Wear- is a loss of value due to deterioration of the physical condition of the object and/or obsolescence.

Depending on the reasons causing the loss of value, wear is divided into three types: physical wear, functional wear, and external wear.

Physical wear and tear- this is a loss of value due to natural processes during operation. It is expressed in aging and wear, destruction, rotting, rusting, breakage and structural defects. This type of wear can be either removable or irreparable. Recoverable physical wear and tear (i.e., wear that can be corrected through routine maintenance) includes routine repairs or replacement of parts of an asset during day-to-day use.

Functional (moral) wear and tear is the loss of value due to the relative failure of a given structure to provide utility compared to a new structure constructed for the same purpose. It is usually caused by poor design, technical and functional requirements such as size, style, durability, etc.

Physical and functional wear and tear are usually inherent in the property itself.

External (economic) wear and tear caused by external factors - changes in the market situation, changes in financial and legislative conditions, etc.

Physical deterioration of objects can be determined using regulatory documentation:

Rules for assessing the physical deterioration of buildings - VSN - 5-86 (r), Gosgrazhdanstroy, 1988;

Rules for assessing the physical deterioration of residential buildings - VSN - 53-86 (r), Gosgrazhdanstroy, 1990;

For the purposes of course work, an approximate assessment of the deterioration of the building can be applied in accordance with the following table.

In this case, the results of a visual inspection by the appraiser of the technical condition of the object are used.

Table 4

Table of aggregated parameters for determining the physical deterioration of buildings

Physical wear, %	Condition of main structural elements	Condition of internal structural elements
0-20	There is no damage or deformation. No traces of defect removal	Floors and ceilings are smooth, horizontal, there are no cracks in coatings or finishing
21-40	There are no damages or defects, including bending. There are traces of various repairs in places, including small cracks in the walls and lintels	Floors and ceilings are smooth, hairline cracks are possible on the ceilings. There is a small amount of damage on the steps of the stairs. Windows and doors open with some effort
41-60	There are many signs of repairs, cracks and areas of exterior finishing. There are places where the horizontal lines are bent and traces of their elimination. Wear of masonry walls is characterized by cracks between blocks	The floors in some places are unsteady and deviate from the horizontal. There are many cracks in the ceilings that were previously repaired and have reappeared. Individual gaps in the floor covering (parquet, tiles). Large number of damaged steps
61-80	There are open cracks of various origins, including from wear and overload of the masonry across the bricks. Large curvature of horizontal lines and sometimes deviation of walls from vertical	A large number of deviations from the horizontal in the floors, unsteadiness. Massive damage and lack of floor covering. There are many places in the ceilings with fallen plaster. Lots of warped windows and doors. A large number of damaged steps, skewed flights, gaps between steps.
81-100	The building is in a dangerous condition. Sections of the walls are destroyed and deformed in the openings. Cracks along the lintels, piers and throughout the entire surface of the walls. Large curvatures of horizontal lines and bulging of walls are possible	Floors with large distortions and slopes. Noticeable deflections in ceilings. Windows and doors with rot in the joints and beams. The flights of stairs lack steps and railings. The interior decoration is completely destroyed.

The physical wear and tear of a building is determined by the formula:

where ФЗ - physical wear and tear of the building, %;

F K, I - physical wear and tear of a structural element, structure or building system, %;

I I - the share of the structural element in the total replacement cost of the building;

n is the number of individual elements, structures or systems in the building.

The share of the cost of individual structural elements of the object is determined according to the “Collections of integrated indicators of replacement cost” (UPVS) or on the basis of estimate documentation or on the basis of a technical passport for the property.

The next step is replacement cost adjustment construction of the facility by the amount of accumulated wear and tear.

Wear- a multidimensional concept. Depending on the scope of application, different semantic content is embedded in it. From the perspective of a real estate appraiser, wear and tear refers to the loss of property value under the influence of various factors. In other words, depreciation is defined as the difference between the costs of reproducing new improvements at the valuation date and their current market value.

Both of these definitions express a single essence, which is that depreciation manifests itself in a decrease in the market value of the property being valued relative to its original value. It is quantitatively measured by the absolute value of the decrease in the value of the property or as a percentage of its original value.

Sometimes even experienced appraisers confuse the concept of depreciation as a decrease in market value with the concept of accounting depreciation taken into account in depreciation rates. However, there is a fundamental difference between them. It is that estimated wear and tear always reflects the market reaction to the aging of the object, while accounting depreciation is the standard value of the programmed reimbursement of the cost of wear and tear of material assets. Estimated wear and tear may not correspond to the age of the improvements, but accounting wear is always proportional to it.

Depending on the factors reducing the value of real estate, wear and tear is divided into physical, functional and external.

