Valuation of enterprise property for collateral purposes. Methodological recommendations “Valuation of property assets for collateral purposes. Recommended procedure for interaction between the appraiser and the bank

Which estimate should you believe?

The client brings a report from an independent appraiser on the valuation of the property. Almost 10 million rubles. A copy of the license and a copy of the insurance policy confirming the liability insurance of the independent appraiser are attached to the report. Only the amount of liability is too ridiculous for an appraiser appraising million-dollar objects - 100 thousand rubles. Moreover, this is a general responsibility, and the responsibility for one case is generally scanty - 10 thousand rubles. You can’t help but think: if you are such a seasoned appraiser that you take on the task of appraising million-dollar objects, why did you value your responsibility so cheaply? Don't you believe yourself? If earlier an engineer designed and built a bridge, then he himself stood under this bridge when the first train passed through it - with his life he guaranteed that his brainchild was not a hack job. And here - 10 thousand rubles. The appraiser probably didn’t even visit the site—there’s not a single photograph in the report. He could only evaluate it by the technical passport, if only he had seen it at all, otherwise he could have simply “drawn” it.

By the way, on the loan that was issued on the security of appraised real estate, there was a non-repayment of the principal amount. The point was to foreclose on the property. A second assessment was made. It was already carried out by another appraiser. What would you think? The difference is more than double. What's it like?

Do you think the second assessment is correct? No matter how it is. The property was not sold at the price accepted by the bank - four times less than the original estimate. By the way, it is also good that in the most general case, the valuation of the subject of the mortgage is determined in accordance with the legislation of the Russian Federation by agreement between the mortgagor and the mortgagee1 (Clause 3, Article 9 of the Federal Law “On Mortgage (Pledge of Real Estate)”). And only in a number of cases is it necessary to resort to the services of an independent appraiser. In particular, when registering mortgages (Article 14).

"1. The mortgage at the time of its issuance to the original mortgagee by the body carrying out state registration of mortgages must contain:

9) monetary value of the property on which the mortgage is established, and in cases where the establishment of a mortgage is mandatory by law, the monetary value of the property, confirmed by the conclusion of the appraiser...”

However, even in cases where the law does not directly indicate the need for the participation of an appraiser, credit institutions still require clients to report on the valuation of individual objects accepted as collateral, and the difficulty here lies in their “single nature” and low liquidity. At the same time, an assessment carried out by an independent specialist, in most cases, serves only as a guideline and is not a fetish that cannot be encroached upon.

It often happens that after looking at the assessment report, you tell the client: “No, guys, it won’t work.” Do you think they will run to the appraiser, bring him to the bank and he will begin, foaming at the mouth, to prove the correctness of the appraisal? Nothing happened. The “guys” leave and half a day later or the next day they bring a report from the same appraiser with an estimate that is one and a half times lower. I would like to look these appraisers in the eye...

Or another example. Deposit - confectionery equipment. It was purchased by the pledgor a year ago, and not new, but used. According to the documents, the price is such and such. The appraiser a year later - on the eve of submitting a loan application - values ​​the equipment twice as much. Lenders, of course, are happy: almost twice as much credit can be issued. And since the loan is twice as large, it means you can take more interest. And no matter how much you argue with them, it’s all useless.

If we rely on the Tax Code, we must assume that the price indicated by the parties to a transaction that took place a year ago corresponds to the market price until the contrary is proven (Article 40 of the Tax Code of the Russian Federation):

“Article 40. Principles for determining the price of goods, works or services for tax purposes

1. Tax authorities, when exercising control over the completeness of tax calculation, have the right to check the correctness of application of prices for transactions only in the following cases:

1) for commodity exchange (barter) transactions;

3) if there is a deviation of more than 20 percent upward or downward from the level of prices applied by the taxpayer for identical (homogeneous) goods (works, services) within a short period of time.

3. The market price is determined taking into account the provisions provided for in paragraphs 4–11 of this article. In this case, the usual price premiums or discounts when concluding transactions between non-related parties are taken into account. In particular, discounts caused by:

seasonal and other fluctuations in consumer demand for goods (works, services);

loss of quality or other consumer properties of goods;

expiration (approximation of the expiration date) of the shelf life or sale of goods;

marketing policy, including when promoting new products that have no analogues to markets, as well as when promoting goods (works, services) to new markets;

implementation of experimental models and samples of goods in order to familiarize consumers with them.

4. The market for goods (work, services) is recognized as the sphere of circulation of these goods (work, services), determined on the basis of the buyer’s (seller’s) ability to actually purchase (sell) the product (work, service) in the market closest to the buyer without significant additional costs. (seller) in the territory of the Russian Federation or outside the Russian Federation.

6. When determining the identity of goods, taking into account, in particular, their physical characteristics, quality and reputation in the market, country of origin and manufacturer. When determining the identity of goods, minor differences in their appearance may not be taken into account.

7. When determining the homogeneity of goods, their quality, the presence of a trademark, reputation in the market, and country of origin are taken into account.

8. When determining the market prices of a product, work or service, information on transactions concluded at the time of sale of this product, work or service with identical (homogeneous) goods, work or services under comparable conditions is taken into account. In particular, such terms of transactions as the quantity (volume) of goods supplied (for example, the volume of a consignment), deadlines for fulfilling obligations, payment terms usually applied in transactions of this type, as well as other reasonable conditions that may affect prices are taken into account.

In this case, the terms of transactions on the market of identical (and in their absence, homogeneous) goods, works or services are recognized as comparable if the difference between such conditions either does not significantly affect the price of such goods, works or services, or can be taken into account through amendments.

10. If it is impossible to use the subsequent sales price method (in particular, in the absence of information on the price of goods, work or services subsequently sold by the buyer), the cost method is used, in which the market price of goods, work or services sold by the seller is determined as the sum of the goods produced costs and the usual profit for this field of activity. In this case, the usual in such cases direct and indirect costs for the production (purchase) and (or) sale of goods, works or services, the usual costs for transportation, storage, insurance and other similar costs are taken into account.

11. When considering a case, the court has the right to take into account any circumstances relevant to determining the results of the transaction, not limited to the circumstances listed in paragraphs 4–11 of this article.

13. The provisions provided for in paragraphs 3 and 10 of this article, when determining the market prices of financial instruments of futures transactions and market prices of securities, are applied taking into account the specifics provided for by the chapter of this Code “Profit (income) tax of organizations.”

In our case, no one proved anything to the contrary regarding the market price level. The equipment is rare: there is only one confectionery enterprise in the city; it does not buy such equipment every day, so it is not possible to compare it with similar transactions.

It is clear that prices can rise due to increasing demand for these goods, but in our case this reason hardly deserves attention, since we are dealing with almost a single product for which there is no frantic demand.

In addition, inflation pushes the prices of goods up. And this reason deserves attention. But the events did not take place in the early 90s of the last century, when rates reached “sky-highs” - 240% and higher. Therefore, even if inflation compensated for wear and tear, it did not provide an additional return of 100% per annum. It turns out, sell this equipment and get 100% per annum - the profitability is not bad. It’s just doubtful that the equipment could be sold at that price. And since an appraisal for transferring an object as collateral does not require a sale, you can draw at least 300% per annum. And they draw.

True, there is one more circumstance here. Let's return to Article 40 of the Tax Code of the Russian Federation. In theory, the tax authorities must prove the opposite—that the transaction price does not correspond to the market level—since they have an interest in additional tax and penalties. Nevertheless, in practice, the owner sometimes tries to prove that the transaction price does not correspond to the market level, and he proves this to the bank, and not to the tax authorities. He will tell them the opposite. By offering an object as collateral, determining the market price of which is not a trivial task, such a mortgagor will argue that the market price of the object is significantly greater than that specified in the contract. They say that the agreed price is for the tax authorities, but in reality, a lot more was paid in cash in excess of the agreement. So, they say, this is the market price - it’s not for nothing that the appraiser confirms it.

Therefore, a loan should be issued to him on the basis that the price of the collateral is equal to the contract price plus “wow”. It is not always possible to convince members of the credit committee that this is not worth doing. Although it cannot be denied that the above-mentioned reason for underestimating the contract price may indeed occur.

The question is, how permissible is it for a credit institution to indulge such practices? Each bank decides this for itself. It's a matter of honor. Once you lie, who will believe you? Are you sure that the mortgagor who has lowered the price, i.e., has actually deceived the state, will not deceive you on occasion?

You may ask, what does the appraiser have to do with it? Maybe he did not see either the contract price, or payment documents, or invoices, but simply believed what the owner of the property said? This does not do the appraiser any credit, because it was not for nothing that the legislator, in Article 161 of the Civil Code of the Russian Federation, established the norm according to which transactions of legal entities between themselves and with citizens must be made in simple written form, with the exception of transactions requiring notarization. Therefore he had to see them. And if he saw and knows what the price is indicated there, but considered it a statistical “outlier,” then this also characterizes him in a certain way.

In the case of equipment we are considering, the loan was successfully returned, and more interest was actually collected, as the lenders wanted, but during the next inspection we ran into a remark in connection with the acceptance of the collateral according to the assessment of the so-called independent appraiser. The creditors tried to justify themselves by saying that it was the independent appraiser’s fault, that it was he who led them “into fornication.” However, this sin was blamed on us, and not on the appraiser, and the remark remained in the inspection report.

The client can be understood: everyone wants their item to be valued at a higher price. You see, then you can ask for a larger loan.

You can also understand the appraiser - if you don’t “draw”, who will come to you to evaluate their goods. As a last resort, you can insure yourself with liability insurance for a small amount.

So it turns out that it is necessary to have your own qualified appraiser who will evaluate more or less objectively, if only we can talk about objectivity in relation to evaluation. In relation to real estate, it seems most effective to enter into an agreement with a company that is an active participant in the real estate market, which has an appraisal division, or a friendly appraisal firm. According to this agreement, the bank undertakes to send the partner under the agreement a flow of clients in need of an appraisal of the property. For its part, the bank partner undertakes, in the event of foreclosure on a property, to sell it within an acceptable time frame (established in the agreement) and at a price consistent with the price contained in the assessment report. Tell all potential mortgagors that the bank accepts appraisal reports only from this appraiser in whom the bank is confident. If you don't want to, it's your choice.

But only a bank, which has potential borrowers a dime a dozen, can reason this way. Banks that are in a different position may have to follow the client's lead and accept any reports, especially if the client knows his worth. In this case, all that remains is to bargain for the collateral coefficient. But in case of litigation, this is not the best option. It’s better to start from an objective report. How to evaluate its objectivity?

In my opinion, there is only one way out here - in the bank, in any of its branches, which is granted the right to independently lend, there must be at least one person who has an understanding of the basic methods for assessing collateral.

These are the questions related to the assessment of various collateral objects that I would like to consider.

Why is market value needed?

The appraiser usually gives a figure for the market value of the property in the report. The market value of a property is generally understood to be the highest monetary price that a sale in a competitive and open market would fetch, subject to all the conditions inherent in a fair transaction. In this case, it is believed that both the buyer and the seller act reasonably, with knowledge of the matter, and the price of the transaction is not influenced by extraneous incentives. That is, it is assumed that:

· one of the parties is not obliged to alienate the object, and the other party is not obliged to acquire it;

· the parties are well aware of the subject of the transaction, have the necessary knowledge, are reasonably careful and act in their own interests;

· the object is put on the open market in the form of a public offer;

· there was no coercion on the part of any party to complete the transaction;

· Payment will be made in cash.

The assumption of an open and competitive market gives grounds to believe that a sufficient number of buyers and sellers of competitive properties interact in this market, and also that the property is “familiar” to a potential buyer.

However, experience suggests that market value is an ideal that is practically unattainable, because the assumptions that were included in its definition are constantly violated in a real transaction. There are many examples of this. How can one assume that a party is not obligated to alienate the collateral if its alienation is the only way to satisfy the creditor on the main obligation in the event of actual failure by the borrower to fulfill the terms of the loan agreement? How can we talk about the absence of coercion in relation to a party if it is pushed to alienate the object by the law, perhaps in the person of the judiciary and enforcement authorities, when it has already come to foreclosure on the collateral? Is it possible for a bank that accepts a certain object as collateral to be considered a party that is well aware of the subject of the transaction and has the necessary knowledge about this subject, especially considering that the Federal Law “On Banks and Banking Activities” prohibits a credit organization from engaging in production, trade and insurance? activity? It turns out that the bank’s staff, by law, must have a relatively worse understanding of some things compared to the owner, but not because, as Kozma Prutkov said, his concepts are weak, but because these things are not included in the range of his concepts.

I remember a client who, without repaying the loan, categorically refused to provide documents for the pre-sale preparation of real estate. We didn’t know whether the taxes for the building had been paid, whether there were arrears in land rent (the land was leased from the municipality), etc. So much for awareness of the subject of the transaction! Only under the threat of a court fine, which the judge personally warned the client-defendant about at our request, were the documents provided. By the way, the appraiser, who prepared the conclusion on the valuation of the property after the expiration of the loan agreement secured by the mortgage, also did not have this information.

