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Land Appraisal
Land valuation or appraisal of land value is done according to the present market value, which differs from the appraisal values reported by the official authority for tax purposes. The fair market value appraisal considers between appraising for ‘Existing Use’ or ‘Alternative Use’. However, although if the land is already being utilized in agriculture or a temporary activity building, the uses can be switched. Therefore, a comprehensive legal examination must be conducted, especially for the city plan, regarding the development potential of the use forms of the building. This is also part of the site selection process before any development happens. In this case, those lands that can be developed located in the urban areas tend to have more scope when it comes to inspection than those utilized. In this type of appraisal, the valuation method applied is the ‘Market Approach’ by comparing directly with the market price to determine the value. As for the lands with development potential, another valuation method that can be used is the ‘Income Approach’ by assuming the project development as a price reviewing method. The documents required in this land valuation are the document of right, which includes NOR SOR 3 and NOR SOR 3 GOR deeds.
