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Appraisal of land
Theappraisal of landis made dueto its productivity which means that the market cost of the land is decided based on such usage of the land which is considered to be the most probable, physically possible, and consciously justified, corresponds to the demands of the present legislation, is subject to implementation financially which results in the highest land cost. Moreover, it is possible the valid distribution of land part by part which differs by types, form and usage.
The productive use of the land may not coincide with its current usage. The market cost of the land depends firstly on its location and the influence of the outer factors as well as on the supply and demand in the market, on the type of competition of the sellers and buyers. Also, the cost cannot exceed the purchase costs of other land by equivalent usefulness.
The market cost of the land also depends on its most productive usage within a certain period, probability of receiving revenue, date and expecting highest cost.
It is necessary to consider that the market cost of the land fluctuates during time and the appraisal of the land is always made for the concrete day. In this case, along with changes of purposeful significance of the land, its market cost also changes.
The independent appraisal of the land influences the investors’ risk factor. When it is in the market, the establishment of the conditions of hypothecs crediting becomes easy and allows bringing forward more valuable and profitable lands in the economic industry.
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