Is the market always open and competitive? Not always, although, of course, it depends only on the bank whether to accept objects as collateral whose liquidity leaves much to be desired.

And who doesn’t know the tricks of lowering the price of an object when making a transaction, supposedly for reasons of reducing the tax burden or in order to reduce the fee for notary services? The latter circumstance, however, became less relevant after the establishment of an upper threshold for the fee for notarization of real estate transactions.

There are also opposite cases of “blowing soap bubbles.” A classic example is described by Professor Ripley. Anyone who knows Russian legislation can adapt this example to the conditions of our reality. “Company A controls four companies - B, C, D and E each declare a profit of $250 thousand. Based on the profits of its controlled companies, Company A naturally also declares profits and its shares rise.”2 It is clear that the analogy given by Ripley is simplified, but the general meaning is clear.

Property valuation can be carried out for various purposes (for example, completing purchase and sale transactions, contributing to the authorized capital, registering collateral to obtain a loan, etc.). We will be primarily interested in the assessment of objects in connection with the registration of a pledge and, indirectly, the assessment in connection with the possible completion of a purchase and sale transaction, if it comes to foreclosure on the subject of pledge. The purpose of the assessment to a certain extent influences the validity of certain assumptions associated with determining the market value of the object. Thus, when assessing for the purpose of registering a pledge, one can indeed assume that one party is not obliged to alienate the object, and the other party is not obliged to acquire it, since it is assumed and, moreover, all measures are taken to ensure that the loan is repaid on time (for example, the financial condition of the property owner is analyzed). If it comes to foreclosure on the property, then this assumption is unlikely to be justified.

For all the above reasons, the real transaction price often does not coincide with the justified, supposedly market value. The question arises: why then is such a market value needed, which is obviously a fiction? What kind of objectivity can we talk about in this case?

The reader may ask whether it would be better to give in the report a confidence interval within which the seller and buyer could bargain? Unfortunately, this is not possible for a number of reasons.

Firstly, the transaction must be completed at a certain and specific price; in extreme cases, as is the case for securities, you can indicate: “sell at such and such a price or more” or “buy at such and such a price or cheaper.”

Secondly, you can bargain for a long time within the range, but still not agree on a single price within the range. In this case, a transaction between these two counterparties simply will not take place on the securities market.

Finally, thirdly, according to paragraph 6 of the information letter dated January 15, 1998 No. 26 of the Presidium of the Supreme Arbitration Court of the Russian Federation “Review of the practice of considering disputes related to the application by arbitration courts of the norms of the Civil Code of the Russian Federation on pledge”, the “support” for the initial sale price is exactly the market price:

"6. If there is a dispute between the pledgor and the pledgee, the initial sale price of the pledged property is established by the court based on the market price of this property.

A commercial bank filed a claim with the arbitration court against the limited liability partnership for judicial foreclosure of the pledged real estate to fulfill the defendant's obligations under the loan agreement. The partnership did not object to the substance of the stated requirements.

As the court found, when determining the price of the property in the pledge agreement, the parties proceeded from its book value according to the BTI certificate received at the request of the borrower during the period of establishing contractual relations with the bank on the loan and pledge.

Taking into account the significant period of time that had passed since the receipt of the said certificate, as well as the actual rise in price of the pledged property, the defendant petitioned for the court decision to establish the initial sale price for the sale of the pledged building in accordance with the conclusion of the regional forensic laboratory. The latter, in particular, stated that the market value of the property that was the subject of the pledge increased compared to the assessment previously given by the parties in the pledge agreement.

According to the plaintiff, who objected on the merits of the said petition, establishing in a court decision the initial sale price of the pledged property, different from its assessment in the pledge agreement, without the consent of the pledgee is not allowed.

When making a decision in the case, the arbitration court proceeded from the following.

In accordance with paragraph 3 of Article 350 of the Civil Code of the Russian Federation, in cases of foreclosure on the subject of pledge in court, the arbitration court establishes the initial sale price of the pledged property to be sold at public auction. In this regard, the pledgee’s argument about the pledgor’s alleged attempt to unilaterally change the terms of the pledge agreement in terms of the valuation of the pledged item does not correspond to reality.

According to the requirements of Article 53 of the Arbitration Procedural Code of the Russian Federation, each person participating in the case must prove the circumstances to which he refers in support of his claims. In addition, the court's decision regarding the indication of the initial sale price of the pledged property must be documented.

Thus, taking into account the fact that during the consideration of this dispute the pledgee did not prove the validity of his position, and the pledgor, on the contrary, presented specific documents indicating a change in the value of the property that is the subject of the pledge, the arbitration court reasonably granted the defendant’s request to establish the initial sale price the property subject to sale in accordance with the submitted expert opinion.

When making a decision to foreclose on a pledged property, arbitration courts must take into account the fact that the indication in a court decision of the initial sale price of the pledged property, which is significantly different from its market value at the time of sale, may subsequently lead to a violation of the rights of the creditor or debtor in the course of enforcement production.

Therefore, if, when considering these disputes at the initiative of any of the interested parties, evidence is presented indicating that the market value of the property that is the subject of the pledge differs significantly from its assessment made by the parties to the pledge agreement, the arbitration court may offer the persons participating in the case, make an agreed decision or determine the initial sale price of such property in accordance with the evidence presented, regardless of its assessment by the parties to the pledge agreement.”

The above paragraph of the information letter explains paragraph 3 of Article 350 of the Civil Code of the Russian Federation:

"3. The initial sale price of the pledged property, from which the auction begins, is determined by a court decision in cases of foreclosure on property through judicial proceedings or by an agreement between the pledgee and the pledgor in other cases.”

Thus, although the legislator talks about the sale price of the pledged property without defining the mechanism for establishing it, the Supreme Arbitration Court of the Russian Federation prescribes that this price should be set with an eye to the market price. And here an ambiguous situation arises: a judge of an arbitration court must know the law, but is not required to be a qualified appraiser; at the same time, it is he who has to set the initial selling price in controversial situations. Let's assume that he does this on the basis of a report from a truly independent appraiser. Then we receive three reports from independent appraisers: a report from an appraiser of one party, usually the mortgagor (the report is performed before issuing a loan and registration of a pledge), a report from an appraiser from the other party (ordered by the bank when the loan has become problematic and the matter is going to foreclosure on the collateral) and a report an appraiser hired by the court. It is possible that all three reports will indicate different market prices. If the court makes a decision based on the report of its appraiser, will the parties, under certain circumstances, have grounds to recognize the transaction entered into by the parties as invalid on the grounds provided for in Article 178 of the Civil Code of the Russian Federation, using bilateral restitution:

“Article 178. Invalidity of a transaction made under the influence of misconception

1. Misconception regarding the nature of the transaction or identity or such qualities of its subject matter that significantly reduce the possibility of using it for its intended purpose is of significant importance. The misconception regarding the motives for the transaction is not significant.

2. In addition, the party on whose claim the transaction was declared invalid has the right to demand from the other party compensation for real damage caused to it if it proves that the error arose through the fault of the other party. If this is not proven, the party on whose claim the transaction is declared invalid is obliged to compensate the other party, at its request, for the real damage caused to it, even if the error arose due to circumstances beyond the control of the erring party.”

By a certain circumstance, in particular, we mean the difference in the market prices of the object on the eve of the conclusion of the transaction and during the trial, exceeding acceptable limits that can be determined by wear and tear, operating conditions of the object, inflation, etc. over the past time period.

Pay attention to paragraph 2 of paragraph 2 of Article 178 of the Civil Code of the Russian Federation. Let the misconception arise on the basis of the report of an independent appraiser who assessed the property before concluding the transaction. In this case, blaming the other party for the fact that the error arose through its fault is incorrect, since the appraiser is independent, including from this party. In these conditions, according to the specified paragraph, the party on whose claim the transaction is declared invalid is obliged to compensate the other party, at its request, for the real damage caused to it, even if the error arose due to circumstances beyond the control of the erring party. Is this true in our case? What if the appraiser “drew” the market value on the eve of the transaction at the request of the other party? His liability is insured, as we have already noted, for a ridiculous amount. Strip him of his license? This is possible, but only if the appraiser acted unconsciously, but this is unlikely, since who would drop an ax on his own foot. And it won’t be any easier for the bank. Therefore, it is not recommended for the bank to make mistakes regarding the assessment of the collateral, because by appealing to Article 178 of the Civil Code of the Russian Federation and declaring the transaction invalid in court, it will only weaken its position.

It would be better if appraisers indicated the most likely selling price, which would be determined taking into account existing market conditions, factual knowledge and behavior of buyers and sellers, rather than relying on unrealistic assumptions.

What does the bank expect if the collateral, for example real estate, is not sold at auction due to the setting of an unrealistic initial selling price? The answer to this question for a mortgaged property is given by Article 58 of the Federal Law “On Mortgage (Pledge of Real Estate)”:

“Article 58. Declaring public auctions void

1. less than two buyers came to the public auction;

2) the person who won the public auction did not pay the purchase price within the prescribed period.

Public auctions must be declared void no later than the next day after any of the specified circumstances occurred.

2. The rules of the civil legislation of the Russian Federation on the purchase and sale agreement apply to such an agreement. In this case, the mortgage is terminated.

3. If the repeated public auction is declared invalid for the reasons specified in paragraph 1 of this article, the pledgee has the right to purchase (retain) the pledged property at a price no more than 25 percent lower than its initial sale price at the first public auction and offset against the purchase price of your claims secured by a mortgage of the property.

If the mortgagee has retained pledged property, which by its nature and purpose cannot belong to him, including property that has significant historical, artistic or other cultural value for society, a land plot, he is obliged to alienate this property within a year in accordance with with Article 238 of the Civil Code of the Russian Federation.

5. Will it suit a credit institution to receive a property on its balance sheet at a price 25% lower than its initial sale price at the first public auction and offset against this price its claims secured by the mortgage of the property? Doubtful.

Now let us turn to a consideration of methods for assessing various collateral objects. It should be noted that the author’s task was not to write a manual on the valuation of collateral; the purpose of this material is to show how subjective the reports of independent appraisers are and where this subjectivity stems from.

Valuation of securities

When evaluating securities, the type of security, its issuer, the presence of an exchange quote, and the presence of this security in the financial market in over-the-counter circulation are of great importance. If the securities that need to be valued are quoted on the open market, then determining their value is not very difficult, since the price is in fact already determined by the market. A deviation in one direction or another is possible due to a discrepancy between the parameters of the securities (the face value of a bill or the size of a block of shares) with the average market values. In particular, if too large a block of shares is released onto the market, it can, to a certain extent, shake the balance of supply and demand, which will cause a “subsidence” in the price of these shares. For these reasons, putting up for sale a large package of securities should be carefully disguised, for example, by breaking it up into smaller packages and preventing the leakage of information associated with putting up for sale such a large package. This is usually the broker's problem - breaking a large package into smaller ones, since in general, the higher the price at which the securities will be sold, the higher the broker's commission. But the owner himself must remember this, and if there is no confidence in the competence and professionalism of the broker, then it makes sense to transfer orders to the broker to sell securities in smaller blocks. It should be noted that the considerations presented here are relevant in the case when it comes to satisfying the creditor’s claims at the expense of the pledged securities. For the evaluation of securities before concluding a pledge agreement, when the pledgor is not required to alienate them, these considerations are irrelevant. The sale of securities during the foreclosure process is the exception, not the rule.

If securities do not have exchange quotations and there is no information on purchase and sale prices on them on the over-the-counter financial market, then assessing their market value becomes much more complicated. The assessment in this case is made on the basis of an analysis of the current financial market conditions, the profitability of the security being assessed, data on the reliability of the issuer and the stability of its financial condition. The financial condition of the issuer is recorded according to the financial statements and determines the additional discount rate, reflecting the degree of risk of investing money in a given security. It should be noted that securities prices can change quite dynamically. Therefore, by the time the loan agreement expires, if there is a need to foreclose on the collateral, its price may not correspond to the one that was fixed at the conclusion of the collateral agreement. For this reason, during the term of the loan agreement, constant monitoring of current prices must be carried out, and in the event of a decrease in the value of the securities constituting the collateral mass, it is necessary to request the debtor to replenish the collateral mass. Similar to how brokers do this when servicing margin accounts. The possibility of the bank making such a requirement must be provided for in the loan agreement. If this requirement is not met within the established period, the bank must demand early repayment of the loan amount, at least partially, which must also be provided for in the agreement. If this requirement is not met, the bank must provide for repayment of the loan from the proceeds from the sale of securities.

Stock Valuation

Let's consider methods and approaches to valuing shares of those enterprises that are not quoted on the open market, since for quoted shares the price is actually determined by the market. In most cases, a fairly objective price for a listed stock is the closing price of the previous trading day.

In contrast to quoted shares, the assessment of shares of enterprises that are not registered on stock exchanges suffers from subjectivity. It is not surprising that under such circumstances, as many appraisers there will be, so will the market prices.

