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The earths. With increase in age of constructions the relation of cost of the earth to the generalProject costs increases.
The given method does not give exact value of market cost. It can
To be applied to an estimation in the conditions of the insufficient information on sales
Free grounds.
The allocation method is a version of a method of distribution. Cost
The earths it is allocated from cost of the real estate with subtraction of cost of improvements with
The account of their deterioration. It is possible to recommend this method for an estimation of the country
Sites for which the contribution of improvements to a total cost is small and enough
It is easily defined.
The method is applied in the absence of the information on sales of free sites
In near vicinities.
The breakdown method on sites is applied in cases, when site breakdown On slightly smaller on the size represents the best and most Earth effective utilisation, thus external and internal improvements The sites, created at breakdown, provide conditions for the best and Most an earth effective utilisation.
Calculation of cost of a ground by a breakdown method is carried out in the following
Sequences:
* The quantity and the sizes of sites, proceeding from the physical is defined
Possibilities, legal possibilities and economic feasibility.
(Though the well-founded estimation of quantity of sites turns out according to
Requirements of operating specifications, the preference can be given the market
To the data on development of a similar ground file if those are available);
* The potential income of sale or tenancy is defined The prepared sites. A basis for calculation is cost of one
The site, defined by a method of comparison of sales taking into account updatings on
Distinctions;
* The net profit from sales which is a difference between is defined The potential income of sales and the sum of all costs on improvements and The device of sites.
Costs on improvement switch on:
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