Translation. Region: Russian Federation –
Source: Saint Petersburg State University of Architecture and Civil Engineering –
An important disclaimer is at the bottom of this article.
Dmitry Mizikov at SPbGASU
On October 22, St. Petersburg State University of Architecture and Civil Engineering (SPbGASU) hosted a meeting between undergraduate students majoring in Land Management and Cadastres (21.03.02, specializing in Real Estate Cadastre) and Construction Economics (38.03.01), and Dmitry Mizikov, Deputy General Director and Director of Appraisal at Gorodskoy Tsentr Appraisal (City Appraisal Center) LLC. He discussed what an appraiser is, the benefits of this specialty, and how to become one.
"I've been in appraisal for almost 30 years. I know everything, or almost everything, about appraisal. In post-Soviet Russia, appraisal activities began to develop in 1993–1994. Initially, there were two main areas: revaluation of fixed assets of enterprises to bring book value in line with market value, and real estate appraisal for use as collateral for loans. In 1998, a federal law was passed that sets out the basic principles, goals, and objectives of appraisal activities, as well as requirements for appraisers and their interactions with clients," said Dmitry Mizikov.
The appraiser issues a valuation report—a multi-page document that calculates and substantiates the property's value. This value can be market, investment, liquidation, cadastral, or other, depending on the appraisal objectives and legal requirements. The content of valuation reports is governed by frequently changing appraisal standards.
Since 2017, state budgetary institutions (GBIs) established in the constituent entities of the Russian Federation have been responsible for determining the cadastral value of real estate and land. A property owner can challenge the cadastral value and contact an independent appraiser if the market value determined by the independent appraiser is lower than the cadastral value calculated by the GBI using mass appraisal methods. This type of work is in demand and allows the cadastral value to be adjusted to the market value.
To become an appraiser, you must obtain a diploma from a specialized university or a certificate of retraining. The next step is three years of work as an appraiser's assistant or an employee of an appraisal company. Then, you must pass a qualification exam in three areas of your choice: real estate appraisal, personal property appraisal, or business appraisal. You can choose two or three areas at once, but passing the exam is quite difficult. Those who succeed receive qualification certificates. Next, the applicant must join one of the self-regulatory organizations (SROs) of appraisers and pay a contribution to the compensation fund, an entrance fee, and a membership fee. Funds from the compensation fund may be paid to the client if the appraiser makes an error and their actions cause harm to the client, as proven in court. Once the appraiser's name appears on the SRO website, they can begin working. If the appraiser leaves the SRO, the fee is non-refundable.
The speaker emphasized the high level of responsibility of the appraiser, who must work with state property and conduct forensic examinations, among other things. During the construction of extensive facilities that will pass through private or legal entities' land, the state compensates the owners for the value of their property and losses associated with the seizure of the property for state needs, as well as lost profits. The amount of this compensation is determined by an independent appraiser, who can influence the fate of individuals, among other things.
"The appraiser profession is interesting because it intersects with various specialties. An appraiser requires economic and legal knowledge. You need to be able to communicate with people—clients come in all shapes and sizes. Another advantage is the opportunity to visit interesting places. One of our company's areas of expertise is the appraisal of sea and river vessels and hydraulic structures, so to inspect the properties, our appraisers have traveled to Norway, Central Africa, Malta, and, of course, all over Russia," the speaker said.
Dmitry Mizikov invited students to intern at the City Assessment Center. He said interns from our university had already worked at the organization. Some stayed and developed professionally.
Karina Kashtanova, a first-year undergraduate student in the Faculty of Environmental Engineering and Urban Management, is already working full-time at the City Assessment Center LLC: "I write cover letters for assessment reports, prepare commercial proposals, and conduct assessment site inspections. I'm confident that at SPbGASU I'll gain the knowledge I need in my work!"
"Real estate appraisal, and in particular, challenging cadastral values, is one of the areas our graduates can find employment. Meetings with employers are an excellent way for our students to evaluate the practical focus of their education at SPbGASU and, in some cases, even find employment," says Yana Volkova, Acting Head of the Department of Geodesy, Land Management, and Cadastre.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.