Valuation of shares based on liquidation value

According to paragraph 2 of Article 31 of the Federal Law "On Joint Stock Companies", shareholders - owners of ordinary shares of the company can, in accordance with the said law and the company's charter, participate in the general meeting of shareholders with the right to vote on all issues within its competence, and also have the right to receive dividends, and in the event of liquidation of the company - the right to receive part of its property. The procedure for distributing the property of a liquidated company among shareholders is regulated by Article 23 of the above law:

“Article 23. Distribution of property of a liquidated company between shareholders

1. First of all, payments are made on shares that must be redeemed in accordance with Article 75 of this Federal Law;

secondly, payments are made of accrued but not paid dividends on preferred shares and the liquidation value of preferred shares determined by the company’s charter;

thirdly, the property of the liquidated company is distributed among shareholders - owners of ordinary shares and all types of preferred shares.

2. If the company’s property is not enough to pay accrued but unpaid dividends and the liquidation value determined by the company’s charter to all shareholders who own preferred shares of one type, then the property is distributed among the shareholders who own this type of preferred shares in proportion to the number of shares of this type they own.” .

In this regard, the liquidation value of shares refers to the amount that shareholders will receive if the company is liquidated and the assets are sold separately to different buyers. If it turns out that the liquidation value of the shares is higher than the price that a possible buyer would be willing to pay for them, then it may turn out that there is no reason for the shareholder to sell these shares at the price offered by the buyer, but rather sell off the assets through liquidation.

By the way, based on the liquidation value, you can calculate the minimum profitability that ownership of a share should bring. Let’s assume that the liquidation value of a block of shares can be invested with a risk-free return of 8% per annum, although we cannot speak about the possibility of risk-free investments in Russia after the 1998 default. It is clear that in these conditions, owning shares makes sense only when the total income from dividends and the increase in market value exceeds 8% per annum. If owning shares in a company does not provide such profitability, there is only one thing left to do - hope for the liquidation of the company.

Here, however, it should be taken into account that in accordance with Article 49 of the Federal Law “On Joint-Stock Companies”, a decision on liquidation is made by the general meeting of shareholders only at the proposal of the board of directors (supervisory board) of the company, unless otherwise established by the company’s charter. The decision to liquidate the company is made by the general meeting of shareholders with a three-quarters majority vote of shareholders - owners of voting shares participating in the general meeting of shareholders. Therefore, in order to implement the decision to liquidate the company, it is necessary to have a fairly decent block of shares.

The liquidation value of shares is determined based on the net realizable value of all assets minus the company's liabilities (short-term and long-term) and liquidation costs. In addition, it must be remembered that the property of a liquidated company is distributed among shareholders in three stages (Clause 1, Article 23).

Unfortunately, when determining the liquidation value of shares, it becomes necessary to assess the realizable value of all assets of the company, and this is not an easy task, since the realizable value of a particular asset in the most general case may not coincide with its book value. If inventories, as a rule, can be sold with some profit, then machines, mechanisms, and production equipment are usually sold below book value, since the costs of selling equipment can be very high, and the cost of used equipment can be low. It is difficult to make any general assumptions regarding land and buildings owned, as well as “receivables”. Thus, the valuation of shares at liquidation value results in the valuation of all other assets of the company. It should be taken into account that the valuation of each asset has its own error, and in the process of summing up the values ​​of all assets, it is not at all obvious that the errors will be fully compensated and will not be summed up.

Valuing shares based on book value

Valuing shares based on book value of assets simplifies the valuation task to a certain extent. But at the same time, you should be aware that assets are valued not at real prices, but at accounting prices, so it is very difficult to say what the valuation error will be. Nevertheless, the obtained value may well serve as a certain guideline.

Taking into account the fact that not all assets of the organization are financed by shareholders, the book value of shares is calculated based on the book value of all assets (fixed and current) minus the long-term and short-term liabilities of the organization. In this case, the book value of fixed assets is taken minus depreciation, i.e., their net book value is used.

Valuation of shares based on replacement cost

Replacement cost is the amount that would be spent if a business's assets were to be replaced in their current condition and at current prices. In other words, if the enterprise has equipment that has worked out half of its expected service life, and new such equipment costs 2 million rubles, then the replacement cost of the equipment will be 1 million rubles.

In stock valuation based on replacement cost, all assets are valued at replacement cost, then long-term and short-term liabilities are subtracted.

It should be recognized that the main difficulty is the assessment of intangible assets. In addition, simply replacing a company's assets may not be enough to reproduce its success. Thus, the stock may be undervalued. However, it may not be so bad for the bank to focus on a reduced price: it is better to have a bird in the hand than a pie in the sky. It will be worse if the proceeds from the sale of the collateral are not enough to satisfy the requirements of the creditor, i.e. the bank.

Valuation based on stock returns

A number of approaches to valuing shares are based on determining their value as a financial instrument capable of generating profit for its owner. The main ways to make a profit are receiving dividends and increasing the value of shares associated with improving the company's financial performance, expanding its business and increasing the value of assets. The measure of profitability is profitability. Stock return is the ratio of earnings per share to the share price, expressed as a percentage:

Yield =

= (earnings per share / share price) 5 100%,

where earnings per share is earnings (net of tax) divided by the number of shares issued; the stock price is the desired value.

Since the return is the ratio of income to the price of the stock, which is unknown due to the fact that the stock is not quoted on the open market, it is clear that the return cannot be determined (one equation with two unknowns). Therefore, they resort to an artificial technique: they take the return on the shares of not the enterprise under consideration, but the return on the shares of similar enterprises that are listed on the stock exchange. You can take the average value. Since investments in stocks that are not listed on a stock exchange are likely to be riskier, the return on such stocks should be higher to compensate for the risk.

Having set the yield value and knowing the income per share, you can determine the estimated price of the share.

The disadvantages of this method of assessment are obvious. First, it is based on what has been, not on what will be. For a more reliable assessment, it should be based on factors that can be reproduced in the future. This means that all irregular items should be eliminated when using past profits to estimate future ones; both income and expenses must be adjusted to reflect any changes that will be made in the future. Secondly, the fact of borrowing profitability from “someone else’s shoulder” speaks for itself. Third, inflating yield as compensation for the risk of owning an illiquid stock is also subjective.

Valuation based on price-income ratio

The price-earnings ratio is essentially the inverse of profitability, if the latter is not calculated as a percentage. And in the same way, if the stock is not listed on the stock exchange, then the price-earnings ratio cannot be determined. However, this ratio is known for those enterprises whose shares are traded on the stock exchange. By asking the value of this ratio, you can find the stock price. Naturally, the value of the price-income ratio must be taken for enterprises in the same industry sector to which the enterprise whose shares are being valued belongs. You can take the average value of the price-income indicator or its minimum value. The accepted value should be reduced by approximately one third to reflect the low liquidity of the shares:

Market value of 1 share =

= (income per share) 5

5 (price-income ratio) 5 (1 – 1/3).

Valuation based on dividend income

As an alternative, dividends can be used to set the basis for valuing shares. The buyer is expected to pay for the cash flow generated by the dividends he will receive until he sells the stock. The seller receives money now, giving up future income from dividends. At the same time, you should be aware that, as a rule, only a large shareholder can influence the distribution of the company’s income, including the dividend policy.

Dividend yield is the ratio, expressed as a percentage, of the amount of dividends paid on a share to the price of the share (we will not take taxes into account - we are considering only a principled approach):

Dividend yield = (dividends per 1 share / price of 1 share) 5,100%.

Price of 1 share = (dividends per 1 share /

dividend income) 5 100%.

Initially, the buyer must evaluate how regularly the company pays dividends and what kind of profitability will suit him. For these reasons, he can offer a certain price per share, but not higher. The buyer will most likely make the choice of yield based on the current dividend yield on shares of similar listed companies. In this case, you can rely not on the dividend income of any one company, but on the average value.

At the same time, we must assume that since an “unquoted” company is a riskier investment than a “quoted” company, the shareholder expects a higher dividend income in exchange for accepting a greater degree of risk. How much higher is up to the buyer-investor to decide. And in accordance with this decision, he applies a certain increasing factor to the dividend income. Naturally, this will lead to a decrease in the price per share that he can offer for the stake.

Since the value of the stock price valuation depends on the selected dividend income, and the choice of the latter is a subjective process, even if data on the dividend income of enterprises listed on the stock exchange is available. It is possible to talk about objectivity under such conditions only if it is possible to track share prices for several purchase and sale transactions of blocks of comparable size within a short period of time. (But we are looking at the valuation of illiquid shares, and therefore, by definition, will not be able to analyze other transactions.)

Note also that valuing a stock based on dividend yield usually assumes that the stock's expected future dividends will remain constant. However, shareholders of the expanding enterprise can expect regular annual increases in annual dividends. In such cases, to assess the value of shares, a dividend growth model is used - the Gordon model, one of the parameters of which is the expected annual growth rate of dividends, expressed as a percentage or fraction.

If the company does not pay dividends to its shareholders, but reinvests all profits received, it is impossible to estimate the value of shares on the basis of the method we are considering, since there will be no dividend income.

Valuation based on future cash flows

This method is used when the buyer plans to redevelop or expand the enterprise. In this case, the profit that the buyer expects to receive will not be related to the past income and dividends of the acquired company, so the use of the methods discussed in such circumstances will be unjustified. In such a situation, the purchase price can be calculated as the discounted value of future earnings. In fact, we are dealing here with the acquisition of a company, for example, for the purpose of merger.

On the influence of various factors on stock prices

Different types of shares may be assigned completely different rights by the company's charter. The biggest difference is between common and preferred shares; the assessment of their value should reflect their different status. Thus, according to Article 32 of the Federal Law “On Joint-Stock Companies”, shareholders - owners of preferred shares of the company do not have the right to vote at the general meeting, with rare exceptions. At the same time, the company's charter must determine the amount of dividend and (or) the value paid upon liquidation of the company (liquidation value) for preferred shares of each type. The size of the dividend and liquidation value are determined in a fixed monetary amount or as a percentage of the par value of preferred shares. The size of the dividend and the liquidation value of preferred shares are also considered determined if the charter of the company establishes the procedure for their determination. Naturally, differences in the status of ordinary and preferred shares cannot but affect their value.

Another important factor affecting the share price is the size of the shareholding. Small shareholders themselves have little influence on determining corporate policy. At the same time, the value of a controlling stake is typically reflected in the price premium that a small stake commands. The size of such a premium can reach 30–40% of the average share price. This is due to the fact that such a block of shares gives its owner the opportunity to truly manage the affairs of the enterprise.

If the stake is large, but insufficient to provide real control, then it may happen that the market for its sale will be limited, and as a result, the likely price may be lower than that of a smaller stake (for example, the effect of “subsidence” of the price for quoted shares). However, this is true for both listed shares and shares that are not quoted on the open market.

Another factor that can affect the price of shares is the amount of investment money that the buyer expects to invest in the shares of a given company. It is quite understandable that a company acquiring a controlling stake in another enterprise is more interested in future income than in the amount of dividends, which are the main interest for small investors. The controlling buyer is a long-term investor (usually a corporation), while the short-term investor is likely a speculator (usually a private investor).

The period for which shares are purchased also affects the share price.

An enterprise whose shares are being valued, in order to avoid a hostile takeover or loss of control, can take certain actions that will lead to a change in the price of shares in the direction of reducing their investment attractiveness.

In conclusion, we note that the valuation methods discussed do not allow us to obtain an objective selling price for shares; they approximately determine the framework within which the parties can carry out their bargaining.

To be continued.

MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION

ROSTOV STATE ECONOMIC UNIVERSITY (RINH)

Finance Department

Department of Financial and Economic Engineering

ADMISSION TO PROTECTION

Head IPPE Department, Professor, Doctor of Economics

________________

"______"_________________2013

GRADUATE WORK

on the topic of:

“Features of collateral valuation for the purposes of mortgage lending
(using the example of residential real estate in Rostov-on-Don)"

Completed

Student gr. FK-558

Specialty 080105 “Finance and Credit”

Scientific supervisor of the work

Associate Professor, Ph.D.

Reviewer

Associate Professor, Ph.D.

Department of Finance L. V. Bogoslavtseva

Rostov-on-Don
2013

INTRODUCTION………………………………………………………………...…….
CHAPTER 1.	THEORETICAL ASPECTS OF REAL ESTATE ASSESSMENT FOR THE PURPOSES OF MORTGAGE LENDING………………….	6
	The concept of collateral in mortgage lending....................................
	Features of residential real estate as an object of collateral……….…
	Specifics of collateral assessment for the purposes of mortgage lending……………………………………………………………………...………
CHAPTER 2.	CALCULATION OF THE COST OF A THREE-ROOM APARTMENT FOR MORTGAGE LENDING PURPOSES……………….……..…
	Characteristics of the subject of assessment……………………………………
	Calculation of the cost of a three-room apartment………………………
CHAPTER 3.	IMPROVEMENT OF COLLATERAL ASSESSMENT………………….
CONCLUSION …………………..……………………………………………....
LIST OF SOURCES USED……...……………………
APPENDIX A. Information about the object being assessed ………….………
APPENDIX B The area adjacent to the house ………………………
APPENDIX B Exterior of the house and condition of the entrance ………………
APPENDIX D Condition of living rooms, kitchen and hallway ………..……
APPENDIX D Condition of the bathroom ……………………………….………..
APPENDIX G. Information on selected analogues........................
APPENDIX I. Calculating the cost of an apartment using a comparative approach...

