What is retrospective assessment? Retrospective assessment of career choice

In these cases, each party often hires their own appraiser, who must then defend their appraisal report in court. As a rule, spouses have an apartment in joint ownership (without allocation of shares).

If the apartment is in shared ownership, then during legal proceedings an assessment of the share in the apartment will be required for the court.

In practice, an assessment of a share in an apartment for the court is most often necessary when buying a share by another owner, registering an inheritance, selling a share on the open market, or dividing property.

In addition, when exchanging housing, it is often necessary to evaluate the share of the child registered in the apartment, since during the exchange the value of the child’s share cannot be reduced.

Retrospective real estate valuation is

There is only one reason for this: the incompetence of the appraisers.

The fear of receiving a negative examination of their report forces appraisers, by hook or by crook, to dissuade clients from conducting reports through an SRO.

However, it is not always possible to neglect the examination, and therefore it is important for customers to be very attentive to the recommendations of their appraisers.

The first checks the legality of the assessment, compliance with norms and rules.

The second confirms the calculations. It is the second option of examining the report in the SRO that is a prerequisite for submitting a real estate assessment report to the court or to the commission for revising the cadastral value of this property.

Cost of appraisal services

Valuation of any property is the process of determining its value in monetary terms. The object of assessment can be real estate, business, company, credit institution, tangible and intangible types of assets.

Accordingly, the activity of an appraiser is related to establishing the market or other value of the objects being appraised.

As the real estate market develops, the demand for the services of appraisal companies increases. One of the main criteria when choosing an appraisal company for a consumer of appraisal services is still the company's tariff policy. How does the pricing process take place in the market for appraisal services, what components make up the amount that needs to be paid for a set of works to determine the market value of the appraised object?

The cost of the appraiser’s work depends both on the property, the purpose of the appraisal, and the timing. As the real estate market develops, the demand for the services of appraisal companies increases.

Common Reporting Errors for Dispute Purposes

Starting from the new year, the relevance of the topic will increase even more, since the tax for capital construction projects will also be calculated from its cadastral value. Evgenia Panfilova. Deputy Chairman of the Expert Council of the NP SRO "SVOD", analyzes typical errors that are found in reports challenging the cadastral value. The assessment of standards for the purpose of challenging, as is known, is carried out on a retrospective date, which is a non-trivial task and, along with the general problem of the underdevelopment and limitation of the land market, appraisers face such difficulties as: In this case, it is recommended not to stop at one source of information, but try to expand the range of information collection, it is possible to use Rosreestr databases, analyze urban planning standards for zoning settlements, etc.

Setting a task for assessment

Identification of a property represents its precise legal description, which should be compiled on the basis of information provided by the customer. The necessary information can be obtained from the state register of land survey data in accordance with local and state legislation. A proper legal description must take into account the specific regional system of surveying and describing land parcels, which consists of a description of their boundaries, the state survey system, and the procedure for describing and mapping parcels and blocks.

Identification of property rights to be assessed.

The problem of searching for analogues on a retrospective date to determine market value and one of the ways to solve it

It is concluded that the problem of finding analogues for a retrospective date can be successfully solved in any region. Kozlova Tatyana 1. Bytsko Natalia 2 1 LLC "Capital Consulting", head of the appraisal Department 2 LLC "Capital Consulting", Deputy head of the appraisal Department Abstract The article discusses the possibility of challenging the cadastral value of real estate, which is necessary to use the analogs on retrospective date.

We describe possible sources of information and analyzed the possibility of their use. It is concluded that the problem of finding equivalents in a retrospective date can be successfully resolved.

When paying what taxes is retrospective assessment applied? Is the tax committee obliged to accept it?

Retrospective assessment is used when paying tax on the sale of real estate if its ownership was less than one year. In this case, tax (10%) is calculated on the income received from the difference between the purchase price and the sale price. However, if there was no purchase price, the property must be appraised at the time of purchase. As a rule, many owners do not do this when purchasing housing, because there is no goal of immediately selling the property. In this case, an assessment is ordered, it is called retrospective. It must be submitted to the tax authorities no later than March 31 of the following year. That is, if the apartment was sold in 2015, then the tax payment form must be submitted no later than March 31, 2016, and payment of the tax itself must be submitted no later than April 10, 2016. Therefore, if you submit an assessment on time, the tax committee is required to accept it.

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In terms of time, real estate valuation can be current, retrospective and prospective. A retrospective valuation is an estimate of value at a specific date in the past. A long-term assessment is an estimate of its value by the end of the planned period for the construction of enterprises.

There are three methods for determining the value of real estate:

1)costly;

2) sales comparisons;

3) capitalization of income.

All three methods are applicable to many estimation problems, but one may be more important in a particular assignment. The cost method may be applicable when valuing properties with older buildings that have significant accumulated depreciation due to physical wear and tear, functional obsolescence and external obsolescence that are difficult to estimate. The sales comparison method cannot be applied to highly specialized types of real estate because there may not be information available for comparison. The income capitalization method is rarely used to value owner-occupied portions of debt, although it can be used with market confirmations. Capitalization of income can be unreliable in the commercial or industrial property market, where owners outbid investors. The content of these methods is as follows.

The cost method is based on the principle that a buyer will not pay more for a property than it would cost to purchase a similar property of equal quality. Therefore, the estimated market value is the sum of the cost of a plot of land and the cost of construction of a similar facility as of the valuation date. This approach is based on the understanding that market participants weigh costs against costs. Under this method, the value of the property is obtained by adding the imputed value of the land to the current costs of constructing a replica or replacement for the buildings and after subtracting depreciation and obsolescence in the structures from all causes. The cost method is especially useful in valuing new buildings or properties that rarely come to market.

