Saturday Brain Storming Thought (127) 21/08/2021
COMPILED BY ER. AVINASH KULKARNI
MASS VALUATION
It is the term given to the valuation of large numbers of properties for the same purpose at the same time
Applications & Users of Mass Valuation Report
1) Land and immovable property taxes
2) social welfare
3) state land assessment and Cadastral surveys
4) individual valuation
5) Banking Sector
6) private software developers
7) general public
Land & Immovable property taxes
The tasks performed by the Centre of Registers (valuation office)
1) locating and identifying all taxable properties
2) making an inventory of the quantity, quality and important characteristics of all taxable properties
3) estimating the value of each taxable property
4) Defending value estimates and valuation methods during appeals by taxpayers
Social Welfare
1) mass valuation data is used to assess applicants property to determine eligibility for social financial support
2) municipal social welfare offices provided with the web-based instant-answer application
3) no costs/extra paperwork for applicants
4) application in active use since 2004
State land assessment and Cadastral surveys
1) market data and algorithms of mass valuation applied to determine the market value of unregistered estates
2) web-based calculator
3) facilitated and automated work of surveyors (assessment of market value before primary registration)
4) determining the market value of uncharted state land for lease and privatisation
Individual valuation
1) side product – a countrywide database containing data on every real estate transaction
2) available for any valuer – minimises information distortion, increases the precision of property valuation
3) shortcomings of full data access – manipulation, fraud, data theft
4) safer approach to valuation – smart limited selection of comparable properties
Banking sector & private software developers
1) value calculator with time-based correction – estimation of market value in rapidly changing market conditions
2) valuation monitoring tools – minimising mortgage risks
3) housing price monitoring
4) recent strategic shift towards partnership with the private sector for effective use of data
5) decisions on buying/selling prices based on recent transactions
6) mobile apps to come – augmented reality + market values etc
7) meeting sector-specific needs
General Public
1) online public search of the current average market value of the real estate
2) monthly report on real estate market activity
3) quarterly review of housing prices
4) quarterly review of prices for agricultural land
Access to Mass Valuation Data
Website of the centre of registrars
www.igrmaharashtra.gov.in
Digital Mass Valuation Report
1) textual descriptive part (information about jurisdiction and property)
2) valuation models
3) maps and descriptions of value zones within the jurisdiction
4) public review and appealing documents
5) other information
6) online search of taxable values and average market values by a unique number
Mass Appraisal Process
It is the process of valuing a group of properties as of a given date and using common data, standardized methods and statistical testing
To determine value, assessing officer must rely upon valuation equations, tables and schedules developed through mathematical analysis of market data
Mass Appraisal
It is defined as the use of standardized procedures for collecting data and appraising property to ensure that all properties within a municipality are valued uniformly and equitably
Sales identification for mass valuation
1) registry of deeds
2) real estate transfer publications
3) newspaper articles
4) local real estate brokers
5) bank and estate appraisers
Sales not considered for mass valuation
1) family sales
2) foreclosure sales
3) paper transactions
4) donations
5) court-ordered sales
Sales Verification for mass valuation
1) sales questionnaires
2) property visits
3) interviews or phone calls
Steps in the mass valuation process
1) state the purpose
2) list the data needed and its sources
3) gather, record and verify data
4) gather, record and verify the specific data such as site development
5) gather, record and verify the data for each approach
6) analyze and interpret the data
7) reconcile data for the final estimate
8) prepare an appraisal report
An appraisers report will not have the buyers financial condition, because how you pay for the property is not relevant to the value of the property itself
The type of value is estimated would be found in the statement of purpose section of the report
Common adjustments for mass valuation
1) physical characteristics
2) location
3) market conditions
4) financing concessions
5) conditions or sale
Mass valuations rely on good-quality data and sound market analysis to develop an automated valuation model (AVM) that estimates property values through mathematical modelling
Compiled by:-
Er. Avinash Kulkarni
Chartered Engineer
Govt Regd Valuer
IBBI Regd Valuer
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