Physical wear and tear - reduction in the value of property due to its loss of specified consumer properties due to natural reasons or due to improper use.

Functional wear - reduction in the value of property due to its non-compliance with modern market requirements for architectural, aesthetic, space-planning, design solutions, livability, safety, comfort and other functional characteristics.

External (economic) wear and tear - a decrease in the value of property due to changes in the external environment: social standards of society, legislative and financial conditions, demographic situation, urban planning decisions, environmental conditions and other qualitative parameters of the environment.

Physical and functional types of wear are determined by the condition of the object itself, external - by environmental influences. Accordingly, each of the first two types of wear is divided into removable and irreparable types; external wear is always irremovable.

Removable This type of depreciation is called the cost of liquidation of which exceeds the resulting increase in the value of the property. If the costs of elimination are greater than the subsequent increase in the value of the property, then such depreciation is considered irremovable. Thus, wear is classified not from the point of view of the technical feasibility of measures to eliminate it, but from the point of view of their economic feasibility.

Since the accumulated wear and tear of all its types depends to one degree or another on the lifespan of the property, let us consider the content of the basic evaluative concepts that characterize this period (Fig. 3.2).

Rice. 3.2.

Physical life span - the period of time during which an object can actually be used for its intended purpose. Simplified, this period is determined depending on the capital group of buildings. In valuation practice, it acts as a natural limiter on their economic life.

Economic life - the time during which improvements contribute to the value of the property in excess of the cost of the improvement, i.e. when wear is removable. This period can be extended due to high-quality maintenance of the building, its timely modernization and repairs. In domestic practice, during the feasibility study of the project, the standard (estimated) life of the building is determined. Usually it is indicated in the passports of the standard project and the constructed facility. On its basis, standards for depreciation and frequency of repair maintenance are established. This standard period is close in nature to the estimated concept of economic life and can be used for indicative calculations.

Actual age - the time from the commissioning of the object to the date of assessment, established by the object’s passport, certificate of registration or act of the state commission.

Effective age - time by which the life expectancy of a building is estimated based on its physical condition, equipment, design, and economic factors affecting its value. When determining the effective age, the professional abilities of the appraiser are fully demonstrated, since he is required to provide a market assessment of this indicator, which may differ significantly in one direction or another from the practical age of the building.

Remaining economic life - the time determined by the appraiser from the moment of inspection of the object until the end of its economic life.

In domestic practice, the definition physical wear and tear buildings has always been and remains the prerogative of the Bureau of Technical Inventory and experts from design and technological institutes for the inspection of building structures. In this work, they are guided by intersectoral or departmental instructions, for example, the Rules for assessing the physical deterioration of residential buildings (VSN 53-86 (r) M., GGS, 1988). They list visual signs of physical wear of individual structural elements and give their quantitative assessment. In doubtful cases, it is envisaged to open sections of building structures that are inaccessible to visual observation, which disrupts the normal operation of buildings and requires significant costs to eliminate the damage caused to it.

If the purpose of the assessment is to determine the replacement, inventory cost of a building, then the total amount of its depreciation is determined by summing up the values ​​of physical deterioration of individual structural elements according to the share of the replacement cost of each of them in the total cost of the building. This methodological technique is expressed by the formula

where: (?f - total physical wear and tear of the building, %;

qj- actual wear of the i-th structural element, %;

Y, is the share of the cost of a structural element in the total cost of the building, %; p - number of the structural element.

The only advantage of the presented method is that its results look quite convincing and are difficult to double-check. However, they are always subjective due to the different levels of qualification of experts. The procedure for determining wear in this way requires a lot of time, labor, money and can be carried out occasionally, at long intervals. By the time the building is assessed, its results are usually hopelessly outdated. In addition, they completely do not take into account functional and external wear and tear, so they provide a very meager amount of information for the real estate appraiser.

In global valuation practice, depreciation, understood as a decrease in the market value of property, is determined by three classical methods:

• sales comparisons;
• effective age;
• partitions.

Sales comparison method consists of identifying a market assessment of the accumulated depreciation of a building by comparing its replacement cost with current sales prices of similar objects. When using this method, a certain sequence of procedures is recommended.

• 1. Selecting recent sales of properties similar to the one being assessed in terms of the nature of the improvements, adjusting their prices and generating information to determine the replacement cost of buildings.
• 2. Determination of the cost of a plot of land for each comparable property.
• 3. Determining the prices of buildings taking into account depreciation by excluding the cost of land plots from the sales prices of comparable objects.
• 4. Calculation of the current replacement cost of buildings for each comparable property using the methodology described in this chapter.
• 5. Determining the amount of accumulated depreciation of comparable buildings by subtracting their prices taking into account depreciation (clause 3) from the current replacement cost of the same buildings (clause 4).
• 6. Determination of the average percentage of depreciation of comparable buildings for its transfer to the assessed object.

