What is the difference between cadastral value and market value?

Real estate always remains the most important segment in market relations for citizens. All real estate objects are under the control of the state. They are subject to strict accounting, and taxes from individuals are transferred from them to the state treasury. In this regard, all issues related to real estate are regulated at the legislative level.

To complete all transactions, you need to know the cost of a plot of land or an apartment. The amount that the owner can set will depend on its size.

The market and cadastral value of objects is important when applying for a mortgage loan; it is necessary if disputes arise that can only be resolved in court.

What you need to know

The concept of cadastral value has appeared recently. But with its emergence, the term market value did not cease to exist. Market value is familiar to all citizens. It plays a big role in determining the amount of transactions. This is the likely price that can be set for the property on the real estate market.

It is established without taking into account taxes and costs that are necessary to complete the transaction. The cadastral value is determined as a result of an examination.

The procedure is carried out only by employees of the cadastral service in the manner prescribed by law. When calculating the cost, the intended purpose of the property is taken into account. The results obtained are entered into the state cadastre register.

Calculating the value of a property is necessary for many purposes:

• The amount of property tax is determined based on the cadastral value;
• the market price is necessary to formalize a purchase and sale transaction, apartment rental, or donation;
• the value according to the cadastre is necessary in order to determine the amount of the state duty if the real estate issue needs to be resolved in court.

Market and cadastral value have different meanings to each other.

The need to establish

In real estate matters, both cadastral and market values ​​play a role.

Assessment activities are carried out in the following cases:

• if a citizen plans to buy a plot of land from state property;
• when transferring a contribution to the authorized capital of the enterprise;
• in the case where a citizen purchases a plot of land with a mortgage;
• to determine the average cost of a plot when putting it up for sale;
• to determine the amount of tax that must be paid if the land is transferred into ownership under a gift agreement.

An assessment of the value of land is necessary when spouses divorce and divide jointly acquired property. It is required when registering an inheritance in which there are several heirs. If the process drags on for a long time, the market value may be determined several times.

We will also tell you what the cadastral value of a land plot means.

The concept and features of the cadastral value of an apartment

The cadastral value of an apartment is the value established by special government bodies on the basis of legislation on valuation activities.

Features of cadastral value:

• The mass valuation method is used;
• Established only by independent cadastral appraisers, to whom the state has assigned the appropriate powers;
• The procedure is strictly regulated by law;
• Used to calculate the tax burden;
• The calculation is based on data previously entered into the real estate cadastre;
• It is periodic (revision is carried out once a year or once every 5 years).

Factors influencing the cadastral value of an apartment:

1. Market prices for a specific property;
2. Economic situation in the country (region, locality);
3. Average monthly salary for a specific region;
4. The cost of the land plot on which the apartment is located;
5. Type, category, size, deterioration of the building;
6. Location and total number of rooms in the building;
7. Type of ownership;
8. Possibility of receiving income from commercial activities (if the property is sold under a lease or social tenancy agreement);
9. Number of storeys.

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The ratio of market and cadastral value of a land plot

The cadastral value must be lower than the market value. This ratio between the market and cadastral value of a land plot is due to the fact that the RS is established depending on the demand for these objects. Until 2012, the difference was very large.

When calculating tax payments, the following rules apply:

• if the price under the purchase and sale agreement is 70% higher than the value according to the cadastre, then the market price will be used for the calculation;
• when selling a plot cheaper, the tax will be set at 70% of the cost according to the cadastre;
• if Rosreestr has not carried out an assessment, the full cost of the contract will be taken into account.

Despite the different indicators, cadastral and market values ​​are interconnected. This connection is reflected in the fact that when calculating the value according to the cadastre, the average RS of real estate in the region is taken.

MS has more specific characteristics and depends on many factors. It changes frequently, and cadastral valuation is carried out every five years.

Can one be higher than the other?

Questions often arise as to why the SC of a land plot is higher than the market value. It is important that the cost according to the cadastre is not inflated. This will result in the owner having to pay higher taxes. According to calculation practice, the cadastral price should not be much lower than the market price; their indicators should be approximately the same.

