When determining the most efficient use of land. Analysis of the most efficient use of land. The ultimate utility of a piece of land depends on its size and shape. Some options give the greatest effect only

When evaluating land plot it is necessary to determine the option of its best and most effective use, which is determined by the interaction of a number of factors.

The analysis of the best use includes the study of alternative options for the use (development, development) of the land and the choice of the optimal one. This takes into account the prospects of the location, the state of market demand, the cost of development, the stability of expected income, etc.

When assessing the value of an object consisting of a land plot and buildings, great importance is attached to the analysis of the best use, firstly, of the alleged vacant land plot and, secondly, of the land plot with existing improvements.

An analysis of a supposedly vacant land plot is a necessary step in determining its value, and it is based on establishing the most profitable option for using the land.

An analysis of a land plot with existing improvements involves a decision to demolish, modernize or preserve the improvements existing on the land plot in order to ensure maximum profitability of the object.

The probable and most profitable use of the site provides its highest value. Use cases must be legal, physically feasible, and cost-effective.

Let's name the main factors that determine the optimal use of land:

location - a factor that has a major impact on the cost of a land plot (taking into account the prospects of the location, transport accessibility, the nature of the environment);

market demand - a factor reflecting the ratio of supply and demand in the market;

financial feasibility - the ability of the project to provide income from the use of the land, which would be sufficient to reimburse investors and ensure the expected profit;

physical suitability of the site - the prospect of making improvements - size, topography, soil quality, climate, engineering-geological and hydro-geological characteristics of the site, existing zoning, environmental parameters, etc.;

technological feasibility and physical feasibility - analysis of the ratio of quality, costs and timing of the project, the likelihood of natural disasters, the availability of transport, the ability to connect to utilities, taking into account the size and shape of the site, for example, the size may be small for the construction of an industrial facility;

Legislative (legal) admissibility - compliance of the option of using the land plot with the current legislation. It is revealed as a result of the analysis of construction, environmental standards, floor restrictions, the presence of temporary bans on construction in a given location, difficulties in the area of ​​historical urban development, a possible change in regulations, compliance with zoning rules, negative moods of the local population;

maximum return (maximum property return and site value), which is determined by discounting the future returns of alternative use cases, taking into account the risk of the investment.

2.1.4 Improving the efficiency of urban land use

Urban lands are a special category. Their value is influenced by the size of the city and its production and economic potential, the level of development of engineering and social infrastructure, regional natural, environmental and other factors. In addition, there are peculiarities of legislation for this category of land.

The same factors can have the opposite effect on the value of a particular site:

• - heavy traffic is undesirable for a residential area, but increases the value of the site for trade purposes;
• - location relative to educational institutions and shopping centers, aesthetic merits and amenities taken into account when assessing land for housing construction, practically do not affect the value of territories oriented to industrial development; transport infrastructure and economic zoning are important to them.

In the previously functioning planned economy with industrial development priorities, the command-administrative distribution of "free" land led to serious disproportions in the development of the city and wasteful, unnecessary and even harmful use of the most valuable urban land (including by enterprises and organizations), often leading to heavy environmental issues. Once distributed land is practically not redistributed, which leads to further aggravation of negative trends.

The main units used for comparison of land plots:

• - price per 1 ha - for large areas of agricultural, industrial or housing construction;
• - price per 1 m - in the business centers of cities, for offices, shops;
• - price for 1 frontal meter - for commercial use of land in cities. In this case, the cost of the lot is proportional to the length of its boundary along the street or highway, with the standard depth of the lot, which accounts for a small part of the cost;
• - price per lot - is used to compare standard plots in terms of shape and size in areas of residential, summer cottage development;
• - price per unit of density - ratio of building area to land area, etc.

Most land resources are currently in state and municipal ownership. Practice shows that in market conditions, urban land is a valuable resource and can serve as a stable source of income for the local budget. The city authorities determine the amount of the land tax, the rental rate for land and the standard price of a land plot upon redemption, so the issue of increasing the efficiency of land use is relevant for them. In order to use landed property more efficiently, i.e. brought the maximum income from the use and contributed to the improvement of the overall investment climate, further development of market relations on land market, orientation to the current market situation and market requirements.

In order to use landed property more efficiently, i.e. brought the maximum income from the use and contributed to the improvement of the overall investment climate, first of all, it is necessary to implement the processes of taxation, lease and redemption of urban land based on its market value. At the same time, a fair distribution of the tax burden is achieved, stimulation of effective use and activation of investments in reconstruction and development in the process of restructuring the territory.

