Rural Land Administration
Level – III
Based on March 2022, Version- II
Occupational Standard
Module Title: Real property valuation
LG Code: AGR RLA 3M14LO (1-3) LG (47-
49)
TTLM Code:AGR RLA3 TTLM0523v1
May, 2023
Addis Ababa, Ethiopia
Page II of Ministry of Labor and Rural land administration Version 1
LXXIV Skills Level -III May 2023
Author/Copyright
Table of Contents
Table of Contents............................................................................................................I
Introduction to the Module............................................................................................1
LO #1-Public Information and Awareness strategy....................................................2
Instruction sheet-1...............................................................................................2
Information Sheet 1.............................................................................................3
Self-check 1..................................................................................................14
Operation Sheet -1......................................................................................15
LAP TEST-1....................................................................................................16
LO #2- Collect Real Property data..............................................................................17
Instruction sheet 2.............................................................................................17
Information Sheet 2...........................................................................................19
Self-Check – 2...............................................................................................38
Operation Sheet -2......................................................................................40
LAP TEST-2....................................................................................................41
LO #3- Data Organizing and Reviewing.....................................................................42
Instruction sheet 3................................................................................................. 42
Information Sheet 3............................................................................................... 43
Self-check 3.................................................................................................... 55
Reference Materials..................................................................................................... 57
I
Introduction to the Module
This module covers the competence required for gathering, apply Public
Information Awareness strategies, identify and Collect Real Property data
and Organize and revise information suitable for decision making. It requires
the ability to review information requirements and obtain information from a
variety.
Page 1 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III Ja 2023
Author/Copyright
LG #43 LO #1-Public Information and
Awareness strategy
Instruction sheet-1
This learning guide is developed to provide you the necessary information
regarding the following content coverage and topics:
Concepts and legal frame works of valuation
Interpersonal skill
Awareness creation and setting strategies
Stakeholder and community participation
Resource limitation and allocation
This guide will also assist you to attain the learning outcomes stated in the
cover page. Specifically, upon completion of this learning guide, you will be
able to:
Brief Concepts and legal frame works of valuation
Develop interpersonal skill
Develop awareness creation strategies
Identify Stakeholder and community participation
Identify Resource limitation and allocation
Learning Instructions:
1. Read the specific objectives of this Learning Guide.
2. Follow the instructions described below.
3. Read the information written in the information Sheets
4. Accomplish the Self-checks
5. Perform Operation Sheets
6. Do the “LAP test”
Page 2 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Information Sheet 1
1.1. Concepts and legal frame works of valuation
1.1.1. Concept of Valuation
Valuation refers to the process of determining the economic value of an asset, investment, or
business. The following are some concepts that are important in valuation:
Market Value: Market value is the price that an asset or investment would fetch in an
open and competitive market. This is often determined by supply and demand factors.
Fair Value: Fair value is the price that would be paid in an arm's length transaction
between two willing parties, where both parties are well-informed and not under any
compulsion to buy or sell.
Present Value: Present value is the current value of future cash flows, discounted at a rate
that reflects the time value of money. This is an important concept in investment
valuation.
Replacement Cost: Replacement cost is the cost of replacing an asset with a similar asset,
taking into account any depreciation or obsolescence.
Liquidation Value: Liquidation value is the amount of money that could be realized if an
asset or business were sold in a forced sale or liquidation scenario.
Intrinsic Value: Intrinsic value is the underlying value of an investment or business,
based on its assets, cash flows, and growth potential. This concept is often used in value
investing.
Going Concern Value: Going concern value is the value of a business as a continuing
entity, taking into account its future earnings and potential for growth.
Synergy Value: Synergy value is the additional value that can be created when two or
moreentities merge or form a partnership, due to the benefits of combining their
resources, knowledge, and capabilities.
Brand Value: Brand value is the value of a brand name, logo, or reputation, which can
enhance the marketability and pricing power of a product or service.
Page 3 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Option Value: Option value is the value of having the option to undertake a particular
course of action in the future, such as developing a new product or expanding into a new
market.
Overall, the concept of valuation is complex and involves a range of quantitative and qualitative
factors. The appropriate valuation method depends on the type of asset or investment being
valued, as well as the purpose and context of the valuation.
In property valuation, the concepts of value, cost, and price have specific meanings and
applications. Here are the differences between these concepts in the context of property
valuation:
Value: In property valuation, value refers to the worth or usefulness of a property to
potential buyers or users. It is often determined by the income that the property can
generate or its potential for future development. Value can be influenced by factors such
as location, size, condition, and market trends.
Cost: Cost in property valuation refers to the expenses incurred in building or acquiring a
property. It includes both direct costs, such as materials and labor, and indirect costs,
such as financing and permits. Cost is used in property valuation to determine
the replacement cost of a property or the cost of reproducing it with similar features.
Price: Price in property valuation is the amount of money that a buyer pays to a seller in
exchange for a property. It is determined by market forces of supply and demand and can
be influenced by factors such as competition, marketing, and availability. Price is often
used as a measure of value in property valuation, but it may not always reflect the true
value of the property.
In summary, value in property valuation is the worth or usefulness of a property to potential
buyers or users, while cost is the expenses incurred in building or acquiring the property. Price is
the amount of money that a buyer pays to a seller in exchange for the property and is determined
by market forces. While value andprice may be related, they are not the same thing, as price can
be influenced by factors beyond just value, such as supply and demand. Cost is used in property
valuation to determine the replacement cost of a property or the cost of reproducing it with
similar features. It is important to note that the value of a property may be different from its cost
Page 4 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
or price, depending on the specific market conditions and the purpose of the valuation. For
example, a property may have a high value due to its potential for future development, even if its
cost or current price is relatively low. In property valuation, the appropriate method for
determining value depends on the property type, its intended use, and the purpose of the
valuation.
1.1.2. Legal frame works for property valuation
In Ethiopia, the legal framework for property valuation is governed by various laws and
regulations. Here are some of the key legal provisions related to property valuation in Ethiopia:
The Ethiopian Constitution: The Ethiopian Constitution recognizes private property
rights and provides for the protection of property owners from arbitrary deprivation of
their property.
The Ethiopian Constitution recognizes private property rights and provides for the protection
of property owners from arbitrary deprivation of their property. Article 40 of the Constitution
states that "the right to own property is guaranteed. It may only be encroached upon in the
public interest and in accordance with the law and without discrimination of any kind.”
