producing real estate, two sources of income are considered:

Rent from renting out property (operating income);

Income from the sale of property after ownership (reversion).

Limitation of the approach - in the event of incomplete and unreliable information about transactions in the real estate market, the assessment of objects based on the income approach with a sufficient degree of reliability can be carried out only for residential premises and commercial objects for non-industrial purposes that do not require additional capital investments. There is a stable demand for these premises and they can be compared according to a number of key parameters.

The advantages of valuation methods used within the income approach are as follows:

Only the income approach is future-oriented, that is, it takes into account future expectations regarding prices, costs, investments, etc.;

The market aspect is taken into account since the required rate of return or income capitalization ratio is calculated using real market data;

The income approach provides a measure of economic obsolescence.

The disadvantages of the income approach are the difficulties associated with predicting future events.

The main stages of the assessment procedure when this approach:

1. An estimate of potential gross income for the first year from the valuation date based on an analysis of current rental rates and market rates for comparable properties.

2. Assessment of losses from incomplete occupancy (renting out) and unrefined rental payments based on an analysis of the market, the nature of its dynamics in relation to the property being valued. The amount calculated in this way is subtracted from the potential gross income and the actual gross income is determined.

3. The calculation of the costs of operating the property being valued is based on an analysis of the actual costs of its maintenance and/or typical costs in a given market. Cost items include only those directly attributable to the operation of the property and do not include mortgage payments, interest, or depreciation. The amount of costs is subtracted from the actual gross income and the amount of net operating income is obtained.

4. Conversion of net operating income into the current value of the object. There are two methods for converting net income into current value:

The discounted cash flow method is more applicable to income-generating entities that have unstable income and expense streams;

The direct capitalization method is most applicable to income-generating properties with stable, predictable amounts of income and expenses.

4. Cash flow discounting method:

This method involves the use of discounting as a way of capitalizing expected future income into current value.

Market value is determined by the total present value of discounted cash flows over a given forecast period at the discount rate at the valuation date.

Cash flow discounting is a method used to convert future income into present value by discounting each future income stream at an appropriate rate of return or at a predetermined rate. general norm, which accurately determines the dynamics of investment income, changes in value and rate of return.

The current value calculation is as follows (formula 4):

The method is a technique that converts the future benefits an investor expects from investing in real estate into the current value of the property.

These benefits combine:

Periodic cash flows from the operation of real estate, which are net operating income or net cash flows. They do not include depreciation or income taxes property owner.

Cash flow from the sale of real estate at the end of the expected holding period, representing the proceeds from the resale minus any closing costs.

The investor's goal is for the present value of the periodic income stream plus the present value of the reversion to exceed the initial investment. The risk of an investment must be weighed against its potential growth in value.

Rates of return are partly a function of expected risks. Various beats projected future income may have different degrees of risk, and therefore different rates of return.

Application of the method requires knowledge:

The magnitude and dynamics of future income;

Time of receipt of these incomes;

The value of the asset or change in value at the end of the investment period of the predicted time of ownership of the asset);

Values ​​of the rate of return on investment (discount rate, rate of return);

The level of risk characteristic of investing such assets.

5. Direct capitalization method:

Income capitalization is the process of converting a stream of future income into a single amount of present value. To use this method, you must have the following information:

Absolute amounts of future income;

Time periods for receiving these incomes;

Length of time to receive income.

The recalculation process is described by formula 5:

When using the method, it is assumed that the time for generating income will be quite long, and the flow itself will be stable or evenly changing.

When assessing the market value of the subject property, a comparative approach (sales comparison method) was used.

The final value of the market value of the valuation object is obtained by agreeing on the evaluation results obtained on the basis of the approaches used.

There are three main methods for assessing the market value of real estate: the comparison method, the cost method and the income capitalization method.

The main valuation method is the comparative sales analysis (SSA) method. This method is applicable when there is a market for land and real estate, there are real sales, when it is the market that forms prices, and the task of appraisers is to analyze this market, compare similar sales and thus obtain the value of the appraised object. The method is based on comparing an object offered for sale with market analogues. It finds greatest use in the West (90 percent of cases). However, this work requires an already formed land and real estate market.

The sales comparison method is used if there is a sufficient amount of reliable market information on purchase and sale transactions of objects similar to the one being valued. In this case, the criterion for selecting comparison objects is similar best and most effective use.

The SAP method can also be called the direct sales comparative analysis approach, the comparative sales method, market method market information. The SAP method consists of several stages.