The results of the assessment of the urban area serve as initial information for solving the following tasks:

ѕ development of urban policy and social planning;

* formation of proposals on the types of functional use of the territory, taking into account its quality;

* formation of economic mechanisms for accommodating various options for land use and investment and construction policy;

ѕ analysis of the consequences of options for the development and restructuring of the urban environment, optimization of municipal investments in the maintenance and development of the urban environment;

ѕ determination of the investment attractiveness of the territory as a function of the value of urban land.

There are two views on the value of urban land:

urban designer in the process of functional zoning of the territory as a section of the general plan of the city;

appraiser in the process of developing a cadastral valuation of land.

The basis for the formation of a cadastral valuation of land and functional zoning of the territory should be a comprehensive urban assessment of market value.

2.1.5 Land valuation methods

Normative method is to determine the standard price of land. It is used when transferring, redeeming land for ownership, establishing a common joint (shared) property in excess of the free norm, transferring by inheritance or donation, obtaining a loan secured by security, withdrawing for state or public needs.

City lands are evaluated taking into account the building density, the prestige of the area, the nature of the surrounding land use, the ecological state, engineering and transport facilities, etc. The lands are divided into zones differentiated according to the basic land tax rates and the standard price of land (Law of the Russian Federation "On payment for land") . The normative price of land is fixed in the Land Cadastre.

The basis for determining the standard price of land: land tax rates and multiplying factors, land tax benefits are not taken into account.

It is often necessary to value an object consisting of a building and a land plot, when the latter has only lease rights. In this case, the cost of land allocation for construction can be taken into account as the cost of land.

In market conditions, if available necessary information it is advisable to apply methods based on the analysis of market data. Order of the Ministry of Property of Russia dated March 7, 2002 No. 568-r approved Guidelines to determine the market value of land. As a rule, when assessing the market value of land plots, the sales comparison method, the allocation method, the land rent capitalization method, the distribution method, the remainder method, and the division into plots method are used.

Sales comparison method is the simplest and effective method appraisal, can be used to appraise both actual vacant and presumably vacant land; allows you to determine the specific price of a land plot by making percentage adjustments to the sales prices of analogues. In the absence of information on the prices of transactions with land plots, the use of supply (demand) prices is allowed.

Common elements of comparison for land plots: ownership, financing conditions, special conditions of sale, market conditions (change over time), location (distance from city and roads, environmental characteristics), zoning conditions, physical characteristics (size, shape and depth of the plot, angular location, soil type, topography), available utilities, economic characteristics, best and most efficient use. When valuing land, you can use multiple units of comparison, adjusting the price of each unit and ending up with multiple values ​​that define a value range. Urban lands are a special category, their value is influenced by the size of the city and its production and economic potential, the level of development of engineering and social infrastructure, regional natural, environmental and other factors.

The method gives sufficiently accurate results only in a developed information-open competitive market. The Russian land market does not meet these requirements; the cost of a land plot cannot be determined based on information on sales transactions of analogous plots. Therefore, all available information should be collected for the assessment to apply all site assessment methods.

Land rent capitalization method is based on the fact that if there is sufficient information about the rental rates of land plots, it is possible to determine the value of these plots as the current value of future income in the form of rent for the land plot being assessed. Within the framework of this method, the amount of land rent can be calculated as income from the lease of a land plot under the conditions prevailing in the land market. As a regular stream of income, land rents can be capitalized into value by dividing by a capitalization ratio for land determined from market analysis. The initial data for capitalization is obtained from a comparison of sales of leased land and rental values.

Based on the rental rate received, the market value of the land is determined using the income approach, usually using the direct capitalization method.

The capitalization rate is determined by dividing the amount of land rent for similar land plots by their sale price or by increasing the risk-free rate of return on capital by the amount of the risk premium associated with investing capital in the assessed land plot.

The main factors influencing the value of the rental rate of a land plot are: characteristics of the location, size, shape, surrounding type of land use, transport accessibility, engineering equipment.

However, in Russia, lands of the state and municipal fund are mainly leased, and the amount of the rent is calculated in accordance with the standard price of the land, which is not equivalent to its market value. Currently, attempts are being made to lease land at its market value, but it is still too early to talk about the objectivity of the results of the practical application of the land rent capitalization method.