As a result, it turns out that the cadastral value shows the average data for the mass valuation. This can lead to the fact that the cadastral price for a certain plot will be much higher than the market price. It will never be possible to sell the plot at this price.

This problem became especially relevant in 2013, when the KS of sections was recalculated. Most of them became even taller than they were.

Features of calculating cadastral value

The cadastre calculation is carried out by employees of specialized state services, which initially respect the interests of the government. Laws on state real estate valuation recommend using only general rules for calculations, so the real market value of an apartment or house will always differ from the cadastral value of a land plot or apartment.

The market price of real estate depends on a variety of factors that are not taken into account when determining the register and cadastral value. The housing market dictates certain conditions when conducting real estate transactions. At the same time, many homeowners and tenants are interested in the question of how the cadastral value differs from the market value.

Significant differences between the actual value and the estimated value appear due to the following reasons:

• increased or decreased market demand for housing;
• time of season;
• market recovery or decline;
• assessment flexibility;
• competitiveness;
• ratio (balance) of supply and demand;
• unreasonable overestimation of the cadastre value.

The state tax base consists of budget revenues in amounts that depend on the size of the cadastral value of real estate. The answer to the question why the cadastre became higher than market prices lies in the following:

1. When the tax reform came into effect, there was a certain rise in real estate prices.
2. Over time, land has changed in price, many rates have lost their relevance.
3. Low solvency of the population.
4. When determining cadastres, the location of the objects being assessed is not taken into account.

To make price calculations more similar to reality, special coefficients are used. With their help, the cadastral and market value of a land plot or other real estate object are close in value to each other. However, it is very difficult to achieve a complete match.

To clarify the price, the values ​​of market prices for similar objects in a given region are often taken into account. But, because the law does not regulate the number of objects being compared; the result does not always satisfy the interests of the parties. Often no one checks the sources of information and the relevance of prices, which means more mistakes are made.

How does real estate valuation work?

It is necessary for the owner to know the KS of his plot in order to control the amount of tax payments. The cost according to the cadastre is set once every five years at the initiative of a government agency.

Several methods are used for this:

It is important to closely monitor changes in the tax code, as it directly affects the amount of tax that the landowner must pay annually.

The appraisal company must be provided with title documents and data on the cadastral value, which is recorded in the database. Currently, citizens are not issued a certificate of ownership. It is replaced by an extract from the Unified State Register, which indicates all the data on the object and its owners.

After providing all the necessary documents, specialists go to the site. They evaluate the appearance of the site, the presence of ditches, and swampy areas.

Many factors are taken into account when assessing. These include location, distance from the road, availability of communications or the possibility of connecting them. After the examination, the citizen is given a report.

It should contain:

• appearance of the site and its characteristics;
• information about the owner of the object;
• the methodology by which the assessment procedure was carried out;
• total with cadastral value.

Based on the data obtained, a comparison can be made with the official cadastre value available in the database.

What to do if the indicator is too high

If a citizen understands that the cadastral value of his property is very high and does not correspond to reality, he can challenge it. There are two ways to do this. If less than six months have passed since the value was entered into the unified register, the citizen can apply to the dispute resolution commission under the management of Rosreestr.

As evidence of an incorrect assessment, you can provide the result of an assessment check by an independent organization, which must be done first. If more than six months have passed, then you only need to go to court.

If the plaintiff has substantial evidence that the assessment was carried out incorrectly, the miracle will most often side with the citizen. There is a better chance of getting a positive decision in court. The Rosreestr Commission less often takes the side of the landowner.

If a positive decision is made and the cadastral value is reduced, the owner of the plot will have to reimburse all overpaid amounts.

Cadastral and market value are important indicators for all land owners. Correct estimates help you avoid unnecessary expenses when paying taxes.

Find out below how to view a cadastral map of land plots.

We will also tell you how to re-register a cadastral passport for a land plot.

Difference of coefficients and cases of excess of one indicator over another

Each region has its own calculation coefficients. You may notice that the cost of apartments in the western part of the country is much higher than in the eastern part. This is due to territorial coefficients taken into account by the cadastre and cartography authorities. The difference per square meter can reach several hundred thousand.

