Development of Mass Appraisal Concept

Objective

• Defining functional solution for real estate mass valuation for the purpose of taxation, in cooperation with tax administration
• Transparent register of sales value, providing for overview of real market data for the purpose of valuation
• Methodology and framework for mass valuation, for the purpose of property tax calculation
• Development and reform of legal framework, for the purpose of better support to be provided by mass valuation based on market values
• Establishing organizational framework within the RGA, for the purpose of mass valuation
• Establishing institutional cooperation; coordination of activities and defining responsibilities for data exchange and distribution for the purposes of market value based real estate valuation

Quantitative and qualitative outcomes with indicators

Expected results are:

• Functional solutions for real estate mass valuation for the purpose of taxation in cooperation with local government;
• Transparent register of purchase prices, offering data on real estate market, to be available for the purpose of valuation;
• Methodology and framework for mass valuation providing for real estate taxation;
• Development and reform of legal framework, supporting market value based mass valuation;
• Establishing organizational framework within the RGA for the purposes of mass valuation based on market information;
• Establishing institutional cooperation; coordination of work and defining responsibilities for data exchange for the purpose of mass valuation based on market information.

Indicators:

• Number of transactions in sales price register available for the purpose of valuation and other public purposes (Reports and statistics);
• Establishing legal framework for real estate mass valuation system – drafting laws or rulebooks (Reports);
• Organizational framework change within the RGA, in order to accommodate needs for implementation of real estate mass valuation (Reports); and
• Establishing mass valuation model, developed for different types of real estates (Reports).
• Establishing MPVN information system.

Approach and methodology

• Study visits to Sweden and Slovenia for the purpose of acquiring knowledge and experience in the field of real estate mass valuation
• Support for transaction register establishing, including business processes, technical specification, documentation of the architecture and system operation, cooperation between stakeholders, etc.
• Support for development of mass valuation concept for all types of real estates, including legal framework, GIS solutions, market analyses, valuation factors defining and establishing, definition of valuation zone, graphical presentation, etc.
• Support for training program development for the RGA staff, as well as for tax administration staff
• Support for development and maintenance of transactions register and RGA’s support for tax administration.