MASS VALUATION - COMPARISON BETWEEN REAL MARKET VALUE AND VALUE OF MAP VALUES (A CASE STUDY IN TIRANA CITY)

Abstract

Real estate, land is a miracle gifted by God to mankind which can be used for universal purposes and is an invaluable asset, at the same time constitutes one of the main assets for every state, or society. Also, at the same time, it represents one of the areas with the best and safest possibilities to invest, because the investment in a real estate can give higher profits and in a longer range of time than the profits that can be taken if we deposit money in the bank will, is protected from inflation and has sustainability in profit. Seeing that immovable property covers a very important position for peoples and as well as for the economy of any country, then it is necessary to make an accurate assessment for its value and to define the goals of the assessment. The goals of the assessment are many for reason like the sale, purchase, loan, financial reports, development and redevelopment, for purpose of compensation and expropriation, and many other reasons. Despite the purposes for which is done assessment of the real estate the main purpose is to determine the market value, which is the basis of the assessment of real estate. One of the main purposes of making the valuation process is the creation of map of values for the building lands and apartments. As well as to define efficiency and quality of the current methodology used for evaluation of real estate in our country and also the improvements that can be made on the current methodology to increase the quality of property assessment. iv Exists two main categories for the valuation of real estate properties that are usually used and they are individual and mass valuation of real estate, where the individual valuation generally is used for smaller areas properties and more exactly for the valuation of buildings and has a higher accuracy but is not used on the valuation of larger areas because has higher cost and needs much time, whereas the mass valuation is generally used for the properties with larger areas, in most of the cases is used for expropriation and compensation purposes. Has a smaller rate of accuracy than individual valuation but is generally used on valuation of properties with large surface, it has a lower cost and also needs less time than individual valuation to get in conclusions. To determine the market value generally the valuators are based on the transactions that are done on the market of the real estate properties, where to have a value of a higher accuracy we must have on disposition as much as possible transactions for the selling of real estate properties. The objective of this paper is to determine the factors that influence the large difference between the real value of the property and the property value based on the map of values determined by the government.