An example of using the described methodology is presented in table. 3.1.

The advantage of the method considered is the objectivity of its results, since by comparing sales, the appraiser only reveals the market reaction to the aging of the property and environmental changes. Naturally, the more reliable the market information and the greater the number of comparable sales the appraiser analyzes, the more accurate the result obtained.

However, in Russian conditions this advantage of the method turns into its disadvantage. In the absence of an active real estate market and confidentiality of transactions, the method is deprived of its information base. Another disadvantage is the impersonality of the identified wear, i.e. in the absence of differentiation by types and types of wear, which limits the use of this indicator in property management. And finally, the method is quite labor-intensive, because it requires calculations not only to compare sales, but also to determine the value of land plots and the replacement cost of improvements for all compared objects.

Table 3.1

Determination of accumulated wear and tear using the sales comparison method

Effective age method much simpler technically and less dependent on market conditions. It is based on an examination of the structures of the object being valued and a tested hypothesis that effective age is related to the typical period of economic life as accumulated wear and tear is related to the current replacement cost. From this relationship the following formula for accumulated wear follows:

where: EV - effective age;

EZH - economic life span;

BC - replacement cost.

Let's consider options for using this formula. For example, based on the methodological techniques outlined in this chapter, the appraiser determined the current replacement cost of a building built 15 years ago to be 360 ​​million rubles. Using the passport of the standard design of this building, he received information about the typical period of its economic life, which is 80 years.

If this building, in the opinion of the appraiser, was built in accordance with current standards and was operated in a normal manner, its effective age will be equal to its actual age, and depreciation will be equal to accounting depreciation. It will amount to 18.75% of the replacement cost, or 67.5 million rubles.

If, as a result of an inspection of the building, the appraiser has a professional judgment that the effective age of the building due to poor maintenance exceeds the actual age and can be estimated at 20 years, then the accumulated depreciation will be 25%, or 90 million rubles.

The appraiser can take into account that the building is well planned, has an improved design and high quality construction work. This gives him reason to predict a longer economic life, for example 90 years, and the careful maintenance of the object allows him to estimate the effective age at 12 years. Then the accumulated depreciation will be 13.3%, or 48 million rubles.

A qualified appraiser is able to take into account the impact of functional deterioration factors and the impact of environmental changes when determining the effective age of a building, but all his assumptions will be intuitive. In controversial situations, it is difficult for him to convince a wary opponent, and the results of such an assessment are legally vulnerable. In addition, the effective age method, like the sales comparison method, does not distinguish between types and types of wear and tear, as well as the life span of individual building elements.

Splitting method free from these shortcomings. It consists of a consistent assessment of all types of wear, including:

• removable physical wear and tear;
• irreparable physical wear and tear;
• removable functional wear;
• irreparable functional wear;
• external wear.

For evaluation removable physical wear the building is divided into individual structural elements according to their economic life, highlighting:

• short-lived elements whose remaining economic life is less than the remaining economic life of the building;
• long-lived elements whose remaining economic life is equal to the remaining economic life of the building.

The assessment is based on the principle of one-time and sequential consideration of the impact on the value of the building of certain types of wear and tear.

For a cross-cutting example, we will take the following initial data: the assessed two-story building with a total area of ​​600 m2 is located on a plot of 800 m2; the building was built 20 years ago and has an estimated physical life of 100 years; the current replacement cost of the building is RUB 2.2 billion.

The assessment begins by measuring removable physical wear and tear. It is usually caused by poor building maintenance and is therefore often referred to as deferred maintenance. The evaluative content of this concept is the assumption that a potential buyer, when inspecting the property, will make an adjustment to the purchase price by the amount of the cost of deferred repairs that he will have to make after purchasing the property to restore its original consumer properties.

Let's assume that the assessment of the building determines the need for immediate replacement of the roof and cosmetic repairs of the interiors. In the local construction services market, these works are valued at 70 and 56 million rubles, respectively, and the full replacement cost of these elements as of the valuation date is 70 and 130 million rubles. (Table 3.2).

Table 3.2

Estimation of removable physical wear and tear

Now they measure irremovable And physical wear and tear short-lived elements. It is determined by the difference between the total replacement cost of the element and the amount of its removable wear, multiplied by the percentage of the actual age to the total physical life of the element. This dependence is expressed by the formula

where: NFI KZh e - irreparable physical wear of a short-lived element;

VS EL - full replacement cost of the element as of the valuation date;

UFI EL - removable physical wear of the element;

FV EL - actual age of the element;

VF EL - the period of physical life of the element.