Cases where the cadastral value exceeds the market value are not common; the reasons for this may be:

1. The apartment is located in a new building;
2. Expensive building materials were used in the construction of the house;
3. The cadastral valuation was carried out on the basis of incorrect data entered into the real estate cadastre.

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The excess cadastral value directly affects the amount of tax. To exclude an overpayment, you can dispute it in one of the following ways:

1. Out of court (by filing an application with a special commission under Rosreestr);
2. Judicially.

What is the difference between market value and cadastral value of land?

Lands are valued according to their intended purpose. For example, settlement lands are assessed on the basis of an analysis of market information on purchase and sale transactions, the cost of offers of real estate, rental rates, information about engineering and transport infrastructure, social and community facilities, the state of the environment, landscape value in historical and architectural and aesthetic terms. To evaluate agricultural land, it is necessary to take into account a whole set of parameters: actual yield indicators of main crops, the degree of productivity of perennial plantings, hayfields and pastures, the structure of crop areas, the cost of selling certain types of agricultural products in the region, as well as the costs associated with the process of plant cultivation .

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Market and cadastral value of land

The cadastral value of land is a value that is calculated in the process of the state conducting a cadastral valuation of land, and they are necessarily divided into classes according to their intended purpose. The “Rules for Cadastral Valuation of Lands” stipulate that the cadastral value of land is based on data on price levels on the market, rates of rent for territories within the boundaries of settlements.

The cadastral value of land serves as a basic indicator when calculating taxes, since the determination of land tax today depends specifically on the cadastral value. It also serves as the basis for restrictions on the disposal of land plots. The Land Code includes a whole set of procedures that refer to the cadastral value indicator. It turns out that this is a guideline that is prescribed by the state itself as a calculation indicator for determining the redemption value of a plot of land and other standards.

Market value is a measure of the price most often seen on the open market. In fact, this is the most likely price at which the property will be sold in an open market with healthy competition. If we talk about the difference between the cadastral and market value of land, then it is worth keeping in mind that the latter is typical for the secondary market. For the primary market, a standard value is used, at which plots of land from state and municipal property are purchased by private individuals. It turns out that it is impossible to determine the market value without the presence of a developed market. Only as a result of an analysis of completed transactions, taking into account the necessary amendments, can the most probable price level be determined for any land plot.

The difference between the cadastral and market value of land is quite significant, comparable to the difference between the market and inventory value of structures and buildings. Quite often, owners or tenants of land may argue that tax payments for them are high without any particular reason. The whole point here is that these two numbers can differ greatly. For example, the cadastral value of land used for the placement of profitable real estate in the most significant parts of the city may be lower than the market value. And lands that serve as locations for industrial facilities are often characterized by a higher cadastral value compared to the market value. In the latter case, it is quite natural that rental payments and land taxes will be perceived as inflated.

Review of information on cadastral and market value

The main purpose of the cadastral value is to calculate taxes. Cadastral valuation is mass, that is, it is not based on an individual approach. The customer of such an assessment is the state. Therefore, it is this type of value that is used to calculate rent for the use of municipal land, to determine the amount of redemption of plots, tax for purchase and sale transactions, donations, etc. Notary services are also calculated based on the cadastral value.

Cadastral value has clear areas of application. While market value is the most likely price at which a plot can be alienated on the market in a competitive environment. The market value depends on a wide variety of factors: ecology, distance from the center, view of the adjacent territory, and much more. The market value is determined by professional appraisers using calculation formulas and correction factors. In market conditions, owners do not always use professional reports, setting their own competitive price. The seller is free, at his own discretion, to deviate from the average price on the market up or down.

The ratio of cadastral and market value:

The ratio of cadastral and market value of land

A rather serious problem is the frequent discrepancy between the cadastral and market value of land, this is due to the fact that all payments, including taxes, are calculated on the basis of the cadastral value. When it comes to overestimating this amount, you have to pay many times more. The cadastral value must be the public equivalent of the real value of the site, that is, it must approximately correspond to the market value. Most often this is not the case. The whole problem is to carry out cadastral valuation on a mass scale, without taking into account the individual characteristics of each specific site.