INTRODUCTION

Currently, in the context of stabilization of the economy after the global financial and economic crisis, actions aimed at improving the tools that allow, first of all, to resolve pressing problems in the economy and society are of particular importance. Such instruments include the mortgage lending system, which is part of the country’s credit and financial system, which is aimed at solving the housing issue in society. The formation of an effective mortgage lending system in the country has been defined at the level of the Government of the Russian Federation as one of the priority areas of state policy.

In this regard, the high-quality process of assessing the market value of residential real estate in the mortgage lending system, as one of the accompanying, auxiliary processes in issuing mortgage loans, is of particular importance. In addition, a competent and objective assessment of the value of residential real estate is increasingly needed, and the institution of property assessment, in turn, requires improvement: there is no information base for assessment, the professional training of appraisers in Russia has not yet reached the world level. These factors determined the relevance of the thesis topic.

Valuation for collateral purposes is one of the most relevant aspects of the practical use of valuation theory, since it is one of the most popular types of services in the valuation market.

The point of an appraisal is to show the real value of an object. After all, the price of real estate can rise or fall depending on market circumstances.

The degree of development of the problem. Issues of valuation of collateral are considered in the works of such scientists as: A. G. Gryaznova, M. A. Fedotova, E. I. Lobanov, A. Baktimirov, M. Trofimova, S. V. Gribovsky and others. Regulatory acts were also used - both general and regulating banking activities. . There is up-to-date information on these issues on the Internet. However, the main emphasis in writing this thesis was on periodicals, in which the issues of lending, including mortgage lending, are covered in sufficient detail, and most importantly, the latest and relevant data, including statistics, are provided.

The purpose of the work is to study the legal basis and methodological basis for assessing collateral in the Russian Federation, as well as to calculate the market value of the object for the purposes of mortgage lending.

To achieve this goal, it is necessary to solve the following tasks:

- analyze the theoretical foundations of real estate valuation for collateral purposes;

- illustrate the applications and limitations of methods and approaches to valuing real estate for collateral purposes.

- analyze the initial information, group the data obtained, compile a brief overview of the real estate market at the valuation date;

- justify and coordinate the results of assessing the market value of the warehouse building for collateral purposes;

The object of the study is real estate as an object of collateral for the purpose of mortgage lending.

The subject of the study is specific forms of financial and organizational relations that arise in the processvaluation of residential real estate for the purpose of mortgage lending.

Instrumental and methodological apparatus of research. To substantiate theoretical positions and develop practical recommendations, scientific tools were used, in particular, research methods such as observation, grouping and comparison.

Information and empirical basecompiled legislative acts of the Russian Federation and constituent entities of the Russian Federation, international, European and national valuation standards, the Federal Law “On Valuation Activities in the Russian Federation” dated 01.01.01; Federal Assessment Standard “General Concepts of Assessment, Approaches and Requirements for Conducting Assessment” (FSO No. 1); Federal Valuation Standard “Purpose of Valuation and Types of Value” (FSO No. 2); Federal assessment standard “Requirements for an assessment report” (FSO No. 3).Federal Valuation Standard “Determination of the Cadastral Value of Real Estate Objects” (FSO No. 4); Federal assessment standard “Types of examination, the procedure for conducting it, requirements for an expert opinion and the procedure for its approval” (FSO No. 5); Federal assessment standard “Requirements for the level of knowledge of an expert of a self-regulatory organization of appraisers (FSO No. 6)”, international financial reporting standards, facts and data published in professional literature, Internet resources, analytical materials. This work consists of three chapters, each of which describes in detail the topic of the thesis.

The thesis consists of an introduction, three chapters, a conclusion, a bibliographic list of 45 titles, 7 appendices, which contain 3 tables with calculations of the object of evaluation, information on analogues.

CHAPTER 1. THEORETICAL BASIS OF REAL ESTATE ASSESSMENT FOR MORTGAGE LENDING PURPOSES

1.1 The concept of collateral in mortgage lending

The concept of “pledge” has been known since the times of Roman law, which was used as rights to other people’s things. At the early levels of development of Roman law, the type of pledge was fiducia, which meant nothing more than the sale of the pledged item with the right to repurchase it. Another, more developed type of collateral was the pignus. With a pignus-type pledge, the debtor transferred a thing to the creditor as security for the debt, but not into ownership, as with fiduciary, but into possession.

The most perfect form of collateral in our time is a mortgage. With a mortgage, the item pledged remained in the possession of the owner and did not pass to the lender. The term “mortgage” first appeared in Greece in the early VI V. BC e. The ancient Greeks so designated a form of responsibility to a creditor with one's land. On the border of the borrower's property, which he pledged as collateral, a pole was placed with an inscription that let others know that this property secured the debt. Such a pillar was called “mortgage”, translated from ancient Greek as “support”, “stand”. The word "mortgage" is still used in several meanings. Firstly, it is used to denote a form of pledge whereby the subject of the pledge remains with the pledgee, regardless of whether the property is movable or immovable. Secondly, to designate a special real right to movable and immovable property, which makes it possible to secure the creditor’s claims by disposing of the mortgaged object. Thirdly, in many legal systems, including the Russian one, it is used exclusively to refer to a pledge of real estate.

In Russian law, the pledge developed very rapidly and went through a long evolution, starting from the ancient Russian pledge, where the trace of the Roman fiduciary was traced, to the modern one, enshrined in Chapter. 23 of the Civil Code and in a number of other normative legal acts, where the leading form of pledge is a pledge with the pledged property remaining in the possession of the pledgor.

Pledge should be understood as a legal relationship in which the creditor, in the event of non-fulfillment or improper performance of the obligation secured by the pledge, has the right to receive a cash payment from the value of the pledged property, preferentially before other creditors established by law (clause 1 of Article 334 of the Civil Code).

The pledge has the function of a guarantor, since the property, at the expense of whose value the property claims of the creditor can be compensated, is provided to him before the fact of the debtor's insolvency.

From the position of a lawyer, a pledge when receiving a loan means the establishment of a legal connection between the pledgee and someone else’s property, thanks to which the pledgee has the legal opportunity to extract its exchange value from the pledged property, regardless of the desire of the debtor. As a result, the essence of the pledge as a guarantor is that in the event of non-fulfillment or improper performance of the obligation secured by the pledge, the creditor has the right to demand cash payment from the value of the pledged property.

The requirement secured by the collateral must be monetary in nature. Let us note that in Art. 337 of the Civil Code describes that, unless otherwise approved by the contract, the pledge guarantees the fulfillment of requirements in the amount that it has at the time of satisfaction, namely interest, penalties, payment of losses caused by delay in execution, and also reimburses the necessary expenses of the pledgee for the maintenance of the pledged item . We also note that the scope of requirements secured by a pledge is much wider if the object of the pledge is real estate. At the expense of the pledged real estate, the pledgee has the right to reimburse the costs of its maintenance and security, and to repay the mortgagor's debt for taxes, fees or utility charges associated with this property.

The most attractive type of collateral for a bank or other credit institution is a mortgage (pledge of real estate). This is explained by the fact that each pledge transaction is necessarily registered by government agencies, therefore, the legality of such a transaction and the safety of the pledged property are guaranteed. The use of this type of collateral in our country is significantly difficult. This is explained by significant contradictions in the existing legal framework, the absence of a number of special legal acts, as well as the complexity and high cost of its implementation.

Currently, mortgages in Russia are regulated by Part 1 of the Civil Code of the Russian Federation, the Law of the Russian Federation of 01/01/2001 “On Mortgage” (to the extent that does not contradict the Civil Code), Federal Laws of 01/01/2001 “On Mortgages” ( pledge of real estate), dated 01.01.2001 “On state registration of rights to real estate and transactions with him" and others.

According to the current legislation, collateral includes: land plots, enterprises, buildings, structures, apartments and other real estate objects.

Features of the legal regulation of mortgages of buildings, structures, and enterprises are contained in Article 69 of the Law “On Mortgage” (real estate pledge). Moreover, in the first paragraph of this norm there is a direct reference norm to paragraph 2 of Art. 340 Civil Code of the Russian Federation.

In the commentary to the law “On Mortgage” it is noted that “Mortgage of a building or structure is allowed only with a simultaneous mortgage under the same agreement of the land plot on which this building is located, or part of this building, or part of this plot, which functionally provides the mortgaged object, or belongs to the mortgagor of the right to lease this plot.” At the same time, the right of pledge does not apply to a land plot in respect of which the pledgor has the right of permanent use.

Pledge of an enterprise is quite rare in modern Russian practice. This is explained, first of all, by the lack of an effective mechanism for assessing such property, difficulties in its sale and other equally important factors (duration and high cost of contract execution, a large number of necessary documents, etc.).

Usually, the property complex of an enterprise when it is pledged includes all tangible and intangible assets, including: buildings, structures, equipment, inventory, raw materials, finished products, rights of claim, exclusive rights, etc. In the opinion of many lawyers, the composition of the subject The collateral should not include collateral for the financial and business obligations of the enterprise. At the same time, the pledgee must not have the right to dispose of the financial results of the enterprise. This is explained by the fact that otherwise the mortgagor would be deprived of the opportunity to use the most attractive side of the mortgage- economic use of property in order to generate income as a source of funds for payments under a loan agreement.

The subject of the pledge also cannot include claims of a personal nature (for example, copyright). Moreover, the composition and assessment of property are made on the basis of a complete inventory. It should be noted that the inventory act, balance sheet and independent auditor’s report are mandatory annexes to the mortgage agreement (Article 70 of the Law “On Mortgage”).

Collateral assessment - one of the most important problems when concluding a transaction on mortgage lending. Typically, with a mortgage, the valuation of the collateral is made by agreement between the mortgagor and the mortgagee. It is easy to predict that it is preferable for the pledgor that the assessment should not be too high, since it is directly related to the amount of the notary’s fee. On the other hand, the size of the loan depends on the assessment of the collateral: the lower the collateral, the smaller the loan.

In accordance with Art. 131 of the Civil Code of the Russian Federation, the right to pledge real estate (mortgage) is subject to state registration. The system of state registration of real estate transactions is regulated by Federal Law No. 000 dated January 1, 2001 “On state registration of rights to real estate and transactions with it.” While generally an important step towards improving the real estate market, the current law at the same time contains a number of provisions that require certain adjustments. Thus, one of the main stages of registration activities is the legal examination of documents and verification of the legality of real estate transactions (Clause 1 of Article 13 of the Registration Law). At the same time, this Law does not provide for liability for dishonest or incomplete verification of the documents provided. According to Art. 31 of the Law, responsibility for state registration of rights to real estate and transactions with it is provided only for the timeliness and accuracy of entries on the right to real estate and transactions with it in the Unified Register, for the completeness and authenticity of the information issued about rights to real estate and transactions with it, for the accuracy and timeliness of providing data (clause 1), for distortion or loss of information about rights to real estate and transactions with it registered in the prescribed manner (clause 2). The law does not provide for liability for incomplete legal examination. It is not surprising that after the introduction of this law, hundreds of transactions were made that were subsequently declared invalid due to, for example, infringement of the rights of minors and for other reasons.

Obviously, it is extremely difficult for the buyer to independently carry out the entire range of necessary checks, therefore, assigning the responsibility for legal examination of documents to a state body is completely appropriate, but in this case it is no less important to provide for a certain liability for failure to fulfill this obligation.

Regardless of the fact that the legislator does not make the moment of emergence of the right of pledge dependent on its state registration, the speedy implementation of the latter is always also the interest of the pledgee. Timely state registration of a mortgage serves as a kind of preventive measure in relation to possible controversial situations that could shake the rights of the mortgagee: no matter how many times the subject of the mortgage is alienated, no matter how conscientious its subsequent alienators and acquirers are, none of them will be able to shake the state of the security of the mortgagee’s claims with references on their conscientious ignorance of the existing encumbrance on the property. In addition, due to this special strength of the right, given to it by recognition by the state, the subject of the mortgage is to a certain extent immobilized, naturally limited in its negotiability - there are unlikely to be many willing to pay for property that may soon be lost without any compensation. In this sense, state registration of a mortgage makes unlikely the very possibility of disputes arising based on facts that occurred after the emergence of the right of pledge.