Calculations using this formula are given in table. 3.3.

The cost of irreparable physical deterioration in long-lived elements is determined by the product of the residual replacement value of the building (minus the cost of deferred repairs and the residual replacement value of short-lived elements with unrecoverable physical deterioration) and the percentage of actual age to the total physical life of the building.

Table 3.3

Assessment of irreparable physical wear of short-lived elements

This dependence is expressed by the formula

where: NFI DZE - irreparable physical wear and tear of long-lived building elements;

VS ZD - the full replacement cost of the building at the time of assessment;

UFI ZD - removable physical wear and tear of the building;

OVS, w, is the residual replacement cost of short-lived elements with irreparable physical wear;

FV ZD - actual age of the building;

FL ZD - the physical life span of the building.

Calculations using this formula using the end-to-end example under consideration and the assessment of irreparable physical wear of long-lived elements are given below.

Functional depreciation is theoretically the difference between the replacement cost of a building and its replacement cost. Since the replacement cost reflects the costs of reproducing the consumer properties of the building, taking into account modern standards and market requirements, it is legitimate to assume that it excludes the cost of functional wear and tear, which is present in the replacement cost. However, in valuation practice, with the existing calculation technique, replacement cost is often replaced by replacement cost, and then this approach becomes meaningless. But even with the complexity of calculating replacement cost and replacement cost, their direct comparison does not characterize the types and sources of functional wear.

In the partitioning method, wear is subject to differentiated assessment - by type (removable and irreparable) and the factors that generate it. In particular, based on the calculation technique removable functional wear is assessed by three groups of factors determined by:

• needs for replacement or modernization of elements;
• an overabundance of individual elements, so-called super-improvements.

In all cases, removable functional wear is assessed at the cost of its liquidation.

Depreciation due to the insufficiency of elements is determined by the difference in the cost of their installation on the date of assessment and during the construction of the facility. For example, in the building being assessed, an element of removable functional wear and tear can be considered the absence of a fireplace, the installation costs of which are more than offset by the increase in profitability and market value of the property. The amount of this depreciation is determined by the following calculation (in million rubles):

In the same building, the plumbing equipment, according to the appraiser, has lost its compliance with the level of consumer demand in the market sector where this property can be sold. According to preliminary calculations, the costs of replacing plumbing equipment are offset by attracting wealthier buyers and increasing the value of real estate.

Removable functional wear and tear caused by the need to replace building elements is measured by the amount of costs to eliminate it minus the previously taken into account physical wear and tear of the replaced elements and their salvage value, as demonstrated by the following calculation (in million rubles):

In a similar way, reversible functional wear due to “over-improvement” is measured. In our example, these include the presence of a workshop for wood carving, which the property owner is passionate about. The cost of eliminating wear and tear is determined by the following calculation (in million rubles):

Unrecoverable functional wear assessed by two groups of factors, conditioned by:

• insufficiency of individual elements of the building or their quality characteristics;
• an overabundance of individual elements (“super-improvements”).

Permanent functional deterioration due to the deficiency of individual elements is measured by the loss of net income due to their absence, capitalized at the capitalization rate for buildings of this type, less the cost of installing these improvements during the new construction process.

In practice, the amount of net income loss is determined from market comparisons of rents for buildings with and without appropriate improvements. So, in our example, an analysis of the local real estate market showed that the presence of electric floor heating makes it possible to increase the annual rent by 24,000 rubles. per 1 m 2 of total area.

The current cost of installing such a system in an existing building exceeds the increase in value achieved thereby, as a result of which the wear and tear caused by its absence is considered irreparable. Obviously, to evaluate it, the hypothetical costs that the developer would incur to create the missing element during the construction of the building must be taken into account. The calculation is performed using the following algorithm:

Irremovable functional wear due to an overabundance of individual elements is estimated as the replacement cost of these elements minus their physical wear and tear and adding the algebraic sum of all current expenses and income of the owner associated with the use of “super improvements”.

Let’s say that a swimming pool has been built in the building we are appraising, the replacement cost of which as of the appraisal date is 160 million rubles. The owner's current additional costs for operating the pool are 6 million rubles, and his income from the periodic provision of the pool for hourly rental is 7.2 million rubles. per year. As noted, the capitalization ratio is 12% (0.12). Comparisons of sales of similar properties indicate that the presence of a swimming pool increases the value of real estate by 100 million rubles. Thus, there is irreparable functional wear and tear due to “over-improvement”. Its value is estimated in the following order (in million rubles):

External wear characterizes the damage caused to the value of real estate by factors external to it. It is inherent exclusively to real estate due to its fixed location. As previously noted, the impact of a property's surroundings on its value can be measured through the valuer's intuition through the effective age of the building. However, more reliable results can be obtained by direct measurement of the market reaction to changes in the property itself and its environment. It manifests itself in two forms: changes in rents and sales prices.

