What is involved in the soil award?
Soil valuation usually includes numerous calculations to determine how much money the land has. Among other things, the valuation requires a determination of how much country is worth independent of any buildings, how much the neighborhood is expected to develop in the future years, and the likelihood of recognition or depreciation. Soil valuation is generally a very complex effort. Valuation evaluators often use more than one method of determining the soil value before reaching the final number.
Soil knowledge is important for many reasons. Potential land buyers often want to know how much land is worth investing in it. Governments are also interested in knowing how much land is worth assessing real estate taxes. The soil valuation is the process of identifying the actual current value of any land, developed or not.
One of the most common valuation methods relies on the selling price of another similar land. A comparable sales method examines a recent selling similar land in the same geographical OBASTI to get an idea of what the land would sell in the open market. A comparable sale method often requires subjective modifications for differences in and around and around. For example, the selling price of a closed batch can help determine the value of a similarly large land, but if this batch adjacent to the busy street, its value will necessarily be a little different.
Many valuation evaluators also use development costs. According to this method, the evaluators study the current costs associated with the development of similar land and consider any physical attributes of the soil - such as streams, irrigation wells or rocky soil - that could affect the potential of the building. This type of valuation is usually quite exhausting, Taking, many different factors.
If buildings are already attached to the land, things often complicate in terms of valuation. In these cases, the soil valuation requires the calculation of how many buildings affect the sale price and what the value of the soil without connected buildings. There are several methodsto perform this calculation.
methods of income analysis and cost analysis are among the most common. In the method of income analysis, the evaluators estimate the value of the land, how much money the property earns every year. Then the agents determine how much the building is worth and allocate part of the earned income to the building. The rest is the soil value.
The evaluators also look at the value of the building according to the cost analysis method, but only in terms of how much their construction costs. According to this method, the soil value is the value of the property minus any cost of construction. The cost of the cost analysis criticized them for not taking into account depreciation or maintenance.
rather than making many estimates and calculations in themselves many modern valuation agencies use computers and technology to help them make faster and more accurate valuation of land. Different programs have been designed to develop formulas and calculate the soil value based on a number of different factors. This process is known as computer supportRied mass evaluation or cama.
CAMA programs usually use larger databases of real estate records, sales information and tax evaluation information from previous years. These databases are known as geographical information systems or GIS. No computer can do a person's work, but it is used correctly, a computer running CAMA can facilitate the work of the valuation evaluator.