The procedure of estimation the plot

How to estimate the plot? Who could do estimation? What documents are given as a result of estimation? How much does the procedure cost and how long will it take?

The procedure of independent estimation of plots takes in average 4-5 days. The cost of estimation services depends on square, location, presents of off plan and etc.



According to the Law of Ukraine “About estimation of property, property rights and professional estimation work in Ukraine”, Law of Ukraine “About land estimation” and Methodic of expert money estimation of plots, estimation of plots are the following:
1. Profitable (capitalization of clean income from usage of plot);
2. Comparative (contrast of prices the sell of similar plots);
3. Approach the rest of the plot (list of expenditures for land improvements).

Each of these approaches has its own specific and peculiarities of their usage.

While estimation of plots, comparative (market) approach is the most comfortable, as it maximum oriented to the market’s business. The problems of its usage is absents of developed land market and also not good development (existed) amendments influencing on the cost.

Profitable approach is used in that case, if plot benefits from business activities or from renting, separately from buildings and constructions, so, the cost of the plot show its capacity to benefit in a future.

Approach the rest of the plot is used while estimation of improved plots. Specification of expenses for plots is made according to market cost of these improvements in case of the most effective usage of plots.



The procedure of expert estimation includes following:

- gathering information which is influenced on its further cost;
- analysis the most effective usage of plot;
- choosing the methods of estimation;
- determination the cost of the object of estimation;
- coordination of results of estimation and making the result about the cost of plot;
- make a report about the plot estimation.

The necessary thing while determination the cost of plot is the date of the estimation, where is making the report about estimation cost of the plot, as estimator does not responsible for fathering changes social, economic and legal conditions which could influence on the cost of plot estimation.



Documents which client will get after estimation are: report about independent plot estimation with name of the object, purpose of estimation and date, description of the plot, plan and characteristic of the plot, grounds of choosing methods, calculation of the cost. Report about estimation is forming according to the Methodic of expert money estimation of plots (confirmed from 11.10.2002). To the report is attached the plan of the plot and general plan, photos of the plot, copies of the documents which proves the rights for the plot and also other analytical materials which proves the cost. Except this, should be given the copy of license for the right estimation and qualification certificate.



The estimation of plots could be done by the legal persons who have license for business of land estimate works, which is given by State committee of Ukraine of land resources or by Fund of state property of Ukraine, where in work relationship there are not less than 2 experts.