In addition, Article 44 of the Constitution provides for the protection of property from
expropriation without compensation. The article states that "the right of ownership of rural
and urban land, as well as of all natural resources, is exclusively vested in the State and in the
peoples of Ethiopia. Land is a common property of the Nations, Nationalities and Peoples of
Ethiopia and shall not be subject to sale or other means of exchange."
The Constitution also provides for the establishment of a legal framework for property
ownership and transfer. Article 34 of the Constitution states that "the freedom of economic
enterprise is guaranteed. Everyone has the right to engage in private economic activity. The
government may, however, regulate economic activity in the public interest."
Overall, the Ethiopian Constitution provides a comprehensive legal framework for property
ownership and transfer, and recognizes the importance of protecting property rights and
valuations. It is important for property owners and investors to be aware of the relevant
constitutional provisions when conducting property transactions or valuations in Ethiopia.
Page 5 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
The Ethiopian Civil Code: The Ethiopian Civil Code provides for the legal framework
for property ownership and transfer. It sets out the rules for the sale, lease, and mortgage
of property, as well as the rights and obligations of property owners.
The Ethiopian Civil Code provides for the legal framework for property ownership and
transfer, including property valuations. Here are some of the key provisions related to
property valuations in the Ethiopian Civil Code:
Article 1664: This article provides that the sale price of a property must be determined by the
agreement of the parties, or by a court if the parties cannot agree. The price must be
reasonable and not excessively high or low.
Article 1873: This article provides that the rental price for a property must be determined by
the agreement of the parties, or by a court if the parties cannot agree. The price must be
reasonable and not excessively high or low.
Article 2134: This article provides that the value of a property used as collateral for a loan
must be determined by agreement of the parties, or by a court if the parties cannot agree.
Article 2159: This article provides that the value of a property used as security for a debt
must be determined by agreement of the parties, or by a court if the parties cannot agree.
Article 2164: This article provides that the value of a property subject to a mortgage must be
determined by agreement of the parties, or by a court if the parties cannot agree.
Article 2181: This article provides that the value of a property subject to a forced sale must
be determined by agreement of the parties, or by a court if the parties cannot agree.
Overall, theEthiopian Civil Code provides for the determination of property valuations
through agreements between parties or court proceedings if the parties cannot agree. The
Code emphasizes that the valuation must be reasonable and not excessively high or low. In
addition, the Code provides for the determination of property valuations in various contexts,
including for the sale, rental, collateral, security, mortgage, and forced sale of property. It is
important for property owners, investors, and other stakeholders to be aware of the relevant
provisions of the Ethiopian Civil Code when conducting property transactions or valuations
in Ethiopia.
Page 6 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
The Ethiopian Land Administration Proclamation: The Ethiopian Land Administration
Proclamation provides for the establishment of a land administration system, which
includes the registration and transfer of land ownership. The proclamation also provides
for the establishment of a Land Valuation and Administration Agency, which is
responsible for conducting property valuations for taxation and other purposes.
The Ethiopian Tax Proclamation: The Ethiopian Tax Proclamation provides for the
taxation of property, including land, buildings, and other assets. The proclamation sets
out the rules for property valuation for tax purposes, including the use of market value
and other methods of valuation.
The Ethiopian Commercial Code: The Ethiopian Commercial Codeprovides for the legal
framework for commercial transactions, including the sale and lease of real estate. The
code sets out the rules for property valuation for commercial purposes, including the use
of market value and other methods of valuation.
The Ethiopian Federal Courts Proclamation: The Ethiopian Federal Courts Proclamation
establishes the federal court system and provides for the jurisdiction of the courts in civil
and commercial matters, including disputes related to property ownership and valuation.
Overall, the legal framework for property valuation in Ethiopia is governed by a range of laws
and regulations that provide for the protection of property rights, the establishment of a land
administration system, and the taxation of property.
1.2. Interpersonal techniques/skills
Real property valuation involves a variety of interpersonal techniques and skills. Here are some
that are important:
Active listening: When collecting information about a property, it's important to listen
carefully to what the property owner or other stakeholders are saying. Pay attention to
their concerns, needs, and priorities, and ask clarifying questions to ensure you
understand their perspective.
Page 7 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Empathy: Put yourself in the property owner's shoes and try to understand their emotional
attachment to their property. Show empathy and understanding for their feelings and
concerns.
Communication skills: Effective communication is key when collecting information for
property valuation. Use clear and concise language, and be able to explain complex
concepts in simple terms. Be patient and responsive, and be willing to answer questions
and provide information as needed.
Negotiation skills: Real property valuation often involves negotiation, so it's important to
be able to negotiate effectively. Know how to make persuasive arguments, understand the
needs and interests of all parties involved, and be willing to compromise when necessary.
Observation skills: When inspecting a property, it's important to observe carefully and
note any details that might affect its value. Look for both positive and negative features,
and be thorough in your assessment.
Technical knowledge: Real property valuation requires a certain level of technical
knowledge, including knowledge of real estate law, property appraisal methods, and
market trends. Stay up-to-date on industry developments and seek out continuing
education opportunities to stay current.
Professionalism: Maintain professional demeanor at all times when collecting
information for property valuation. Be respectful and courteous to property owners and
other stakeholders, and maintain a high standard of ethics and integrity in your work.
Remember that your actions and behavior reflect not only on yourself but also on the
profession as a whole.
1.3. Awareness creation and setting strategies
Property valuation is the process of determining the value of a real estate
property. Awareness creation is an essential component of setting strategies
for property valuation, as it helps to educate property owners, buyers, and
other stakeholders about the importance of property valuation and the
factors that affect property value.
Page 8 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Here are some strategies for creating awareness and setting strategies for
property valuation:
Educate property owners: Property owners should be educated
on the importance of property valuation and the factors that affect
property value. Property owners should be encouraged to obtain
regular property valuations to ensure that their property is valued
accurately.
Engage with buyers: Property buyers should be educated on the
importance of property valuation and the factors that affect
property value. Buyers should be encouraged to obtain professional
property valuations before making a purchase to ensure that they
are getting a fair deal.
Utilize technology: Technology can be used to create awareness
and set strategies for property valuation. Online tools and resources
can be used to educate property owners and buyers on the
importance of property valuation and the factors that affect
property value.
Collaborate with industry experts: Collaboration with industry
experts such as real estate agents, property appraisers, and
property assessors can help to create awareness and set strategies
for property valuation. Industry experts can provide valuable
insights and share best practices for property valuation.
