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Real Estate Appraisal a Study of Real Estate Appraisers in Sweden

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Real Estate Appraisal a Study of Real Estate Appraisers in Sweden J ÖNKÖ PING I NTERNATIONAL B USINESS S CHOOL JÖNKÖPING UNIVERSITY Real Estate Appraisal A Study of Real Estate Appraisers in Sweden Master of Science Thesis within Business Administration Author: Andersson, J. Fredrik Landberg, R. Robert Tutor: Magnus Hult, Econ Lic Examiner: Gunnar Wramsby Jönköping June 2005 J ÖNKÖ PING I NTERNATIONAL B USINESS S CHOOL JÖNKÖPING UNIVERSITY Fastighetsvärdering En studie av fastighetsvärderare i Sverige Filosofie Magisteruppsats inom Företagsekonomi Författare: Andersson, J. Fredrik Landberg, R. Robert Handledare: Magnus Hult, Ekon Lic Examinator: Gunnar Wramsby Jönköping Juni 2005 Acknowledgements All along the work process with this Master of Science thesis we have achieved assistance, recommendations and comments from various helpful people. Fredrik and Robert feel privileged and glad for all contribution. We especially feel that there are some persons we gladly would like to give a special thank to. First, we would like to show our gratitude towards all the respondents that took the time to sit down and share their thoughts to us. The Swedish real estate appraisers that participated in our study were: Bengt Eriksson, Hans Hurtig, Åsa Håkansson, Hanna Lassing, Åsa Linder Modig, Sigvard Lundin, Bengt Norefalk, Karin Svensson and Hans Voksepp. To the professor Stellan Lundström at the Royal Institute of Technology (KTH) we would like to express special thanks to. Thanks to all of the respondents that made their contribution to our study and for allowing us to visit you and for providing us with many fascinating aspects during the interviews. We sincerely hope we have acted as good representatives and ambassadors for Jönköping International Business School. Our tutor Magnus Hult gave us few but relevant directions and tips how to proceed in our study. He delivers a controversial style together with deep abstract thoughts of how struc- ture and method really should be applied to achieve a consistent and understandable re- port. Fredrik J. Andersson Robert R. Landberg Jönköping, June 2005 Master of Science Thesis within Business Administration Title: Real Estate Appraisal: A study of real estate appraisers in Sweden Authors: Fredrik J. Andersson & Robert R. Landberg Tutor: Magnus Hult, Econ Lic Date: June 2005 Descriptors: Real estate, property, valuation, appraisal, valuer, appraiser Abstract Problem: The underlying problem within this Master of Science thesis is the emanating issues from the changed owner and usage situation of the former Tax Department. A planned reconstruction led to difficulties in estimating the reconstruction costs. In the end this problem is an appraisal is- sue. This problem led to an interest to make a thorough investigation of the area of Swedish real es- tate appraisal. The thesis is constituted by five different sub-investigations. Initially an exploration is made concerning Swedish real estate appraisal methods. Further, factors affecting the real estate value are examined. This is followed by an investigation of what appraisal issues that might occur in a new usage situation and how the value is estimated in such a situation. The relation between Swedish and International appraisal methods is then illuminated. The final investigation is concern- ing what new trends that have occurred on the Swedish real estate appraisal market. Purpose: The purpose of this Master of Science thesis is to study the phenomenon real estate ap- praisal via Swedish real estate appraisers to gain an understanding of how they reason when choos- ing appraisal method and determine the real estate value. Additionally, the aim is also to highlight the relation between Swedish and International real estate methods to reveal differences and simi- larities. Method: We have chosen a qualitative method taking the form of eight interviews. A total of eight interviews are performed. The study is offset by a pre-study with a professor at RIT, Stellan Lund- ström. The aim with this interview is to get an updated view of the latest research within real estate appraisal. This is followed by seven interviews with certified real estate appraisers. The results from the interviews with the appraisers are analysed together with the pre-study, theoretical framework and previous studies. The analysing process is based upon a modified thought model, originally de- veloped by the researcher Jan Mattsson. The analysing process is presented in five steps that all are connected to the modified thought model and related to the problem area of this Master of Science thesis. Conclusion: We found that the Swedish appraisal methods generally are constituted by three methods. These are the avkastnings method, the ortspris method and production