Abstract
The article is devoted to the application of the territorial extrapolation of basic data method during a mass (cadastral) assessment of a territory that is characterized by an acute lack of market information. In the framework of the study, an acute lack is understood as the conditions when for the assessing territory there are less than five transaction (offer) prices suitable for regression models. The idea of the method is to use market information of territories that are comparable in a composition of pricing factors and the nature of their influence on the cost, as well as in terms of price levels. The developed method includes such stages as collection of basic data, creation of thematic maps, grouping of estimated territories by price level and composition of pricing factors and modeling. The method was applied to assess land plots that have the type of permitted use “for individual housing construction” and belong to the mass appraisal segment “gardening and horticulture, low-rise residential buildings” in the settlements of the Republic of Udmurtia. The results of approbation shown that the method of territorial extrapolation helps to overcome an acute shortage of market information and build statistically significant models of the cadastral values of land plots.
Highlights
Published: 17 July 2021In recent years, the term “cadastral value” has become firmly included in the active vocabulary of Russian real estate owners: this is evidenced by both regular mention in the media and Internet search statistics
The term “cadastral value” has become firmly included in the active vocabulary of Russian real estate owners: this is evidenced by both regular mention in the media and Internet search statistics
The idea of territorial extrapolation method (TEM) is to consolidate settlements that are comparable in a composition of pricing factors and the nature of their impact on value, as well as price levels, and to build a united model of a cadastral value
Summary
The term “cadastral value” has become firmly included in the active vocabulary of Russian real estate owners: this is evidenced by both regular mention in the media and Internet search statistics. The reason for this popularity is not the desire to acquire new knowledge, but rather landowner dissatisfaction with the excessive tax burden, which is a consequence of the overestimated cadastral value. In almost all countries with modern tax systems, the basis for real estate tax is the property value. According to Jasińska and Preweda, in the EU member states the most popular is cadastral system, which is based on the capital value of the property or rental value [1]
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