Authors: V.V. Mishchenko.

Title of the article: Application of comparison methods in evaluation: Problems and ways of their

Year: 2020, Issue: 2, Pages: 72-82

Branch of knowledge: 08.00.05 Economics and Management of National Economy

Index UDK: 330.12

DOI: 10.26730/2587-5574-2020-2-72-82

Abstract: When conducting an assessment, comparative methods are often used. This applies primarily to the comparative approach and the harmonization procedure. In this case, the problem often arises of translating the comparison of qualitative factors or logical conclusions of the evaluator into a numerical value. The absence of appropriate methods often forces the appraiser to refuse to take into account the influence of qualitative factors on the formation of the value of the valuation object. At the same time, qualitative factors may be decisive in their influence on the formation of the value of the valuation object. A similar problem arises during the reconciliation procedure. The evaluator’s conclusion that the result obtained by one of the approaches is preferable in comparison with the result obtained by the other approach often remains without a proper explanation. The solution to these problems is described in the article. In particular, the author of the article proposes a technique that will allow translating the influence of qualitative factors and the results of the logical conclusions of the evaluator into a numerical value.

Key words: Valuation comparative approach cost approach income approach coordination of valuation results market value of valuation object cadastral value

Receiving date: 10.06.2020

Publication date: 30.09.2020

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