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ESTIMATION OF MARKET VALUE
of real estate at 5/a. Kalóz street Budapest

1. Conception and methods of the estimation

According to Decree No. 25/1997. (01. 08.) of Ministry of Finance and the international practice, there are three possible methods offered by TEGOFOVA (The Group of Valuers of Fixed Assets) to determine the value of a real estate. Basis of all these three method is the determination of the market value.

1.1       Estimation based on the analysis of the comparative market data

The essence of this method is the determination on the basis of values of given real estate purchases already effected. When choosing the group of real estates to be compared, we have to consider the geographical place, type of the real estate, characteristics and technical parameters. The determination of the value can be effected after comparison and analysis of the above data, considering and estimating all the individual characteristics.

 1.2.      Method based on the calculation of the profit  

Approximation by the method of calculation of profit is based on the presumption that there is a relation between the profit-making capacity and the value of the real estate. According to this method the income is converted into value by direct capitalisation or by capitalisation of the profit. In case of direct capitalisation the expectable income of a year is converted into value in the following way: the estimated income is divided with a suitable income rate.

 1.3       Methods based on expense calculation

 The essence of the method is that the costs of rebuilding of the real estate has to be reduced by the value of amortisation and has to be increased by the value of the land. This method expresses the real market value of the real estate in the slightest degree.

 2. Description of the real estate  

2.1. General description: 

The real estate is situated in the 12^th district of Budapest, on the Széchenyi Hill of the prestigious Buda side. The ground belongs to the distinguished region of Buda with a specially restricted construction area. The district is a dwelling settlement with special environmental requirements and protection, neighbour are properties with homes. The property has a panorama in direction of South, to the neighbouring Sas Hill and the river Danube. Traffic connections are satisfactory, streets are of good quality, the Downtown area of Budapest can be reached within 10 to 15 minutes.  

2.2  Description of the ground

 Surface: 1.783 m²  

The ground is slightly sloping, the fences are made brick and partially metal, wire mesh. The public utilities such as water, savage water gas and electric energy are provided. The house is surrounded by a well-kept garden with indigenous trees and bushes including black plines and birch-trees. Personal entrance and the pavement around the house are covered by brick stones, the passage slightly sloping between the automatic inlet door and the garage is covered by the same brick stones and is delimited on both sides by counterforts made of decor bricks. Benches are covered by natural stone, lawns in good shape.  

2.3  Description of the building  

Surface of the real estate is 575 square meters. The building has three levels, and has a function of dwelling house.

Rooms within the building:

The accommodation is shown on the attached drawings in details.

The construction of the house ended in the autumn of 2000. The building has an iron concrete foundation, conventional wall structures made of HB 38 bricks and small bricks, outer cover made of small decor bricks painted white. Closing ceiling is made of iron banded concrete, bridges over the throughlets are ready made iron concrete girder. The combined tent roof has a wooden construction and is fully heat isolated and covered by plastic foil, outer surface made of roofing tile. Covers made of copper plates. Rainwater channels hidden within the construction, canals at the outlets.

Ports for alarm system and satellite TV provided in the house. Gas fired radiator central heating (2 pieces 35ES) and floor heating, the heating system is flexibly adjustable on each level separately. Lighting equipment is mostly hidden one. Covers on the floor are partly ceramics, partly granite plates. Walls of the water cells are covered by tiles. Inner walls are three-layer painted and partly covered by tiles and plastic. Windows and doors has double glass heat insulation. Glass walls of the rooms on the ground floor are partly slidable, cover on the terrace is wooden planks.

Integrated into house, there is a well equipped pool, sauna and fitness room; the pool within a unique glass house with wooden frame construction.

All rooms of the house are ready made and ready for occupation. Outfit, construction, equipment of the house is of highest level.  

3.    Estimation of the marker value of the real estate  

3.1       Approximation of the market value of the real estate on the basis of the analysis of comparative market data  

The estimation of the real estate was effected on the base of the above viewpoints and description, considering the joint influence of depreciation and appreciation constituents, the circumstances and conditions of the market demand and supply valid at the time of our estimation. We’ve also considered the possible ways of utilisation according to the type of the real estate and its potential future possibilities, but we’ve filtered out the speculative effects deriving from the special and exclusive character of the real estate.  

3.2       Result of the estimation  

The result of the estimation is shown in the following chart: 

 
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