What is the difference between the market and cadastral value of apartments

today, in relation to real estate there are 2 concepts of value: market and cadastral. Between these concepts there is a very significant difference which we will discuss further.

Cadastral value: Features

many people ask the question: "?". The cadastral value have little in common with the market. It equals the sum of the cost of construction minus depreciation of the building.

No elite repair, no comfort, no district, in no way on the cadastral value is not affected. Directly in its calculation take into account only the fundamental factors that are significant for the total value of specific housing in a defined structure.

the Cadastral value necessary for miscalculations of fees that they pay homeowners at its disposal, and also for tax calculations. For example, when inheriting, buying mortgages, donation, i.e. when calculating various characteristics of the apartment, which are expressed in monetary terms.

Market price: Features

Market value is calculated purely by the conditions of the real estate market. In fact, the apartment is worth exactly what the buyer is willing to pay for it. It is influenced by seasonality, political events, currency rate and many other factors, under whose influence the cost of housing falls, increasing.

It is the instability of the market value of the apartment makes real estate transactions in a very risky operation. So, people can be left with nothing if changing housing sell his apartment and quickly acquire new, as "raised to heaven" the cost can suddenly make the purchase of a new apartment is impossible.

vs Market cadastral cost Comparison

the Market value of housing reflects the real situation on the real estate market. It is almost in all cases higher than cadastral.

Often, the market and the cadastral value is the same in old houses that few are appreciated in the market. In the majority of cases, the cadastral value of 30, and even 50 % below market.

Translated by "Yandex.Translate": translate.yandex.ru.