The result of this is the reflection through the cadastral value of certain averaged mass valuation data. The obtained data is far from the real market value of the plots, and there may be a noticeable overestimation of the cadastral value. The result of this is the inability to sell individual plots of land at prices equal to their cadastral value. This problem became especially acute in 2013, when the established indicators turned out to be noticeably higher than the market ones. Representatives of homeowners and business structures did not approve of this, as it led to an increase in the cost of renting land that was owned by the state and in tax payments. Article 66 of the Land Code of the Russian Federation stipulates the need to set the cadastral value equal to the market value.

What to do if the cadastral value differs quite noticeably?

This situation requires bringing the cadastral value into line with the market value, which is done by applying to the dispute resolution commission located under the territorial administration of Rosreestr, or by going to court. The main argument may be the result of a cadastral assessment carried out by companies conducting an independent examination. The best option, which will definitely bring results, would be to contact the judicial authorities with a drafted statement of claim, which is dictated by very specific reasons.

The first of them is that the plaintiff already has objective grounds for the cadastral value to be revised; this is stated in the results of the assessment of independent structures. This significantly increases the chances of winning the court on your side. The Dispute Commission working in the Rosreestr branch does not show such loyalty to land owners. The second reason is that information about the increase in the cadastral value of land becomes known to the owner at the moment when he receives a notification with the amount of the accrued tax. At this point, the time allotted by the Rosreestr commission to appeal the cadastral value has expired.

How to make the cadastral value less than the market value?

By choosing the right approach to solving the issue, this can be achieved. It’s all due to the fact that government bodies that conduct cadastral valuation of land do not have the time or financial resources to hire outside experts to competently defend their own interests in court. At the same time, the landowner is interested in establishing the minimum possible cadastral value, since this allows him to legally save on tax payments. That is why the right decision would be to attract qualified appraisers and lawyers who can reduce the cadastral value in the future.

The only problem in the future concerns the time frame for judicial review - it can be very long. However, the result is worth it.

How to find out or determine cadastral and market value

You can find out the cadastral value in one of several ways:

1. Cost calculation using the official website of Rosreestr (information may not be relevant due to outdated data);
2. According to the information in the electronic cadastral passport of the apartment (paid service, about 200 rubles);
3. According to a cadastral passport on paper, received at the BTI when registering ownership of an apartment or a cadastral certificate (if the document is missing or it is known that the information contained in it is outdated, you must order a new copy);

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It is important to understand that it is impossible to calculate the cadastral value yourself, since only authorized persons have access to special documents on the basis of which the indicators are compiled. In addition, cadastral valuation standards are constantly changing.

You can determine the market value of an apartment using one of several methods:

1. Income method (the method is based on the liquidity of the apartment and does not take into account the price of other similar offers);
2. Cost method (calculated based on the costs incurred during the construction of the object and is more often used for unfinished construction projects);
3. Comparative method (takes into account a combination of factors, but may not take into account some individual indicators).

Market value calculation can be carried out:

• By independent efforts (without special knowledge or experience, the likelihood of obtaining objective data decreases);
• With the help of an independent appraiser, a realtor licensed to carry out this type of activity (at the end of the examination, a document is issued that has legal force and can act as an evidence base when challenging the cadastral value or when entering into obligations).

The cadastral value can be equated to the market value in the following cases:

1. An appropriate decision has been made by a court or a specially authorized commission;
2. If it is not possible to create and apply a mathematical model of the value of an object;
3. Property value data varies widely among individual information sources;
4. An objective calculation of cadastral value is impossible or difficult when using existing methodological recommendations;
5. Cadastral value indicators disproportionately exceed market value indicators.

How do cadastral and market values ​​of land compare?

The cadastral and market value of a land plot can vary quite significantly. They are used for different purposes. They are also defined differently.

The cadastral value of real estate is calculated when it is registered in the cadastral register. This information, along with other information regarding the object, is stored in the Rosreestr databases. Previously, it was also recorded in the cadastral passport, and now in the extract from the Unified State Register of Real Estate that replaced it.