On February 5, 2004, further amendments to the Federal Law “On Mortgage (Pledge of Real Estate)” were adopted, which entered into force on February 10, 2004 (Federal Law dated February 5, 2004). These changes are mainly aimed at improving the collateral of land plots. When registering mortgage relations, notaries should pay attention to the following innovations:

1) it is now allowed to draw up and notarize a mortgage and a mortgage agreement if the collateral is forests (previously it was not possible);

2) it is not allowed to satisfy the mortgagee’s claims at the expense of the pledged property out of court if the subject of the mortgage is a land plot from agricultural land (clause 2 of Article 55 of the Law as amended). Thus, the conclusion and notarization of agreements with such a subject became impossible;

3) the category of lands that can be the subject of a pledge has been expanded. If previously these were only land plots in respect of which the law (clause 1 of Article 62 of the Law in the old wording) directly stipulated such a possibility (limited list), now any land plots can be mortgaged, provided that they are not excluded from turnover or not limited in turnover. In particular, it became possible to mortgage agricultural land from the lands of agricultural organizations, peasant (farm) farms and field land plots of personal subsidiary plots. Mortgage of land plots that are in state or municipal ownership is not allowed (Clause 1 of Article 63 of the Law as amended);

Russian legislative practice regulates the use of comparative, cost and income approaches when assessing real estate.

The choice of one approach or another depends on the nature of the property being valued, its market environment, the essence of the typical motivations and actions of potential landlords and tenants, the availability and quality of the necessary initial information.

To form the market value of a property, it is necessary to complete the following stages of work:

1. carry out an analysis of the commercial real estate market;

2. form an opinion about the advantages and disadvantages of the location of the assessment object;

3. analyze the best and most effective use (as part of the assessment of real estate for collateral purposes, this analysis is used in certain situations, but in most cases is not required, since it is assumed that the object will be pledged based on its current use);

4. choose approaches to assessment;

5. perform calculations within the selected approaches;

6. form a final conclusion about the cost.

Let us dwell on the main points that must be taken into account within each of the above stages when assessing real estate for collateral purposes.

Market analysis

High-quality market analysis largely determines the reliability of the final assessment result.

Market analysis is closely linked to liquidity analysis. For example, when assessing a production facility, it is necessary to analyze the demand for production premises (demanded areas, design and condition), as well as an analysis of the supply of similar facilities.

It should be noted that when assessing for the purpose of collateral, liquidity is an important characteristic of the collateral and in many cases allows us to judge how quickly the loan debt can be repaid by exercising the rights of the mortgagee to the collateral. Correctly forming a conclusion about the degree of liquidity of a real estate object allows you to obtain an informed opinion about its value and make a decision on the amount of the collateral discount.

Significant factors affecting the liquidity of real estate are: location, physical characteristics of the object (wear and tear, condition of utilities), size of the object, state of the real estate market in a given region and locality. It should be noted that compliance with these factors will, to a greater or lesser extent, determine the assignment of an object to a particular class.

As indicators of liquidity, the average exposure time in a specific locality is used for objects of the same market segment as the one being considered and similar in basic characteristics.

The following gradation of property liquidity is proposed depending on the timing of sale:

The main tasks within the framework of market analysis are:

· forming an objective opinion about which transactions are represented to a greater extent for objects similar to the one being valued (lease transactions or purchase and sale transactions);

· identification of analogues for calculating the rental rate (with the income approach) and for the comparative approach;

· identification of the ratio between rental rates of various types of objects (rental rate for retail space in relation to the rental rate for office space, etc.).

When generating a Report on the assessment of a commercial real estate property for the purpose of collateral, the text part of this section of the Report must contain the following information:

1. a brief description of the segments of the city’s commercial real estate market;

2. characteristics of the local market segment (average rental rates and sales prices per 1 sq.m. as of the current date, growth dynamics compared to last year, average market level of underutilization, average level of operating costs for similar facilities (in absolute or relative terms);

3. the presence of investment projects in the city related to the construction or reconstruction of objects of this type (description, characteristics, developer, total investment costs, current condition).

Description of the location of the assessment object

Location is one of the key parameters that determines the possible profitability of an object. Incorrect determination of this parameter may lead to the formation of an unreliable value of the property being valued.

The main factors that need to be taken into account when describing the location of the property being assessed are:

For an office property - location in the “business” district of the city (more liquid property) or vice versa, location in the depths of an industrial site (possible difficulties with implementation), availability of convenient transport accessibility, etc.;

for a retail property - location in a retail corridor (or, conversely, deep in a “dead-end” street), traffic intensity, popularity of the place, etc.;

for a warehouse property - transport accessibility, availability of infrastructure (railway line, etc.), availability of all necessary communications in sufficient quantities (electricity, gas, water, etc.).

When describing the location of the assessment object, it is quite clear to present graphical information, on the basis of which you can understand where the assessment object is located,

The source of this information can be electronic and paper maps of the city. Let us give an example of a graphic image and a brief text description of the location of the assessment object.

Best and Best Use Analysis

Since the appraisal activity involves determining the market value, the analysis of the most effective use identifies the most profitable and competitive use of a particular property.

Analysis of the most effective use of a property involves conducting a detailed study of the market situation, the characteristics of the property being valued, identifying market-demanded options that are compatible with the parameters of the property being valued, calculating the profitability of each option and estimating the value of the property for each use option. Thus, the final conclusion about the most effective use can only be made after calculating the cost.

The best and most efficient use of a property is the use of a vacant or developed plot of land that is legally possible and properly designed, physically feasible, provided with appropriate financial resources and provides maximum value.

The optimal use of a piece of land is determined by the competing factors of the particular market to which the property being valued belongs, and is not the result of the subjective speculation of the owner, developer or appraiser. Therefore, the analysis and selection of the most effective use is, in fact, an economic study of market factors that are significant for the object being valued.

In most cases, a best and best use analysis is not required to evaluate for collateral purposes. When assessing for collateral purposes, this analysis is carried out only in the event of a clear inconsistency between the property being assessed and its existing use. In this case, an assessment taking into account a change in the intended purpose of the object should be carried out if such a purpose has already been determined and explicitly. (http://www.audit-it.ru/articles/appraisal/a109/188103.html).

In accordance with Federal Valuation Standard No. 1, approved by Vympelz of the Ministry of Economic Development of Russia dated July 20, 2007 No. 256, the procedure for assessing market value is carried out using three approaches:

Income approach (capitalization or income discounting approach to real estate valuation);

Cost-based approach;

Comparative approach (market approach to real estate valuation).

Before calculating the value of the valuation object for each of the approaches, the applicability of the approaches to valuation is justified.

The choice of one or another approach, as well as the method in each of the approaches, is made based on the specifics of the object being assessed, the characteristics of a particular market and the composition of the information contained in the collected information. Evaluation approaches, as a rule, are interrelated and complementary.

Cost-based approach to real estate valuation for collateral purposes

The cost approach is a set of methods for estimating the value of an appraised object, based on determining the costs necessary to restore or replace the appraised object, taking into account its wear and tear.

This approach when assessing for collateral purposes is, as a rule, used quite rarely. However, in some cases, for example, in the absence of a sufficiently developed market and information about it, a cost-based approach may be the only one.

The use of the cost approach can definitely be abandoned when valuing objects for which a sufficiently large amount of market information can be found, as well as when valuing fairly “aged” objects. Valuation using the cost approach in this case does not form a sufficiently reliable opinion about the possible selling price of such an object on the market.

When assessing relatively new properties, an estimate can be used as a fairly good guide in the absence of the proper amount of market information, but it is necessary to carefully analyze the calculation provided by the owner (it may differ significantly from the average market indicators).

The logic for performing work within the cost approach involves performing the following actions:

assessment of the replacement cost of the appraised building (or replacement cost);

assessment of the amount of business profit (investor profit);

calculation of identified types of wear;

assessment of the market value of the land plot;

calculation of the final value of the appraisal object by adjusting the replacement cost for wear and tear, followed by increasing the resulting value by the cost of the land plot.

This logic can be described in the form of the following formula, which allows us to obtain a conclusion about the value of a commercial real estate object:

Object cost = Sun * (I -- I) + Land, where

ВС - replacement cost of the valuation object (or replacement cost) taking into account the profit of the entrepreneur;

I is the amount of identified wear of the object;

Szem. -- the value of property rights to a land plot.

Replacement cost assessment

Replacement cost (RC) is the cost of construction of the property being assessed as new, calculated in current prices, without taking into account wear and tear, and correlated. by the date of assessment.

Replacement cost can be calculated based on reproduction cost or replacement cost.

The cost of reproduction is understood as the cost of construction in current prices on the actual date of valuation of an exact copy of the building being valued, p. using the same building materials, standards and design.

Replacement cost is determined by construction costs at current prices on the actual date of assessment of an object of equal utility using modern materials, standards, designs and architectural solutions.

As can be seen from the above definitions, the calculation of replacement cost is more preferable, since in the second case the costs of constructing a building that differs from the one assessed by characteristics are calculated, while the assessment of the difference in the utility of the compared buildings is very subjective.

On the other hand, the choice of calculating replacement cost may also be justified if the building being assessed has a number of signs of functional wear and tear, which cannot but reduce its commercial attractiveness for a potential buyer.

In general, the choice between the cost of “reproduction” and the cost of “replacement” depends on many factors: the purpose of the assessment, the quantity and quality of information collected about the object of assessment, its physical characteristics, etc.

Sources of information for calculating the cost of “reproduction” or cost of “replacement”:

estimate calculations (local estimates, object estimates, consolidated estimate calculations);

UPVS collections (collections of aggregated indicators of the replacement cost of buildings and structures for the revaluation of fixed assets by sectors of the national economy) UPSS collections (costs are given in 1969 prices):

collections produced by the Co-Invest company (industrial, residential, public buildings, etc.) (cost in 2009,2010 prices);

Construction cost indices (Gosstroy decrees, Co-Invest collections), etc.

In valuation practice, the following methods are used to determine the full replacement cost:

1) Comparative unit method,

2) Method of breakdown by components,

3) Quantitative survey method.

The choice of method is determined by the purpose of the assessment and the required calculation accuracy.

Comparative unit method is based on the use of the cost of construction of a comparative unit (1 square meter, 1 cubic meter) of a similar building. The cost of a comparative unit of an analogue requires adjustment to the identified differences between it and the object being evaluated (physical parameters, availability of easily installed equipment, financing conditions, etc.).

The full replacement cost of the assessed object is determined by multiplying the adjusted cost of a comparison unit by the number of comparison units (area, cubic capacity). To determine the amount of costs, various reference and regulatory materials are usually used, for example, “Aggregated indicators of construction costs”, “Aggregated indicators of the cost of replacement cost.”

The following formula is used for calculation:

Sn= S.s. H So H TO 1 H TO 2 H TO 3 H TO 4 H TO 5,

Where: Sn-- the cost of the object being assessed;

S.s.-- cost of 1 sq. or cubic meter of a typical structure on the base date;

So-- number of comparison units (area or volume of the object being assessed)

TO 1 -- coefficient taking into account the identified differences between the assessed object and the selected typical structure in area, volume, and other physical parameters;

TO 2 -- correction factor for the location of the object;

TO 3 -- coefficient of change in the cost of construction and installation work in the period between the base date and the date at the time of assessment;

TO 4 -- coefficient taking into account the developer's profit;

TO 5 -- coefficient taking into account VAT (%).

This method is based on the cost of a comparison unit of a typical object or analogue, when choosing which it is necessary to observe the similarity of the functional purpose, physical characteristics, class of structural systems, date of commissioning of the object and other characteristics.

The comparative unit method estimates the value of an item at replacement cost. This is due to the fact that the cost of a comparative unit used in the calculations, as a rule, represents not an identical object, but a close analogue.

Component breakdown method based on the use of qualitatively different information. Individual construction components of a building: foundation, walls, floors, etc. - are assessed according to cost indicators, including direct and indirect costs necessary for the construction of a unit of volume of a specific component. The cost of the entire building is calculated as the sum of the costs of all components using the formula:

where Szd. - cost of construction of the building as a whole;

Vj-- volume j- th component;

Cj-- cost per unit of volume;

N-- number of allocated building components;

Kn - a coefficient that takes into account the existing differences between the assessed object and the selected typical structure (for an identical object Kn = 1);

Ki is a coefficient that takes into account total wear and tear.

The component breakdown method has several varieties:

Subcontracting method;

Breakdown by work profile;

Allocation of costs.

Subcontracting method is based on the use of information on the cost of work performed under subcontract agreements concluded by the general contractor with specialized construction organizations - subcontractors. The full replacement cost is calculated as the sum of the costs of all subcontracted construction and installation work.

Profile method involves assessing the full replacement cost as the sum of the costs of hiring individual construction specialists (masons, plasterers, carpenters, etc.)

Dedicated Cost Method involves the systematic use of units of comparison to evaluate various components of buildings, after which the results of individual assessments are summarized.

Quantitative survey method involves the creation of a new estimate for the valued object in prices as of the valuation date. For these purposes, a detailed quantitative and cost analysis is carried out, as well as cost calculations for construction and installation work of individual components and the building as a whole. The calculation takes into account direct costs, overhead costs and other costs that represent the full estimate for the construction of the assessed facility.

The quantitative survey method gives the most accurate result of the total replacement cost, but is the most labor-intensive and requires the appraiser to have practical knowledge in the field of design and estimate business.

