VALUATION Corp. Provides Real Estate Valuation Services in Moscow, Russia

Types of Real Estate Value

Valuation of real estate is a professional assessment of the subject property' value or value of some specific set of individual rights in regard to the property (lease rights, rights of use, etc.). Professional valuation can be conducted to value various types of property, such as commercial buildings, industrial complexes, flats (apartments, condos), residential houses, office spaces, land plots and longstanding plantations (gardens, parks, landscaped plots).

Depending on valuation purpose, different types of real estate value can be determined. At the negotiation stage you can instruct the appraiser to determine one or several types of value for the subject property. The most commonly used types of value in regard to real estate are:

• market value - the most probable price of the subject property if sold in the open competitive market where buyers and sellers act independently in their own interests;
• reproduction value (reproduction cost) - the total cost of reproducing a property identical to the subject property at current market prices;
• liquidation value - the value of the real estate in the event of its forced liquidation (compulsory sale) within the fixed period of time which is less than normal period of market exposure for similar properties;
• investment value - the value based on the earning capacity of the real estate and specific requirements of a particular investor, usually calculated for investment purposes.