Accordingly, in valuation practice, two approaches to changing external wear have developed:

• capitalization of income loss due to external influences;
• comparison of sales of similar objects with and without taking into account external influences.

Let's look at the technique of using them using our example. Let’s say that a change in the regional planning scheme during the period of operation of the building led to the movement of the main transport route directly to the border of the property being assessed. Increased noise levels, dust pollution and other adverse consequences caused a decrease in net rent for houses adjacent to a transport highway by an average of 5 dollars (30 thousand rubles) per year per 1 m 2 of total area compared to the same houses located deep in the block. Below is a calculation of external depreciation (in million rubles) caused by this factor, taking into account the fact that the cost of the building accounts for 80% of the cost of the entire property (i.e., including the cost of the land plot) and the capitalization ratio for buildings is 12% .

If in the immediate vicinity of our building recent sales of similar objects are registered that are not subject to the mentioned adverse effects of the transport highway, then through successive adjustments of the remaining distinctive features they are brought to a comparable appearance, leaving the exclusive impact of this factor. Then the difference in the sales price of the compared objects will express the quantitative value of this factor external wear.

The results of calculations of accumulated depreciation (in million rubles) for the assessed building are given below.

Thus, in the example we considered, accumulated depreciation amounted to 48.3% of the replacement cost of the building, and its current value minus depreciation amounted to 1138 million rubles.

The information obtained provides material for serious analysis not only for the appraiser, but also for the property owner.

LNEI(NNEI)

Analysis procedure.

1) Consideration of physical feasibility options.

2) The options allowed from the point of view of legislation are analyzed.

3) Consideration of those physically possible and legally permitted uses that will provide an acceptable income to the owner.

4) The use case is selected from the financially feasible options. Which brings maximum income.

Highway Perm-Ekaterinburg.

The analysis for built-up areas is carried out in 2 stages:

1. Analysis of NEI for a land plot. In this analysis, it is assumed that the plot of land is undeveloped.

2. Analysis of the NEI of the object as a built-up one. Typical options for using developed real estate could be the following alternatives.

A. Continued use in current condition.

b. reconstruction of the facility, renovation, change of design or the need for major repairs.

B. Demolition of buildings and implementation of alternative projects.

The task is to justify the nei of the developed land plot.

Conditions: on a plot of land, near the commercial port, there is a brick industrial building currently used as a warehouse. There are 2 options for continued use.

B) Reconstruction of the building and the addition of a 2nd office floor, the amount of investment. 150 thousand den. units.

The reconstruction will bring additional income in the form of rental payments for offices.

Approaches and methods of real estate valuation.

Evaluation process:

· Cost-effective approach.

· Comparative approach. Methods:

Sales comparison method (adjustment method)

Gross rent multiplier method GRM (GRM is the same)

· Income approach

Primo capitalization method

Discounted Cash Flow (DCF) Method

Cost-based approach to valuation.

How much does a plot of land cost?

Construction cost.

Construction time

Minus wear

The cost of land is taken into account separately.

The market value of a property is calculated using the formula= SV (Reproduction cost (CZ)) + PP (Entrepreneur’s profit) - Accumulated depreciation + RSzu (market value of the land plot).

Calculation of the market value of a land plot. See the discipline economic valuation of land. Land valuation is carried out taking into account the assumption that the land plot is vacant.

Calculation of costs for reproduction or replacement of improvements. Reproduction costs are the costs necessary to create an exact copy of the valuation object using the materials and technologies used to create the valuation object.

Replacement costs are the costs required to create a similar object using materials and technologies in use at the valuation date.

Methods for determining reproduction and replacement costs:

1. Quantitative survey method. Drawing up an estimate.

2. Use of design and estimate documentation for the object being assessed.

Using an existing estimate.

3. Comparative unit method. The calculation is based on the total costs of constructing one cubic meter (one square meter) of a standard typical building. The cost is calculated using the following formula:

SV=С1*V*Kп*Kreg-clim*Kinfl.*Knds.

C1- Cost of construction per unit volume (area, length) of the object being assessed. The source of information is collections of UPVS (aggregated indicators of replacement cost). UPSS (aggregated construction cost indicators)
V- Construction volume (Area or length of the object).

Kp is a coefficient that takes into account differences in space-planning and design solutions between the object of evaluation and the analogue object. The source is the technical part of the collection UPVS UPSS.

Kreg-clim is a coefficient that takes into account regional construction conditions. The source is the general part of collections or papers that are published on the date of assessment.

