Formation of land valuators: legislative base, information sources for valuation, criteria for lands valuation Olov Färnkvist , Kiev

Historical background In the agricultural society - Valuation of land according to productivity - Valuation for taxation - Valuation for land consolidation (productivity, location) Income methods In the industrial society -Urbanisation, location values -Land acquisition for infrastrucure -Also forest land is valuable Income methods, cost methods and market methods

Historical background In the post-industrial society -Valuation for housing investments (new construction) -Valuation for housing (sale, purchase, credits) -Valuation for capital investments (commercial, residential, industrial objects) Market-based valuation methods sometimes combined with income method

Information needed for valuation Property characteristics: Location, location, location Land use (present and permitted) Land area Improvements (primarily buildings) Income (net) for commercial properties Productivity for agricultural properties Negative: environmental problems

Information needed for valuation Market data: Prices paid for comparable properties Incomes for income generating properties Need of transparency

A transparent property market Characteristics Openness Well-defined organisation Stable set of rules Consequent application of laws and regulations Respect for private ownership Uncomplicated purchase/sell process Relevant register information about real property Supply of information available through public and private domains

No legislation for land and property valuation in general Legislation for valuation for land and property taxation Legislation for land acquisition and expropriation (reference to market value, compensation recently increased to 1,25 times market value)

Authorization of valuers The section for real estate valuation as a part of the association of land surveyors is responsible for authorization of real estate valuers -Need of theoretical knowledge (education) -Need of practise -Need of timeliness (continous work) -Need of independence -Etichal rules -Mandatory insurance For most types of valuation it is not mandatory to choose an authorised valuer

Authorization of valuers -General authorization (for all types of real estate) -Authorization for valuation of agricultural properties -Authorisation for valuation of houses For most types of valuation it is not mandatory to choose an authorised valuer

Information in the land- and property register

Available data about the property market at internet Land and building value maps with value zones for different types of properties ( Example of a value zone for residentials in Gävle, Sweden Number and name of the zone Normal size of a site and the value

Lantmäteriets value map system

Available data about the property market at internet Property price statistics (

Available data about the property market at internet Properties for sale ( Facts Offered price Type of property Size of site and building Year of construction

Available data about the property market at internet Land and building value maps with value zones for different types of properties ( Example of a chosed property in a value zone Purchases in the zone used in the real property assessment to determine values Chosed property Representative and sorted out purchase Price and ratio between assessed value and price

Lantmäteriets value map system

Need of thrustworthy information about prices Limited incentives to cheat with the stated price Captal gains tax (the buyer wants a correct entrance price) Low transaction tax with an alternative base (price or assessed value) The transaction may be declared obsolete if it is proved that the stated price is false Transparency