Assessment of the market value of construction work. How to build a forecast for the value of shares of construction companies How to evaluate a construction company

Moscow 2013
Chapter 1. Theoretical basis construction company business valuation

1.1. Characteristics and features of the business of a construction organization

According to the author's interpretation, it is proposed to understand a business as a combination of a material component, represented by an enterprise as a property complex, and an intangible component, characterized by the efficient use of available resources. At the same time, the purpose of a business is to create and increase the wealth of its owners or, which is the same, the value of the business.

The existing definitions of business as an activity aimed at making a profit do not take into account the fact that resources are consumed in the process of making a profit, which is an omission.

At the same time, it is impossible to identify business and enterprise as a property complex. The concept of "business" cannot be reduced to a set of raw materials and equipment for the production of certain products. The resulting profit will largely depend on how effective the actions to organize the work of the property complex are.

In this regard, the author expressed the thesis about the impact of business efficiency on its market value. According to the author's point of view, business efficiency is considered as the main criterion for its market value.

The author presented the relationship (Fig. 1) financial indicators business and its market value, which characterizes the integral nature of the value indicator . The purpose of any investment, modernization of production and the organizational structure of the business, mergers and consolidations is to increase sales, reduce production costs, i.e. increase profits, assets and, as a result, the value of the business. Business value growth rates reflect the effectiveness of business development.

Fig.1. The relationship between financial indicators of a business and its market value.

The use of generally accepted financial indicators of a business and the determination of its market value make it possible to substantiate the areas in which the company's management should focus its efforts in order to make adequate financial decisions to provide the business with competitive advantages and increase its value.

1.2. Analysis regulatory framework and information base construction company assessments

The assessment has been carried out and this report has been prepared in accordance with the current

legislative and regulatory documents:

Problems of diagnosing the competitive position of any economic entity hard to overestimate special influence such economic factor activities as competition in various forms of its manifestation. And, despite the significant interest in this problem, the methodology for diagnosing competitive confrontations and their components, trends in the position of enterprises on market segment and many other issues require concretization, as well as taking into account domestic differences when introduced into management practice. In the construction market, competition manifests itself in such a variety of forms (specific, price, seasonal bursts of competition, etc.) that conclusions about the diagnosis of the state of an economic entity are possible only on the basis of the results of multilateral studies of activity. The problematic aspects of economic diagnostics within the framework of a competitive position also include business valuation, which is directly related to the formation stock market in the country as a necessary element of an integrated economic system. This aspect of diagnosing most often refers to a separate task of entrepreneurship, but it is fully a component in the system of factors that determine the state of an economic entity.

1.4. Analysis of existing approaches and methods to business valuation of a construction organization

Federal Standard of Evaluation " General concepts valuation, approaches and requirements for valuation (FSO No. 1), approved by Order of the Ministry of Economic Development of Russia dated 01.01.2001 No. 000, defines the income approach as “a set of methods for estimating the value of an appraised object based on determining the expected income from the use of an appraised object” .

When applying the discount method, the future income streams of each period are recalculated to present value by discounting using the appropriate discount rate. The discount rate is a measure of how investors evaluate their return on invested capital, taking into account the risk of generating income specific to a given object. The discounted income method is usually applied to objects that have unstable income and expense flows.

When using the direct capitalization method, the amount of income for a typical year of operation of the object is divided by the corresponding capitalization rate. The capitalization method is most applicable to objects, net income, from the use of which are constant or change at a constant rate.

The capitalization rate is determined, as a rule, on the basis of market data by identifying the relationship between annual income and the cost of similar objects. It is also possible to use the method of cumulative construction.

Construction in progress

The use of the income approach to value properties requires a developed rental market for similar assets, or information about the operation and profitability of businesses in similar properties.

Knight Frank notes that, despite some uncertainty in the market, construction activity is on high level, and in 2013 an increase in the commissioning of new office space is predicted. The vacancy rate has reached the pre-crisis level. In 2013, an increase in investor interest in high-quality development projects at various stages of implementation is expected.