Kinfl is a coefficient that takes into account changes in the price level compared to the prices of the base period. Sources Perm Regional Center for Pricing and Construction or non-commercial partnership NP Builders of the Urals . You can also use the indices of Min Economic Development. Ocenhik.ru

Coefficient taking into account value added tax.

UPVS if the building was built before 1991 or 1984, if more then it is not advisable

UPSS Co-invest Company is a Moscow company.

Lecture No. 2.

14 font one and a half spacing

Technical passport, cadastral passport, certificate of ownership.

30-40 pages. In the theoretical part, we write what is related to the assessment and general information about the assessment.

V=2537 m cube

UPVS No. 23 table 19. The cost of 1 cubic meter is 22.8 rubles in 1969 prices.

The Perm region corresponds to the first climatic region, 2 territorial zone.

Regional climatic coefficient = 1.06 (from the technical part of the collection)

Kinf=1.19*1.62*41.0214=79.452

It folds: 1,19 - coefficient of transition from the price level of 1969 to the price level of 1984.

Resolution of the State Construction Committee of May 11, 1983 No. 94. For motor transport enterprises, taking into account the coefficient of 1.01.

1,62 - coefficient of transition from the price level of 1984 to the price level of 1991, (taking into account the regional 1.02) Source application to the letter of the state system of the then USSR dated September 6, 1990 No. 14-D.

41,0214 - conversion factor from the price level of 1991 to prices for the 1st quarter of 2008 for industrial and municipal construction.

SV=С1*V*Kп*Kreg-clim*Kinfl.*Knds.=22.8*2537*1*1.06*79.452*1.18=5748414r.

Methods for determining an entrepreneur's profit.

An entrepreneur's profit is the difference between the sale price of an asset and the costs of its creation, which reflects a market-based premium for organizing and implementing a profitable project.

The profit indicator is calculated as a percentage of the costs of reproduction or replacement.

1 Method. Method for calculating enterprise profit using the formula of E.S. Ozerov.

PP=Y*n/2* [ 1+Y*n/3+C0*(1+2Y*n/3+Y*Y*n*n/3)].

Y-annual rate of return on invested capital; the value of the lending rate for new construction can serve as a guide

n is the number of years during the construction period.

C0 is the share of the advance payment in the total amount of payments.

n,C0- is accepted in accordance with the backlog standards for construction SNiP 1.04.03-85. “Norm of construction duration and backlog in the construction of enterprises of buildings and structures.”

2 Method. Market method. The calculation of PP is carried out on the basis of market data on sales of objects similar to the one being valued. If the total construction costs are known for similar objects (cost of land + construction cost). It is then possible to calculate the entrepreneur’s profit from them and then determine its average value for the market.

Example

3 Method. Monitoring Method. The method involves surveying market participants about the rate of return for the construction of different types of real estate.

Calculation of accumulated wear and tear.

Accumulated depreciation is characterized by the loss of value of an object for some reason. Such losses may relate to physical wear and tear, functional obsolescence or external obsolescence.

Methods for determining wear and tear and obsolescence.

1 Method sales comparisons. The essence of the method is to identify the market assessment of wear and tear and obsolescence of a building by comparing the cost of reproduction (replacement) with current prices of similar objects.

The method is used to estimate the total accumulated depreciation.

2 Method. Effective age method (lifespan method).

The physical life of the SFZ is from the moment construction begins until its demolition.

The lifespan of an SES is the period of time during which an object generates income.

Chronological age is the period of time from the commissioning of the object of operation to the date of assessment.

Effective age - calculated on the basis of the chronological age of the building, taking into account its technical condition and the economic factors prevailing on the date of assessment that influence the value of the object; depending on the operating characteristics of the building, the effective age may differ either up or down, in the case of normal typical operation effective age is equal to chronological age.

Physical wear and tear (FI) = EV/SEZh*100%

Method 3. State examination method. Used to calculate physical wear and tear. Determined by technical examination according to the methodology of Departmental Construction Standards (VSN) 53-86 (r) “Rules for assessing physical wear and tear.”

In accordance with the standards, the amount of accumulated wear of structural elements and engineering equipment is determined, the specific weights of structural elements are taken in accordance with collections of aggregated indicators of the cost of construction of the UPVS UPSS.

№	Name of building elements	Specific weights of enlarged structural elements (from UPVC UPSS)	Physical wear and tear of a building element	Weighted average value of physical deterioration of a building element
	Foundation			8*40/100=3,2
	Partition walls			13,2
	Roof slabs			12,6
	Floors
	Openings			6,6
	Finishing work			8,8
	Internal plumbing fixtures, electrical fixtures			1,2
	Others			2,4
	Total			53(rounded to the nearest whole number)

One of the main factors causing a decrease in the reliability of machines over time is the wear and tear to which machines and equipment are subjected from the beginning of operation.

