THE MASS APPRAISAL MODELS FOR RESIDENTIAL REAL ESTATE

Abstract

Individual real estate appraisal is a traditional approach that involves carrying out certain appraisal procedures for each appraised object. It is this assessment that provides the most possible accuracy in determining the value. Unfortunately, this technique cannot be used to evaluate a large number of real estate objects at the same time, for example, for taxation purposes. In such cases, an alternative is a mass appraisal, the technique of which allows for the simultaneous appraisal of a large number of properties. It is based on the automated processing according to a certain algorithm of a large volume of data on real estate objects, on the real estate market, urban planning conditions, geographical characteristics and other factors affecting the value of real estate. Mass assessment is widely used in the world, defined by the International Valuation Standard, but unfortunately it is not accepted by specialists who are involved by the Ukrainian authorities in the development of assessment methods and procedures with the motivation of the lack of necessary data. The purpose of the work is to prove the possibility and expediency of applying a mass assessment of real estate, including land, for the purpose of taxation on the basis of its adaptation to the conditions of the national market. This includes determining the necessary evaluation criteria, developing models and algorithms for determining the market value of real estate. Methodology. The methodology of statistical analysis was used, namely, the method of correlation-regression analysis and the method of parallel intersections were applied for the mass appraisal of residential real estate in one of the districts of Dnipro city. Scientific novelty. The models of mass appraisal for taxation of the residential real estate was developed, based on the analysis of the influence of factors on its value, which was implemented in the form of the model and implemented in the Cathedral district of the city of Dnipro. Practical significance. Entering data on the value in the state register of real estate based on the results of a mass appraisal solves a number of important economic, managerial and legal problems, namely, it opens the way to the application of an advalorem taxation system for the fair assessment of taxes and payments to the budget, other mandatory payments, increases the stability of the banking system, which has repeatedly suffered from improper valuation of real estate collateral, provides financial accounting with data for determining the fair value during revaluation of assets, facilitates effective management decisions in business, ensures effective use of real estate in society, and can be used for another purpose in the event of an open access to this registry information in accordance with the experience of the leading countries of the world. Results. The models of mass appraisal of residential real estate for the purpose of taxation was developed and tested based on the use of the method of parallel intersections and the value criteria determined by the analysis. The obtained results of testing the methodology indicate that it allows to obtain logically understandable results, which can be obtained in a simpler way compared to the application of correlation-regression analysis, and can be introduced for practical use for taxation purposes as for various other purposes without any particular difficulties.