In view of the foregoing, the Appraiser concluded that the income approach can be used with a reasonable degree of certainty to determine the value of an asset under construction in this appraisal. When performing calculations using the income approach, the discounted cash flow method was used.

Movable property

income approach requires a forecast of future income for the remaining life of the objects of assessment. It is difficult to solve this problem directly, since income is generated by the entire production system, which, along with the movable property being valued, includes other fixed assets that are not included in the object of appraisal - a hotel building, a kitchen and a dining room, land plot etc.

Based on the foregoing, the Appraiser decided to abandon the use of the income approach to determine the market value of movable property.

Cost approach, in definition federal standard FSO No. 1 is a set of valuation methods Comparative approach, in the definition of the Federal Valuation Standard FSO No. 1, is a set of methods for estimating the value of an appraisal object based on a comparison of the appraised object with analogue objects of the appraised object for which there is information about prices. An object-analogue of the appraised object is an object that is similar to the appraised object in terms of the main economic, material, technical and other characteristics that determine its value.

The comparative approach is based on the principle of substitution: the buyer will not pay for an object more than the amount required to purchase a similar object on the market with the same utility. The prices paid for identical or similar objects serve as the initial information for calculating the value of the object being valued.

The comparative approach is applied, as a rule, if there is a sufficient amount of reliable information about sales transactions or price offers.

This approach is implemented through a series of successive steps:

Collection of data on sales of objects similar to the object of assessment. It is only through the analysis of these data that it can be said to what extent real prices reflect the market value;

Comparison of the evaluated object and analogue objects for individual elements of comparison;

Adjustment of the actual sales prices of compared objects by comparison elements. Adjustment is carried out from the analogue to the evaluated object.

Once prices have been adjusted, they can be used to determine the value of the property being valued.

In foreign practice, it is generally accepted that an assessment based on this approach gives the most reliable results, which is due to a stable state of the economy, a well-developed market and reliable information about completed transactions available to appraisers.

The degree of similarity of the object of assessment and analogue, as in the cost approach, is determined by the elements of comparison. In this case, the elements of comparison are not only a characteristic of the objects of comparison, but also a characteristic of transactions that cause changes in value.

Comparison elements are combined into groups:

Characteristics of the object: functional purpose, technical parameters, manufacturer, quality (certificate of conformity);

Condition of the object: age, cumulative wear, technical condition, completeness, presentation;

Location: the geographical location of the object, the physical location of the object within the enterprise;

Market conditions: decline or rise, the ratio of supply and demand;

Terms of sale: time of sale, place of sale, average market exposure time;

Characteristics of the prices of analogous objects: availability concessional lending, the presence in the price of transport and other costs of the seller.

This valuation approach is based on the determination of market prices that adequately reflect the "value" of the object in its current state. The main principle used is the comparison to be made:

With an exact analogue sold on secondary market;

An approximate analogue sold on the secondary market, with corrective amendments in the absence of an exact analogue;

An important step in using comparative approach is the choice of comparable analogues and the use in the calculations of corrections for the difference in the technical indicators of analogues and the object being evaluated.

The main problems of this approach are due to the difficulties in obtaining the necessary information, namely current market prices, creating databases, with the choice of analogues that are adequate to the objects being evaluated, taking into account the degree of mismatch in the composition and numerical values ​​of the characteristics of analogues and the objects being evaluated.

Applying a comparative approach, in the presence of a sufficient amount of reliable information on the sale of analogue objects, it is possible to obtain the market value of the object being valued as accurately as possible for a particular market.

A necessary prerequisite for applying the methods of the comparative approach is the availability of information about transactions with similar real estate objects (that are comparable in purpose, size and location) that took place in comparable conditions (time of the transaction and conditions for financing the transaction).

