The key facts
- Mass appraisal groups properties by type and reduces them to a single benchmark price, without an individual approach.
- Experts warn: if the appraisal is below market value, the compensation will not cover the full cost of the housing.
- It is noted that an understated appraisal may also harm the state's interests if the real value is below the average.
Experts' concerns about mass appraisal
Chairperson of the Society of Appraisers of Uzbekistan Zebuniso Esonova and expert appraiser Shukhrat Abduvokhobov, in an interview with Kun.uz, expressed concern about the use of mass housing appraisal results when determining compensation for property expropriated for public needs. In their view, the 'near-market value' determined through mass appraisal cannot replace the market value of a specific property. If an intentionally understated value is used for tax calculations, then applying it as the basis for compensation may work to the detriment of the owner.
Lack of an individual approach
Shukhrat Abduvokhobov explained that in mass appraisal, properties are grouped by type, and the collected data are reduced to a single benchmark price, which is then multiplied by the property's area. This method cannot be used to calculate compensation because it lacks an individual approach: compensation is paid for a specific property, and its real value may be either below or above the average. If it is above — the owner's interests are harmed; if below — the state may also suffer.
Risk of understated compensation
The expert focused particularly on situations where mass appraisal results turn out to be below the market value. According to him, if center staff acknowledge that the appraisal is 'significantly below the market value,' then when compensation is calculated on the basis of such an appraisal, the owner will not receive the market price but a smaller amount, which infringes on his interests. Abduvokhobov noted that some citizens, in particular owners of individual residential houses and homesteads, already say that the appraisal results are noticeably below the real market value. If in the future land is expropriated for state or public needs, applying mass appraisal results to calculate compensation will harm the owners' interests, the expert believes.