Distribution method ( ratio method, correlation, allocation) - determination of the cost component of the land plot based on the known ratio of the cost of land and improvements in property complex. The method is based on the principle of contribution and the assertion that for each type of property there is a normal ratio between the value of land and buildings. This ratio is most reliable for new buildings, they are close to the option of the best and most efficient use. The older the buildings, the greater the ratio of land value to total property value.

To apply the method, reliable statistical data on the ratio of the values ​​of land and all property of a particular type of real estate in a given market are required. However, the method is rarely used even in developed markets, as it has low reliability. The application of the method is justified in the conditions of insufficient information on sales of land plots. The values ​​obtained are considered indicative.

Selection method (extraction) is used to evaluate built-up land plots if there is information on transaction prices for similar real estate objects. Land improvements correspond to its most efficient use. The method involves the following sequence of actions:

• - definition of elements of comparison of objects;
• - determination of the differences of each analogue from the object of assessment;
• - calculation and making adjustments for each of the comparison elements;
• - calculation of the market value of a single real estate object, including the assessed land plot, by reasonable generalization of the adjusted prices of analogues;
• - calculation of the cost of replacement or the cost of reproduction of improvements to the assessed land plot;
• - calculation of the market value of the assessed land plot by subtracting from the market value of a single real estate object, including the assessed land plot, the cost of replacement or the cost of reproduction of improvements to the land plot.

The selection method is used when the contribution of improvements to the total price of the plot is small, it is recommended for evaluating suburban plots (for which the contribution of improvements is small and fairly easily determined), it is used when there is no data on sales of the land plot in the vicinity.

The method is the most effective in a passive market (there is no data on the sale of vacant land plots), taking into account the characteristics of the initial information and the model for obtaining the desired value. The cost of a land plot in general terms is determined by the formula:

FROM 3 = C - C At ,

Where Cz - the cost of the land;

C - the cost of the object;

Su - the cost of improvements.

Remainder Method based on the investment group technique for physical constituents. The method is applied to the valuation of built-up and non-built-up plots, if there is a possibility of building up the assessed land plot with income-generating improvements. The value of land is determined as a result of the capitalization of the part of income related to land.

To determine the value of a land plot, it is necessary to know the value of the building, the net operating income of the entire property, the capitalization ratios for land and for buildings.

The main steps of the residual method for land are:

the net operating income of the entire property is determined based on market rent and estimated operating costs;

the net operating income related to the structure (building) is determined;

net operating income attributable to the land is capitalized into a measure of value through the capitalization rate for the land.

It is difficult to predict income in conditions of insufficient economic stability.

Plot method ( development approach) is used to assess land suitable for subdivision into individual parcels. Consists of the following steps:

• - determination of the size and number of individual plots;
• - Calculation of the cost of developed areas using the comparable sales comparison method;
• - calculation of costs and schedule for the development of the expected period of sale and reasonable business profits;
• - deduction of all development costs and business profits from the estimated total sale price of the plots to determine the net proceeds from the sale of real estate after the completion of the development and sale of individual plots;
• - selection of a discount rate that reflects the risk associated with the period of expected development and sale.

Land development costs typically include:

• - expenses for breakdown, clearing and planning of sites;
• - expenses for the construction of roads, sidewalks, engineering networks, drainage;
• - taxes, insurance, engineers' fees;
• - marketing expenses;
• - profit and overhead costs of the contractor, etc.

In general, the modeling of the market value of land plots is carried out under the assumption of achieving a dynamic equilibrium in the competition of various "rational" land users for the right to occupy a certain plot. When the balance of effective demand and supply in the simulated land market with limited supply, the issue of the most efficient use of the site as free and taking into account the existing development is decided. Modeling potential rental income for various types land use is based on the patterns of formation of rental effects of location and prevailing prices (sales and leases). Given the significant difference in cost indicators for sites located along the front of the city's street and road network and located in intra-quarter territories, these sites are subject to mandatory division during assessment. The implementation of the principle of the most efficient use takes place in the conditions of competition for the use of real estate between various functional segments of the market, taking into account real restrictions on the volume of demand and the possible multifunctionality of the territory, as a result of which a set of land users is formed on each site.

General provisions

Land acquires value only when it is used, so all evidence regarding value is based on an analysis of the possible use. This introduces an element of ambiguity in the valuation of land, since, depending on the nature of such use, the cost of the same land plot can differ significantly, which allows us to speak of different land values ​​for alternative uses. However, there is always a use that results in the highest value of the land and will be the most efficient for it. It is it that is adequate from the point of view of market participants and should be considered as the basis for determining the market value of the land.