The main difficulties in applying the methods of the comparative approach are related to the opacity Russian market real estate in terms of disclosing information about the real prices of transactions. In this situation, the Appraiser can focus on the prices of proposals, since a potential buyer, before making a decision to purchase an object real estate, will analyze the current market offers and come to a conclusion about the possible price of the property, taking into account all its advantages and disadvantages relative to the objects of comparison.

There are practically no comparable properties under construction on the market. Due to the limited publicly available information on objects of construction in progress of a similar functional purpose, the application of appropriate adjustments will not allow to calculate the market value with a sufficient degree of reliability.

The use of constructed buildings accepted for operation as analogues, with a subsequent proportional decrease in the offer price of analogue objects by the degree of incompleteness of the object of assessment (by 62%: 100% - 38%), will not allow taking into account market risks associated with the organization of the completion of construction, the process of putting the facility into operation.

Thus, having analyzed the volume and degree of reliability of the available information necessary for conducting a valuation using a comparative approach, the Valuer came to the conclusion that a comparative approach cannot be implemented within the framework of this valuation.

In 2012, the expert council assessed the company's achievements in expanding the range of services at a new qualitative level, taking into account the needs of the market and maximizing customer satisfaction, which was noted Diploma of the laureate of the Republican competition "The best goods of Bashkortostan".

2.2. Analysis of the financial and economic activities of a construction organization

Key performance indicators of the Construction Company in 2011.

Table 1

Financial indicators for 2011:

table 2

Net assets

(balance sheet minus loans, payables, deferred tax liabilities)

Long term assets

(fixed assets, construction in progress, intangible assets), including:

fixed assets

unfinished production

Current assets:

Accounts receivable

Cash

(reserves, accounts receivable, cash), including:

(including 436,606 costs in unfinished production, 40,907 finished products, 182,295 raw materials and materials)

598 unfinished, 98 736 finished pr., 227 921 raw materials)

Short term financial investments: - loans to legal entities

Accounts receivable

Analysis of the composition and structure of the balance sheet shows that for reporting year balance sheet decreased by tys. rub. (2 percent), this indicates an increase in the cost of work performed. The value of the net assets of the Construction Company, characterizing the value equity, for the year increased by natys. rubles (18%) and at the end of the reporting year amounted to thousand rubles. Net assets far exceed authorized capital. This characterizes positively financial position on this sign.

Many companies, investors and individuals contact contractors for construction works. In situations where construction work was carried out in violation of any clauses of the contract, all disagreements must be resolved with the provision of certain evidence. And such evidence and other necessary materials can be obtained if a construction appraisal is carried out.

Construction appraisal is one of the key parts of any investment project. The efficiency from the economic point of view of any project directly depends on the correctness of the construction cost assessment, since the accuracy of pricing affects the payback period of the object and various types of profits. Evaluating the construction of a production hall, for example, in this way makes it possible to calculate in advance the ideal ratio between costs and income.

Estimating the cost of construction is, in fact, the first stage of any construction, which allows you to establish the main costs of building a building. At the same time, a professional assessment of the construction will allow you to take into account absolutely all the details of the upcoming work, orienting a person to certain costs. Based on the construction cost estimate report country house, its owner will be able to calculate the required financial investments, and it will no longer be possible to worry that it will have to be frozen at any stage of construction due to the banal lack of financial resources.

In general, a construction appraisal, whether it is a country house construction appraisal or a production workshop construction appraisal, is carried out in the following cases:

• - for the purpose of assessing the organization of ongoing construction work;
• - in order to establish the quality of construction management;
• - in order to determine the quality of the work performed;
• - for the forecast on the date of completion of construction;
• - to determine the degree of readiness of a building or structure;
• - in order to determine the reliability of the amount of work declared by the contractor that was performed during the construction process;
• - in order to establish the real cost of the work performed.