Provide resources: Providing resources such as guides, articles,
and educational materials can help to create awareness and set
strategies for property valuation. These resources should be
accessible and easyto understand, and should cover topics such as
the different methods of property valuation, factors that affect
property value, and how to obtain a property valuation.
Offer training and workshops: Training and workshops can be
organized to educate property owners, buyers, and other
stakeholders on the importance of property valuation. These
Page 9 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
sessions can be conducted by industry experts and can cover topics
such as property valuation methods, factors that affect property
value, and how to obtain a property valuation.
Partner with relevant organizations: Partnering with relevant
organizations such as real estate associations, property
management companies, and financial institutions can help to
create awareness and set strategies for property valuation. These
organizations can provide support and resources to help educate
property owners, buyers, and other stakeholders on the importance
of property valuation.
Conduct outreach campaigns: Outreach campaigns such as
advertising, social media, and public relations can be used to create
awareness and set strategies for property valuation. These
campaigns can be targeted towards specific audiences, such as
property owners or buyers, and can highlight the importance of
property valuation and the benefits of obtaining a property
valuation.
By implementing these strategies, it is possible to improve the accuracy of
property valuations and ensure that property owners and buyers are making
informed decisions. Educating property owners, buyers, and other
stakeholders on the importance of property valuation can help to create a
more transparent and efficient real estate market, benefiting all stakeholders
involved.
In conclusion, creating awareness and setting strategies for property
valuation is essential for ensuring that property owners, buyers, and other
stakeholders understand the importance of property valuation and the
factors that affect property value. By implementing these strategies, it is
possible to improve the accuracy of property valuations and ensure that
property owners and buyers are making informed decisions.
1.4. Stakeholder and community participation
Page 10 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Stakeholder and community participation in property valuation is an
important aspect of ensuring that property valuations accurately reflect the
value of a property. Stakeholders in property valuation include property
owners, buyers, lenders, appraisers, assessors, and government agencies.
Community participation in property valuation involves engaging with local
communities to gather information about local market conditions,
community dynamics, and other factors that may affect property values.
Here are some ways in which stakeholder and community participation can
be incorporated into property valuation:
Engage with property owners: Property owners should be engaged
in the property valuation process to ensure that the valuation
accurately reflects the value of the property. By involving property
owners in the valuation process, appraisers and assessors can gain a
better understanding of the property and any unique features that may
impact its value.
Involve buyers: Buyers can also provide valuable insights into the
local real estate market and help to identify factors that may impact
the value of a property. By involving buyers in the valuation process,
appraisers and assessors can gain a better understanding of local
market conditions and buyer preferences.
Collaborate with industry experts: Collaboration with industry
experts such as real estate agents, property appraisers, and property
assessors can help to ensure that property valuations accurately
reflect the value of a property. Industry experts can provide valuable
insights into market conditions, property features, and other factors
that may impact property value.
Gather community input: Engaging with local communities can
providevaluable insights into local market conditions, community
dynamics, and other factors that may impact property values. This can
be done through community outreach programs, surveys, and public
Page 11 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
input sessions. By incorporating community input into property
valuations, appraisers and assessors can gain a better understanding
of local market conditions and community dynamics that may impact
property values.
Consider environmental factors: Environmental factors such as air
quality, water quality, and access to green spaces can impact property
values. By considering these factors in the property valuation process,
appraisers and assessors can ensure that property valuations
accurately reflect the value of a property.
Use multiple valuation methods: Using multiple valuation methods
can help to ensure that property valuations accurately reflect the value
of a property. By using a combination of valuation methods, appraisers
and assessors can gain a more comprehensive understanding of the
property and identify any unique features that may impact its value.
Provide transparency: Providing transparency in the property
valuation process can help to build trust among stakeholders and the
community. This can be done by providing clear and concise
information about the valuation process, the factors that were
considered in the valuation, and the final valuation results.
Incorporating stakeholder and community participation in property valuation
is important for ensuring that property valuations accurately reflect the value
of a property. By involving stakeholders and the community in the valuation
process, appraisers and assessors can gain a better understanding of local
market conditions, community dynamics, and other factorsthat may impact
property values. This can help to build trust and confidence in the property
valuation process, and ensure that property owners, buyers, lenders, and
other stakeholders are making informed decisions based on accurate and
reliable property valuations.
1.5. Resource limitation and allocation
Page 12 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Resource limitation and allocation is an important aspect of property
valuation, as it can impact the accuracy and reliability of property
valuations. Resource limitation refers to the constraints that may limit the
availability of resources, such as time, money, and personnel, for property
valuation. Resource allocation refers to the process of distributing
available resources to ensure that property valuations are conducted
efficiently and effectively.
Here are some strategies for managing resource limitation and allocation
for property valuation:
Prioritize property valuations: Property valuations should be
prioritized based on their importance and urgency. Properties
that are being sold or refinanced, or that are involved in legal
disputes, should be given priority over properties that are not
currently being transacted.
Allocate resources based on property type: Different types
of properties may require different types and levels of resources
for valuation. For example, commercial properties may require
more resources for valuation than residential properties due to
their complexity and size.
Use technology to streamline processes: Technology can
be used to automate and streamline some of the processes
involved in property valuation, such as data collection and
analysis. Automated valuation models (AVMs) can be used to
quickly and efficiently value properties based on a range of data
inputs.
Outsource services when necessary: Property valuation
services can be outsourced to external providers when internal
resources are limited. This can help to ensure that valuations
are conducted efficiently and effectively, while also freeing up
internal resources for other priorities.
Page 13 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Utilize specialized expertise: Specialized expertisecan be
utilized to help manage resource limitation and allocation for
property valuation. For example, property appraisers and
assessors can provide expertise in property valuation methods
and techniques, while data analysts can provide expertise in
data collection and analysis.
Develop contingency plans: Contingency plans should be
developed to address resource limitations and unexpected
events that may impact the property valuation process. These
plans should identify alternative resources and processes that
can be used to ensure that property valuations are conducted
efficiently and effectively.
Communicate with stakeholders: Communication with
stakeholders, such as property owners, buyers, and lenders, is
important for managing resource limitation and allocation for
property valuation. Stakeholders should be informed about the
resources that are available for property valuation and any
constraints that may impact the valuation process.