Instructions on how the assessment should be carried out are being developed by the Russian Ministry of Economic Development. And it is dealt with by appraisal organizations, with which the territorial divisions of Rosreestr enter into contracts. This procedure should occur:

• at least once every 5 years;
• but not more often than once every 3 (in Moscow and St. Petersburg 2) years.

Typically, the cost increases over time. This is due to an increase in the general price level.

When calculating, the following is taken into account:

• location (district and location within it);
• condition of engineering networks;
• infrastructure and environment (kindergartens, parks, large industrial enterprises, highways, etc.);
• category and type of use;
• etc.

Based on this, the cost per square meter of land is determined. After multiplying by the area of ​​the object, its cadastral value is obtained.

If necessary, you can find out this cost by looking at your passport or extract. But they are issued only to the owners. For others, there are the following methods:

1. request from the Rosreestr branch to which this object belongs;
2. find out this information on the website of this organization;
3. or look at the Public Cadastral Map.

To do this, you need to know the cadastral number and/or address of the site. But this information will be for reference only.

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Why is the cadastral value of a land plot needed?

Cadastral value is required for:

• determining the amount of income tax upon sale;
• land tax;
• establishing a notary's remuneration for certain transactions (for example, receiving an inheritance);
• establishing rental rates for state land;
• in legal disputes (in particular, division of property).

Market value is the approximate price at which land can be sold. It is determined by comparison with similar objects. The following factors are relevant:

• environment;
• location in the area;
• presence of buildings and structures;
• the presence of utility networks on the site or proximity to it;
• economic situation in the region;
• distance from populated areas;
• transport accessibility;
• and others.

Depending on the specific purpose of the assessment, the importance of one or another factor for the overall result may be different. The general economic situation and the state of the real estate market at the time of the assessment are also taken into account.

Market value can be used:

• when putting up real estate for sale;
• to determine rent;
• notary fees when registering an inheritance;
• in legal disputes;
• and so on.

To determine this value, in many cases a special assessment procedure is performed. Knowing the possible price of real estate allows you not to waste time or money when selling it. If you list a property for too high a price, it will not sell for a long time. If it is too low, the seller will receive less profit.

In addition, in many cases it is necessary not only to know the price, but also to justify it. An assessment report can be such a document.

Independent appraisers will help with this, they will assess the value of the land and present it in a substantiated manner. They can work independently or as part of a company. This could be a specialized appraisal organization, a real estate agency or a law firm.

Such a specialist must have a professional education in the field of valuation and be a member of a self-regulatory organization of appraisers. His authority is confirmed by a diploma of education, a certificate and an extract from the register of appraisers. If the assessment is unreliable, the specialist bears financial responsibility for it. The activities of appraisers are determined by Law No. 135-FZ of July 29, 1998.

The owner enters into an agreement with the appraiser or organization and provides the necessary documents, namely:

1. Passport.
2. Certificate of ownership of land.
3. The document on the basis of which he owns the site. This could be a contract of sale, gift, will, etc.

After this, the assessment procedure begins. During it, analysis takes place. The appraiser studies the documentation and goes to the site to personally check the condition of the property.

An assessment report is then prepared. It is a numbered and bound document signed by the appraiser. If a specialist works for a company, its seal is affixed. The report includes sections:

1. Assessment task.
2. Description of the assessment object itself and the process.
3. Market analysis.
4. Key facts and conclusions.
5. Reconciliation of results.

This document is bound, each page is numbered. At the end, the appraiser’s signature and the company’s seal are affixed, if the specialist works for it. Copies of all papers that were analyzed during the assessment process are attached to the report.

As a rule, the cadastral value is lower than the market value. Previously, this difference was quite large. But since 2012, a revaluation of land has been carried out with an increase in cadastral value and bringing it closer to the market value. Today, in most cases they differ by approximately 20-25%.

The following rules apply regarding the payment of taxes when selling land:

1. If the value under the purchase and sale agreement is higher than 70% of the cadastral value, then the market value is taken.
2. If the plot is sold cheaper, then the tax amount is calculated from 70% of the cadastral value.
3. If for some reason Rosreestr did not carry out an assessment, the full price under the contract is taken into account.