In today's practice of land valuation, there is no such analysis. As a rule, in the reports, the selection and justification of the most efficient use is reduced to listing its criteria and the assertion, unconfirmed by any calculations, that the use for which the land plot is allocated is the most efficient.

The procedure for identifying and justifying an alternative use of real estate that provides the most productive use is called analysis best and most efficient use. However, the best and most efficient use is the likely use of vacant land or property with an improvement that physically feasible, legally sound, economically feasible, and results in the highest value.

Basically, the concept of best and most efficient use only applies to land. Land is considered to have value, while improvements contribute to the value of real estate itself as a whole. Hence the theoretical emphasis of the best and most efficient use analysis is on the possible use of the land as if it were free. Even for improved real estate, land valuation as free is necessary condition when determining the value of real estate. Only in this way can the real contribution of improvements to property value be determined.

The concept of the best and most efficient use of improved real estate in real estate valuation was developed in the 1960s.

Analysis of the best and most efficient use is performed:

a) for a piece of land as free;

b) for a piece of land with existing improvements.

The purpose of the analysis of the best and most efficient use is an informed choice of the most productive use of real estate.

In the final choice of the option of the best and most efficient use of a particular property, the following provisions are guided:

· if the value of the property with improvements is greater than the value of the land without improvements, the best and most efficient use would be to use the property with improvements;

· If the value of a vacant lot exceeds the value with improvements, the best and most efficient use would be to use the land as vacant.

The best and most efficient use of land as free

The analysis of the best and most efficient use of land as free is carried out in two cases:

If necessary, a separate assessment of the land plot;

The main objective of this analysis is to answer the following questions:

1. If land is or will be free, how should it be used?

2. What type of building or structure should be built and when?

The appraiser must analyze not only the current state of the market, but also give a forecast of its changes for the future, since the value is determined mainly by potential opportunities. For example, the current most efficient use in the near suburbs, as agricultural, may change with the growth of the city to use for the construction of residential individual houses.

There may be cases where the most effective current use would be temporary or speculative. Temporary use involves the construction of parking lots, sports grounds. After some time, the most effective use of the site may be the construction of an office.

Speculative use involves keeping the site free until the moment when the market situation is favorable for improvements.

Often a built-up area is analyzed as if it were free. In this case, the task of the analysis is to determine the effectiveness of the current use and the associated further use - reconstruction, modernization, repair, dismantling, etc. This free plot is considered from the point of view of the construction of a building similar to the existing one. If such use corresponds to the most efficient one, then the difference between the current cost of improvements and the cost of new improvements will determine the loss of value due to various causes.

Analysis of the best and most efficient use - comparison of development options for a plot of land. For each development option, the residual value of the land is calculated. The highest residual value of the land corresponds to the option of its best and most efficient use.

Best and most efficient use of land with existing improvements

Analysis of the best and most efficient use of property as improved is performed in the following cases:

when determining the nature of the use of property, providing the maximum return on invested capital;

when choosing objects for comparative analysis.

The main objective of this analysis is to answer the following questions:

1. How should existing enhancements be used?

2. What type of renovation or upgrade should be done and when?

The best and most efficient use of a property as an improvement is to use it in the presence of existing improvements. An analysis of such use should provide recommendations for the further exploitation of the property.

The criterion for the best and most efficient use of property as improved is to maximize the value of the property at a suitable long-term rate of return and risk.

In practice, if options do not involve refurbishment or modernization costs, then they can be compared directly with each other based on the present value of future earnings. If conversion or refurbishment costs are required, options may be compared on the basis of the net present value or internal rate of return of each refurbishment project.

The sequence of performing the analysis of the best most efficient use of the land

NNER analysis of a piece of land as free from improvements

The analysis of the best and most efficient use of the land plot is carried out in the following sequence:

1. Market analysis and selection of alternative possible uses that are reasonably feasible, taking into account market opportunities and constraints.

The option for the best and most efficient use of a particular piece of vacant land or land with improvements includes checking whether the various options meet the following criteria:

The best and most efficient use of land, both vacant and with improvements, must satisfy four criteria:

be physically feasible;

be legally permitted;

be financially and economically feasible;

have maximum profitability.

Consider the features of applying the criteria for the best and most efficient use.

The physical suitability of the land.

The best and most efficient use of property depends on its physical characteristics.

When considering use cases, consider:

· The size and shape of the plot, which may or may not correspond to optimal usage. For example, the site may be small for the construction of an industrial facility, which is the best use of the existing zoning.