Estimates of the value of entrepreneurial profit (investor profit)

The profit of an entrepreneur (investor) is the reward that a typical investor (builder, developer) requires for the risk associated with the construction of a project similar in structure to the property being valued.

In fact, this value reflects the average investor’s profit that the implementation of a project can bring, including the costs of management and organization of construction, general supervision and construction-related risk. As a rule, when forming this indicator, they do not pay attention to the stage of the life cycle at which the segment of the commercial real estate market is located, which includes the object being assessed, to the dependence of its value on the volume and timing of construction, on whether the functions of the investor (customer) and the builder are separated (contractor), from other factors. Accordingly, when considering the Report, it is important to clearly identify the range of profit of the entrepreneur (investor) and establish the range of the current average market value.

It should be noted that the amount of profit of an entrepreneur, depending on the degree of development of the real estate market and the life cycle in which a given segment of the commercial real estate market is located, can vary within a significant range. For example, in the commercial real estate market of Moscow in 2005, but according to the largest analytical agencies, the profit of an entrepreneur in the retail real estate segment ranged from 25 to 40%; in 2006 and 2007, a decrease and stabilization of this indicator was observed . In practice, it is difficult to obtain market data on profits, since they are most often a trade secret.

Calculation of identified types of wear

Depreciation is characterized by a decrease in the usefulness of the property and its consumer attractiveness from the point of view of a potential investor.

As a rule, depreciation is expressed in the decrease in value (depreciation) of an object over a certain period due to the influence of various factors.

Depending on the reasons causing the depreciation of a property, physical, functional and external types of wear and tear are distinguished.

Physical deterioration. Reflects changes in the physical properties of a property over time (for example, defects in structural elements). Physical wear is of two types: the first occurs under the influence of operational factors, the second - under the influence of natural and natural factors.

There are four main methods for calculating the physical depreciation of buildings: expert, cost, regulatory (or accounting) and the method of calculating the life of the building.

The percentage of physical deterioration of an object assessed by an expert method is determined on the basis of the Rules for assessing the physical deterioration of residential buildings. The service life of buildings as a whole depends on the durability of its components. The physical wear and tear of building elements is calculated as the product of the specific weight of a structural element of the building and the percentage of wear of this element, divided by 100. The physical wear and tear of the entire building is determined as the weighted average of all elements of the building. The expert method of determining physical deterioration is usually used when inventorying real estate.

There is removable and irreparable physical wear and tear. Removable physical wear assumes that the costs of current repairs are less than the added value of the facility. Unrecoverable physical wear and tear is considered when the cost of correcting the defect exceeds the cost that will be added to the object. All building elements are divided into two categories: long-term (foundations, walls, ceilings, etc.) and wear-and-tear (roofing, decorative trim, painting, etc., i.e. those elements that can be repaired (restored) during ongoing repairs) .

The cost method involves determining the costs of reproduction of building elements. Through inspection, the percentage of wear and tear of each element of the building is determined, which is then translated into value terms. A more accurate, adjusted cost estimate of physical depreciation is obtained when the percentage of depreciation is determined as a weighted average.

The standard (or accounting) method for determining the physical deterioration of buildings involves the use of Unified depreciation rates for the complete restoration of fixed assets.

When using the building life calculation method, a number of terms are used.

Economic life is the time during which an object can be used for profit. During this period, improvements contribute to the value of the property; The economic life of a property ends when improvements made do not contribute to the value of the property due to its general obsolescence.

The physical life of an object is the period during which the building exists and can be lived or worked in. The physical life span ends when the object is demolished.

Effective age is based on an assessment of the appearance, technical condition, and economic factors affecting the value of the object.

Chronological age is the period that has passed from the date the object was put into operation to the date of assessment.

The remaining economic life of the building is the period from the date of valuation to the end of the economic life of the property. Renovating and upgrading a property increases its remaining economic life.

Standard service life (or typical physical life) is the service life of buildings and structures determined by regulations.

Functional wear and tear of the object. Functional obsolescence is when an object does not meet modern standards in terms of its functional usefulness. Functional obsolescence can manifest itself in the outdated architecture of a building, in the convenience of its layout, volume, engineering support, etc. Functional obsolescence is due to the influence of scientific and technological progress in the field of architecture and construction. Functional wear and tear in domestic practice is called obsolescence.

Functional wear, like physical wear, can be removable or irreparable. Removable functional wear can include the restoration of built-in cabinets, water and gas meters, plumbing equipment, flooring, etc. The criterion for whether wear is removable or not is a comparison of the amount of repair costs with the amount of additional value received. If the additional value obtained exceeds the cost of restoration, then functional wear is removable. The amount of removable wear and tear is determined as the difference between the potential value of the building at the time of its assessment with updated elements and its value at the date of assessment without updated elements.

Irremovable functional wear and tear refers to a decrease in the value of a building due to factors related to the quality characteristics of the building. Moreover, there can be either an excess or a lack of quality characteristics. For example, in the rental market, two-room apartments are in greater demand compared to one-room apartments. The amount of this type of depreciation is calculated as the amount of losses from rent when renting out these apartments, multiplied by the multiplier of the gross monthly rent typical for this type of apartment. Thus, the amount of irreparable functional wear and tear is determined by capitalizing rental losses.

External (economic) wear and tear- this is a decrease in the value of a building due to a negative change in its external environment, caused either by economic or political factors, or other external factors. The reasons for external wear and tear may be, for example, the general decline of the area in which the object is located, actions of the government or local administration in the field of taxation, insurance and other changes in the market for employment, recreation, education, etc. Significant factors influencing the amount of external wear are the immediate proximity to “unattractive” natural or artificial objects: swamps, wastewater treatment plants, restaurants, dance floors, gas stations, railway stations, hospitals, schools, enterprises, etc. Wear from external influences in most cases irremovable.

Assessment of the market value of a land plot

Valuation of a land plot, as a rule, is a rather complex and time-consuming task.

Let's consider the main points that need to be paid attention to when assessing the market value of developed land plots as part of a single real estate property, which is most often found in “collateral” situations.

When analyzing a land lease agreement, you need to pay attention to:

· contract time;

· the presence of encumbrances and easements, which must be further analyzed to take into account encumbrances when calculating the market value of the property.

When analyzing the Cadastral Plan, you need to pay attention to:

Boundaries of the land plot;

There are no direct restrictions on the possibility of additional development.

The Valuation Report must record the category of land specified in the certificate of ownership or cadastral plan of the site attached to the lease agreement.

When determining the assessed right to a land plot, the following types of rights may exist:

ownership;

right of perpetual use;

right to lease (long-term, short-term).

Choosing a method and method for calculating the market value of a land plot

The main methods for valuing land plots are given in the “Methodological recommendations for determining the market value of land plots”, approved by Order of the Ministry of Property of Russia dated March 6, 2002 No. 568-r.

It should be noted that before starting to calculate the cost of a land plot, one should form a conclusion about the “development density coefficient” and an opinion about the “adequacy” of the land plot for the full functioning of the facility.

When forming a conclusion, it is necessary to identify the ratio of the area of ​​the land plot and the building area. The source of information about the building area can be a certificate from the Owner, or data from Technical Data Sheets. BTI of buildings located on this land plot.

In this situation, the question arises of how to allocate the necessary adjacent territory. To form an informed opinion about the “adequacy” of a land plot, you can “start” from existing SNIPs (if they remain relevant in relation to modern objects) or from the requirements of professional developers implementing investment projects related to commercial development.

Comparative approach to real estate valuation for collateral purposes

The comparative approach is one of the most commonly used approaches when assessing real estate for collateral purposes.

This valuation approach is based on the principle of substitution. It is based on the assumption that a prudent buyer will not pay more for an object put up for sale than that for which one of similar quality and suitability can be purchased. The comparative approach is based on the dependence of the value of the valued object on the sale price of similar objects. Each comparable sale is compared to the subject property. Adjustments are made to the comparable sales price to reflect significant differences between them.

The comparative approach involves several steps.

1st stage. The state and development trends of the market and especially the segment to which the assessed object belongs are studied. Objects that are most comparable to what is being assessed are identified.

2nd stage. Information on analogue objects is collected and verified; the collected information is analyzed and each analogue object is compared with the object being evaluated.

3rd stage. Based on the identified differences in the pricing characteristics of the compared objects, adjustments are made to the sales prices of comparable analogues.

4th stage. The adjusted prices of analogous objects are agreed upon and the final value of the market value of the assessed object is derived based on a comparative approach.

The main advantage of the comparative approach is that it focuses on the actually achieved purchase and sale prices of similar objects.

In general, the possibility of applying the comparative approach depends on the presence of an active market, since the approach involves the use of data on actual transactions, as well as on the openness of the market and the availability of financial information.

The question of the correctness of using the comparative approach in the absence of market transactions is quite complex. As a rule, this situation can be observed in small settlements where the market is poorly developed and available sources of information do not contain information on purchase and sale transactions of comparable objects.

In this case, the following algorithm can be used as an acceptable solution:

“similar” cities located in the same region, region, etc. are identified. (comparability criteria may include the number and level of income of the population, the presence of a developed housing market, location in relation to a “key” transport route, etc.);

search for data on comparable transactions:

calculations are carried out and, if necessary, appropriate adjustments are made.

It is important to note that this approach should be used with a fair degree of caution. This method can be used as an auxiliary approach to understand whether the value of an object obtained within the framework of other approaches (income and cost) is in a comparable range or not.

When applying this approach, it is important to avoid the mistake of incorrectly identifying the degree of liquidity of the valuation object and, as a consequence, valuing a completely illiquid object with the subsequent passing off of a “desirable” result as a “real” one.

The main stages of real estate valuation using a comparative approach:

selection of analogues and collection of information on analogues;

choice of comparison unit;

making adjustments for identified differences in the pricing characteristics of the compared objects;

formation of the final cost value.

Let's consider the main points that need to be paid attention to within each stage.

The selection of analogues and the collection of information on analogues is the first and, in fact, the key stage in using the comparative approach.

To select analogues, the following basic elements of comparison can be used:

Functional purpose;

location;

Physical characteristics (size, condition of the object, etc.).

Functional purpose is one of the key elements of comparison. The biggest mistake can be choosing objects of a completely different functional purpose as analogues.

It is necessary to approach the selection of analogues with great care if the object is potentially subject to demolition or reconstruction. When choosing analogues, it is important to understand what underlies the buyer’s motivation. As a rule, in such a situation, the motivation may primarily be the acquisition of rights to construct a new facility. Accordingly, as analogues, it is advisable to focus on objects subject to demolition with a comparable location and pay attention to the possible permitted use of rights to a land plot.

Sources of information for creating a list, analogues and obtaining the information necessary for the assessment are:

Preliminary data obtained as a result of an Internet search;

Data provided by analytical agencies and real estate companies;

Own databases maintained by the appraisal company.

A fairly typical situation is when information is used that does not contain all the necessary data that allows one to form a conclusion that the choice of analogues was made correctly.

In case of incomplete information about the values ​​of the main pricing factors of objects offered as analogues, an external inspection of these objects is necessary. Of course, the application of photographs of analogues and drawing analogue objects on a city map along with the object of assessment will provide even more complete visual information.

After selecting analogues and collecting information, you should comparison unit selection stage.

The most commonly used units of comparison can be:

1 sq.m. total area;

1 sq.m. usable or rentable area.

It is necessary to note the importance of correctly choosing a unit of comparison and determining the cost characteristics of this parameter.

After selecting the units of comparison, adjustments are made.

In the theory of real estate valuation, the following types of amendments are distinguished:

Interest (for example, adjustments for location, wear and tear, time of sale, etc.);

Cost (for example, corrections for qualitative characteristics, as well as corrections calculated by statistical methods). Monetary adjustments made to the price of a sold analogue object as a whole should include adjustments for the presence or absence of additional improvements (warehouse extensions, parking lots, etc.);

Absolute

Relative.

Let us dwell in more detail on the main points that must be taken into account when forming amendments.

There are ten basic comparison elements (which are actually adjustments) that must be taken into account in the sales comparison method:

1. transferred property rights;

2. financing conditions (in Russian practice it is used quite rarely);

3. terms of sale;

expenses incurred immediately after purchase;

market conditions;

location;

physical characteristics (size, quality of building materials, condition of the building);

economic characteristics (operating costs, terms of the lease agreement, administrative expenses, composition of tenants, etc.);

type of use;

10. components of value that are not part of the real estate.

In fact, the above comparison elements are criteria for selecting analogues. How. The more accurately the analog corresponds to the specified characteristics of the object of evaluation, the fewer amendments will be made and the more reliable the result will be obtained.

Let's take a closer look at each of these elements.

Transferable property rights. The transaction price depends on the property rights being transferred. A fairly typical situation is when there are valid lease agreements for the areas of the property being assessed. In this case, when determining the value of an object, amendments should reflect the differences between the income potential of the valued object and its analogue.

Financing terms. The presence of a borrowed source of financing can also affect the value of the property. To calculate the amendment, it is necessary to have complete information about the financing scheme adopted in a particular case. Based on the conditions prevailing on the Russian market, this adjustment is used quite rarely.

