ALLOCATION OF VALUE AND PARTIAL INTEREST VALUATION

Probably majority of appraisal assignments involve the valuation of less than the whole property and many approaches in valuation offer the value for the entire property. Partial Interest is an Interest (in property) that is less complete than a fee sample interest. An important part of the concepts used by the valuers are related with Partial Interest and Allocation Matter: Bundle of rights, Cash Generating Unit, Component Value, Control, Control premium, Easement, Financial Interest The allocation is a professional service for which the valuers have the background to perform. There are many cases when a valuer has to allocate the value into components: -For accounting purpose (real property, personal property, working capital, intangible value, impairment concept etc.); -For taxation (building and land); -Purchasing price allocation; -Dissenting action n squeeze out/ sell out -For investment decisions etc. // In this paper we discuss about division of real property using different criteria (between public and private interest) considering legal point of view, economic point of view and physical division of the property. The paper examines the general principles and methods used in allocation matter and valuation of partial interest