The allowable discrepancy in the definition of value for typical real estate is about 15%

In the Ukrainian valuation market, the allowable discrepancy in determining the value for typical real estate is about 15%.


This was stated by CEO of Uvecon Group of Companies Volodymyr Shalayev.


In his view, the main reason for the difference in assessment is the quality of information resources used to calculate the price.


"Evaluation automation is a very painstaking process that requires not only money and time, but also a deep understanding of the pricing process, analysis of supply and demand, a competent technical task for developers, etc.", said the expert


According to the expert, electronic valuation of real estate is an important reference point for determining the market value of real estate, but the analysis itself should be based on a comparable number of parameters with the valuation of the object by an independent specialist.


"For example, for residential real estate, these parameters should be at least 7-10: location, area, technical condition, quality of interior decoration, bargaining power, as well as some other indicators", - said the expert.


He stressed that certain difficulties in the work of the service of electronic valuation of the SPF of Ukraine are associated with the impossibility of full automated real estate appraisal.

“Automated assessment can only be effective for typical homes. For all other facilities, a semi-automated system involving appraisers should be used. Despite the development of IT technologies, it is still impossible to automate 100% assessment of commercial or other complex objects.

The latest technologies, on the basis of which automated evaluation systems are developed, can be useful for understanding the order of prices”, - Vladimir Shalayev summed up.