The concept of value is difficult to clearly define and has many interpretations. In order to deal with the cost should be allocated to the following social and economic factors affecting it.

The cost of real estate created 4 fundamental factors in the market: the demand for real estate from the solvent buyers; usefulness, limited supply; alienability of real estate.

Commercial real estate buyers interested in one simple thing - the income from the use of this facility. Income is measured in money, the return of property. It should be borne in mind that: the higher the income, the better, the higher the reliability of income, the better the longer you get the income, the better.

Therefore, to determine the value of the property appraiser must take into account the size, risk and time associated with obtaining income from the use of the property.

Valuation of the company - a process evaluation of the enterprise as a single functioning complex that produces profits. This process includes a reasonable estimate of fixed assets and working capital, tangible and intangible assets, current and future business income at a particular time.

Depending on the purpose of evaluation functions distinguish individual species appraised value of the enterprise. For example, in transactions of purchase - sale of the business or part of it is important to estimate its market value, with the implementation of investment - investment value, with property insurance companies - the cost of recovery in lending - collateral value, the liquidation of the company - the scrap value.

In assessing the need to define each component of property affecting the value, including intangibles (intangible) factors. An example of the influence of intangible factors can be a general impression of the property. The interior design of the building may be average, but the good impression produced by its external appearance can be very important for the buyer. Another example of intangible factors can be good character builder. Prestigious type of apartments in any area will add the cost of apartments, located nearby, but built by other developers. Flats offered for resale to individual owners will have the lowest prices. than the flat sold with the support of a major advertising company. Necessary to establish monetary value of such intangible assets and consider the object of evaluation in terms of a typical buyer, taking into account the suggestions of similar properties in a similar environment at the time of evaluation. In assessing the need to consider the potential needs and desires of the typical buyer. The cost of such opportunities then be translated into monetary form the basis of their contribution to the total cost.

Market value - is the most probable price which can be obtained from the sale of property in a competitive and open market under conditions of "equilibrium", ie buyers and sellers are rational, informed, and in negotiations the parties do not feel the pressure of any emergency. This definition includes the cost of the "normal" (equilibrium) transaction as a transfer of title from seller to buyer at a particular time if the following conditions:

motivated seller and the buyer is typical;

both parties are well informed, for example, qualified consultants, and are useful to understand their interest, there is sufficient time to identify the market reaction to the offer made;

payment is made in cash or other cash method;

compensation to the seller of the property is fully alienable before the contract price without any additional concessions and related benefits.

The cost of commercial real estate is rarely available directly from the comparison of similar sales, because the effects of various forces is very difficult to isolate and quantify. The cost of this type of real estate is subject to market forces a much larger area than, for example, residential real estate. For large objects profitable real estate market boundaries may cover the territory of the region and even the Republic. Often, investors often use for themselves objects that are thousands of miles from their headquarters.

Amendments to the cost of the tax should be made subject to the conditions of funding. No amendments to the price, if part of the cost paid by the seller, and it is common for this market. Amendments should not be done mechanically, they should take into account the market reaction to financial terms.

The sale price may differ from market value, especially if there are no certain equilibrium conditions. For example, the seller is obliged to accept the deal, giving the price, because it does not have enough time to identify the market reaction. Or the buyer is purchasing this property has a special attraction, caused by, for example, tax regulation. At the selling price also influenced by cost and availability of mortgage lending.

Consider the case where the property is used as an object invested.

Capital aims to reproduce itself in increments. Real estate is a great tool to generate income.

Typical investor, investing in real estate, is seeking, along with the return on invested capital and more return on invested capital. The investor also would like to have been compensated for all costs of income. For this investor all other pleasures associated with owning property does not have any significant value.

Analyzing the property for specific investment objectives, the investor may have in mind the market value, but more often he draws attention to the conditions of financing, potential future use and future value. These factors are compared with alternative investment opportunities to determine the investment cost. This type of cost relates to the individual investor, impersonal and reflecting the most probable behavior in the market.

For example, a large insurance company acquires an investment object in order to obtain long-term benefits. Commercial building with a lease term of 20 years are invited for a price determined on the basis of 9% capitalization rate. This value is the current market value, and the investment could ensure the internal efficiency of investment (internal rate of return) at the level of 11% for the 20-year period.

In the above example, despite the fact that the investment value based on 11% of th internal rate of return, the company may change its criterion value of investment costs, taking into account the priority of liquidity. Before you buy a building, the company discovers that she can buy a 20-year bonds issued by the lessee in the payment of 11% per annum. Because the bonds are more liquid than the shopping center, it is likely that investments will be made in securities.