Estimation of the cost of construction is carried out on the basis of an agreement with the client, by definition judiciary, by order of the investigating authorities, by decision of a notary, which is stipulated in the Law of the Russian Federation "On Notaries", as well as on other grounds provided for by the existing legislative framework.

The assessment of the construction cost is carried out by an appraiser who has no interest (property or financial) or dependence on the person or body that appointed the assessment in the results of his work. A report on the evaluation of a production workshop or a private house is compiled solely on the basis of the results of the studies and evaluation activities carried out. The procedure for assessing construction and its scope are determined by the appraiser, taking into account existing standards that stipulate how it is necessary to carry out the assessment in order to obtain the result of the greatest reliability.
Construction cost estimate establishes:

• - how much and what specific materials were used in the construction;
• - the need to use additional materials not provided for by the contract;
• - compliance of the consumption of materials for the project and their actual consumption;
• - whether there was a replacement with cheaper materials of those materials that were provided for by the project, and so on.

Construction vehicles and equipment are the most important asset of any construction company. The assessment of this equipment involves an examination, as a result of which its exact cost will be determined. The results of the audit may be needed when pledging equipment, selling it, renting it out, or simply for accounting purposes.

What construction equipment is to be assessed?

You can estimate the real cost of any construction equipment. However, there are several main types of technology:

• Technique for earthworks: earth-moving equipment, soil-compacting machinery or equipment for preparing the earth for work.
• Handling equipment: lifting mechanisms, equipment for loading and unloading, transport equipment.
• Drilling equipment: various excavators, tractors, drilling rigs and other special equipment.
• Equipment for concrete and reinforced concrete works: machines and mechanisms transporting or interfering with concrete. This also includes fittings.
• Technique for finishing works: mechanisms for plastering, painting or roofing works.
• Road equipment: devices for the preparation or installation of road surfaces.

In what cases is the assessment of construction equipment carried out?

The need for an examination to evaluate equipment arises for any legal actions associated with it. For example, such an assessment is necessary when selling equipment, buying or renting.

Also, an assessment is necessary when lending or insurance, since the price of equipment affects the amount of payments, contributions, etc. The equipment is valued when it is written off or the enterprise goes bankrupt.

An appraisal examination is necessary in the course of litigation, for which the cost of the company's equipment is important.

Plus, with the help of an assessment, company owners can find out the real cost of their accounting equipment.

List of documents required for the assessment of repair equipment

Before the experts begin their work, you must provide all the necessary documents for this.

First, you will need documents confirming that you are the owner of the construction equipment. Second, prepare a list of all equipment, in which, for each piece of equipment, indicate the make, model, serial number, year of manufacture and its characteristics. All information must be confirmed, so you will also need passports and documents for all equipment.

If an assessment has been done before, you will need the results of the assessment and the cost of the equipment at that time. You will also need information about the repair of each piece of equipment, if it was carried out.

Order an estimate of the cost of construction equipment

It is difficult to overestimate the value of building equipment appraisal. It will not only allow you to form a competent pricing policy, but also avoid possible financial losses.

At favorable prices, you can order an examination in our company "Soyuz-Expert". As a result of the inspection carried out by our experts, you will receive an official document "Valuation Report", which is legally binding and contains proof of the value of your equipment.

You can order an assessment or get a consultation in any way convenient for you: write us an e-mail, call one of the contact numbers or contact our office directly.

Ask a question and experts will answer it.

Assessment of the market value of construction works
Determination of the market value of the actual work performed
Determination of the market value of construction works, valuation of non-residential premises, selection of a method for valuation of non-residential premises, process of valuation of construction works

An object construction appraisal: non-residential premises

Assessment address: Moscow

The purpose of the appraisal is to determine the market value of the actually completed construction, installation and finishing works in non-residential premises with total area 199.4 sq.m.