By implementing these strategies, it is possible to manage resource
limitation and allocation for property valuation in an efficient and effective
manner. Prioritizing property valuations, allocating resources based on
property type, using technology to streamline processes, outsourcing
services when necessary, utilizing specialized expertise, developing
contingency plans, and communicating with
Page 14 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Self-check 1 Written test
Name…………………………………………… ID………………………… Date…….
Directions: Answer all the questions listed below.
Test I: Choose the best answer (4 point)
1. Among the following which one is awareness creation and
setting strategies Property valuation
A. Educate property owners
B. Engage with buyers
C. Utilize technology:
D. Collaborate with industry experts
E. All
2. Which one of the following important for Stakeholder and
community participation
A. Engage with property owners
B. Gather community input
C. Use multiple valuation methods
D. All
E. None
3. Among the following which one is Resource limitation and
allocation strategy?
A. Outsource services when necessary
B. Allocate resources based on property type:
C. Use technology to streamline processes
Page 15 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
D. Prioritize property valuations:
E. All
Test II: Short Answer Questions
1. Explain what is property
valuation--------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
2. What is property valuation in rural Ethiopia
context-----------------------------------------------------------------------------------------
--------------------------------------------------------
Operation Sheet -1
1.1. Techniques/Procedures/Methods for Complementing Legal frame works
requirements for valuation
A. Tools and equipment’s
I. Legal documents constitutions, Proclamations, Cods, Regulation,
Directives and any manuals in the field.
II. If the documents is digital Computer with PDF format.
III. If the document is analogue pen, not book A4 paper.
B. Procedures/Steps/Techniques for fixing the scale side.
Set all documents in single folder.
Put the document in PDF form.
Label the documents by its name
Open and search for any legitimacy on the documents.
Pick upthe article.
Page 16 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
LAP TEST-1 Performance Test
Name………………………………. ID……………………………..
Date…………………………………….
Time started: ________________________ Time finished: ________________
Instructions: Given necessary templates, tools and materials you are required to perform the
following tasks within 30 minutes. The project is expected from each student
to do it.
Task-1 Find the legal ground for expropriation, composition and valuation
Page 17 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
LG #44 LO #2- Collect Real Property
data
Instruction sheet 2
This learning guide is developed to provide you the necessary information
regarding the following content coverage and topics:
Area identification at planning stage
Real property data
Sources of Real Property information
Approach of real property Valuation
Method of real property Valuation
Real property data format
Methods of collecting data
Reliable methods of data collection
Encode material breakdown data
This guide will also assist you to attain the learning outcomes stated in the
cover page. Specifically, upon completion of this learning guide, you will be
able to:
Carry out are identification at planning stage.
Identify Real Property data
Assess Real Property owners
Conduct real property Valuation Approach
Identify Method of real property Valuation
Selecting Methods of collecting data
Clarify Real property data format
Perform encode material breakdown data
Learning Instructions:
Page 18 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
1. Read the specific objectives of this Learning Guide.
2. Follow the instructions described below.
3. Read the information written in the information Sheets
4. Accomplish the Self-checks
5. Perform Operation Sheets
6. Do the “LAP test”
Page 19 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Information Sheet 2
2.1 Area identification at planning stage
Area identification is an important step in the planning stage for real
property data, as it helps to define the geographic boundaries of the area
being analyzed. Identifying the appropriate area for real property data is
important for ensuring that the data is relevant, accurate, and reliable.
Here are some strategies for area identification at the planning stage for real
property data:
1. Define the purpose of the analysis: The purpose of the analysis
should be defined at the outset, as this will help to determine the
appropriate area for analysis. For example, if the analysis is focused on
a particular neighborhood or market segment, the area of analysis
should be defined accordingly.
2. Determine the scope of the analysis: The scope of the analysis
should be determined based on the purpose of the analysis. The scope
may include a single property, a group of properties, or an entire
geographic region.
3. Consider relevant factors: Relevant factors that may impact area
identification include the type of property being analyzed, the
geographic location, and the availability of data. For example, if the
analysis is focused on residential properties, the area of analysis may
be defined based on school district boundaries or proximity to public
transportation.
4. Use existing geographic boundaries: Existing geographic
boundaries, such as zip codes, census tracts, or political boundaries,
Page 20 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
can be used to define the area of analysis. This can help to ensure that
the area is well-defined and easily understood.
5. Conduct a spatial analysis: A spatial analysis can be conducted to
identify areas with similar characteristics, such as property values,
demographics, or land use. This can help to define the area of analysis
based on relevant data and trends.
6. Consult with stakeholders: Stakeholders, such as property owners,
real estate agents, and local government officials, can provide valuable
insights into the appropriate area for analysis. By consulting with
stakeholders, it is possible to ensure that the area of analysis is
relevant and appropriate for the intended purpose.
7. Consider future growth and development: Future growth and
development should be considered when identifying the area of
analysis. If the area is expected to experience significant growth or
development in the future, this should be taken into account when
defining the area of analysis.
By implementing these strategies, it is possible to identify the appropriate
area for real property data at the planning stage. Defining the purpose of the
analysis, determining the scope of the analysis, considering relevant factors,
using existing geographic boundaries, conducting a spatial analysis,
consulting with stakeholders, and considering future growth and
development can all help to ensure that the area of analysis is relevant,
accurate, and reliable.
2.2 Identify Real Property data
Real property data refers to information related to real estate properties and
their associated characteristics. Real property data can include a range of
different types of information, such as:
Page 21 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
1. Property characteristics: Real property data includes information
about the physical characteristics of a property, such as its size, age,
construction type, number of bedrooms and bathrooms, and any
unique features or amenities.
2. Ownership and transaction history: Real property data includes
information about the ownership history of a property, including the
names of previous owners, dates of ownership, and any transfers of
ownership. It also includes information about any previous sales or
transactions involving the property.
3. Market value and appraisals: Real property data includes
information about the market value of a property, as well as any
previous appraisals or assessments of the property's value.
4. Zoning and land use: Real property data includes information about
the zoning and land use regulations that apply to a property, as well as
any other restrictions or regulations that may impact the property.
5. Tax and assessment information: Real property data includes
information about the taxes and assessments that apply to a property,
including property taxes, special assessments, and other fees.
6. Environmental factors: Real property data includes information
about any environmental factors that may impact the property, such
as flood zones, soil contamination, and other environmental hazards.
