Immovable property valuation
Immovable property valuation is the process of determining the market value of land, buildings, structures, residential and commercial premises, work-in-progress objects, and other immovable assets. It involves analysis of location, size, condition, infrastructure, and other factors, as well as comparison with similar market assets. Immovable property valuation is conducted for the purposes of sale, purchase, insurance, taxation, lending, investment, or accounting. The valuation report can also serve as evidence in legal disputes or be submitted to notaries for inheritance cases to determine property value, heirs’ shares, and the calculation of state fees.
Immovable property valuation typically includes the following stages:
- Data collection. Identifying the immovable property and gathering relevant details (location, size, technical state, usage, and other characteristics).
- Market data analysis. Analysing market conditions and comparing the property to similar sold or leased assets to determine its fair market value.
- Physical and functional characteristics assessment. Inspecting the property’s physical state, functionality, age, materials, and technical specifications.
- Valuation method selection. Choosing the most suitable valuation approach based on property type, valuation purpose and data availability.
- Value estimation. The application of the selected method to calculate the property’s value using collected data and analysis.
- Valuation report preparation. Drafting a detailed valuation report with property descriptions, methodologies, market analysis, valuation data, and the valuer’s conclusions.
- Results reporting. Presentation of the immovable property valuation report to the client, including the explanation of the methodology and data used in the report.
- Quality assurance. Verifying that the valuation is correct and accurate and that the results comply with the relevant standards and requirements.
Upon completion of immovable property valuation, the client receives:
- Professionally compliant valuation report.
- Clear insights into the property’s market value for sales, purchases, leasing, or inheritance decisions.
- Accurate insurance premium calculations for adequate risk coverage.
- Understanding the property value for tax liabilities such as property tax, rental income tax, or capital gains tax on the sale of property.
- Expert review of the valuation report by RSA (Russian Society of Appraisers) (if required).
Real estate transactions grounded in valuation ensure security and transparency.