· Availability of transport and communal amenities can be a decisive factor in the choice of use case, for example: if the developer was interested in building storage facilities, then preference would be given to a site that has access to the highway network or to railway. For shops, fast food restaurants, motels, visual openness from any side is very important. traffic. Lack of connectivity to the main sewer may exclude the considered use case from the list of physically feasible ones.

· Engineering-geological and hydro-geological conditions may make it impossible to project the most effective option improvements, such as low soil bearing capacity or high groundwater levels.

· Topographical and geographic features may impose significant restrictions on use. For example, the use of a site for the construction of a large industrial terminal may become impossible due to the topography of the site.

Legal security

When analyzing the best and most efficient use of the property, it is necessary to determine which use cases are in accordance with the legislative, governmental, municipal act in force in the given area. All documents regulating the regulatory and legal side of functional use should be analyzed. Public restrictions include: zoning rules; security requirements environment; permission requirements; building codes; housing codes; regulations on the division of land into plots. Other public restrictions may include energy regulations, shading restrictions, forced acquisition of land for public use, and more.

The nature of use may be limited to long-term leases. In addition, there may be partial or temporary restrictions that determine a ban on the use of certain types of materials, restrictions on the number of floors, a temporary ban on construction in a given location.

In some cases, in relation to large projects, their evaluation is a mandatory requirement. local residents. In other cases, the developer must provide a certain percentage of apartments or the same proportion of houses in individual housing estates to low-income people at rental rates or below market prices. These restrictions can significantly affect the best and most efficient use of the land.

There may be partial or temporary restrictions that determine the prohibition associated with the status of the object as a monument of cultural and historical heritage. Partial restrictions in most cases impose additional costs for improvements, especially in areas of historical urban development.

In addition to legal restrictions, there may be negative sentiments from the local population, which may make a particular use case impossible.

Private legal restrictions include facility use restrictions, easements, and specific agreements. A neighboring landowner may own a building invading the property. The site may contain burials or historical buildings not subject to demolition.

Financial and economic feasibility

After excluding physically unfeasible and legally unpermitted use cases from consideration, a cost-benefit analysis of the remaining options should be performed. The criterion of financial feasibility is a positive return on investment, that is, a return equal to or greater than the costs of compensation for maintenance costs, financial obligations and initial investments.

The focus of the financial feasibility study will depend on the market in which the physically possible and legally permitted uses are represented.

If these uses are in the rental market, then the financial feasibility analysis will focus on which of them will provide sufficient net operating income to meet the required market rate of return on investment:

Net operating income from the rental of improved properties;

GPML - annual debt service payment.

If physically possible and permitted uses are on the market for sale, then the financial feasibility study will focus on determining the amount of income that will be received from the sale of improved real estate in an alternative use. In this case, those uses will be considered financially feasible, in which the income will exceed the amount of costs necessary to create and sell improved real estate:

RS > Cc + Cf + Pr

PC is the market value of the improved real estate;

Сс - construction cost;

Cf - the cost of financing;

Pr - developer's profit

Obviously, this excess will determine the amount that the developer can spend on the acquisition of land. However, taking into account the assumption that all parties in the market, including the owner of the land plot, seek to maximize their benefits, the following additional conditions for the feasibility of development and development of the land plot can be formulated. The amount that the developer can offer for development land must be greater than or equal to its value with improvements:

The financial feasibility study should be based on reliable evidence collected and analyzed in the competitive market of the real estate in question.

Financial feasibility largely depends on the balance of supply and demand, location.

The maximum return test applies to those uses that meet the first three criteria. It involves not only considering the value of real estate that can be obtained at its maximum productive use, but also the costs associated with achieving this value, including the cost of demolition and relocation of buildings, the cost of restoring the environment, the cost of rezoning and others.

Of the financially feasible uses, the most efficient use is that which provides the highest residual value of the land.

The residual value of the land can be found by determining the value of the intended use and subtracting the cost of making the improvements.

2. The cost of development is determined for each of the alternative strategies.

The resource quality of the site and the technological feasibility of various development options are taken into account.

3. The financial feasibility of the identified development strategies is determined.

For each option, a forecast income statement is prepared. For each development strategy, based on assumptions and assumptions about future market behavior, net operating income is calculated.

4. Capitalization coefficients for buildings, structures and land are determined. The appraiser may use capitalization ratios based on available market information or based on the investor's expectations.

