Land Valuation

Year: IV Semester: VII

Course Objectives:

a. To provide general and theoretical knowledge about land valuation.
b. To study valuation systems in Nepal and other countries.
c. To train students to carry out land valuation for purposes such as loan assignment, purchase and mortgage of land, land development, and land use planning.

Course Content:

1. Introduction (4 hrs)

• Estimating the value of real estate by valuers and appraisers for various purposes including:
  • Market value
  • Property taxation
  • Registration
  • Compulsory purchase
  • Bank loans

2. Detailed Estimates of Land (Assignment of Kisim) (5 hrs)

2.1 Area of land
2.2 Soil quality
2.3 Access to road
2.4 Availability of drinking water
2.5 Availability of irrigation water
2.6 Valuation of tree crops and scenic views
2.7 Valuation of standing crops
2.8 Access to electricity and high-tension lines
2.9 Sewerage and drainage
2.10 Telephone and infrastructure
2.11 Good neighborhood
2.12 Access to market and security of the area
2.13 Comparison to land class

3. Compensation (4 hrs)

• Eminent domain
• Claims of damage or impact on value by some cause or event
• Acquisitions for public use or public policy

4. Investment (5 hrs)

• Investment market value and investment planning
• Development finance
• Land use feasibility planning
• Management of property as a single asset or by management companies

5. Management (5 hrs)

• Management of property systems to ensure efficient use of public and private resources
• Management of public sector property

6. Land Valuation (6 hrs)

• Land valuation in Nepal, India, and England

7. Legal, Institutional, and Technological Basis of Land Valuation (10 hrs)

• Legality of valuations
• Institutions and Land Valuation Committee and their tasks
• Bankers' perspective for land valuation
• GIS in land valuation
• MCDA (Multi-Criteria Decision Analysis)
• Valuation models
• AHP (Analytic Hierarchy Process) method for weight determination

8. Procedures (3 hrs)

• Different methods of land valuation
• Valuation procedures:
  • Comparative price procedure
  • Return value procedure
  • Real value procedure
• Depreciation and methods of depreciation

9. Land Valuation for Different Purposes (3 hrs)

• Minimum land valuation for registration
• Valuation in case of encumbrances, expropriations, re-allotments
• Urban redevelopment measures and urban planning measures
• Planning damages
• Military conversion areas
• Property valuation and taxation

Exercises:

• Study the practice of valuations in neighboring countries and the Nepalese system.
• Study the practice of valuations and prepare valuation reports for land properties including buildings, trees, and crops.

Recommended Reading and Reference Books:

1. David Richmond, Introduction to Valuation, McMillan Publishers Ltd., London.
2. Andrew Baum and David McMinn, The Income Approach to Property Valuation, Rutledge & Kegan Paul Ltd., London.
3. Nigel Enever, The Valuation of Property Investment, The Estate Gazette Ltd., London.
4. The Land Valuation Manual, Dept. of Land Reform and Management, 2062.

Examination Scheme

Model Questions

Very Short Questions [4×2 = 8]

1. Define land valuation.
2. What is qualitative valuation of land?
3. What do you understand by eminent domain?
4. What do you understand by investment planning in the real estate market?

Short Questions [8×4 = 32]

5. What are the factors affecting land valuation? Explain.
6. What is qualitative valuation of land?
7. Discuss the procedure of land and property valuation for compensation.
8. Why is investment planning very important in Nepal?
9. What are the techniques for protecting public property?
10. Discuss the legal aspects of land valuation in Nepal.
11. Explain the straight-line method of calculating depreciation.
12. Explain the calculation of minimum land valuation for registration.

Long Questions [2×10 = 20]

13. Discuss the land valuation system in England.
14. Explain an application of GIS for land valuation.
    OR
    Describe how you would assign the qualitative (kisim) value of urban land parcels.