Terms of sale and time of sale. The adjustment to the terms of sale reflects the motivation of the buyer or seller (for example, a transaction between related persons, etc.). Exposure period - the time during which an object is on the market, differs for different market segments and depends to a large extent on the quality of the objects. If the object was sold over a period of time much shorter than the standard exhibition period, this indicates an undervalued price. If the object was on the market much longer than the standard exposure period, the price is inflated. In both cases, the transaction is not typical for the market segment and should not be considered comparable.

Expenses incurred immediately after purchase. These expenses include the costs that the buyer incurs immediately after purchasing the object and which are actually taken into account when determining the cost of the transaction, for example, the costs of demolition or dismantling of one of the objects at the production site, re-registration of land relations, etc.

Location. This amendment is necessary if the location characteristics of the assessed and comparable objects differ.

physical characteristics(size, quality of building materials, condition of the building). Physical differences include: size, quality of construction, age and condition, functional utility, lot size, curb appeal, etc.

Economic characteristics. Attributes of an object that affect its income. For example, operating costs, quality of administration, terms of the lease agreement, etc.

Components of value not included in real estate. These may include movable property, the cost of which was included in the structure of the transaction (equipment, household appliances, furniture, inventory, etc.)

When conducting an assessment, it is necessary to make adjustments for components that are not part of the property being assessed.

Based on the purpose of the object, the list of amendments can be specified taking into account the specifics of a commercial real estate object of a certain type.

For example, when assessing an office property, the main amendments may be:

Property law;

Physical characteristics (condition of the object, ratio of usable and total area (%), ratio of parking spaces to rentable area, etc.);

Economic characteristics (load level, cost level, etc.).

When assessing a real estate property for warehouse purposes, the main amendments may be:

Property law;

Location;

Availability of the necessary infrastructure (railway line, road, convenient, access, etc.);

Physical characteristics (condition of the facility, ratio of administrative and warehouse space (%), height, presence of heating, presence of all necessary communications and free capacity, etc.);

Economic characteristics (utilization level, cost level).

When using a comparative approach, it is necessary to pay attention to the following aspects:

Analogues and the object of evaluation must belong to the same real estate market, market segment and have comparable location, technical condition and area;

When making calculations, it is necessary to indicate references to the sources from which information about analogues of the valuation object was obtained. In case of incomplete information about the values ​​of the main pricing characteristics of objects offered as analogues, an external inspection of these objects is necessary;

Adjustments must correspond to the real differences between the object of assessment and analogues; it is unacceptable to make several adjustments that eliminate the same difference between the object and the analogue (for example, adjustments for the year of construction, the technical condition of the building and the level of repairs performed);

The cost values ​​obtained using the comparative approach must be within the cost range identified during the market analysis.

Income approach to real estate valuation for collateral purposes

The income approach is a set of methods for assessing the value of the valuation object, based on determining the expected income from the valuation object.

The application of the income approach is based on the concept of present value: the value of any asset is the present value of the expected future cash flows from the asset, discounted at a rate corresponding to the degree of risk of investing in this asset.

When assessing real estate from the perspective of the income approach, income is the main factor determining the value of the property. The greater the income generated by the object, the greater the value of its value, all other things being equal. In this case, the duration of the period of obtaining possible income, the degree and type of risks accompanying this process are important.

The income approach is often used to evaluate real estate that could potentially be rented or leased.

Using the income approach as part of the valuation of highly specialized real estate (for example, a steel smelting shop) requires careful consideration of the choice of valuation approach.

In practice, either the discounted cash flow method or the capitalization method is used. Below are the main points that you need to pay attention to within each of these methods.

Discounted Cash Flow Method

The discounted cash flow (DCF) method is used when valuing a property in case of unstable income streams from its operation.

Its use is advisable in the following cases:

The property is under construction or has just been built and is being put (or put) into operation;

It is assumed that future cash flows will differ significantly from current ones due to reconstruction, renovation, redevelopment, etc. object;

Income and expense flows are seasonal;

The property being assessed is a large multi-functional commercial property.

The discounted cash flow method estimates the value of a property based on the present value of the income, consisting of projected cash flows and residual value.

To apply the DCF method, the following data is required:

1. duration of the forecast period;

2. forecast values ​​of cash flows, including residual value (reversion) - proceeds from the sale of the property at the end of the ownership period;

3. discount rate.

Determining the forecast period depends on the amount of information sufficient for long-term forecasts. The calculation period can be a month, a quarter, a year, etc. The calculation horizon can range from 3 to 5 years, or be equal to the number of periods required for the object to reach a sustainable income level.

When determining the forecast period, it is important to understand how long the life of the property being assessed can last based on its current condition and the year of commissioning.

Understanding this allows you to correctly determine the duration of the forecast period and choose an approach to determining the value of an object at the end of the post-forecast (residual) period.

In fact, the forecast period cannot be longer than the life of the asset.

The next stage is to determine cash flows during the forecast period and determine the value of the object at its end.

With cash flow, several levels of income from the object are calculated (for each forecast year):

1. potential gross income (PVI);

2. actual gross income (DVD);

3. net operating income (NOI);

4. cash flow before taxes (BCF);

5. cash flow after taxes (AFPT).

Two quantities are most often used as the discounted income level:

CHOD - if you need to estimate the cost of the object as a whole, the cost of all invested capital without regard to its sources;

DPDN - if you need to estimate the value of equity capital invested by the owner.

DPDN and CHOD - differ in the amount of debt servicing costs (mortgage loan).

Potential gross income. When forming the VDP, it is necessary to pay attention to the following main parameters involved in calculating the cost of the object:

Correct accounting of the area of ​​the object, taken as a calculated value;

Correct determination of the rental rate based on the selected area of ​​the property;

Checking for the inclusion of utility costs in rental rates by analogues (taking into account utility costs, excluding utility costs) and checking for the presence of an encumbrance in the form of a long-term lease agreement.

Types of facility areas:

gross measured area -- includes the entire internal area of ​​all floors of the building;

Gross Rentable Area - The gross measured area of ​​a building minus major vertical openings (such as elevator shafts, ventilation, staircases);

the common area of ​​the building, or the public area of ​​the building (Building Common Area), is the area of ​​the building intended for common use by all tenants of the building, but not included in the office areas and retail areas (the main hall of the building, fire corridors of the first floor, etc. .);

usable area is the rentable area of ​​the building, excluding common areas on floors and all common areas of the building.

Lost rentinclude losses from non-payment and underloading, which are taken into account as actual values ​​based on the Client’s data and medium-term values.

If underloading is detected, it is necessary to analyze the reasons for this. An essential point is the objective impossibility of loading an object, for example, by 75% (at the current loading level of 25%), due to its specific characteristics. Underestimation or incorrect consideration of this factor can lead to an overestimation of the cost of the object.

Operating expenses

It should be noted that the sources may use different principles for the formation of operating expenses.

To determine the amount of operating expenses, the appraiser can use both the average market indicator (range of indicator values) of such expenses (specific absolute per unit of measurement of the valuation object or relative to the value of the object’s income) for the market segment to which the valuation object belongs, as well as element-by-element analysis of operating expenses for object of assessment.

Operating expenses per 1 sq.m of an object, as a rule, correspond to the market average, otherwise it is necessary to analyze due to what factors there is a deviation from the average market level and what reasons this deviation is caused by.

Operating expenses - periodic expenses to ensure the normal functioning of the property and the reproduction of actual gross income - can be classified into one of three groups:

fixed costs;

variable expenses:

replacement costs.

Fixed expenses include expenses that do not depend on the occupancy rate of the facility. For example, tax payments (property tax, tax or payments for land, etc.).

Variables include costs associated with the intensity of use of the facility and the level of services provided:

management costs;

expenses for concluding lease agreements;

wages for service personnel;

Communal expenses;

cleaning costs;

operating and repair costs;

expenses for maintaining the territory and parking lot;

security costs, etc.

Quite often we come across the concept of operating costs, which mean:

costs associated with maintaining the normal functioning of building structures;

costs associated with maintaining the design functioning of engineering systems, taking into account the replacement of failing equipment;

expenses for security of the building and premises, fencing of the building and surrounding areas, snow removal and roof cleaning, window cleaning;

utility costs, etc.

When determining the amount of operating expenses, one should “start” from their average market value (the share of the internal income or internal income can be used as a reference value).

A typical situation is when the owner declares the amount of expenses to be significantly less than the market average. In this case, the appraiser must conduct a detailed analysis to identify the reason for the cost reduction.

For example, if the owner built his own boiler room and thereby achieved a significant reduction in costs, then this must be emphasized in the Report and all necessary calculations must be carried out correctly, taking this fact into account.

In addition, if such a fact is identified, it is necessary to consider in more detail the issue related to the formation of the collateral mass (for example, it may be advisable to additionally collateral the boiler room, including equipment).

A separate question is whether or not to include utility bills in the total amount. It should be noted that there is no clear opinion on this issue, while different regional markets have developed their own practices when concluding lease agreements. However, it is necessary to pay attention to the existence of judicial practice on the issue of including utilities related to the operation of the property in the rent.

In accordance with the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation “Review of the practice of resolving disputes related to rent” dated January 11, 2002, Vol. No. 66: “the rent does not include payments for the use of utilities in connection with the operation of the property.” It is assumed that utility, operating and administrative expenses will be reimbursed under a separate service agreement. Rent is a payment directly to the owner of the property for benefiting from the useful properties of the thing (real estate). Utility and other listed payments are the costs of maintaining the leased property, which can be assigned by the lease agreement to both the tenant and the lessor (clause 2 of Article 616 of the Civil Code of the Russian Federation).

Actual gross income-- this is potential gross income minus losses from idle space that could not be leased and rent arrears, plus other income from the normal market use of the property (for example, income from paid parking lots or garages).

DVD = PVD -- Losses + Other expenses

The actual gross income should reflect the real situation in terms of the current level of workload of the facility.

Replacement costs include the periodic replacement of wearing parts of a structure. These components include:

Roofing, flooring, and other building elements with a short service life:

Sanitary and electrical fittings and devices;

mechanical equipment;

pedestrian paths, access roads, etc.;

expenses for cosmetic repairs of rented premises before a new tenant moves in, if the repairs are paid by the owner.

When assessing market value, replacement costs are taken into account whether they actually occur during the holding period or not.

It should be noted that the “older” the year of commissioning of the property, the more significant the amount of replacement costs should be included in the calculations.

Net operating income - Actual gross income less operating expenses (OR) for the year (excluding depreciation and amortization).

When checking the correctness of the obtained result, it is sometimes useful to use the average value of the share of Net operating income in Potential gross income based on the type of object (offices, retail, warehouses) and its technical condition (year of construction, major repairs, etc.).

The obtained value for the valued object allows one to come to a conclusion about the degree of “adequacy” of the formed value of the market value of the object.

Calculation of return on capital (discount rates)

The calculation can be performed using the cumulative construction method and the market extraction method.

Calculation of the return on capital (reversion) at the end of the forecast period

Determining the value of an object at the end of the forecast period presupposes an understanding of what will happen to the object next.

In most cases, a sustainable growth model is used:

Reversion;

Net operating income in the first post-forecast period;

rate of return on capital;

Stable rate of income growth.

An approach that can also be used is to predict the most likely sales price at the end of the forecast period based on the existing and (or) market expected sales prices for similar real estate by the end of the forecast period.

Taking into account this point becomes of fundamental importance if the object of assessment is sufficiently worn out and at the end of the forecast period, based on the existing and (or) expected by the market, by the end of the forecast period it may cease to exist. Obviously, in this case, the use of sustainable growth is advisable.

Calculation of the market value of a property by summing the current values ​​of flows during the forecast period and the current value of the post-forecast value

To form a correct opinion about the current value of cash flows, it is advisable to use discount factors for the middle of the period

The final value of a property within the framework of the income approach is the sum of the current values ​​of cash flows of the forecast and post-forecast periods.

Income capitalization method

The capitalization method is a special case of the discounted cash flow method.

The income capitalization method is used if:

· income streams are stable over a long period and are positive;

· income streams are growing at a steady pace.

The result obtained by this method is the value of the entire property, consisting of the cost of buildings, structures and the cost of land.

The value of the property is determined by dividing the net operating income by the capitalization ratio.

The income capitalization method involves performing the following actions:

determining expected net operating income;

calculation of capitalization ratio;

determining the value of a property by dividing the NPV by the capitalization ratio.

The main points that need to be paid attention to when calculating net operating income were indicated above (when considering the discounted cash flow method). Let's take a closer look at calculating the capitalization ratio.

Capitalization rate consists of two parts:

1. discount rate (rate of return on investment), which is the compensation that must be paid to the investor for the use of funds, taking into account the risk factor and other factors associated with specific investments;

2. capital standards, i.e. repayment of the initial investment. Moreover, this element of the capitalization ratio applies only to the depreciable part of assets (i.e., to buildings and structures, but not to land, which is not subject to depreciation).

The rate of return on capital is constructed using the cumulative construction method.

