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Evaluation of land is one of the most common types of evaluation. Physical limitations of such natural resources as "land" makes it especially attractive and valuable. Land valuation is carried out in case of land contribution to the authorized capital of the company, execution of land parcel pledge contract, determining of the market value of land parcel in case of purchase and sale, as well as other cases when it is necessary to be informed about the cost of land parcel or tenancy cost to take right management decisions. Market value of the land parcel first of all depends on its location, intended use, size, current market conditions of similar parcels, communications and driveways (approach road)

Rental price of the land parcel depends on the rights of the tenant, lease duration, intended use, presence or absence of limitations and charges in land use. (There are three methods of land parcels evaluation in practice: the comparative method, the profitable method, the cost method. Each of the above stated methods of land parcels evaluation has its own peculiarities and characteristics.

  • The comparative method of land evaluation is used for assessment of the land parcels in settlements for individual housing construction, cottage land parcels evaluation, areas designated for industrial development with strong purchase and sale market )
  • Income method of land valuation provides future income from the land usage to its present value.. Income method is used in cases when the estimated land is economically feasible and legally permissible to carry out economic activity or lease it.
  • The cost approach is used for valuation of those land parcels that have improvements, and come to determine the market value of the expenditures for improvements.

For assessment of land evaluators customer must provide documents identifying the object of evaluation, determining its physical properties and legal characteristics. List of documents required for the assessment of land:

  1. Documents evidencing ownership or other property right on the object of evaluation (State act on land, land lease agreement
  2. Documents describing size and location of the land parcel (cadastral plan).
  3. Documents confirming presence or absence of encumbrances or restrictions on the use of land.
  4. Information regarding the availability of facilities at the estimated land parcel.
  5. Information on the availability of general utilities and communications.

This is the tentative list of documents required for the assessment of land, this list can be expanded based on the need to assess the particular land parcel.

When evaluating several land parcels (some State Laws) cost of work can be reduced.

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