7. Market trends and analysis: Real property data includes
information about market trends and analysis, including sales data,
market reports, and other data-driven insights intolocal real estate
markets.
8. Neighborhood and community information: Real property data
includes information about the neighborhood and community
Page 22 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
surrounding a property, such as crime rates, school district boundaries,
proximity to public transportation, and other relevant factors.
9. Property photos and videos: Real property data may include photos
and videos of the property, which can provide valuable visual
information about the property's features and condition.
10. Building permits and construction data: Real property data
includes information about any building permits or construction
projects associated with a property, as well as any other data related
to the property's construction history.
2.3 Sources of Real Property information
2.3.1 Relevant community
The relevant community in real property valuation refers to the group of
people who are most likely to be affected by the value of a particular
property. This can include a wide range of stakeholders, such as property
owners, potential buyers, real estate agents, lenders, local government
officials, and members of the general public.
Real property data is collected from a variety of sources, including
government agencies, real estate brokers, property owners, and third-party
data providers. This data is used by a range of different stakeholders,
including real estate agents, appraisers, lenders, investors, and other
professionals involved in the real estate industry. By analyzing real property
data, these stakeholders can gain insights into local real estate markets,
make informed decisions about buying and selling properties, and assess the
value and potential of real estate investments.
When conducting a real property valuation, it's important to consider the
perspective of the relevant community and how they might view the
property's value. For example, if the property is located in a neighborhood
with a high demand for housing, this could significantly affect its value.
Page 23 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Similarly, if the property is located near a popular tourist attraction or
a major transportation hub, this could also impact its value.
In addition to understanding the perspective of the relevant community, it's
also important to consider how changes in the community might affect the
property's value over time. For example, if a new shopping center or office
complex is planned for the area, this could increase the value of nearby
properties. On the other hand, if the area is experiencing a decline in
population or economic activity, this could have a negative impact on
property values.
By taking into account the perspective of the relevant community and
staying informed about changes in the local real estate market, real property
valuation professionals can provide more accurate and reliable valuations
that reflect the true value of a property.
2.3.2 Real property information in general
Real property data is a valuable resource for a range of different
stakeholders in the real estate industry. This data is used to inform decision-
making processes, support market analysis, and provide insights into local
real estate markets.
Real property data is typically collected and maintained by government
agencies, such as local tax assessors, building departments, and zoning
boards. These agencies collect data on a range of different property
characteristics, including property size, age, construction type,
and ownership history.
Real estate brokers and agents are also a key source of real property data.
They collect data on local market conditions, property values, and
other market trends through their day-to-day activities. This data is typically
used to inform pricing decisions, marketing strategies, and other key
business decisions.
Page 24 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
In addition to government agencies and real estate professionals, there are
also a number of third-party data providers that collect and analyze real
property data. These providers use a range of different data sources,
including public records, satellite imagery, and proprietary databases, to
provide comprehensive and detailed data on real estate properties.
The use of real property data is widespread in the real estate industry. Real
estate agents and brokers use data to help clients buy and sell properties,
while appraisers use data to assess the value of properties. Lenders use data
to assess the risk associated with real estate loans, and investors use data to
make informed decisions about real estate investments.
Real property data is also used by government agencies to inform policy
decisions and manage local real estate markets. For example, local
government officials may use real property data to inform land use
planning and zoning decisions, while tax assessors may use data to
determine property tax assessments.
Advances in technology and data analytics have made it easier to collect,
analyze, and use real property data. Automated valuation models (AVMs)
and other data analytics tools are increasingly being used to provide more
accurate and reliable valuations of real estate properties. In
addition, machine learning algorithms are being used to identify patterns
and trends in real property data, which can help to inform decision-making
processes in the real estate industry.
Overall, real property data is a valuable resource that is used by a wide
range of stakeholders in the real estate industry. By providing insights into
local real estate markets, property values, and other key factors, real
property data helps to inform decision-making processes, support market
analysis, and drive innovation in the real estate industry.
Page 25 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
There are several sources of real property information that can provide
valuable data and insights for property valuations, investment analysis, and
other purposes. Here are some common sources of real property
information:
Property records: Property records are public documents that provide
information about the ownership, history, and characteristics of a
property. These records can be accessed through local government
offices, such as the county recorder's office or the assessor's office.
Property records may include information such as the property's legal
description, ownership history, sales history, property tax information,
and zoning information.
Multiple Listing Service (MLS): The MLS is a database of properties for
sale, maintained by real estate brokers and agents. The MLS provides
information about the listing price, features, and location of properties,
as well as photos and other details. The MLS is a valuable source of
information for property investors and buyers looking for properties in
a specific area.
Real estate websites: There are many online real estate websites that
provide property listings, market data, and other information about
real estate. Some popular real estate websites include Zillow, Redfin,
and Realtor.com. These websites may also provide tools and
calculators for property valuations and investment analysis.
Appraisal reports: Appraisal reports are prepared by licensed
appraisers and provide a professional opinion of the value of a
property. Appraisal reports may include information such as the
property's physical characteristics, comparable sales data, and market
trends.
Local real-estate agents and brokers: Local real estate agents and
brokers can provide valuable insights into the local real estate market,
Page 26 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
including current market conditions, trends, and property values. They
may also have access to off-market properties and other information
that is not publicly available.
Public records: Public records, such as tax records and building
permits, can provide information about the ownership, history, and
characteristics of a property. These records can be accessed through
local government offices or online databases.
Property inspections: Property inspections can provide valuable
information about the physical condition and characteristics of a
property, including any defects or issues that may affect its value.
Inspections can be conducted by licensed inspectors or by the property
owner or buyer.
Overall, there are many sources of real property information that can provide
valuable data and insights for property valuations, investment analysis, and
other purposes. It is important to use a combination of these sources to
obtain a comprehensive and accurate picture of a property's value and
characteristics.
2.3.3 Real Property information in Ethiopia
In Ethiopia, there are several sources of real property information that can
provide valuable data and insights for property valuations, investment
analysis, and other purposes. Here are some common sources of real
property information in Ethiopia:
Ethiopian Land Valuation and Administration Agency: The Ethiopian
Land Valuation and Administration Agency is responsible for
conducting property valuations for taxation and other purposes. The
Agency can provide information about the market value of properties,
based on sales data and other factors.
Page 27 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Ethiopian Investment Commission: The Ethiopian Investment
Commission is responsible for promoting and regulating investment in
Ethiopia. The Commission can provide information about investment
opportunities, real estate projects, and market trends in Ethiopia.
