There are not isolated cases when the construction of an object is interrupted at a certain stage. And the reason for this may be various factors: lack of funds, disloyal policy of the developer when the market situation changes, and much more. The target direction of an unfinished building object plays an important role, since it is possible to use it not only for its intended purpose, but also to re-profil it, depending on the established permit for this land plot.
Why do we need an estimate of construction in progress
- Using this object as collateral for loans. However, it may be difficult for a bank to assess its liquidity.
- Using an unfinished structure as a share capital contribution.
- Insurance.
- Purchase of a municipal property.
- Balancing the buildingorganizations.
- Evaluation of construction in progress will be required to complete a purchase or sale transaction. Most often, the new owner of such an object expects additional expenses for registration, technical expertise and connection of communications. Therefore, they are more willing to purchase real estate, the documents for which are in perfect order.
- Making decisions regarding this construction project in progress. This refers to how realistic it is to change the operational purpose. Sometimes the basis of an unfinished building allows it to be completely rebuilt and made suitable for completely different purposes.
- Sometimes a construction-in-progress appraisal is used for a profitable sale not of an object, but of the land plot under it. Since in most cases it is not the structure itself that is highly valued, but the occupied area, which can be used for various needs.
Estimation of construction in progress by specialists is possible with the following documents:
- Total project cost, cost estimate.
- Technical characteristics and purpose of the object.
- The cost of construction and installation works performed at the actual and base price.
- Acceptance certificates.
- Acts for hidden works.
- Title documents for the land plot.
- Book value of the object.
Possession documents for construction in progress after purchase are confirmed by estimate documentation and permission tocontinuation of the construction of the object. After the completion of the work, the right of ownership to it is issued. And only after that registration in MBTI is allowed.
Most often, the examination of construction in progress is assigned to buildings and structures. An objective assessment of such a procedure requires a correct classification of objects. This is what will allow unfinished buildings to act as income-generating real estate in the future. According to the norms for the design of objects, all buildings and structures for their intended purpose are divided into several types:
- Production.
- Public.
- Residential.
Sometimes such a construction assessment helps to see the real value of the object and understand the situation on the real estate market.
