Kaarel Sahk lecturer Estonian University of Life Sciences European Real Estate Society 19th Annual Conference 13th16th June 2012 Abstract While we think about real estate it is quite common to limit with land or buildings Other way while we are speaking about real property early then ID: 571156
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Real property appraisal - essential part based similarities and differencesKaarel Sahk, lecturer Estonian University of Life Sciences
European Real Estate Society 19th Annual Conference 13th-16th June 2012Slide2
AbstractWhile we think about real estate, it is quite common to limit with land or buildings. Other way, while we are speaking about real property early, then beside the land and buildings we commonly imagine not only finance or the bundle of rights but also the essential parts like forest, structures, and landscape are eligible. The lastly named diversification points us attention that we can draw down a nomenclature of different things that should be valued or their value, metric or non metric as a component will influence the estimated value. The last approach explains that some components, things, are non metric and they are described under some different circumstances like emotional, natural, social, etc. types of values that are not the common characteristics enclosed into the real estate value. The named situation, linked with the other contemporary situation of valuation which must account sustainability as a generic name, or energy efficiency, green etc, as its extensions, supply us with the huge multiplicity of resolutions that includes the both, similarities and differences.
Keywords: essential part, real property, metric and non metric, types of values
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Legal definiton based
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BUILDINGS
STANDING
WOOD
UN
HARVESTED
GROP
SECURITY
SERVITUDES
PRE EMPTION
encumbrance
superficies
OTHER
PLANTS
Un harvested gropSlide4
What happen while to summarize otherway?
Pairs of antipodes
Pairs of antipodes
Natural landscape
Nature
Rural landscape
Natrual palce
Cultural landscape
Artifact,
Urban landscape
Simulated palce
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Owerall principles
Roose, A, Sepp, K, et.
al. Neighborhood-defined approaches for integrating and designing landscape monitoring in Estonia
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Place and Camus – one more
descriptionWe may refer here and hereafter to the definition offered in the world-famous novel by Albert Camus, The Myth of Sisyphus
where the place as a complexity of various implications is constituted from three basic components:the physical settings
the activities and
the meanings
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Place as a complexity
Sence of
Place
Activity
Meaning
Physical
setting
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Data based approach of Qualitative data
Quantative dataLand owners & users
Building owners & usersForest owners & usersDevelopers
Real estate professionals
Local authorities
State agencies
3-d sectorSociety
Land register
Web map service
Sales price register
Forets register
GPS & GIS info
Register of Environment
GPS & GIS infoBuildings registerPremesies register
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APPRAISAL’s DATASlide9
Multiplicity of Register of EnvironmentBiota
Protected natureMonitoringNatural recoursesWater conditionsAir conditionsPermits & licenses
Waste & hazards
Nature protection objects
Valuable habitation
Areas with international significance
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Values of landscape due appraisalCultural valueHistorical value
Ethics valueIdentity value Natural valueRecreate valueTourism potential valueRestful value
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Commonly nonmetric paramtersSlide11
Some possible diversifications. Vol 1
Recreational value + Tourism potential value = Restful value
Existence of traditional approaches to categoryCommonly, in many occasions summarizing the all earlier values of landscape
Some basic drivers of restful value
Beauty
Variety of relief and greenery
Multiplicity of forest
Existence of water bodies or accessible coastline
Area is a carrier of local traditions and history
Availability of popular sights and showplaces
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Ethics valueBeauty of landscapeDiversity of landscapeIndividuality of landscape
Maintenance of landscapeVariety of landscape, i.e relation of fields, grassland, groves and buildings or structuresTraditionality of landscape Variety and spectacular relief
Beautiful views, i.e attractive
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Some possible diversifications. Vol 2Slide13
Some possible diversifications. Vol 3Identity value
Similar to the sensitive value (e.g Persson)Applied property valuation in Europe. A study of 19 countries. Master of science thesis No. 13, (1998)Stockholm: Kungl Tekniska Högskolan
.Important and valuable for local residents and neighbourhood
Commonly associated with former or future owner
In practice hard or commonly impossible to attachable to other properties
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Value of land - basic types of land use
Commonly metric parametersValue of land is in straight correlation with the intended use of it, fixed in the Land cadastre as a specified cadastral unit use under the legislation and their determination (Land Cadastre Act).Different schemes of diversification
s; local v.s international
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Value of land - basic types of land use
IVS regualtion
Land for housingLand for business
Land for manufacturing
Land for bodies of water
Land for transport
Land for garbage disposal
Land for national defence
Land for nature protection
Land for
profit yielding
Land without intended use
Land for mining industry
Land for peat handlingLand for social use
Crop(ping) FarmsIrrigated LandPerennial Plantings Specialised Livestock FacilitiesLivestock Ranches/Stations
Dairy FarmsForestry/TimberlandSpecialised or Special Purpose, PropertiesIntegrated UnitAgricultural ActivityBiological Assets
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Value of land - Land Valuation Act
Valuation - The object of a valuation is a plot of land without the buildings, forest, other vegetation or accessories situated thereon.Appraisal - In an appraisal, the object of the appraisal may be a plot of land together with its essential parts and accessories.Valuations of land are classified as assessments, appraisals and valuations of unlawfully expropriated land.