5. Distribution of net operating income between buildings, structures and land.

6. The residual value of the land is determined.

The highest residual value of the land corresponds to the option of its best and most efficient use.

Analysis of a plot of land with existing improvements

An analysis of a plot of land from an existing building is carried out in the following sequence.

1. Use cases are selected that are reasonably feasible given market opportunities and organizations;

2. The cost of development is determined for each proposed option;

3. Net operating income is determined;

4. The overall capitalization ratio is determined;

5. The present value of future income is determined;

6. Costs for reconstruction or repair are determined;

7. The market value of a single real estate object is determined.

The highest net present value or internal rate of return of a renovation project corresponds to the best and most efficient use of the land.

However, if the competitive level of demand is higher for productive use, then it is likely that the most efficient use of the property may be to maintain the existing use, with the necessary conservation work at an appropriate cost. The theory of real estate valuation requires an analysis of a piece of land on the assumption that there are no buildings on it, even if the site is developed, to determine whether the current use is in demand, whether it should be continued or replaced. The method of determining the best and most efficient use of the property being valued as an undeveloped land plot is based on the assumption that it does not have buildings, or can be freed from buildings as a result of their demolition.

The most efficient use of the improved land

In analyzing the most efficient use of an improved land plot, the legal clearance study aims to examine whether the real estate in question is existing rules development or other use of the land and how such compliance or non-compliance affects the value of the property. It examines many of the same public and private constraints that were considered when testing the legal permissibility of the use of land as free, but already in terms of existing improvements.

As a rule, the existing use is legally permitted, as it was carried out in accordance with applicable rules, regulations and restrictions.

Efficiency of land use

Market analysis by a leading American retail food company Market analysis can be divided into four functional tasks: field analysis, quantitative analysis, qualitative analysis, synthesis (see Figure 16-2). Within each of these tasks certain goals are realized.
The first objective is to identify those supply and demand factors that affect the cost of a particular land use option. The "target market" must be defined. The latter involves identifying those users who are most likely to buy or rent this property.

Attention

For example, the target market for two-bedroom apartments could be young professionals and couples without children. After identifying the target market, the facilities that can provide a “competitive differential between the property being valued and all other properties are analyzed.

20. land valuation: analysis of the best and most efficient use of land.

The title to this property may suffer from certain flaws. A neighboring landowner may own a building invading the property.

Info

The site may contain burial sites or historic buildings that are not to be demolished. If the analyst believes that there may be legal restrictions that will affect the use of the land, then he should obtain the opinion of a qualified lawyer with an appropriate license. Resource quality of a site The resource quality of a site is functionally related to its capacity and efficiency in combination with other factors of production.

Capacity is a measure of how many factors can be applied to a plot. An example would be the decision on what number of storeys to build on the site: five-story or ten-story.

Analysis of the best and most efficient use of real estate

Important

These factors are usually considered in the maximum performance test. Very often, legal, physical and financial feasibility checks lead to the conclusion that an existing use can be continued.

However, in each of these reviews, alternative uses or specific actions in relation to an existing use, and therefore the corresponding costs, could be considered in order to make the property being valued more valuable. It is these costs that become the subject of analysis in the study of maximum productivity. If changes to real estate increase or maintain existing value, then those costs will contribute to the highest productive use, and this should be reflected in the Highest Use Conclusion.

Best use analysis

AT this case there will be costs for the demolition and disposal of the existing facility. In practice, a potential property owner will only redevelop a site if the residual value of the buildings is low.

Depending on how close in time to the assessment date is the selected use requiring new construction, the existing use may be considered as an intermediate use. Thus, if, according to the urban land expansion plan, cottage construction reaches the analyzed land plot in five years, and the period necessary for the demolition of existing buildings and the construction of a new cottage is one year, the four-year operation of the existing industrial property is considered as intermediate use.

Criteria for best use analysis

Maximum Efficiency: Considering which of the financially feasible uses will generate the highest net income or the highest present value. In order to correctly use the assessment approaches, as well as to give an answer on the feasibility of the further existence of the improvements available on the site, the determination of the method of the best and most efficient use is carried out in 2 stages: 1.

For a land plot, as free; 2. For a land plot with existing improvements general rule turnover of land plots is regulated by civil legislation, unless otherwise provided by land, forestry, water legislation, subsoil legislation, environmental protection, special federal laws.

