Each reviewer of Property Valuation guided by certain rules in their own conditioning. These morals are the base for the principles of the specialist’s exertion.
Everything in this area can be divided into two groups
• principles that express the relationship of different corridor of the object;
• principles that determine the relationship of the stoner to the object.
The first group includes the following types of principles
• The most salutary operation. It means that the rational use of property is possible only within the frame of the law.
• Changes in time. It expresses the possibility of changing the price over time of the property being valued.
• The presence of competition. Its substance lies in the fact that when the income from the trade of real estate is lesser than the quantum of its accession and the cost of its conservation, also the force of the same objects will increase over time. For this reason, the profit from the trade of each object will drop.
• The relationship between force and demand. The price of an object is affected by the demand for analogous objects, the cost also depends on the volume of proffers.
• The principle of conformity. The price of real estate will be the advanced, the better it’ll havecharacteristics.However, also it’ll be economically untenable, If the object doesn’t meet request norms.
• The dependence of the price on the characteristics. The characteristics of the object directly affect the price.
• profitable division. It’s further rational to transfigure the rights to property so that there’s an increase in the price.
• Balance. The maximum profit from the use of the object can be attained only if a balance is maintained between different price factors.
• adding and dwindling returns. When investing coffers in one of the styles of generating income from the object used, the return on this will first increase, and also gradationally drop.
The alternate group of principles includes the following types
• stoner anticipation. It’s necessary that the current state of the property is reflected in the stoner’s prospects regarding the income from the use of the property in the present and unborn. This principle reflects that value is determined by the current quantum of income anticipated to be entered in the future.
• Negotiation. The maximum price at which real estate can be vended depends on the maximum price at which analogous parcels are vended. This principle means that the buyer has options to choose from. It reflects that a relief can always be set up for the object being estimated.
• mileage. mileage refers to the capability of Property Valuation to meet the requirements of druggies in a certain place and at a certain time. This principle reflects the useful parcels of real estate that its proprietor can use in the present and unborn.
Without the below principles, it’s insolvable to completely and qualitatively assess the property. On their base, the main criteria are created, which form the base of styles for assessing objects.