As the legislative regulation of the land issue develops, the process of sale (purchase) of the land is optimized. In this regard, the question of how much it should cost becomes relevant. And in this case, an economic assessment of the land comes to the rescue.
general information
It is difficult to overestimate how important a full-fledged analysis of land resources is. Indeed, economic evaluation is a key factor in concluding a contract. It does not matter what happens - a sale or a lease, but the buyer and seller are interested in voicing the most optimal price for each of them. For the best result, familiarization takes place both with various documentation, and directly on the spot. After all, even in the case of a convenient location, the land may be contaminated, have hidden flaws, or some specific use. Therefore, for each specific case, a certain list of analysis methods and approaches is selected. This allows you to get the most objective cost estimate. To avoid errors during calculations, software is widely used.
What is included?
When a normative monetary valuation of land is carried out, the value is considered not only of the plot itself, but of the real estate objects that are installed on it. This is also evaluated on the basis of the prevailing market situation. The economic valuation of land in agriculture includes both accounting for existing infrastructure and the existing cadastral plan. Thus, you can already figure out in advance what else will need to be done, and what is already in the ready state - just come and act. After all, the benefits after the acquisition can be realized for an unlimited time. And this is an important difference between land and other assets with a certain service life. Therefore, taking into account the prospects, the diversity of the natural resource, and the proximity, number of population, as well as what will be placed here and how much it is profitable, are taken into account.
Specificity in the Russian Federation
When an economic assessment of land is carried out, it is necessary to concentrate on the special role of the state. It should build the legislative foundation for subsequent use in such a way as to rationalize the protection and use of the resource, help increase soil fertility, work on soil reproduction and maintain favorable living conditions for people. This is especially important in cities. In practice, the land market in the Russian Federation is quite difficult to objectively evaluate due to a number of factors:
- Undeveloped legislation and regulatory framework.
- Underdeveloped land market in the whole country.
- The specifics of a particular object.
In this case, it is also possible that the normative monetary valuation of the land will be performed with significant errors. This problem is especially acute in urban areas. It is enough only to open newspapers, as you can read about the various frauds or industries located in the center of the settlements and worsening the ecological situation here. Indicators of economic valuation of land, however, allow you to get maximum efficiency from placing something in a certain territory.
How is this done?
What does the economic valuation of land look like in agriculture or in the city? The legal regime is initially determined . This means proceedings with the intended purpose, form of ownership and obtaining permission to use. Let's look at each item individually. So, the intended purpose is the procedure, limit and conditions for the operation of the territory established by law and regulatory acts in accordance with a specific goal within a certain category. There are seven in total in the Russian Federation. By forms of ownership - land may be in the power of the state, municipality, private individual, collective and others. Regarding resolution - there is a whole set of restrictions. So, for example, foreign citizens are prohibited from transferring land adjacent to the borders. The same applies to some other special zones.
Who is suitable?
An economic valuation of agricultural land can only be carried out for a plot that is in civil circulation. The most popular use plan is private law. But this is not the only opportunity in terms of ownership. Do not forget that there is a right to use indefinitely in the framework of municipal or state property. In such cases, the land belongs to authorities and self-government and federal state enterprises. A site with this status cannot be contributed to the capital of commercial organizations. But it can be rented. In such cases, time-limited use under the terms of a contract is provided. The rights of disposal are also registered there. In such cases, an economic assessment of urban land is sought by capitalizing on the income that the landlord will receive based on the types of activities that are possible in terms of the implementation and taking into account its location.
Features of state or municipal lands
When using them on a rental basis, there is a specific point: it is forbidden to change their purpose. But this is not the only condition. When assessing agricultural land or industrial areas of the city, then you have to follow these restrictions:
- It is forbidden to use the site in such a way that it leads to a deterioration of environmental conditions, a decrease in soil fertility and land degradation.
- You can not carry out activities in the territory not intended for this. So, for example, buildings cannot be built on agricultural lands.
- It is forbidden to sell and rent.
- Other requirements established by federal laws, other regulatory legal acts of the Russian Federation, constituent entities of the Russian Federation and local authorities.
Corresponding permits are issued by representatives of the authorities in the relevant documents. In this case, the main goals of the economic valuation of land are taken into account, which make it possible to decide how much it will be transferred for. So, for agriculture they allocate for nominal amounts (in terms of profit), but the production of oil or minerals is a completely different matter.
Types of Assessment
In order to roughly understand how much a particular site costs, several different approaches are used. Generalized land valuation methodology:
- Cadastral approach. This is the determination of the value of all land within the boundaries of one administrative-territorial entity (region, district, city, village). In such cases, the value of the allotment is calculated using the mathematical correlation tool (that is, 100 acres is estimated at 10 thousand rubles, then one is only 100 rubles).
- Single assessment. This approach is used to determine the market special value of land at the current moment (that is, the date when independent experts give an opinion on their vision of how much to pay for the plot).
For the best result, this is done using a combination of three methods: costly, comparative and profitable. The resulting value is defined as value. Let's talk a little more about them.
Three methods
Initially, let's pay attention to profitable. It is the most significant for business, because it allows you to assess the value of land on the basis of the amount of income that a potential buyer wants to receive. The income method is based on three principles:
- Expectations
- The most efficient use.
- Substitutions.
As a rule, investors and entrepreneurs acquire land in order to receive cash income or other benefits. Therefore, the income method is of most interest to them. Comparative is used in those countries where there is a developed land market, and the price is determined on the basis of the cost of other plots. The cost approach offers an assessment from the perspective that more money will not be paid for the territory than it will be spent on the construction of all the necessary facilities.
Conclusion
Regardless of whether an economic assessment of urban land or rural, industrial or agricultural purposes will be carried out, it should be remembered that there is one common approach to this matter. And it is necessary to adhere to the adopted protocol so that the subsequent transaction after the assessment would not be invalidated.