“The owner may not receive the full value of their home” - experts on the mass valuation of residential properties
Using mass valuation results to determine compensation for property demolitions could work to the detriment of property owners. In an interview with Kun.uz, it was noted that under such valuation, there is a risk that the individual characteristics of each house, additional structures not included in the cadastre, and trees and vegetation may not be fully taken into account. As a result, compensation may not cover the actual value of the property, the expert believes.
“The owner may not receive the full value of their home” — experts on mass valuation of residential properties
They state that the “near-market value” determined through mass valuation cannot replace the market value of a specific real estate property. If a lower value established for tax calculations is used as the basis for compensation, it could work to the detriment of the property owner.
“If it is below the market price, it damages the interests of the property owner”
According to Shuhrat Abduvahobov's explanation, in mass valuation, real estate properties are categorized into groups, and the value is determined based on generalized data. Compensation, however, is paid for a specific property. Therefore, it is necessary to study its individual characteristics separately.
“In mass valuation, real estate properties are grouped by type, and the obtained data is brought to a single reference price. Then this price is multiplied by the area of the real estate property to determine its value.
The reason why this cannot be applied when determining the amount of compensation is that there is no individual approach. The actual value of the object being compensated may be lower or higher than the average value. If it is higher, it damages the interests of the property owner. If it is lower, it can also damage the interests of the state,” he said.
In the interview, the expert specifically addressed the situation where the results of mass valuation are formed below market value. According to him, using such a value to calculate compensation will not allow the property owner to receive the market price of their home.
“If the center's employees are saying that 'we have valued it significantly below market value', then when determining the amount of compensation, this will naturally not give the market price, but a price lower than it. This damages the interests of the property owner.
Some citizens, in particular owners of individual residential properties and private houses with yards, are saying that the valuation result is significantly lower than the real market value. If land is confiscated for state or public needs tomorrow, applying the results of mass valuation for compensation will damage the interests of property owners,” Abduvahobov said.