Assessment Quality Certificate

The assessment has been carried out and the report has been prepared in accordance with the requirements set out in the following documents:

• the federal law"On valuation activities in the Russian Federation" No. 135-FZ of July 29, 1998, as amended. No. 91-FZ of 05/07/2009;
• "Federal Valuation Standards Mandatory for Application by Subjects of Valuation Activities", FSO No. 1,2,3 approved by Orders of the Ministry of Economic Development of the Russian Federation of July 20, 2007 N 256, of July 20, 2007 N 255, of July 20, 2007 N 254.

The facts stated in the report are correct and correspond to reality. The analyzes, opinions and conclusions contained in the report are those of the assessor themselves and are valid strictly within the limiting conditions and assumptions that are part of this report. The appraiser's remuneration does not depend on the results of the final valuation, as well as on those events that may occur as a result of the use by the customer or third parties of the conclusions and conclusions contained in the report.

Appraisers do not have any real or expected interest in the property being valued, act without prejudice and without prejudice in relation to the parties involved.

The facts presented in the report, on the basis of which the analysis was carried out, assumptions and conclusions were made, were collected with the greatest use of the knowledge and skills of the Appraiser, and are, in his opinion, reliable and do not contain factual errors.

The source data used by the Assessors in the preparation of this report has been obtained from reliable sources and is believed to be reliable, however, where possible, citations are made to the sources of information.

Limiting conditions and assumptions made

The Assessment Quality Certificate, which is part of this report, is subject to the following conditions and assumptions:

1. This report is accurate only for the purposes stated herein;
2. The Customer and the Contractor do not assume obligations for the confidentiality of settlements. The Contractor does not assume responsibility for the description of the legal status of the object of assessment;
3. The Contractor relied on the correctness of the initial information provided by the Customer;
4. The valuation of the property was carried out on the basis of an inspection of the object and information provided by the Customer.
5. In accordance with the task set by the Customer, the Contractor's duties do not include the assessment of the Customer's property rights to real estate.
6. During the assessment, it was assumed that there were no hidden factors affecting the value of the object. The Contractor is not responsible in case of detection of such factors after the assessment.
7. Neither the Customer nor the Contractor can use the report (or any part of it) otherwise than as provided for in the text of this report;
8. The opinion of the Contractor regarding the value of the appraisal object is valid only on the date of appraisal. It does not accept responsibility for subsequent changes in social, economic, legal and natural conditions that may affect the value of the property being valued;
9. The Contractor is not obliged to provide additional advice on this report in connection with the subsequent provision of information that may in any way affect the conclusions made in the report regarding the value of the object;
10. The Contractor is not required to appear in court or testify in any other way regarding the report or object of assessment, except on the basis of a separate agreement with the Customer or an official subpoena of the court.
11. The appraiser personally inspected the object. The determination of the market value of the actually performed work by the appraiser was carried out according to the volumes recorded during the survey without opening the external finishing coatings.
12. Acts on hidden work and project documentation not at the disposal of the appraiser.

The assumptions and limitations described above imply their full and unambiguous understanding by the parties who signed the report. All provisions, results of negotiations and statements not specified in the text of the report are null and void. These assumptions and limitations may not be changed except by the signature of both parties.

Without the written consent of the Appraiser, this report should not be distributed or published, nor used, even in an abridged form, for purposes other than those specified above. The Appraiser does not assume any responsibility for losses that may arise from the customer or the other party as a result of violation and / or ignorance of the formulated limiting conditions.

Evaluation process

Basic concepts and definitions. According to Article 623 of the Civil Code of the Russian Federation, “improvements that can be separated from a thing without harm to it are recognized as separable. Accordingly, inseparable improvements, when they are separated from a thing, worsen its condition, as a result of which it acquires disadvantages. The law does not say what the degree of damage to a thing must be in order for the improvements to be recognized as inseparable. Therefore, one should come to the conclusion that damage can be of any kind, the main thing is that as a result of it, the thing has defects for which the tenant is responsible.