Ethiopian Real Estate Association: The Ethiopian Real Estate
Association is a professional association for real estate brokers, agents,
and appraisers. The Association can provide information about real
estate market trends, regulations, and professional standards.
Ethiopian Ministry of Urban Development and Construction: The
Ethiopian Ministry of Urban Development and Construction is
responsible for urban planning and development in Ethiopia. The
Ministry can provide information about zoning, land use regulations,
and infrastructure development in different areas.
Ethiopian Property Listing Websites: There are several online property
listing websites in Ethiopia, such as Ethio Houses, Mekinaye, and
Qefira. These websites provide information about properties for sale or
rent, including photos, location, and price.
Ethiopian Property Owners and Developers: Property owners and
developers in Ethiopia can provide valuable insights into the local real
estate market, including property values, trends, and investment
opportunities. They may also have access to off-market properties and
other information that is not publicly available.
Local Government Offices: Local government offices, such as the land
administration office or the city planning office, can provide
information about property ownership, zoning, building permits, and
other regulations.
Overall, there are several sources of real property information in Ethiopia
that can provide valuable data and insights for property valuations,
Page 28 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
investment analysis, and other purposes. It is important to use a combination
of these sources to obtain a comprehensive and accurate picture of a
property's value and characteristics.
2.4 Approach of real property Valuation
Valuation approach and valuation methods are related concepts that are
used in property valuation, but they are distinct from each other.
Valuation approach refers to the overall framework or methodology used to
arrive at a valuation estimate for a property. There are three main valuation
approaches used in property valuation: the sales comparison approach, the
income approach, and the cost approach. Each approach involves a different
set of valuation methods and assumptions, and each is typically used in
different circumstances depending on the type of property being valued and
the availability of market data.
Valuation methods, on the other hand, refer to the specific techniques used
to arrive at a valuation estimate within a particular valuation approach. For
example, within the sales comparison approach, common valuation methods
include the direct comparison method, the paired sales analysis method, and
the market extraction method. Within the income approach, common
valuation methods include the capitalization of income method and the
discounted cash flow method. Within the cost approach, common valuation
methods include the reproduction cost method and the replacement cost
method.
In other words, valuation approach is the overarching methodology used to
arrive at a valuation estimate, while valuation methods are the specific
techniques used within that methodology to arrive at an estimate. Both are
important components of property valuation, and valuation professionals
must choose the appropriate approach and methods based on the specific
circumstances of the property being valued and the data and information
available.
Page 29 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Real property valuation is the process of determining the market value of a
property. There are several approaches to real property valuation, each of
which has its own strengths and weaknesses. The three primary
approaches to real property valuation are the sales comparison approach,
the cost approach, and the income approach.
Sales Comparison Approach: The sales comparison approach is the
most common approach to real property valuation. It involves
comparing the subject property to similar properties that have recently
sold in the same local market. The appraiser will look at factors such as
the location, size, age, condition, and amenities of the subject property
and compare them to similar properties in the area. The appraiser will
then adjust the value of the subject property based on differences
between the subject property and the comparable properties.
Cost Approach: The cost approach is based on the principle of
substitution, which assumes that a buyer will not pay more for a
property than the cost of building a similar property. The cost approach
involves estimating the cost of building a similar property and then
subtracting depreciation based on the age and condition of the subject
property. This approach is often used for new properties or properties
that have unique features that make them difficult to value using the
sales comparison approach.
Income Approach: The income approach is based on the principle
that the value of a property is determined by its ability to generate
income. This approach is commonly used for commercial properties,
such as apartment buildings or office buildings. The appraiser will
estimate the incomethat the property could generate based on current
market rents or lease rates, and then subtract expenses such as
maintenance, management, and taxes. The resulting net operating
income is then divided by a capitalization rate to determine the
property's value.
Page 30 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Each of these approaches has its own strengths and weaknesses, and the
approach used will depend on the specific property being valued and the
purpose of the valuation. For example, the sales comparison approach is
often used for residential properties, while the income approach is commonly
used for commercial properties. In some cases, a combination of approaches
may be used to provide a more comprehensive and accurate valuation of the
property.
Other factors that can impact the approach to real property valuation include
the availability of data, the complexity of the property, and the specific
requirements of the client or lender. For example, if data on comparable
sales is limited, the cost approach or income approach may be used instead.
Similarly, if the property has unique features or is located in a complex
market, a more detailed valuation approach may be required.
Overall, the approach to real property valuation will depend on a range of
factors, including the type of property, the availability of data, and the
specific requirements of the client or lender. By using a comprehensive and
systematic approach to valuation, appraisers can provide accurate and
reliable valuations that are essential for supporting real estate
transactions, investment decisions, and other key activities in the real estate
industry.
2.5 Method of real property Valuation
There are deferent types of property valuation approach as described above. Under each
approach there are deferent methods.Presented as follow.
The sales comparison approach is the most common approach used in property valuation, and it
involves comparing the subject property to similar properties that have recently sold in the same
area. Here are the types or methods of sales comparison approaches:
There are several methods used in the sales comparison approach to real property valuation. Here
are some of the most common methods:
Page 31 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Direct Comparison Method: This method involves comparing the subject property to
similar properties that have recently sold in the same area. The appraiser identifies
comparable properties that have similar features, size, condition, and location, and adjusts
for any differences to arrive at an estimate of the subject property's value. The appraiser
may use a checklist or rating system to evaluate the comparable properties and make
adjustments for differences.
Paired Sales Method: This method involves analyzing the sales prices of similar
properties that have recently sold in the same area and comparing their sale prices to
determine the value of the subject property. The appraiser identifies pairs of properties
that are similar in size, location, and other characteristics, but differ in one or more
features such as condition or age. The appraiser then calculates the difference in sale
price between the two properties and applies the same adjustment to the subject property.
Group Comparison Method: This method involves comparing the subject property to a
group of similar properties that have recently sold in the same area. The appraiser
identifies a group of properties that are similar in size, location, and other characteristics,
and evaluates the sale prices to arrive at an estimate of the subject property's value. The
appraiser may use statistical techniques to analyze the group of properties and make
adjustments for differences.
Market Extraction Method: This method involves analyzingthe sales prices of
comparable properties in a particular market area to determine the market value of the
subject property. The appraiser identifies the sale prices of comparable properties and
adjusts them for differences in size, location, condition, and other factors to arrive at an
estimate of the subject property's value.
