research

The assessment of the market value of the residential house in different locations

Abstract

The purpose of this diploma thesis is the assessment of market value of a typical detached family house in four different municipalities of Cerklje na Gorenjskem, Naklo, Radovljica and Šenčur. The market value is estimated on the basis of expense method. A typical detached family house falls into the medium price range, with 100 m2 of usable floor area and 198 m2 net floor area. The house is a free standing building with a basement, a slanted roof and a partially usable attic, build on a construction land with a surface area of 459 m2. The market value of the house is based on a market value of the construction land, the public utility fee and alternative costs of building a new house on the ground. The construction land and the public utility fee change from municipality to municipality but the costs of building a new house remain constant.\ud We have discovered that the building costs play the principal role in the market value of the house (from 73 % to 81 %) estimated on the basis of the expense method, however the market value ranges the most in the construction land that take from 15 % up to 24 % of a detached family house market value. The public utility fee is administratively determined and depends mainly on accounting area and abatement that are offered to the investor by individual local communities

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