Assessment Of The Subject Property

The appraiser collects and analyzes information necessary for the assessment of the subject property. The appraiser studies the quantitative and qualitative characteristics of the appraisal object, collects information that is essential for determining the value of the appraisal object using the approaches and methods that, based on the appraiser’s judgment, should be applied during the appraisal, including:

  1. a) information on political, economic, social and environmental and other factors influencing the value of the subject property;
  2. b) information on supply and demand in the market to which the object of evaluation relates, including information on factors affecting supply and demand, quantitative and qualitative characteristics of these factors;
  3. c) information about the appraisal object, including title documents, information about encumbrances associated with the appraisal object, information about the physical properties of the appraisal object, its technical and operational characteristics, wear and obsolescence, past and expected revenues and costs, accounting and reporting data, relating to the subject property, as well as other information that is essential for determining the value of the subject property.

The information used in the assessment must meet the requirements of sufficiency and reliability.

Information is considered to be sufficient if the use of additional information does not lead to a significant change in the characteristics used in the evaluation of the subject property, and also does not lead to a significant change in the total value of the subject property.

Information is considered reliable if the information is true and allows the user of the evaluation report to make correct conclusions about the characteristics that the appraiser examined when conducting the assessment and determining the total value of the valuation object, and to make informed decisions based on these conclusions.

15.11. Evaluation report

According to the results of the assessment, the appraiser in accordance with Art. 11 of the Federal Law “On appraisal activities in the Russian Federation” and the order of the Ministry of Economic Development and Trade of the Russian Federation of July 20, 2007 No. 254 “On Approval of the Federal Assessment Standard“ Requirements for an Assessment Report (FSO No. 3) ”” constitutes a report (conclusion ) about the assessment.

The evaluation report of the object of evaluation (hereinafter referred to as the report) must not allow ambiguous interpretation or mislead.

The report must specify the date of the assessment of the object of assessment, the assessment standards used, the goals and objectives of the assessment of the object of assessment, as well as other information that is necessary for a complete and unambiguous interpretation of the results of the assessment of the object of assessment reflected in the report.

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If during the assessment of the valuation object, the market value is determined not by other types of value, the report should indicate the criteria for determining the valuation of the valuation object and the reasons for deviation from the possibility of determining the market value of the valuation object.

The report should indicate:

  • date of preparation and the serial number of the report;
  • the basis for the appraiser to assess the object of assessment;
  • location of the appraiser and information on the membership of the appraiser in the self-regulating organization of appraisers;
  • an accurate description of the subject property, and with respect to the subject property that belongs to the legal entity, the details of the legal entity and the book value of the subject property;
  • valuation standards for determining the appropriate type of valuation object value, justification of their use in evaluating this object valuation, a list of data used in evaluating the object valuation indicating the sources of their receipt, as well as assumptions made during valuation of the object evaluating;
  • the sequence of determining the value of the appraisal object and its total value, as well as the limitations and limits of application of the result obtained;
  • the date of determining the value of the subject property;
  • list of documents used by the appraiser and establishing the quantitative and qualitative characteristics of the object of assessment.

The report may also contain other information that, in the opinion of the appraiser, is essential for the completeness of the applied method of calculating the value of a specific object of assessment.

For the assessment of individual types of objects of assessment, the legislation of the Russian Federation may provide for special forms of reports.

The report should be numbered page by page, flashed, signed by the appraiser or appraisers who conducted the appraisal, as well as sealed with the personal stamp of the appraiser or the seal of the legal entity with which the appraiser or appraisers entered into an employment contract.

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