Trend Analysis Method: This method involves analyzing the trends in the real estate
market, such as changes in supply and demand, interest rates, and economic conditions,
to determine the value of the subject property. The appraiser uses statistical techniques to
analyze these trends and applies them to the subject property to arrive at an estimate of its
value.
Page 32 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Residual Analysis Method: This method involves analyzing the sales prices of properties
that have recently sold in a particular market area and subtracting the value of the land
from the total sale price to arrive at an estimate of the value of the improvements
(buildings, structures, etc.). The appraiser then divides the value of the improvements by
a factor such as the square footage or the number of units to arrive at a value per unit or
per square foot, which is applied to the subject property.
There are several methods used in the cost approach to real property
valuation. Here are some of the most common methods:
Replacement Cost Method: This method involves estimating the cost to
replace the subject property with a similar property of equal utility. The
appraiser estimates the cost of constructing the property, including
materials, labor, and overhead, and adjusts for depreciation and
obsolescence to arrive at an estimate of the property's value.
Reproduction Cost Method: This method involves estimating the cost to
reproduce an exact replica of the subject property, including any
improvements or changes that have been made over time. The
appraiser estimates the cost of constructing the property, including
materials, labor, and overhead, and adjusts for depreciation and
obsolescence to arrive at an estimate of the property's value.
Quantity Survey Method: This method involves estimating the cost of
constructing the subject property by quantifying the materials and
labor required for each component of the property, such as the
foundation, walls, roof, and finishes. The appraiser calculates the cost
of each component and adds them together to arrive at an estimate of
the property's value.
Unit-in-Place Method: This method involves estimating the cost of
constructing the subject property by breaking it down into individual
components, such as walls, floors, and roofs, and estimating the cost of
Page 33 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
each component. The appraiser then adds up the costs of each
component to arrive at an estimate of the property's value.
Trended Historical Cost Method: This method involves estimating the
original cost of constructing the subject property and adjusting it for
inflation or changes in the cost of materials and labor over time. The
appraiser estimates the original cost of construction and applies an
index or other factors to adjust for changes in the cost of materials,
labor, and other factors to arrive at an estimate of the property's
value.
There are several methods used in the income approach to real property
valuation. Here are some of the most common methods:
Direct Capitalization Method: This method involves estimating the net
operating income (NOI) of the subject property and dividing it by
a capitalization rate to arrive at an estimate of the property's value.
The capitalization rate is determined by analyzing market data, such
as sales of similar properties and prevailing interest rates, to arrive at
a rate that reflects the risk and return associated with the subject
property.
Discounted Cash Flow Method: This method involves estimating the
future net cash flows of the subject property, discounting them to
present value using a discount rate that reflects the risk and return
associated with the property, and adding the present value of
the residual value of the property. The residual value is the estimated
value of the property at the end of the holding period.
Gross Income Multiplier Method: This method involves dividing the sale
price of similar properties by their gross rental income to arrive at a
gross income multiplier. The appraiser then applies the gross income
multiplier to the gross rental income of the subject property to arrive
at an estimate of the property's value.
Page 34 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Band of Investment Method: This method is used for valuing income-
producing properties that have multiple sources of financing, such as
commercial buildings or apartment complexes. The method involves
estimating the net operating income of the property and dividing it into
two parts: one for the return on the equity investment, andone for the
return on the financing. The appraiser calculates the rate of return
required by the equity investors and the financing sources, and
combines them to arrive at an overall capitalization rate. The
capitalization rate is then used to estimate the value of the property.
Mortgage Equity Analysis Method: This method is similar to the band
of investment method, but is used to analyze the equity and debt
components of a property's financing. The appraiser estimates the net
operating income of the property and subtracts the annual debt
service to arrive at the net income available to equity investors. The
appraiser then calculates the rate of return required by the equity
investors and compares it to the overall capitalization rate to arrive at
an estimate of the property's value.
2.6 Real property data format
Real property data is typically stored in a structured format that allows it to
be easily searched, organized, and analyzed. There are several commonly
used formats for real property data, including:
Spreadsheet format: Real property data can be stored in
a spreadsheet format using software such as Microsoft Excel or Google
Sheets. This format allows the data to be easily organized and
analyzed using sorting, filtering, and other tools. Spreadsheets can also
be used to create charts and graphs that make it easier to visualize
trends and patterns in the data.
Database format: Real property data can also be stored in
a database format using software such as Microsoft Access or MySQL.
Page 35 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
This format allows the data to be easily searched and queried using
SQL (Structured Query Language). Databases can also be used to
create reports and queries that provide insights into the data.
XML format: XML (Extensible Markup Language) is a format used for
exchanging data between different systems. Real property data can be
stored in an XML format, which allows it to be easily shared and
integrated with other systems. XML is often used for data feeds
and APIs (Application Programming Interfaces) that allow real-time
access to real property data.
GIS format: GIS (Geographic Information System) software is used to
store and analyze spatial data, including real property data. GIS
software allows real property data to be visualized on maps, which can
help to identify patterns and trends in the data. GIS software can also
be used to create custom mapsand perform spatial analyses that
provide insights into the data.
PDF format: Real property data can also be stored in a PDF (Portable
Document Format) format, which allows it to be easily shared and
viewed. PDFs can be used to store reports, property listings, and other
types of real estate documents. PDFs can also be used to store maps
and other visualizations that provide insights into real property data.
Overall, the format used for real property data will depend on the specific
needs of the user and the systems involved. However, regardless of the
format used, real property data should be stored in a structured format that
allows it to be easily searched, organized, and analyzed. By using
a structured format, real estate professionals and other stakeholders can
make better use of real property data and gain insights into local real estate
markets, property values, and other key factors that drive the real estate
industry.
2.7 Methods of collecting data
Page 36 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
There are several methods of collecting data, depending on the type of data
needed and the purpose for which it will be used. Here are some common
methods of data collection:
Surveys: Surveys are a popular method of data collection that involve
asking a set of questions to a group of people. Surveys can be
conducted in person, over the phone, or online, and can be used to
gather a wide range of information, from opinions and preferences
to demographic data and behavioral patterns.
Interviews: Interviews involve asking questions to individuals or groups
in a face-to-face setting. Interviews can be structured or unstructured
and can be used to gather qualitative data on a variety of topics,
including attitudes, beliefs, and behaviors.