Price (price) is a term denoting the amount of money demanded, offered or paid for a certain product or service. It is a historical fact, that is, it refers to a certain moment in time and place, regardless of whether it was announced openly or remained secret. Depending on the financial opportunities motives or special interests of particular buyers and sellers, the price paid for goods or services may not correspond to the value attributed to these goods or services by other people. However, price is an indicator of the relative value attributed to goods or services by a specific buyer and/or a specific seller under specific circumstances. (MSO. General concepts and principles of assessment. M., 1994).

Value is an economic concept that establishes the relationship between goods and services available for purchase and those who buy and sell them. Cost is not a historical fact, but an estimate of value specific goods and services at a particular point in time, according to the chosen cost definition. economic concept value expresses the market view of the benefit that the owner of this product has or the client who is provided with this service, at the time of valuation. (MSO. General concepts and principles of assessment. M., 1994).

The cost of replacing the object of assessment is the sum of the costs of creating an object similar to the object of assessment, in market prices, existing on the date of the assessment, taking into account the depreciation of the object of assessment. Replacement value is commonly used for insurance purposes as an estimate of the total cost of restoring property. Valuation procedures that use replacement or rebuild costs as the basis for calculating the value of the business for the purpose financial reporting, are deemed appropriate in limited circumstances, as discussed in ESS 4 on Amortized Replacement Costs (ACC). Valuation calculations for insurance purposes are sometimes carried out simultaneously with asset valuations.

replacement cost (reinstatement value) costs that are necessary to replace, current or overhaul the insured item of property in order to bring it to a condition that is practically the same, but not better than that in which it was when it was new (without expanding it). (MR 3, paragraph 3.5.5)

Appraisal is the act or process of determining value. Synonymous with Valuation. (Business Valuation Standard, BVS-I. Terminology). Valuation date (appraisal date) - the date on which the appraiser's opinion on the value is valid. (Business Valuation Standard. BVS-I. Terminology).

Property (property) - legal concept, which covers all interests, rights and benefits associated with the property. Property consists of private property rights, which give the owner the right to interests in what is owned. In order to distinguish real estate as a physical object and ownership of it in a legal sense, the ownership of real estate is called immovable property. Ownership of an interest in objects other than real estate is called movable property. The word property, used without further definition or identification, can refer to both immovable and movable property or a combination of them. (ISO. Concepts/principles, paragraphs 2.3, 2.4).

Property rights (proprietary rights) - the rights associated with the ownership (ownership) of real estate (real estate). Ownership includes the right to use property (property), its sale, lease, donation; and development, agricultural use, mining, alteration of its topography, division, consolidation or renunciation of all these rights. The pooling of property rights is sometimes referred to as a bundle of rights. Property rights are generally subject to public and private restrictions such as easements, rights of way, zoning, building density, and other restrictions that may encumber the property. (MP 1, 3.0).

Property Types − international standards Valuations clearly distinguish between the concepts of real estate and real estate. Real estate is material object(thing) and is defined as physical site land, subsoil plots, isolated water bodies and everything that is directly connected with the land, i.e. objects, the movement of which is impossible without disproportionate damage to their purpose, including: forests, perennial plantations, buildings, structures. (ISO, Concepts/principles, paragraph 2.0, 2.1)

Real property is a legal concept relating to all rights, interests and benefits associated with the ownership of real estate. An interest in real estate is usually formalized by an official document, such as a proof of title or a lease. (ISO Concepts/principles, clause 3.2).

Real estate - physical land and all things that are a natural part of it, as well as objects attached to the land by people. (ISO. Concepts/principles, p. 3.1).

Market value is the estimated sum of money that would be an exchange of property on the valuation date between a willing buyer and a willing seller as a result of a commercial transaction after proper marketing, in which each party would act in a knowledgeable, prudent and free manner. Market value is an objective assessment of the established ownership of a particular property at a given date. (ISO 1, clause 3.1).