If the owner believes that the cadastral value of the plot is overestimated, he has the right to challenge it. Within six months after the assessment, this can be done out of court. To do this, you need to contact a special land commission at the location of the land (for example, in Moscow this is a commission under the Land Department).

It is necessary to write an application for revision of the cadastral value. It is drawn up in free form, and the following documents are also attached:

1. Owner's passport.
2. Documents on land ownership (certificate of ownership, extract from the Unified State Register or Unified State Register);
3. Documents on the basis of which it arose.
4. Valuation report (this can be obtained in the same way as for market value).

If more than 6 months have passed or the commission has refused to review, you will have to go to court. The same documents are attached, you can add others if they can somehow influence the decision.

If the cadastral value decreases, the owner must be compensated for the damage. This applies, for example, to overpaid taxes.

How to obtain information about cadastral and market value

Information on cadastral value is freely available on the Rosreestr website. Use reference information or the Public Map by searching for the desired site by address or cadastral number.

If you need an official document with data on the cadastral value, order an extract from the Unified State Register of Real Estate through the multifunctional center. You can also use the specialized or interactive cadastral map below. An electronic statement will cost you less, and the receipt time will be reduced.

If you decide to challenge the cadastral value, you will definitely need a report on the market value. It can be ordered from appraisal companies.

Information about the approximate market value of a land plot will be provided by a review of the market, which contains offers for the sale of plots in the same area where your plot is located and with similar characteristics. You can use any resources that publish advertisements for the sale of plots.

Cadastral and market value of the land plot

To perform the above actions, you need to know the value of real estate, be it a plot of land, other land, an apartment, a house. The price that the owner has the right to ask for his real estate will depend on this value. Banks also rely on this indicator before applying for a loan, as well as court decisions in disputes about the division of property. Moreover, the most important indicator for the state of the value of real estate (a plot of land, an apartment, a house) is the tax charge.

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The essence of cadastral value

Cadastral value is a relatively new concept, but it does not at all displace market valuation. This cost is established by conducting an examination (assessment) by employees of the cadastral registry service in the prescribed manner. This takes into account the intended purpose of the apartment, house, land, commercial land plot, other real estate, as well as commissioning and area.

In other words, the registered value is a state assessment with the entry of the assessment into the register.

Relationship and difference

Since market and cadastral values ​​have different ratios to each other, the register price is still, in a sense, based on the market price. This is already evidenced by the fact that when calculating the cadastral valuation, the average price of real estate in the region is taken into account, and not between all. Of course, not in its pure form, but taking into account legislative norms and cadastre rules. Similarly, in addition to demand, the list price is now taken into account in the market valuation.

The difference in these two estimates is that the market price has more general characteristics and strongly depends on demand, while the cadastral price focuses on the pricing policy of each region separately. Therefore, it often happens that the cadastral price may be lower than the market price, rarely higher or equal, and this affects the tax that the owner pays. Often such issues have to be challenged in court.

It can also be noted that the difference between market and cadastral value is based on the influence of demand on the one hand and intended use on the other.

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The ratio of market value and cadastral value

• Market value is unofficial, but the indicator is more objective;
• The cadastral valuation does not take into account a number of factors (for example, seasonality, consumer demand, general market condition, availability of high-quality repairs, furniture, equipment);
• The cadastral indicator is not as flexible as the market indicator;
• Market value is manifested through the balance of supply and demand, competitiveness, and cadastral value through material analysis;
• The cadastral value is based on a calculation mechanism, which can cause significant errors and, as a result, lead to inflated prices.

In practice, there are often cases of government agencies overestimating the final cadastral price by several times compared to the market price. This results in a larger tax payable on the property.

Property valuation

Today, any actions regarding a plot of land, dacha land, apartment, house, non-residential premises, or other real estate are legally impossible without registering it and without calculating the cadastral value. These issues are dealt with by government bodies, namely Rosreestr.

An examination is carried out by a commission of the register authority after the owner submits an application for registration (registration of real estate). If all documents along with the application were submitted correctly and were approved, the property is included in the list, in order of which the cadastral valuation will be carried out. But even after this stage you need to wait until the assessment is approved. Only when the data is entered into the unified electronic database of the state real estate register will the owner be given all his legal documents.

