Real property assets in the form of land, buildings, infrastructure, and property rights are appraised as of a specific date
Built Properties are inspected to develop a complete record of asset characteristics, including age, physical and technical condition of all components of built property, and remaining useful life. Land is valued according to its Highest and Best Use.
Appraisal reports provide comprehensive analyses to place assets and values within the appropriate economic context.
The Company’s valuation reports fully comply with regulatory requirements and current legislation within Ukraine, and are further compliant will all requirements of the International Valuation Standards IVS 2020.
Valuation for simple properties can be done within 1-3 days.
For large properties, property complexes, or properties with unique characteristics, appraisal reports are delivered within two to six weeks.
Real Property Valuation: Buildings, Land, Property Rights
Real property assets include:
– residential apartments,
– single family homes and cottages,
– administrative,
-commercial and retail space, and
-businesses such as restaurants, hotels, gas stations, etc.
The Company specializes in industrial assets including:
- factories,
- port facilities and trade terminals,
- agribusiness enterprises,
- energy and metallurgical, and infrastructural assets including engineering systems and support facilities,
- wells, water facilities, power lines, transformer substations, roads, airfields and other logistical assets.
How are residential property assets appraised in Ukraine?
The main approach for appraising apartments is the comparison method. This approach involves determining the market value by selecting analogs. Analogs are found that are similar to the apartment that is being appraised, in the same type of building and of similar size.
Price data from known sales and offering prices on the market are analyzed to determine an appropriate set of market price data applicable to the subject valuation.
Location is a primary factor, particularly relative to transportation infrastructure and public amenities.
Valuation results are reconciled by statistical analysis of the deviation of results and the selection of those results best correspond to the specific apartment being appraised.
Non-residential buildings and structures
These real property assets include such things as:
– Office Buildings and premises; –
– Restaurants, Cafes, Fast food points; –
– Banks; –
– Business Centers; –
– Hotels; –
– Shopping and Entertainment Centers; –
– Cinemas, Theaters and other Entertainment Facilities; –
– Warehouses, including Logistics; –
– Industrial Buildings and Structures;
-Fuel Stations, Power Lines, Transformer Substations and many other types of infrastructureassets.
How are non-residential buildings and structure appraised in Ukraine?
All 3 approaches to valuation can be used:
– comparative,
– income and
– cost.
The comparative approach in evaluating nonresidential buildings is similar to the approach described above for evaluating apartments and consists in the selection of analogs of sales or offers.
The income approach in this assessment involves determining the value based on the income that can be obtained during the operation of the real property asset. In the Income approach, potential sources of revenue and associated expenses are determined, net income is calcualtedand the result is is capitalized by application of capitalization rate reflecting the current state of the market for the real property or by the discounted cash flow method that relies on forecasting future net income.
The cost approach takes into account the costs of building a replacement asset and subtracting depreciation to date to obtain the Depreciated Replacement Cost of the building.
The value of land rights is added to the depreciated replacement cost of the building.
The cost approach is usually reserved for cases where there are no similar assets (analogues) on the market. If there are similar assets that are being sold, the valuation can be performed using both comparative and cost approaches.
For the assessment of gas stations, hotels, offices and other facilities, see the relevant sections.
Give us a call or send us your email and we will be sure to contact you to start your assessment today.
