INTEGRITY IN PROFESSIONAL ACTIVITIES OF PROPERTY APPRAISERS WHEN DETERMINING THE VALUE OF OBJECTS BY THE INCOME METHOD

Abstract

The article searches for the definition of the concept of "integrity in the field of property valuation" in foreign and Ukrainian economic dictionaries. In this regard, the relevance of the study is established and the principles of integrity in the field of property valuation in Ukraine in the conditions of the martial law economy are defined. The view of Ukrainian scientists regarding equal conditions for free market entities in the legal sense is reflected. It is substantiated that any agreement can be made only if there is an agreement between both (legally equal) parties on the value of the object of the agreement. Thus, the issue of integrity in determining the market value of property and writing a report on the value of property offered on the free market becomes relevant for both potential sellers and potential buyers. In these conditions, there is an urgent need for the honest services of a professional appraiser. After all, there are appraisers who agree to contribute to the incorrect determination of the market value of property for a fee, which also justifies the choice of this direction of research. Particular attention is paid to the analysis of valuation methods and the income approach in particular as a key tool in the process of valuing movable and immovable property. An improvement of the methodological approach to property valuation related to the calculation of rental income on a conditional example is proposed. It is substantiated that when determining the market value of property, there may be a conflict in determining the threshold values ​​of the object. The appraiser must determine the value of the property according to existing methods and requirements, regardless of the wishes of the seller and buyer. The income approach, in particular, involves assessing the value based on the ability of the object to generate income. At the same time, the appraiser must honestly predict correct future income in terms of capitalization calculations and discounting cash flows even in a risk situation (martial law). The conclusions emphasize that a correctly chosen approach to determining the market value of immovable and movable property allows for the correct determination of fair value. It is important, at the same time, to successfully justify the choice of the valuation method in accordance with existing valuation standards and generally accepted methodologies.