Guest: Catherine Emelyanova, Project Manager Commercial Real Estate - North-West.

Eugene Yakushin: Marketing and promotion of literate - this is something without which hardly will be a successful business. In real estate, where it comes to large amounts of money, the value of these business tools is particularly noticeable. As now working marketers and advertisers in our area?

Catherine Emelyanova: According Hedhantera, in a crisis situation at the commercial property market suffered most of all marketing and advertising agency: their number has decreased by 40-50% - ie almost half. These estimates are, in fact, seem to be true. Representatives of these trades constitute a significant proportion of my friends, is why the last six months I lived like the plague the city - now and then come to the farewell message, in which new jobs are not known.

Eugene Yakushin: Why is this happening? Companies reduce these employees as useless? We, however, now taking place is very active in cooperation with the specialized print media, Internet portals. Fortunately, the news that the company enough - constantly introducing new services, we strive to offer the market what will be claimed. It does not competent marketing and PR-technologies. Although the budget for traditional advertising, we will certainly cut.

Catherine Emelyanova: I think that the crisis is most demanded professionals must become experts in marketing, PR, advertising agency. This is really trivial logic. It has become harder to sell. So should promote better and think more about what to offer the buyer.
For example, marketers. A year ago, the market selling everything that moves (more precisely, «not moving», since we are talking about real estate). For objects that will be built in the near future, an interesting concept and competent focus - a question of survival. In my opinion, those who can create such a concept, employers are required to tear apart.

Or PR-specialists? Those who are going to survive in this market, you need to think ten times before you dismiss PR man. In crisis market reputational risk is significantly higher than in the growing. Not to mention the crisis of confidence in the real estate market in general. When the object under construction will be frozen, announced the deal falls through, and company personnel will be reduced by three, because someone will have to «keep the person» and explain a grateful audience that everything that happens the result of brilliant insights of strategic leadership, and not a sign of approaching bankruptcy. Surely such a person does not need us?
About the advertisers and say nothing. When the listings of services and goods by volume are similar to the «War and Peace», man, capable of attracting the attention of potential buyers, should not be left without work. Somehow it does not fit with my idea of the universe.

Eugene Yakushin: You're right, this seems illogical, but it has become commonplace. Where «feet grow»?

Catherine Emelyanova: Now, in difficult times, survival of the fittest. For companies in need of professionals of the highest level. And these people - rare birds. Not so long ago, the market of «light sales», a specialist company was not so necessary. Could take a simpler and cheaper. And just three. And then three more, because a lot of work. It is difficult to assess the effectiveness of the department - perhaps all that is sold, it would be sold without the global cost of marketing. As John Wanamaker: "I know that half my advertising money is wasted, so just do not know - what." And while the companies had the money, the leadership has chosen not to touch a working scheme that does not make things worse. Marketing departments were padded by staff performing the task of pre-designed pattern, but unable to come up with something new.
As a result, the value of experts in the field of marketing and promotion in the eyes of employers in the real estate market has been underestimated - they simply had no chance to learn to distinguish good from bad professionals. And then, when the specter of poverty stood behind him, under reduction've come marketing and promotion, often in bulk. Without the work were professional specialists of different levels - from managers, fit only to have to send faxes to, indeed, valuable human resources.

Eugene Yakushin: The latter, however, claimed. But the general wage level decreased significantly, even for producers. It turns out that now people have to work much more and
assume greater responsibility for old money.

Catherine Emelyanova: Well even if the old ... When I look at the latest vacancies in the field of marketing and promotion of the real estate market, it makes me uneasy. Employers need a perfect marketing, public relations executive and advertiser in one person. It is desirable that he still knew how to embroider on a typewriter could ... As a reward, an amount, which can be used to hire a younger girl older podbaryshni in the operations center. And what's most annoying - employers for their part right. The market is now a huge number of unemployed specialists in different areas of marketing. And among them there are real diamonds, which is the time to buy for a pittance.

Eugene Yakushin: What do you think the future of PR and advertising in real estate?

Catherine Emelyanova: I believe that eventually the market will put everything in their places.

Eugene Yakushin: Yes, when he will take the place.

Catherine Emelyanova: But now, in a transitional period, marketers have a chance to prove their worth. New market demands new solutions and schemes, unconventional ideas and hard work. And the results of marketing efforts on the background of a falling market would be much more noticeable. Moreover, not only the employer but also its competitors. A good specialist, who will be able to create a company marketing system actually helps sales, on the meager salary is not long delayed. So let's still believe in the best: in the effectiveness of marketing in the cleansing action of the crisis, government support for business.

Eugene Yakushin: Yes, very much want to believe.