Rate of return on capital (discount rate) = = Risk-free rate of return + Risk premium + Premium for low liquidity of real estate + Investment management premium.

Note that managing real estate investments is considered a more complex and risky activity than managing investments in financial assets, which necessitates the need for an additional premium.

In practice, the use of such calculation logic is associated with significant “conditionality” in the formation of the evidentiary part.

As risk-free rate You can use the average effective yield to maturity of long-term government bonds of the Russian Federation with a maturity of 10 to 14 years.

As a rule, in practice, the premium for the listed risks in relation to the selected property is assessed by experts. Nevertheless, it is advisable to form a base based on the regional market and derive these amendments taking into account the specifics of the market.

Low liquidity premium real estate takes into account the impossibility of immediate return of investments made in real estate. When determining the amount of the adjustment for low liquidity, we proceed from the premise that the period of exposure of the object from the moment it is put up for sale is long. The riskier and more complex the investment, the more competent management it requires.

Investment Management Award fluctuates mainly from 1% to 5%. It is advisable to calculate the premium for investment management taking into account the underutilization rate and losses when collecting rental payments.

Calculation of the various components of the risk premium:

The premium for low liquidity takes into account the impossibility of investment; according to expert estimates from most sources, it is usually taken at the level of 3-5 percentage points;

The premium for the risk of investing in real estate takes into account the possibility of accidental loss of the consumer value of the object and can be accepted in the amount of the norm of insurance contributions in insurance companies of the highest category of reliability;

The premium for investment management is determined by taking into account the fact that the more risky and complex the investments, the more competent management they require, which means the higher the value of this premium will be.

The rate of return on capital can be calculated in one of the following three ways.

Straight-line return of capital (Ring method);

Return of capital based on the replacement fund and the rate of return on investment (Inwood method). It is sometimes called the annuity method.

Return of capital based on the compensation fund and the risk-free interest rate (Hosksld method).

Let us give a brief description of each of these methods.

Ring's method. This method is appropriate to use when it is expected that the principal amount will be repaid in equal installments. The annual rate of return on capital is calculated by dividing 100% of the asset's value by its remaining useful life, i.e. It is the reciprocal of the asset's service life. In this case, it is considered that the funds allocated to the compensation fund are not reinvested. The capitalization ratio formula takes the following form:

Rk = Rd + 1/n, where:

n is the remaining economic life.

Inwood method used if the capital return is reinvested at the rate of return on the investment. In this case, the rate of return as a component of the capitalization ratio is equal to the replacement fund factor at the same interest rate as for investments:

Rk = R + SFF(n,Y), where:

SFF - compensation fund factor;

Y = R - rate of return on investment.

Hoskold method used in cases where the rate of return on the initial investment is somewhat high, making reinvestment at the same rate unlikely. For reinvested funds, it is assumed that income will be received at a risk-free rate:

Rk = R + SFF(n,Yb), where:

Yb - risk-free interest rate.

The lowest rate of return is obtained using the Inwood method, the highest - according to the Ring method. When the price of an asset falls, regardless of whether the rate of return is calculated using the Ring, Hoskold or Inwood method, the rate of return on investment is less than the capitalization rate Rk > R.

Rint's method is most applicable for “old” objects.

Another way to calculate the capitalization ratio is the market squeeze method (market extraction method).

IN market squeeze method there is no separate accounting of return on capital and return on capital, and the growth rate of income is not taken into account separately. These components are taken into account in the overall capitalization ratio on an “all-inclusive” basis and do not require separate analysis, which is one of the advantages of this method.

Based on market data on sales prices and NAV values ​​of comparable properties, capitalization rates are calculated using the following formula:

Where CHOD is the net operating income of the i-th analogue object;

Vi is the sale price of the i-th analogue object.

Calculating the capitalization ratio using the market squeeze method allows one to reduce the subjectivity of the appraiser to a minimum. In addition, the capitalization ratio determined in this way takes into account the rate of return of capital and the expected changes in the value of similar objects - on an all-inclusive basis. Accordingly, there is no need to carry out a separate calculation of these components of the capitalization ratio, an error in the calculation of which using the cumulative method can significantly affect the result. And the accumulated error in the cumulative method of determining risks can further affect the result.

When determining the capitalization ratio, it is also necessary to pay attention to taking into account the tax component (if the NIR is before tax, then the capitalization ratio should be calculated for income before tax: or vice versa, the NIR and the capitalization ratio are calculated as “after tax”).

When choosing a technique and calculating the market squeeze (extraction) method, it is important to correctly generate information on net operating income and the sales price of analogues.

When using the income approach, you need to pay attention to the following points:

Compliance with the rental rate used in calculations of the market rental rate for similar properties;

Information about analogues for rental rates must be supported by an indication of the sources from which it was obtained, in a form accessible for verification. The report must be accompanied by printouts of databases of real estate companies or copies of pages of printed publications containing advertisements for the rental of similar objects;

The forecast rate of growth of rental rates in the long term should not be unreasonably high, even with the existing local growth. The growth rate of industrial production can be used as a guide;

An unreasonably low discount rate or capitalization rate should not be used in calculations. As a criterion for comparison, the ratio of the annual rent per 1 sq.m to the offer/sale price of 1 sq.m of similar properties can be used;

It is not allowed to add the separately calculated value of the land plot to the value of the property calculated using the income approach.

Reconciliation of results

The market value of the valuation object is determined as the weighted average value between the results of calculations obtained within the framework of the income, cost and comparative approaches.

The cost approach reflects the amount of funds required to create an object similar to the object being assessed in modern conditions, but does not reflect the market reaction to these assets. The result obtained by the cost approach, if the appraiser correctly took into account the factor of external wear and tear, should be very close to the results obtained by other approaches.

A comparative approach in market conditions allows you to most accurately determine the value of the property being assessed if there are suitable analogues available on the market. The share of the results of this approach in a developed market should be greatest.

The income approach is based on data on rental rates for similar properties. The presented database of rental rates for similar properties in a developed market allows us to sufficiently fully identify the influence of pricing factors on currently existing rental rates. However, income income comes with risks in forecasting future earnings. The weight of the results of this approach should be lower than (or equal to) the results of the comparative approach.

Key points to pay attention to when agreeing on results:

Correctly carry out weighing if there is a significant discrepancy in results; the cost may be considered different from the result of the most adequate approach if its value contradicts the results of other approaches;

There is no need to carry out weighting using complex procedures such as hierarchy analysis. In most cases, simple averaging is sufficient, since if there are no contradictions in the results obtained by different approaches, the weighing procedure will not have a significant impact on the final result.

It should be noted that the motivation of players in the real estate market can be multidirectional, depending on further actions with the object of the transaction.

For a potential “player” in the real estate purchase and sale market, two actions are possible:

Acquisition of an object with subsequent resale (in a “warmed up” market), for example, the Sochi market in 2007 until the decision was made to hold the Winter Olympic Games;

Purchasing a property for the purpose of purchasing a stable cash flow.

When conducting an assessment for collateral purposes, one should, first of all, be based on the results of the approach that will be most adequate in relation to the specific practical situation.

The results obtained using individual approaches cannot differ significantly from each other - the presence of this fact in the Report indicates the incorrectness of taking into account significant factors within the framework of the income, cost or comparative approaches.

Valuation for collateral purposes is a procedure that allows you to determine the current market value of the collateral property and understand the objective relationship between the size of the collateral and the amount of the loan provided, which suits the borrower and the lender. In addition, this type of assessment can be carried out to resolve disputes between the parties to a credit transaction arising as a result of the foreclosure of mortgaged real estate.

The process of assessing real estate for collateral

Valuation of real estate for collateral purposes has its own characteristics, primarily due to the fact that three parties are involved in this process:

• banking institution - creditor;
• borrower;
• independent expert appraiser.

At the same time, the creditor bank is interested in determining the real price of the property provided as collateral and assessing the risks associated with issuing loan funds. And it is in the interests of the borrower to obtain the maximum loan amount for the asset provided. The peculiarity of assessing a property for the purpose of collateral is that an independent expert in this situation protects the commercial interests of both parties and ensures the transparency of the credit transaction.

Property valuation for collateral purposes is carried out in several stages:

1. the terms of reference are agreed upon with the borrower and a representative of the banking organization;
   • the object of assessment and the type of value being determined are established;
   • current rights and encumbrances are determined;
   • approaches and methods that will be used to evaluate real estate secured by collateral are indicated;
   • Assumptions and restrictive conditions are established;
   • the required amount of information and the time frame required to carry out the assessment procedures are determined.
2. collection and processing of received information;

   An expert appraiser or a group of appraisers collects the necessary documents and analyzes the data obtained. During the inspection of real estate, inconsistencies in the layout (or other characteristics of the real estate) with the information displayed in the title documents may be identified. In such a situation, in order to prepare an expert report and obtain a loan, it becomes necessary to make appropriate changes to the documentation.

3. a building (structure), apartment, private house, premises, land plot is assessed;

   The market, liquidation or other value is determined using the methods and approaches established at the first stage.

4. the results obtained using different methods are coordinated;
5. a report on the assessment of real estate for the purposes of collateral is generated and provided to the parties in accordance with the agreement.

Who can conduct an independent assessment?

Valuation firms and independent appraisers have the right to evaluate real estate for collateral purposes:

• having appropriate qualifications;
• are active members of one of the self-regulatory organizations of appraisers;
• have insured their professional liability.

In addition to the above criteria, it is also important to pay attention to the accreditation of the company or appraiser at the bank where you plan to receive a loan.

• an objective assessment of the market value of real estate to obtain a loan in accordance with legal requirements, international and banking standards;
• free provision of consultations;
• the ability to order determination of the value of any assets for various purposes. Clients have access to valuation services for shares, investment projects, businesses, property complexes, commercial and residential real estate, land plots, intangible and other assets;
• free preliminary calculation of the estimated value of any assets;
• analysis of liquidity and estimated exposure period;
• analysis of the real estate market to which the property being assessed belongs.

Valuation of property for collateral to a bank is a way to find out the current price of the collateral property, as well as calculate the optimal ratio of the loan funds provided and the collateral. Many borrowers are interested in whether an appraisal of the collateral is required? Answering this question, it is worth noting that not a single banking institution will issue a loan without information about the objective price of the collateral real estate. Also, an assessment of the collateral is required in the event of disputes between the parties to the credit transaction.

Features of collateral property valuation

The assessment of collateral for lending has certain features, which are determined by the fact that two parties are interested in the assessment:

• borrower;
• creditor bank.

At the same time, the banking institution needs to obtain objective information about the value of assets that provide guarantees for loan repayment, as well as determine the level of possible risks. It is in the interests of the borrower to obtain the maximum amount of loan funds secured by his property.

In this case, the assessment of property for collateral purposes is carried out by an independent expert in order to protect the property interests of both parties and ensure the transparency of the credit transaction.

Evaluation procedure

Valuation for collateral purposes is usually carried out in accordance with the following algorithm:

1. The details of the agreement are agreed upon with the borrower and an authorized representative of the bank.
   • The object of assessment is determined.
   • The existence of existing rights and encumbrances is established.
   • Approaches and methods for assessing collateral are indicated.
   • Assumptions and limitations are outlined.
   • The duration of the assessment procedure and the amount of information about the object that needs to be obtained are established.
2. The information received is collected and analyzed.
   An independent collateral assessment specialist or a team of expert appraisers carries out:
   • inspection of property;
   • collection of necessary documentation;
   • analysis of the market situation;
   • identification of key factors influencing the value of the property being assessed;
   • processing of received data.
   When inspecting the property, discrepancies in the layout (or other characteristics) may be discovered with the information displayed in the technical passport or in documents confirming ownership. If such discrepancies are identified, it becomes necessary to make appropriate changes to the documentation.
3. An assessment of assets for collateral purposes is carried out, during which the market, liquidation or other value is established in accordance with the methodology specified in the first stage.
4. The results obtained using different methods are compared.
5. An expert opinion (report) is prepared, which displays the market value of the collateral assessment.
6. The report is provided to the parties to the contract.

Assessment methods

The procedure for assessing collateral may involve the use of a variety of assessment techniques, which are used within the framework of three approaches:

1. Expensive. Calculation of the value of an asset is made by analyzing the costs required to create or restore an object with similar characteristics and functionality.
   In this case, various methods can be used to calculate the cost:
   • comparative unit;
   • quantitative survey;
   • breakdown by components;
   • determining the estimated cost.
2. Comparative. The valuation of the collateral (real estate) is made based on information about market prices for identical or similar objects. At the same time, information about current offers on the market, as well as recently completed transactions, is used for analysis.
3. Profitable. The cost is calculated based on methods that allow you to predict the level of income from owning an object in the future.
   The use of this method is advisable if the following conditions are met:
   • the valued object generates income;
   • it is possible to provide reliable forecasting of future profitability.
   The expert appraiser considers all possible options for making a profit:
   • exploitation;
   • short-term or long-term rental;
   • resale.

It is worth noting that the most appropriate methods are determined by the appraiser based on the characteristics of a particular situation. In this case, using the above approaches, it can be carried out