Building a qualitative model for estimating the cadastral value of real estate

Abstract

Close attention in this article is focused on formation of legally approved cadastral value as the tax base for real estate objects. The essence of the calculation of this value is in theory of selection and construction of cadastral valuation models. In other words, the theory of valuation modeling. This research is targeted at the analysis of the key statements of the fundamentals of production and improvement of the current cadastral evaluation system, with an emphasis on the features of the stage of selection and construction of a quality evaluation model within the state cadastral assessment. The method of statistical (regression) analysis in the research is presented as the most perspective method of mass valuation of real estate. It was found that the dominant factor is location, being an element of the of price-forming factors in regression modeling. To check the correlation in the land market, we used data obtained for several municipalities of the Krasnodar Region. The result of a survey for the Armavir city research formed three types of models: addition, multiplicative and exponential, which were well approximated and therefore can be used in cadastral value modeling, although each of them has its own specifics, but in practice, the quality of the resulting model for calculating the cadastral value can be assessed by several indicators, in particular, by the number of procedures initiated by citizens and legal entities to challenge the approved results of the state cadastral assessment in respect of real estate objects attached to them.