Stage one. Recent sales of comparable properties in the relevant market are highlighted. Sources of information are: the appraiser’s own file, the Internet, electronic database data, real estate companies, real estate broker files, archives of credit institutions (mortgage banks), insurance companies, construction and investment companies, territorial departments for insolvency and bankruptcy, territorial departments of the State Property Committee, etc.

An important point when using the SAP method is the coordination of the results of comparison of the property being valued. Arithmetic averaging of the received data is not allowed. The accepted procedure is to examine each result and make a judgment as to the extent to which it is comparable to the property being valued. The smaller the number and magnitude of amendments made, the more weight has this sale in the final approval process.

Measurements traditionally established in the local market are taken as units of comparison. To evaluate the same object, several units of comparison can be used simultaneously.

Elements of comparison include the characteristics of real estate objects and transactions that cause changes in real estate prices. Elements that are subject to mandatory accounting include the composition of the transferred property rights, the terms of financing of the purchase and sale transaction, location, physical characteristics, economic characteristics, nature of use.

Stage two. Verification of transaction information: confirmation of the transaction by one of the main participants (buyer or seller) or an agent of a real estate company; identifying the terms of sale.

If there is a sufficient amount of reliable market information, it is permissible to use methods of mathematical statistics to determine the value by comparing sales.

Stage three. Adjustment of the value of comparable properties. Adjustment can be made in three main forms: in monetary terms, percentage, general grouping.

First, adjustments are made related to the terms of the transaction and market conditions, which are carried out by applying each subsequent adjustment to the previous result; secondly, adjustments are made that relate directly to the property, which are made by applying these adjustments to the result obtained after adjusting for market conditions, in any order.

The cost estimation method is practically not applicable to land. It can be used only in exceptional cases of assessing land inextricably from the improvements made on it. Land is considered to be permanent and not consumable, and the cost method is used to value man-made objects. When assessed by this method, the value of land is added to the cost of improvements (buildings, structures), and land is assessed separately by other methods.

The cost method of real estate valuation includes the following:

determining the value of a plot of land, determining the replacement or replacement cost of buildings and structures, determining the amount of accumulated depreciation of buildings and structures, determining the market value of real estate as the sum of the cost of a plot of land and the replacement or replacement cost of buildings and structures minus accumulated depreciation.

The choice of the calculation method adopted for determining the cost of new construction of improvements must be appropriately justified. The use of replacement cost is advisable in cases where it is difficult to determine the cost of constructing an exact replica of a building due to outdated types of building structures and construction methods used to create the property being assessed.

Costs corresponding to replacement or replacement cost for the purposes of real estate valuation are calculated as the sum of direct costs, indirect costs and entrepreneur's profit.

The entrepreneur's profit is an established market norm that stimulates the entrepreneur to invest in a construction project. The amount of profit is determined by the method expert assessments based on market information.

The use of the cost method is necessary when analyzing new construction; reconstruction of buildings; assessment for tax purposes; to identify excess income when assessing real estate; when assessing for insurance purposes; assessing the consequences of natural disasters; assessment of special buildings and structures.

In the conditions of transition to market conditions The cost method is decisive in the assessment, since the application of other methods requires extensive market information, which is not available due to the undeveloped market. However, you should always remember that construction costs are only the basis of the market value and most often are either more or less than it.

Currently in Russia this point is often taken into account when incorrectly assessing fixed assets of enterprises, since their revaluation is carried out mainly according to cost method and the appraiser should remember that the book value of fixed assets of enterprises does not correspond to their market value.

The next valuation method, which is applicable specifically for Russia, is the valuation method based on an analysis of the most effective use of real estate, and this analysis is associated with determining the type of use that will bring the owner the maximum income, i.e. income capitalization method.

The income capitalization method when assessing the market value of real estate is implemented by forecasting future income,

capitalization of future income.

Future income generated by a property is divided into two types: income from operational activities as a result of commercial rental relations and reversion income.

The initial premise of the direct capitalization method is the constancy and infinity of the capitalized income. In the direct capitalization method, the present value of a future income stream is defined as the ratio of the annual income attributable to the title or interest to the capitalization rate for this right property or interest.

Assessment is also necessary within the framework of regional tax policy. Throughout the world, the basis of the local taxation system is the property tax; about 70 percent of the local budget is formed from this tax. Of course, with the development of the market itself, with the emergence of real values, it is possible to transition to a taxation system that would stimulate the development of the real estate market and at the same time ensure the replenishment of local budgets. This explains the unconditional interest in the assessment shown by local administrations.

Cost of services according to professional assessment varies greatly depending on the types of objects being assessed, the complexity of the work and, of course, on which specialists are involved in the assessment. Typically, the cost of services is measured either in hours multiplied by the tariff hourly pay, or depends on the size of the object, but is never tied to its value.