Economic evaluation of land for urban and agricultural

As the legislative regulation of the land issue develops, the process of selling (buying) a plot is also optimized. In this connection, the question of how much it should cost is becoming topical. And in this case, the economic evaluation of the land comes to the rescue.

general information

It is difficult to overestimate the importance of a full-fledged analysis of land resources. After all, economic evaluation is a key factor in concluding a contract. No matter what will be the sale or rent, but the buyer and the seller are interested in articulating the most optimal price for each of them. For the best result, the acquaintance takes place both with different documentation and directly on the spot. After all, even in the case of a convenient location, the land can be polluted, have hidden shortcomings or a specific use. Therefore, for each specific case, a certain list of methods and approaches of analysis is selected. This allows you to get the most objective assessment of the cost. To avoid errors during calculations, software is widely used.

What is included?

When a normative monetary assessment of land is carried out, it is considered the cost not only of the site directly, but of the real estate objects that are installed on it. This is also assessed on the basis of the current market situation. Economic evaluation of land in agriculture includes both accounting of the available infrastructure, and the existing cadastral plan. Thus, you can already calculate beforehand what you need to do more, and what already is in the ready state - just come and act. After all, the benefit after the acquisition can be realized for an unlimited time. And this is an important difference of land from other assets with a certain lifetime. Therefore, taking into account the prospects, the diversity of the natural resource, and the proximity, the amount of the population, as well as what will be placed there and how much it is profitable is 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 basis for subsequent use in such a way as to rationalize the protection and use of the resource, to promote soil fertility, to work on the reproduction of soils and to preserve favorable living conditions for people. This is especially important in cities. In practice, the land market in the Russian Federation is rather difficult to objectively assess due to a number of factors:

1. Inadequate legislation and regulatory framework.
2. Underdevelopment of the land market in the whole country.
3. The specifics of a particular object.

In this case, it is possible that the normative monetary assessment of the land will be carried out with significant errors. This problem is especially acute in urban conditions. It is enough just to open the newspaper, as it is possible to read about various frauds or manufactures located in the center of settlements and worsening the ecological situation here. Indicators of economic evaluation of land, however, make it possible to obtain maximum efficiency from placing something in a certain territory.

How is this done?

How does the economic evaluation of land in agriculture or in the city look like? The legal regime is initially defined . This implies the trial of the intended purpose, the form of ownership and obtaining permission to use. Let's look at each item separately. So, the target assignment is the order, the limit and the conditions of operation of the territory established by law and regulations, according to a particular purpose within a certain category. A total of seven in the Russian Federation. By forms of ownership - the land can be in the power of the state, the municipality, the private person, the collective and others. Regarding the resolution - there is a whole set of restrictions. So, for example, foreign citizens are prohibited from transferring land plots adjacent to the borders. The same applies to some other special zones.

Who is suitable?

Economic evaluation of agricultural land can be carried out only for the site that is in civil circulation. The most popular in terms of use is private law. But this is not the only opportunity in terms of ownership. It is not necessary to forget that there is a right of perpetual use within the framework of municipal or state property. In such cases, the land belongs to the authorities and self-government and federal state-owned enterprises. A land plot with this status can not be contributed to the capital of commercial organizations. But it can be rented. In such cases, limited use of time is provided on the terms of the concluded contract. In the same place, the rights of disposal are also prescribed. The economic valuation of urban land in such cases is sought by capitalizing the income that the lessor will receive on the basis of the activities possible in terms of implementation and taking into account his location.

Features of state or municipal lands

When using them on a leasehold, there is a specific point: it is forbidden to change their intended purpose. But this is not the only condition. When assessing agricultural land or industrial areas of the city, you have to follow these restrictions:

1. It is forbidden to use the site in such a way that it leads to a deterioration of the environmental conditions, a decrease in soil fertility and degradation of the land.
2. You can not carry out activities in a territory not intended for this purpose. So, for example, you can not build buildings on agricultural land.
3. It is forbidden to sell and rent.
4. Other requirements, which are established by federal laws, other regulatory and legal acts of the Russian Federation, subjects of the Russian Federation and local self-government bodies.

Appropriate permits are issued by the authorities in the relevant documents. At the same time, the main objectives of the economic valuation of the land are taken into account, which allow one to decide how much it will be transferred. So, for agriculture, they are allotted for nominal amounts (in terms of profits), but the extraction of oil or minerals is quite another matter.

Types of evaluation

In order to roughly understand how much a certain site costs, several different approaches are used. Generalizing methods of land valuation:

1. Cadastral approach. This definition of the value of all land plots within the boundaries of one administrative-territorial entity (oblast, district, city, village). In such cases, the value of the allotment is calculated using a mathematical ratio tool (that is, 100 acres is estimated at 10,000 rubles, then one is only 100 rubles).
2. A single estimate. This approach is used to determine the market special value of the land at the current time (that is, the date when independent experts give an opinion on their vision, how much to pay for the plot).

For the best result, this is done using a combination of three methods: cost, comparative and revenue. The value obtained is determined as cost. Let's talk a little about them in more detail.

Three methods

Initially, let's pay attention to the profitable. It is most significant for business, because it allows you to estimate the value of land based on the amount of income that the potential buyer wants to receive. The profitable method is based on three principles:

1. Expectations.
2. Maximize effective use.
3. Substitutions.

As a rule, investors and entrepreneurs acquire land in order to receive money income or other benefits. Therefore, the most profitable method for them is the income method. Comparative is used in those countries where there is a developed land market, and the price is determined based on the cost of other sites. The cost approach offers an assessment from the position that no more money will be paid for the territory than will be spent on erecting all the necessary facilities.

Conclusion

Regardless of whether there will be an economic evaluation of urban land or for rural, industrial or agricultural purposes, it should be remembered that the general approach to this matter is one. And it is necessary to adhere to the adopted protocol so that the subsequent transaction after the valuation would not be recognized as invalid.