V.Yu. Belopashentsev, an expert automotive technician, a practicing appraiser of machinery and equipment since 1997, - about methods for determining various types of wear.

In the previous material, we examined methods for determining the degree of physical wear of machines when assessing them. The next material is about functional and external (economic) wear and tear.

Functional wear and tear of machines

In contrast to physical wear and tear, which is absolute, functional wear is relative: it is the loss of value of a machine (the object of assessment) as a result of the use of new technologies and materials in the production of similar equipment and an increase in costs during its operation.

To accelerate functional wear, i.e. the frequency of changes in generations of machines and technologies is influenced by scientific and technological progress.

In relation to assessment issues, two aspects of the possible difference between a new object and an old one are usually considered.

Based on cost items, the following groups of functional wear and tear (obsolescence) are distinguished:

1. depreciation due to excess capital expenditure.
   This wear and tear is the result of technological changes, the introduction of new materials or the inability to optimally use equipment, or an imbalance in the production process. This type of functional wear is often called technological obsolescence.

   The functional wear coefficient is determined by the formula:

   K fun = 1 - (Po/Pa)*n,
   where Po is the productivity of the old equipment being evaluated; Pa - the performance of new equipment or an analogue; n is the price deceleration coefficient.

2. wear caused by excess production costs.
   This wear and tear occurs as a result of improvements in technology or increased efficiency in placement and layout. This type of functional wear is often called operational obsolescence.

Determining the depreciation of plant and equipment caused by operational obsolescence includes the following steps:

1. determination of annual operating costs when using the assessed object;
2. determination of annual operating costs when using an analogue;
3. determining the difference in operating costs;
4. taking into account the impact of taxes;
5. determining the remaining economic life of the assessed object or the time to eliminate deficiencies;
6. Determining the present value of annual future losses at the appropriate discount rate.

Operational obsolescence can be thought of as the present cost of future excess production costs. Depending on the type of excess production costs associated with existing equipment, a distinction is made between operational obsolescence caused by increased a) investment costs; b) operating costs.

External (economic) wear and tear of machines

External wear and tear is manifested in the loss of value caused by major industry, regional, national or global technological, socio-economic, environmental and political changes, for example, reduction in supply and demand for a certain type of product, deterioration in the quality of raw materials, labor, support systems, facilities, legal changes.

There are two approaches to determining the amount of external wear:

1) capitalization of loss of income related to external influences;

2) comparison of sales of similar equipment in the presence and absence of external influences.

If there is a sufficient amount of data, the second approach is more preferable.

Economic obsolescence is influenced by a large number of factors, and it is not always possible to prove that depreciation occurs for one reason or another.

When applying the cost approach, underutilization of equipment due to external wear and tear can be assessed using relative indicators. Typically this indicator is the relative coefficient of equipment underutilization:

In = (V actual/V nom),

where B actual and B nominal -) respectively actual and nominal output (in monetary terms) for a certain period of time.

The coefficient of external economic wear and tear of equipment is equal to

K and, in = 1 - In

When determining the external economic wear and tear of machinery and equipment, it is important to clearly understand the true reasons for the decrease in output.

Cumulative (accumulated) wear and tear of machines

Coefficients of physical, functional and economic depreciation are usually calculated as shares or percentages of the cost of reproduction or replacement cost. To determine the coefficient of total (Accumulated) wear, there are 1) additive and 2) multiplicative approaches.

1. With the additive approach, the total wear coefficient (K) is determined by adding the coefficients of physical, functional and economic wear.
   K = K physical + K fun + K vn
2. With a multiplicative approach, the basis for determining wear rates is the cost, from which previously taken into account types of wear are excluded. In this case, the total wear coefficient (K) is determined by the formula:
   K = 1 - (1 - K physical) x (1 - K fun) x (1 - K in)

At using the income approach In general, special accounting for any type of wear and tear is not required, since the influence of each of them is manifested in the amount of income created by the object of assessment.

When determining the comparative approach, market prices (Ps) of identical objects or close analogues are usually used as the basis for determining the cost of a machine. It is believed that these prices already take into account the functional and external wear and tear of equipment that is almost the same as the object being valued.

Therefore, it is only necessary to determine its physical wear and tear in order to adjust the prices of similar analogues by degree of wear, if necessary:

C = Tsan x (1 - Ki, physical, ots)/(1 - Ki, physical, an), where Ki, physical, ots; Ki, physical, an - coefficients of physical wear and tear of the object being assessed and a close analogue, respectively.

When using the cost approach The process of determining the cost (C) of an appraisal object comes down to determining the full reproduction cost (C), followed by taking into account depreciation due to all three types of depreciation:

C = St (1 - Ki, physical) x (1 - Ki, Fun) x (1 - Ki, int).

