What is the significance of the cadastral value when selling real estate

The property has a market and cadastral value. Almost everyone knows what the market value is and how it is formed. This is a parameter that is flexible. Most often people ask what value the cadastral value has when selling real estate. In short, almost none. The cadastral value is formed for the calculation of taxes, and not for sale.

What is the cadastral value?

To calculate the property tax, the state today uses the cadastral value of real estate. It is formed by state bodies and may or may not coincide with the actual price of the object. Features of the cadastral value: This parameter is calculated taking into account the city, district, type and age of the house, the area of the room. 

The surrounding infrastructure, indoor repairs, and the presence of a prestigious visa nearby are not taken into account. Design repairs will not affect the cadastral value. Specialists never go to the place to evaluate the property - the assessment is made remotely.

The real prices for the object change regularly, the cadastral value is also revised every 3-5 years. However, it often remains unchanged for a long period of time.

What does this parameter affect?

The cadastral value has a certain influence - it depends on it: Property tax. Every year, the owner pays 0.3% of the cost of housing. Tax on the income received from the sale. It is not charged if the property has been owned for 3-5 years. Gift tax. It is not charged when giving to a relative.

It turns out that the cadastral value mainly affects the annual tax deductions paid by all owners.

Impact on the value of real estate

When selling real estate, you can focus on the cadastral value, but in most cases the prices do not match. Government calculations reflect the average cost of real estate, while many variables are not taken into account.

The object can cost more or less-it all depends on the situation in the area, the city, and is also determined by the repair, the condition of the building itself.

The owner may disagree with the property valuation and even demand a review. This is done in order to reduce the tax burden. The change in the cadastral value will not affect the market price of the object, which is formed according to other principles.