Typically, the assessment is carried out within thirty days after submitting the application, and within the next ten days all decisions made on the cadastral value must be approved.

Despite the fact that this widget is used to order a paid extract from the Unified State Register of Real Estate, before ordering you can find out the cadastral value of the property completely free of charge.

Establishment and inconsistencies

Once the cadastral price is approved and entered into the Rosreestr database, it becomes available to all interested parties.

You can view and check in the future how much it has changed in several ways:

If the cadastral value can be found to be lower than the market value (rarely is it higher, but it is also equal) or the information is entered incorrectly or differs from what was entered in the passport, the owner does not agree with the calculation of the tax amount, he has the right to submit an application to Rosreestr for revaluation of the apartment , land plot, other real estate.

If after this it was not possible to restore justice, it makes sense to file a lawsuit and challenge the decision of the state registry. The court will determine the final amount of the value of the disputed property.

Our articles talk about typical ways to resolve legal issues, but each case is unique. If you want to find out how to solve your particular problem, please contact the online consultant form.

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Cadastral and market value of the land plot

The frequent discrepancy between the cadastral value of land and the real value is a serious problem. After all, all payments, such as land tax, etc. are calculated based on the cadastral value.

And if this cost turns out to be too high, then you will have to pay significantly more. Why can the cadastral value of a land plot differ significantly from the real one and in what ways can this be used to your advantage? This is what we will talk about.

What is cadastral value and why does it create problems?

The cadastral value is defined as the public equivalent of the real value of the site. In fact, the cadastral value should at least approximately correspond to its market value.

However, this is most often not the case. The fact is that cadastral valuation of land plots is carried out en masse, without taking into account any individual characteristics of a particular land plot.

As a result, it turns out that the cadastral value reflects only some averaged mass valuation data. The resulting figures in most cases are quite far from the real value of a particular plot of land on the real estate market. Most often, the cadastral value turns out to be significantly higher than the market value. That is, it is simply impossible to sell a specific plot for an amount equal to its cadastral value.

The problem of discrepancy between the cadastral value of a plot and its market price became especially acute in 2013. Since 2013, a new cadastral value of plots was established, which turned out to be even higher than before.

This fact was met with heated disapproval from both private landowners and businesses. After all, along with it, the amount of land tax accrual has increased, as well as the cost of renting land owned by the state.

According to Article 66 of the Land Code of the Russian Federation, the cadastral value of a land plot is set equal to its market value.

How are the problems of inflated cadastral value solved?

You can bring the cadastral value of a plot into line with the market value by contacting the dispute resolution commission at the territorial administration of Rosreestr or the court.

The results of a cadastral assessment performed by an independent expert can be presented as the main argument.

It is most productive to immediately file a claim in court. This is due to two reasons.

The first reason is that if the plaintiff (in our case, the landowner) has objective grounds for revising the cadastral value in the form of, for example, the results of an independent expert assessment, the court is more likely to take his side. The attitude of the dispute commission in the Rosreestr branch in most cases is not so loyal to the landowner.

The second reason is that land owners learn about the increased cadastral value only when they receive a tax assessment notice. And by this time, the time allotted for appealing the cadastral valuation to the Rosreestr commission has already passed.

At the moment, we can already talk about the established positive practice of bringing the cadastral value of land plots in line with their actual market value in most cases.

But this is not the limit.

Statistics: how cadastral and market values ​​compare

As for statistics, the cadastral value of land plots significantly exceeds the market value. The greatest discrepancy occurs on lands used for commerce, industry, and agricultural lands. When determining the KS, appraisers use comparative analysis, and there is not much information on the market regarding land plots.

For example , the cadastral value of apartments and other real estate is generally approximately equal to the market value, while some categories of land plots are determined with a significant excess.

This can be explained by the fact that the market contains a sufficient number of offers for the sale of apartments, private houses, and buildings for various purposes, which makes it possible to successfully apply a comparative approach when calculating the cadastral value. While there are not many advertisements containing similar characteristics for land plots.