Analysis of the best and most efficient use of land

The topography of the site is measured, slopes that are not subject to development, differences in the levels of the site are noted. The analysis of soil and subsoil samples taken at its various points is carried out. The developer needs to know the bearing quality of the soil, its drainage properties. The load-bearing quality determines what types of buildings can be placed on the site and what kind of foundation should be placed under them.

It is necessary to determine whether there are rock formations on the site, the elimination of which will require expensive blasting. The drainage properties (permeability) of a soil determine its ability to absorb water.

Any drainage problems are identified. The presence of utility networks and the level of provided utilities. Any external objects, the existence of which may cause inconvenience and harm to the planned development, should be identified.

2. real estate appraisal

Architectural expressiveness is achieved by matching the shapes and volumes of the building to its purpose, the overall appearance of the building, the proportionality of its parts, the use of appropriate finishing materials and high quality work. In this case, the aesthetic qualities of the building can be raised to the level of art. The requirement of efficiency is imposed on all buildings and consists in the fact that, if all technical requirements are met, its cost, counting per 1 m2 of area or 1 m3 of volume, does not exceed the established limit. Reducing the cost of construction is one of the most important national economic tasks.
Thus, if the Rules for Land Use and Development (hereinafter referred to as the Rules) are adopted in the municipality, then land plots that fall into one territorial zone (subzone) and residential buildings located on them fall under one legal regime use, construction and reconstruction (it doesn’t matter if they are country, garden, for private household plots or individual housing construction). Where the Rules have not yet been adopted, the specified parameters for individual housing and household plots are determined by the relevant municipal officials issuing a building permit, guided by dozens of disparate regulatory legal acts of various legal force and industry, as well as considerations that are not related to law .

2 most efficient ways to use land

Reducing the cost of the building can be achieved by rational planning and avoidance of excesses in the establishment of areas and volumes of premises, as well as in interior and exterior decoration; the choice of optimal structures, taking into account the type of building and its operating conditions; the use of modern methods and techniques for the production of construction works, taking into account the achievements of building science and technology. In order to select economically viable solutions, the division of rides by capitality into four classes was established, depending on their purpose and significance. At the same time, class I includes buildings for which increased requirements are imposed, and class IV includes buildings for which minimum requirements are acceptable.

The choice of method depends on the degree of reorientation of the actual purpose of the property being valued, the level of risk of the option under consideration, the required rate of return and the period of capital recovery, the timing of the implementation of the proposed use of the property. The type of use that provides the highest return on land is the most efficient.

At the heart of all the methods used to determine the value of a land plot in order to select the most effective option is the so-called residual technique. Income from land is considered as the balance between the total income generated by real estate and those amounts of income that are provided by the involvement of labor, capital, fixed assets (functioning buildings and structures).

Land plot - a part of the surface of the earth, the boundaries of which are described and certified in the prescribed manner by an authorized government agency. Land valuation is usually required to determine market value of the land, or the market value of the right to lease a land plot.

Market valuation land is possible only if it is possible to transfer rights to this land plot under a contract of sale, lease or other agreement.

The value of land, like the value of any other property, changes over time and land valuation always held as of specific date. land valuation is carried out on the basis of the principle of the most efficient use of land. It means that market value of the land determined on the basis of such use of the site that is the most probable, physically possible, reasonably justified, consistent with the requirements of applicable law and financially feasible, which results in the maximum land value. At the same time, a reasonable division of the land plot into separate parts, differing in forms, type and nature of use, is possible. The most efficient use of the land may not coincide with its current use.

When determining the most efficient use of a land plot, the following should be taken into account:

intended purpose and permitted use;
· prevailing methods of land use in the immediate vicinity of the assessed land plot;
· expected changes in the land market;
current use of the land.

When changing the purpose of the site (permitted use), its market value also changes.

Land valuation or land valuation can be done for the following purposes:

Getting a loan from a bank

contribution to the authorized capital;

sale of land;

entry into the inheritance;

drawing up a business plan;

· property division;

Purchase of a land plot from municipal property.

Market value of the land, first of all, depends on its location and the influence of external factors, as well as on supply and demand in the land market, and cannot exceed the most probable costs for acquiring another plot of equivalent utility. Land valuation takes into account the quantitative and qualitative composition of communications and the possibility of connecting to existing networks, if it is planned to build real estate objects on the land plot. Market valuation of land also depends on the expected value, term and probability of receiving income from its operation for a certain period of time with the most efficient use of the land without taking into account income from other factors of production involved in the object for entrepreneurial activity.

