Individual Valuation And Mass Valuation. Problems Of The Application Of Mass Valuation On Land Valuation In Albania

Abstract

With the accession of Albania on the path of market economy and the return of realestate in commodity, was born and the need to evaluate them. The main basis of evaluation ofreal estate is the market value. There are two the main systems for determining market value,used even in Albania, individual and mass valuation.In the case of individual valuation one or some of real property objects are assessed. This is aprocess widely used in assessing property for mortgages, loans, financial reporting, etc.In mass valuation the main stresses are laid upon valuation of a large amount of property byapplying standardized statistical data processing. The mass valuation is used in Albania forthe purpose of determining the value of property for compensation.The paper demonstrates the relationship and differences between the two systems,focusing on issues encountered in the case of application of mass valuation on land valuationin Albania for compensation purposes. In light of these issues, the paper, gives at the endsome recommendations for improving the current methodology, aiming at determining the fair market value of property for compensation.