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Value of forestCommonly metric parametersValue of forest is not synonymous with value of forest land.
Forest land valuation is subordinated to land valuation procedure. Common land valuation rules are employedForest valuation is a procedure of appraisal of standing wood. Standing wood value gain + marketability
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Value of forestPeggy Petrzelka, et.al in paper (Land use policy 2013), The elephant in the room: Absentee landowner issues in conservation and land management –
absence of owners It means – forest value approach is linked with ownershipThe aim is value and the goal is evaluation of existing situation and extracting of standing wood value form the aspect of the Forest management plan Site class of forestland
is in correlation with standing wood classification and management plan
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Value of buildingsCommonly metric parameters and non metric parameters (sustainability, green aspect)
On possibility for diversification is: as it planned v.s as it built, all of these approaches are covering the full part of lifecycle, i.e from plans up till permit (license) of use (occupy).The more demonstrative is built up the environment of buildings value according the different phase from idea up till the permit (license) of use (occupy).
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Value of buildingsIdea
master planning detail planning terms of reference of design
design
permit to build
building project construction works
inspections
permit to use
use & utilization maintenance & reconstruction demolition
reuse or waste Here is key point of appraisers knowledge –to know current prices on to be able to compare themHere is a key point of appraisers as an artist,
we speak a ability to atract
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Similarities. Vol 1Every item (type) of comparison
is a subject to organization or management plans likeLandscape – Protection plans, maintenance plansLand - land adjustment and readjustment plansBuilding – building project, maintenance and facility management plant
Forest – Forest management planEvery item is placed under degradation
Every item as an asset needs a classification, condition assessment
and
maintenance for derivation best value in the future
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Similarities. Vol 2Subordinated to lifecycle,
economical (50 years) and physical (up till 200-300 years) - buildingsChangeable in time Open to changes in surrounding environmentSensitive to legal situationPermanent
maintenace procedures are required
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Differences. Vol 1Methods applied for extracting
Different usage of results – loan security, economic objectiveDifferent ownerships – different values approachesPower institutions influences – ministries, departments Parameters describing the value are varyingVery different p
rofessional regulation
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Differences. Vol 2Influence of the Structure of holding Chronological extent (amplitude)
Extracted value - non economicDifferent types of extracted value – special value, compensation value, investment value, synergetic value, fair value, market value, insurance value, ordinary value, earlier applied - owners value i.e value in use
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About the situation
The questionary is on the way. Based on the involved parties of procedureCo-operation for deeper and profounded layout with professor Sepp -landscape application assistant professor Lang – forest valuation
Goal – paper for journal “Baltic forestry” or “Land use”
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Refererences Encyclopedia
of real estate terms : based on American and English practice, with terms from the Commonwealth as well as the civil law, Scots, and French law / Damien Abbott London ; Washington, DC : Delta Alpha, c2000Enemark, S. Educating Suveyors
for Land
Management
, FIG;
Com 2 sysmposium18-20.10.2000
Real estate valuation
theory
/
edited
by
Ko Wang and
Marvin L. Wolverton Boston [etc.]: Kluwer Academic Publishers, 2002
The Valuation of Property A Treatise on the Appraisal of Property for Different Legal Purposes. Volume I. By James C. Bonbright. McGraw-Hill Book Company, Inc. New York and London, 1937Real Estate Valuation. A Statement of the Appraisal problem and a Discussion of the Principles Involved in the Development of Valuation Methods by Frederick M. Babcock. University of Michigan, 1932
The Appraisal of Real Estate by Frederick M. Babcock. B.S. New York The MacMillan Company,1924
Tõnisson, J. Liikumatu varanduse hindamisest Liivimaal. Postimees, Jurjev, 1902Väljaspool linnu ja aleveid asuvate kinnisvarade hindmaise seadus. Riigi Teataja nr 23, 1927.aInternational
Valuation Standards 2011. International Valuation Standards Council
, London 2011 International Valuation Standards. Eight
Edition. 2007. International Valuation Standards Committee, London 2007
A Valuer’s guide to the Red Book, RICS, 2007
22.07.2011BVC2011#Kaarel Sahk#Mutual recognation ...26Slide27
Author’s additional information:https://www.etis.ee/Portaal/isikuCV.aspx?LastNameFirstLetter=S&PersonVID=43875&lang=en&FromUrl0=isikud.aspx E-mail address
kaarel.sahk@emu.ee Mail addressKreutzwaldi 5, 51014TartuEstonia
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Thank you!
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Questions please!
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