For land plots, the right to lease can also be assessed. The market value of the right to lease a land plot depends on the powers of the tenant granted to him under the lease agreement, the term of the lease agreement, the presence of encumbrances and the permitted use of the land plot.

The value of the right to lease a land plot also depends on the expected value, probability and duration of income from the right to lease a property for a certain period of time with the most efficient use.

The assessment of the land plot is carried out using the following documentation:

1. Certificate of ownership of the land;
2. Cadastral plan;

3. Data on balance and residual value, utility bills and taxes.

Additional information is welcome.

Building density coefficient (Kpz) - the ratio of the area of ​​​​all floors of buildings and structures to the area of ​​\u200b\u200bthe site.

4 Basic requirements for buildings: functional feasibility, strength, fire resistance, architectural expressiveness, economy

The main requirements for buildings are: functional and technical feasibility, architectural and artistic expressiveness, economy.

The main of these requirements is functional or technological feasibility. This means that the building must fully comply with the process for which it is intended (convenience of living, work, recreation, etc.). Functional expediency should obey the space-planning and design solutions of the building and its performance. The latter are characterized by the composition and size of the premises, technical equipment, sanitary equipment, and the quality of finishing works.

The technical feasibility of a building is determined by the solution of its structures, which must take into account all external influences perceived by the building as a whole and its individual elements. These impacts are divided into force and non-force (environment impact).

Power include loads from the own mass of structures, the mass of equipment, people, snow, wind, etc. Non-force effects are temperature effects that cause a change in the dimensions of structures, the effects of atmospheric and ground moisture, causing changes in the properties of materials of structures, the impact of aggressive chemical impurities contained in the air (they can lead to the destruction of structures), etc.

Given these impacts, the building must meet the requirements of strength, stability and durability.

Building strength called the ability to perceive impacts without destruction and significant residual deformations (deflection, precipitation, etc.). The strength of the building is created by the strength of its main structures and interfaces with each other.

The stability (stiffness) of a building is the ability to maintain balance under external influences (i.e., resist overturning and shearing forces).

Durability means the safety of both the building as a whole and its elements over time. Durability depends primarily on the quality of the materials of its main structures, which must be resistant to moisture, frost, corrosion, decay, etc., the quality of construction and installation works, compliance with their technological sequence, as well as operating conditions.

For buildings installed three levels of durability :I- with a service life of at least 100 years; II- not less than 50 years old; III- not less than 20 years. These terms are determined not only by the physical, but also obsolescence, as technological and household processes are constantly changing, therefore, buildings cease to satisfy their purpose.

An important technical requirement for a building is fire safety, which includes measures that reduce the possibility of a fire.

The materials and structures used for construction are divided into fireproof, slow-burning and combustible.

Building structures are also characterized by a fire resistance limit, i.e. resistance to fire (in hours) until loss of strength or stability (collapse of the structure) or until through cracks appear in it or the temperature rises on the surface of the structure in excess of the established standards.

Depending on the flammability groups and fire resistance limits of the main structures for buildings, five degrees of fire resistance. Buildings of I, II, III degrees include stone buildings, IV - wooden plastered buildings, V - wooden non-plastered buildings.

Architectural and artistic The quality of a building is determined by criteria of beauty. Architectural expressiveness is achieved by matching the shapes and volumes of the building to its purpose, the overall appearance of the building, the proportionality of its parts, the use of appropriate finishing materials and high quality work. In this case, the aesthetic qualities of the building can be raised to the level of art.

The requirement of efficiency is imposed on all buildings and consists in the fact that, if all technical requirements are met, its cost, counting per 1 m 2 of area or 1 m 3 of volume, does not exceed the established limit. Reducing the cost of construction is one of the most important national economic tasks.

Reducing the cost of the building can be achieved by rational planning and avoidance of excesses in the establishment of areas and volumes of premises, as well as in interior and exterior decoration; the choice of optimal structures, taking into account the type of building and its operating conditions; the use of modern methods and techniques for the production of construction works, taking into account the achievements of building science and technology.

To select cost-effective solutions, it is established division buildings by capital for four classes depending on their purpose and importance. At the same time, class I includes buildings for which increased requirements are imposed, and class IV includes buildings for which minimum requirements are acceptable. So, for example, large public buildings (theaters, museums, etc.) belong to class I; schools, hospitals, trade and public catering enterprises - to class II; residential buildings up to 5 floors - to class III; residential buildings of 1 ... 2 floors and other buildings to which minimum requirements are imposed - to class IV.