The essence of the sales comparison method is to determine the price that a buyer would pay for a property of similar utility. If there is no such real estate on the market, the sales comparison method is not applied. Using this method, the appraiser obtains a reflection of value by comparing the property being appraised to similar properties, called "comparable sales." The sales prices of real estate that the appraiser believes are most comparable should reflect the extent to which the reflected value of the property being appraised can fall.

The appraiser calculates the degree of difficulty or difference between the property and comparable sales by considering various elements of comparison: financing terms; terms of sale; market conditions; accommodation; physical characteristics; economic characteristics; usage; invalid cost components; transferred rights to real estate; property rights to real estate.

The price of a property is determined by the benefit from the sold ownership rights to the property. Particularly profitable properties may be sold together with existing leases. Taking into account the difference between market rent and contract rent when determining value is called a title adjustment. The starting point of the adjustment is that full ownership is determined at market rents and current financing available.

Conditions for financing a transaction can be market or non-market. The desire of the parties to the transaction to obtain the maximum benefit gives rise to different types of contracts:

1) financing of the transaction by the lender, i.e. the seller pays the interest on the loan that the buyer – the debtor – requires to obtain the loan. In this case, the amount of interest is deducted from the selling price;

2) financing of the transaction by the seller, i.e. The seller provides the buyer with a mortgage loan. To adjust for such conditions, discounting of the cash flows of the mortgage loan (constant payments and balloon payments) at market interest rates can be used.

The adjustment for the terms of sale reflects the non-typical relationship between seller and buyer in the market. The sale can occur at a price below the market price if the seller urgently needs to sell the property and if there is some kind of connection between the parties to the transaction, and at a price above the market price if the buyer urgently needs to buy the property.

Market conditions are changes in market conditions of purchase and sale over time. The state of the market is affected by inflation and deflation, changes in supply and demand, taxation, etc. The amount of adjustment is determined from an analysis of sales of similar properties in different locations, and therefore primarily reflects differences in land values ​​for these properties.

The physical characteristics of a property include dimensions, structural elements, quality of materials, wear and tear, appearance, environmental conditions, etc. Adjustments for physical characteristics require discussion of each point of difference.

The economic characteristics of a property include costs, quality of management, rental conditions and terms, amount of income or profit, etc. This comparison applies only to income-generating properties.

When determining the possible use of a property after its sale, assessments are based on local zoning regulations. It is impossible to compare real estate objects if one of them, after sale, can be used differently from the object being assessed, i.e. repurposed.

The void components of a transaction are the non-real estate components of value. When comparing, invalid components of value are separated from the property.

Capitalization of income is the transformation of expected future income into a lump sum currently received, i.e. conversion of income into capital. The main principle of the income capitalization method is the principle of expectation, i.e. market value is defined as the currently existing value of rights to expected future income.

Capitalization of income involves calculating the current value of future financial benefits that the owner can receive from the property. Financial benefits consist of a stream of recurring income over the expected life of the property and proceeds from the sale (or transfer) of ownership of the property.

In real estate valuation, two main procedures are used to reduce future income to their current value: using the capitalization rate and the discount rate. The capitalization rate is applied to one year's earnings. This is usually the first forecast year. The cost is calculated using the formula:

K – current value,

Kt – income by the end of year t

n – discount rate (rate of return)

Retrospective valuation, valuation as of a date in the past

Retrospective valuation involves the appraiser making a valuation report as of a date corresponding to the past period. Calculations and information about the given analogues, which the appraiser refers to when preparing this appraisal report, must correspond to the date on which the appraisal report is carried out.

Need for retrospective evaluation

The need for a retrospective assessment may arise in the following cases:

• real estate taxation;
• capital gains taxation;
• taxation of inheritance;
• payment of compensation;
• consideration of damage claims in court;
• reviews of existing assessments.

Approaches to retrospective assessment

There are two ways to perform a retrospective assessment:

1) Conduct an assessment based on sales prices of similar objects current at the date of assessment. In this case, the appraiser finds reliable sources of offers for the sale of similar objects that correspond to the object of assessment in all pricing parameters in effect on the date of the retrospective assessment. As a source, our company’s appraisers use various archives, as well as our own database of offers for the sale of real estate, accumulated over the course of our work.

2) An alternative to searching and comparing past prices is the so-called index method. This method assumes that the value of an object is first determined on the current date using current prices, and then, using price change indices, the value is calculated on a date in the past (retro value).

Our approach to performing retrospective assessment

VALMARKET has sufficient experience to prepare a professional expert opinion on the retrieval value of the appraisal object as of the date you need. Our company’s specialists will conduct an express analysis to identify the possibility of performing appraisal work, draw a conclusion about the feasibility or inexpediency of appraising objects in each specific case individually, and also determine the fair market value of your objects, and draw up an appraisal report that meets all the requirements of the legislation of the Republic of Moldova.

Documents required for an independent retrospective assessment

To prepare a retrospective assessment report, the minimum required package of documents will be:

• a complete set of title documents for the object of retrospective assessment;
• information confirming the rights to the valuation object as of the date of the retrospective valuation.

Timing and cost of retrospective assessment

The cost of a retrospective appraisal report is always slightly higher than the prices set for the appraisal at the current date. This is primarily due to the complexity and limitations of searching for information necessary for carrying out assessment work. But you can be sure that VALMARKET will always offer you the best price for appraisal services and complete the work in the shortest reasonable time.