Market approach - general way determining the value of an object or its own capital, within which one or more methods are used based on a comparison of this enterprise (object) with similar investments (objects) already sold. (Business Valuation Standard, BVS – I, Terminology).

The income approach is a general way of determining the value of an object or its equity, which uses one or more methods based on the recalculation of expected income. (Business Valuation Standard. BVS-I. Terminology).

The cost approach is the approach to valuation that determines the value of an object by determining the current (current) value of an asset minus various elements of depreciation: physical, functional and economic. (Business Valuation Standard. BVS-I. Terminology).

Choice of valuation base

The purpose of this appraisal is to determine the reasonable cost of the costs of the necessary creation of an object similar to the appraised object, in market prices that exist on the date of the appraisal, taking into account the depreciation of the appraised object - the cost of replacing the appraised object. Replacement value - the sum of the costs of creating an object similar to the object of assessment, in market prices that exist on the date of the assessment, taking into account the depreciation of the object of assessment. As the basis of assessment, the expert chose the replacement cost, determined by costly approach. The evaluation procedure includes the following:

• departure to the place for inspection and fixing the volume of work performed;
• collection and analysis of the necessary information and documentation;
• calculation of the cost of costs by compiling budget documentation or estimates for the repair of property;
• drawing up a written report.

Choice of Approaches and Methods of Evaluation

To select assessment approaches, a comparative analysis information about the relevant real estate market with the information necessary to apply one or another approach.

Cost approach - a set of methods for estimating the value of the object of assessment, based on the determination of the costs necessary for the reproduction or replacement of the object of assessment, taking into account depreciation and obsolescence. The costs of reproducing the appraisal object are the costs necessary to create an exact copy of the appraisal object using the materials and technologies used to create the appraisal object. The costs of replacing the object of assessment are the costs necessary to create a similar object using materials and technologies in use at the date of assessment. As already reflected above, it is used in the absence of market information on transaction prices or income from real estate. In this case, when assessing the market value of the repair performed, it is the only possible one.

Comparative Approach - to apply a comparative approach in real estate valuation, it is necessary to have information about the sale of comparable properties. However, in the absence of information on actual transactions, it is possible to use data on the offer of sales of comparable objects-analogues.

Income approach - a set of methods for assessing the value of the object of assessment, based on the determination of expected income from the use of the object of assessment. The income approach includes two main approaches. According to the first, the value of an object is calculated on the basis of the current annual income from its operation, using special coefficients that reflect the relationship that has developed on the market between property values ​​and income levels. In accordance with the second, a forecast is made regarding operating income per certain period in the future and the probable selling price of the object at the end of this period, and then calculated and summarized current values all future income, using special coefficient, reflecting the risk that accompanies investment in this object.

Description of the object of assessment

The object of assessment is a complex of construction, installation and finishing works, as well as materials and equipment spent to perform inseparable improvements in non-residential premises. The room with a total area of ​​199.4 sq.m., located on the first floor of a residential building, consists of rooms 1,2,3,4,5,6,7,8,9 of room XXXIII.

Appraiser's opinion

The purpose of the appraisal is to determine the market value of the actually performed work in order to inform the Customer. In accordance with international and Russian standards the determination of the market value of the appraisal object should be obtained by coordinating the values ​​of the value determined as a result of using various methods of appraisal, namely: cost, comparative and income approaches. The coordination of the results obtained by various methods, as a rule, is carried out by introducing for each of them an appropriate weighting coefficient that reflects the degree of its reliability. As follows from the conclusions made by the Appraiser during the preparation of this report, one of the three valuation approaches was used - costly. Based on the foregoing, and guided by his experience and professional knowledge, the Appraiser considered it possible to give the following specific weight to the value obtained by the cost approach - 1.0 (100%).

Thus, the market value of the object of appraisal - actually made inseparable improvements to the premises, as of the appraisal date, including VAT and rounding, is: 2,358,000 (Two million three hundred and fifty eight thousand) rubles.