Market data collection for mass valuation of commercial real estate
Farnkvist, Olof
Valuation of real estate for taxation purposes has a very long tradition in Sweden. The property tax is a state tax and although valuation is an activity where knowledge about the local markets is necessary the prerequisites for standardised valuation methods that can be used countrywide are good in Sweden. Efficient methods for market data collection are fundamental for a cost efficient system for mass valuation of real estate. Information in public registers is used to a great extent for valuation in Sweden. The real estate market is transparent and information concerning purchases of real estate is public information. For market valuation it is necessary with fresh data concerning the properties. This is particularly the situation when it comes to valuation of commercial objects where some variant of the income method is used. The valuation method used for mass valuation of commercial objects in Sweden is a market adjusted income method. Examination of sales and collection of needed completing information concerning incomes (rents) and vacancies is an activity that requires resources. A special problem that is dealt with is the problem with vacancies. In the Swedish valuation model there is a possibility to adjust the calculated value if there are unusual conditions for a certain valuation object. Vacancies have become a common such unusual condition.
Event: XXIII International FIG Congress : Shaping the change
Only personal, non-commercial use of this document is allowed.