JEL Classification: C13, D 23, H 82, K11, R10 |
DOI: https://doi.org/10.31521/modecon.V23(2020)-34 |
Tymoshchyk Liliia, Ph.D. in Economics, Scientific secretary of the Research Center for Forensic Examination on Intellectual Property of the Ministry of Justice in Ukraine, Kyiv, Ukraine
ORCID ID: 0000-0002-7695-2169
e-mail: mopof@ukr.net
Classification of Factors Influencing the Valuation of Real Estate During its Sale
Annotation. Introduction. The mechanism of property valuation in Ukraine at the present stage of its development deals with the formation of a database on the state and dynamics of changes in the real estate market and the development of methodological tools for property valuation. This article is devoted to the study of such a category of tools as factors influencing the valuation of real estate when selling it in Ukraine.
Purpose. The purpose of this article is to consider the factors that affect the valuation of real estate when selling it, and their classification.
Results. The task of property valuation depends on its purpose. Properly defined purpose of the assessment establishes the cost base (or its type). Depending on the goal, a number of factors have been formed, which are taken into account in the evaluation process and affect its size, and the approach to their interpretation.
The article considers four groups of factors. Physical factors take into account the condition of the property, its location and the characteristics of the stage of the life cycle of the territory. Analysis of this group allows you to determine the prospects of the object in accordance with the general condition of the area in which it is located.
Economic factors have been determined by the demand in the local real estate market, risks, construction costs and related factors related to its course, taxes, proximity to roads and utilities. Considerable attention is paid in the article to the assessment of the value of enterprises and such specific factors of influence as liquidity of assets and the nature of corporate governance.
Social factors consist of changes in the number and employment of the population in the territory, gender and age characteristics of the population, income level and so on. For enterprises, this group of factors includes the social composition of employees. The last group of factors, administrative (political), has a global character – it is determined by the nature of public policy in the area related to real estate or construction.
Conclusions. Drawing conclusions in the article, the author emphasizes the constant nature of changes in factors – both the emergence of new and reassessment of others. It can change even depending on who is conducting it, so the evaluation should be independent, and a number of recommendations should be implemented to improve its transparency.
Keywords: property; property management; management efficiency; territorial community.
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Received: 13 September 2020
How to quote this article? |
Tymoshchyk L. (2020). Classification of Factors Influencing the Valuation of Real Estate During its Sale. Modern Economics, 23(2020), 215-219. DOI: https://doi.org/10.31521/modecon.V23(2020)-34. |