The formulas for determining wear rates given above show that the procedure for accounting for all three types of wear assumes a certain sequence:

• physical wear and tear is always taken into account first;
• then functional;
• then - external (economic wear and tear).

Prepared by Natalia Panasenko

ACCUMULATED WEAR

fixed assets, assets - total depreciation accumulated over the period of operation, use of fixed assets, long-term assets, determined by summing up depreciation for previous periods.

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• - fixed assets, assets - total depreciation accumulated over the period of operation, use of fixed assets, long-term assets, determined by summing up depreciation for previous periods...

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• - interest on a bond accruing since the last payment on it. When purchasing such a bond, the accumulated interest is included in its price and then returned to the owner at the next interest payment...

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• - see Percent...
• - the amount of bank loan interest accumulated over a certain period of time...

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• - ACCUMULATED DIVIDEND A dividend that has not been paid on time to the holders of a company's preferred shares. Consequently, in the company's accounts it is reflected as its debt...

  Financial Dictionary

• - an asset counter-account used to accumulate total past depreciation for a certain item of long-term production assets...

  Large economic dictionary

• - cumulative depreciation accumulated over the period of operation, use of fixed assets, long-term assets, determined by summing up depreciation for previous periods...

  Great Accounting Dictionary

• - interest on a bond accrued since the last payment on it. When purchasing such a bond N.p. is included in its price and then returned to the owner with the next payment of interest...
• - ...

  Encyclopedic Dictionary of Economics and Law

• - why...

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• - ACCUMULATED, accumulated, accumulated; accumulated, accumulated, accumulated. prib. suffering past vr. from accumulating...

  Ushakov's Explanatory Dictionary

• - captive; briefly...

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• - cumulative, cumulative, integral; acquired, saved, put together, by, with, accumulated, multiplied, accumulated, collected, stored up, under, knocked down, accumulated, accumulated, collected...

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• - ...

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"ACCULATED WEAR" in books

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[a) The embryo of the historical understanding of the capitalist mode of production, combined with the bourgeois fetishistic view of capital as merely an “accumulated stock.” The problem of productive and unproductive labor]

From the book Volume 26, part 3 author Engels Friedrich

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Usage/Usure

From the book Philosophical Dictionary author Comte-Sponville André

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Obsolescence

From the book Great Soviet Encyclopedia (MO) by the author TSB

Physical wear and tear

From the book Great Soviet Encyclopedia (FI) by the author TSB

Wear

From the book Great Soviet Encyclopedia (IZ) by the author TSB

32. Wear

From the book Economics of Real Estate author Burkhanova Natalya

32. Depreciation Depreciation of property means a decrease in its value under the influence of various reasons. Depreciation is determined on the basis of the actual condition of the property, according to statistical or accounting data. There are three types of depreciation of real estate: 1) physical

3. Wear of the sockets in the cheeks for the eyes.

author Author unknown

3. Wear of the sockets in the cheeks for the eyes. (I) If there is wear on the cheek sockets causing the eyes to rotate when screwing in the screws, replace the cheeks. Before installing the cheeks, lubricate the surfaces of the cover and handle of the rifle frame

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From the book Repair Manual for Nagan 1895 revolver author Author unknown

Drying of the cheeks or wear of the knurling. (I) If the eyes protrude above the surface of the cheeks, deepen the sockets in the cheeks for the eyes. If the ends of the screws protrude above the surface of the cheeks, file the ends of the screws flush with the plane

5. BATTERY WEAR

From the book Rechargeable Batteries by the author

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From the book Computerra Magazine No. 33 dated September 12, 2006 author Computerra magazine

SHCHEPETNEVKA VILLAGE: One hundred percent wear and tear Author: Vasily ShchepetnevThe widespread poverty of the people inhabiting a seventh of the landmass was explained in different ways over the years: either by the Tatar-Mongol yoke, or by the oppression of the bloodsucking bourgeoisie, or by the dominance of pest doctors, or by organic

Rest for wear

From the book Literary Newspaper 6449 (No. 6 2014) author Literary Newspaper

Rest for wear and tear Under the dank “winter” rain you can’t really walk, all that was left was to wrap yourself in a blanket in the cold room of the Podlipki sanatorium and turn on one of the three working TV programs (this is near Moscow, near Mytishchi!). Meeting different people - both in the dining room and in

58. Work hard

From the book 365+1 rule of life for every day of a happy year [fragment] author Balyko Diana

58. Work hard I work 24 hours a day: I analyze, think, compose, constantly write down... I can create my own office anywhere in the world, because it is where my head is. But it’s better to have my computer nearby. And the Internet. And favorite books, and films, and music... And

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