cost method. The most influent factors on the real estate value are the location as well as the condition and standard. Also the rent contracts and vacancies to some extent affect the value. A rather large problem origi- nates in the estimation of future costs, where the estimation of reconstruction costs is referred to as the largest issue. The international appraisal methods are equivalent to the Swedish methods. The largest differences are of cultural kind mostly caused by differences in legislation. New trends that are presented are the impact of the international accounting standards (IAS). Another significant trend is the increased use of automatic real estate analysis tools. Magisteruppsats inom Företagsekonomi Titel: Fastighetsvärdering: En studie av fastighetsvärderare i Sverige Författare: Fredrik J. Andersson & Robert. R. Landberg Handledare: Magnus Hult, Ekon Lic Datum: Juni 2005 Ämnesord: Fastighet, värdering, värderare Sammanfattning Problem: Problemet som legat till grund för intresset och inriktningen med denna magisteruppsats är då tidigare kontorsfastigheten Skatteskrapan skulle byta ägare och användningsområde. En pla- nerad ombyggnad ställde till problem med avseende på uppskattningen av ombyggnadskostnader. I slutändan handlar problemet om ett värderingsproblem. Detta problem tillsammans med andra ex- empel där fastigheter bytt användningsområden har väckt ett intresse att göra en ingående under- sökning av det svenska fastighetsvärderingsområdet. Denna uppsats är indelad i fem olika delunder- sökningar. Initialt sker en presentation av svenska metoder för fastighetsvärdering. Vidare under- söks olika faktorer som har olika värdepåverkande effekter på fastighetsvärdet. Därefter genomförs en undersökning av hur nya användningssituationer kan vålla värderingsproblem samt hur ett värde fastställs i en sådan situation. Nästa steg består utav en undersökning av internationella värderings- metoder. Studien avslutas sedan med en undersökning av nya trender som utvecklats inom fastig- hetsvärderingen. Syfte: Syftet med denna magisteruppsats är att studera fenomenet fastighetsvärdering via svenska fastighetsvärderare för att erhålla en förståelse för hur de resonerar vid valet av värderingsmetod och bestämmer det slutliga värdet. Dessutom är syftet också att belysa relationen mellan svenska och internationella värderingsmetoder för att utröna likheter och skillnader. Metod: Vi har valt en kvalitativ metod i form av åtta intervjuer. En förstudie, i form av en intervju, görs med professor Stellan Lundström, vilken ämnar till att ge en uppdaterad bild av forskningen inom området. Därefter hålls sju intervjuer med auktoriserade fastighetsvärderare. Värderarnas syn- punkter analyseras sedan tillsammans med resultat från förstudien, teoretiskt ramverk samt tidigare studier. Analysen är baserad på en modifierad tankemodell som är skapad av forskaren Jan Matts- son. Genom denna modell har sedan fem viktiga nivåer, knutna till uppsatsens problemområde, analyserats. Slutsats: Vi fann att de svenska värderingsmetoderna i stort sett utgörs av tre olika metoder. Dessa är avkastningsmetod, ortsprismetod samt produktionskostnadsmetod. De viktigaste värdepåver- kande faktorerna var fastighetens läge samt dess skick och standard. Även hyreskontrakten och vakanser påverker till stor del. Beslut om ny användningssituation kan tas av olika anledningar. Det största problemet relaterat till denna förändring är uppskattningen av framtida kostnader, där om- byggnadskostnader utgör den största svårigheten. De internationella värderingsmetoderna är över- lag de samma som de svenska. Kulturella skillnader föreligger i vilka metoder som används i olika situationer. De viktigaste nya trenderna är effekten av de internationella redovisningsstandarderna. En annan trend är det ökade användandet av automatiska analysverktyg. Introduction Table of Contents 1 Introduction............................................................................ 4 1.1 Background ................................................................................... 4 1.2 What type of problem do the report cover? ................................... 5 1.3 Who is concerned with the problem? ............................................ 6 1.4 Participants in the real estate market ............................................ 6 1.5 Limitations of the problem area ..................................................... 7 1.6 Problem we intend to solve in this thesis....................................... 8 1.7 Summing up: Our problem questions............................................ 9 1.8 Purpose....................................................................................... 10 1.9 Definitions ................................................................................... 10 1.10 Disposition..................................................................................
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