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Who cares what the expert evaluation is for?

The person doesn't understand what the difference is

As required by law, the property appraisal report must specify the purpose of the valuation. The purpose of the valuation affects on which type of value has to be determinated, What methods and procedures should be used, and, finally, how to document performance.

Types of value

Above is a link to the note on what are the types of value, other than market. Here you can also see examples where a particular type of value is used depending on the purpose of the valuation. For example:

  • in valuation of real estate of individuals for sale determined “appraised value”, and the procedure is called “tax valuation” or “valuation for tax purposes”;
  • in apartment evaluation for presentation in court – “market value“;
  • if you need to evaluate a property for insurance purposes, is generally determined “replacement cost” or “recovery cost”;
  • when drawing up a business plan and considering a particular use of the evaluation object, the objective is usually to determine “investment value”;
  • accounting or tax accounting sometimes requires valuation of fixed assets when disposing of them (“the cost of eliminating”);
  • and the banks ask appraiser as well as the market value determinate also “the cost of eliminating” of property;
  • when evaluating State property with a specific location, for example at the airport “Borispol”, the inspection authorities are asked to determine the “special value”.

Source data and report design

In addition to the type of the determined value depends on the purpose of the assessment and the list of raw data for its conduct, as well as some features of the final documents – the evaluation report. Give some examples:

  • When evaluating an apartment for sale, it is necessary to have title documents that are filed with the report. The evaluation report itself is registered in the database of the State Property Fund of Ukraine. On the cover page the documents indicate the corresponding registration number, and the report is sewn several sheets with a draw from this database.
  • In land evaluation for the court to pay the court fee, the employer may have no documents at all. This situation is quite common, for example, when property is divided in divorce or upon inheritance through the courts. The output of this work is a document called “Cost Conclusions”, which has its own features in the design.
  • In municipal property valuation the appraiser develops and files to the report such specific documents as passport-certificate and act of physical condition of the property. In addition, separate pages with conclusions on the cost are printed for approval by the relevant licensing authorities.
  • While doing work on shares evaluation for the purpose of additional emission, in most cases the evaluation report is required to attach review from another one appraisal company.