Focus groups: Focus groups involve bringing together a small group of
people to discuss a particular topic or issue. Focus groups typically
involve a moderator who asks questions and facilitates discussion
among the group members. Focus groups can be used to gather
qualitative data on a particular topic, such as consumer preferences or
opinions on a new product or service.
Observations: Observations involve watching and recording behavior in
a particular setting. Observations can be structured or unstructured
and can be used to gather qualitative data on a variety of topics,
including social interactions, consumer behavior, and workplace
productivity.
Experiments: Experiments involve manipulating one or more variables
to observe the effect on an outcome. Experiments can be used to
gather quantitative data on a variety of topics,including scientific
research, product testing, and marketing analysis.
Page 37 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Secondary data sources: Secondary data sources involve gathering
data that has already been collected by other sources, such as
government agencies, academic institutions, or market research firms.
This can include data from surveys, census reports, industry reports,
and other sources. Secondary data can be a valuable source of
information for research and analysis, but it's important to evaluate
the quality and relevance of the data before using it.
Data mining: Data mining involves using statistical
techniques and machine learning algorithms to analyze large data sets
and identify patterns, trends, and insights. Data mining can be used to
gather both quantitative and qualitative data on a wide range of topics,
including consumer behavior, market trends, and scientific research.
By selecting the appropriate data collection method for a given research
question or objective, researchers can gather a comprehensive and accurate
set of data for analysis and interpretation. It's important to select a method
that is appropriate for the type of data being collected and to ensure that the
data is reliable, valid, and relevant to the research question or objective.
2.8 Reliable methods of data collection
There are several reliable methods of data collection that are commonly
used in the real estate industry. These methods include:
Direct observation: This method involves physically visiting a
property and collecting data on its physical characteristics, such as its
size, age, condition, and amenities. This method is often used by
appraisers and property inspectors to gather detailed information
about a property.
Public records: Public records such as property deeds, tax records,
and building permits can provide valuable information about a
property's ownership history, assessed value, and other key factors.
Page 38 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Public records are often used by real estate professionals and
researchers to gather information about a property and its market.
Online databases: Online databases such as MLS (Multiple Listing
Service) provide access to real estate listings, sales data, and other
information about properties. These databases are often used by real
estate agents, appraisers, and researchers to gather information about
local real estate markets and property values.
Surveys: Surveys can be used to collect data from property owners,
buyers, and other stakeholders. Surveys can provide insights into
factors such as buyer preferences, market trends, and the perceived
value of a property.
Remote sensing: Remote sensing technologies such as aerial
photography and satellite imagery can provide valuable information
about a property's location, topography, and other physical
characteristics. These technologies are often used by appraisers,
surveyors, and other professionals to gather data on large or remote
properties.
Focus groups andinterviews: Focus groups and interviews can be
used to gather qualitative data on buyer preferences, market trends,
and other factors that can impact real estate values. These methods
are often used by market researchers and real estate professionals to
gather insights from buyers, sellers, and other stakeholders.
Automated Valuation Models (AVMs): AVMs use statistical
models and algorithms to estimate the value of a property based on
data such as recent sales, property characteristics, and market trends.
AVMs are often used by lenders, real estate websites, and other
organizations to provide quick estimates of property values.
Page 39 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Sensor-based technologies: Sensor-based technologies such as IoT
(Internet of Things) devices can provide real-time data on factors such
as energy usage, temperature, and occupancy. These technologies are
often used in commercial properties to optimize energy efficiency and
improve tenant comfort.
Each of these methods has its own strengths and weaknesses, and the
method used will depend on the specific needs of the user and the type of
property being evaluated. It is important to choose a reliable and appropriate
method of data collection to ensure accurate and reliable data that can be
used to support real estate transactions, investment decisions, and other key
activities in the real estate industry.
2.9 Encode material breakdown data
Material breakdown data is an important factor in determining the value of a
property, particularly for real properties. Material breakdown data refers to
information about the types of materials used to construct a property, such
as the roofing material, the type of siding, the flooring material, and the type
of windows. This information can be used to determine the quality of the
construction and the durability of the property, which can impact its value.
To encode material breakdown data for property valuation, the following
steps can be taken:
Collect the data: The first step is to gather the material breakdown
data for the property. This can be done by visiting the property and
conducting a physical inspection, reviewing building permits and other
records, or using other data sources such as online databases.
Categorize the data: Once the material breakdown data has been
collected, it should be categorized into different types of materials. For
example, roofing materials may be categorized as asphalt shingles,
Page 40 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
metal, or tile, while flooring materials may be categorized as carpet,
hardwood, or tile.
Assign values to the materials: After the data has been
categorized, values can be assigned to each type of material based on
its quality and durability. For example, high-quality roofing materials
such as tile or metal may be assigned a higher value than lower-quality
materials such as asphalt shingles.
Calculate the total value: Once values have been assigned to each
type of material, the total value of the materials can be calculated.
This can be doneby multiplying the quantity of each type of material
by its assigned value and then summing the values. For example, if a
property has 1,500 square feet of hardwood flooring, and hardwood
flooring is assigned a value of $5 per square foot, the value of the
flooring would be $7,500 (1,500 x $5).
Incorporate the data into the valuation: The material breakdown
data can then be incorporated into the valuation of the property. For
example, if two properties are similar in size and location but one has
higher-quality materials, the property with higher-quality materials
may have a higher value.
It is important to note that the accuracy of the material breakdown data and
the values assigned to each type of material can impact the accuracy of the
property valuation. Therefore, it is important to gather reliable and accurate
data and to use appropriate values for each type of material to ensure an
accurate and reliable valuation.
In addition to the steps I outlined earlier, here are some additional
considerations and best practices for encoding material breakdown data:
Use reliable sources: When collecting material breakdown data, it is
important to use reliable sources such as building permits, blueprints,
Page 41 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
or other official records. This can help ensure that the data is accurate
and complete.
Consider age and condition: When assigning values to each type of
material, it is important to consider the age and condition of the
materials. For example, a property with older, worn-out hardwood
flooring may be assigned a lower value than a property with newer,
well-maintained hardwood flooring.
Use market data: When assigning values to each type of material, it
can be helpful to use market data to determine appropriate values. For
example, you could research recent sales of similar properties in the
area to determine the value of certain types of materials.
Use a standardized format: To ensure consistency and accuracy, it
can be helpful to use a standardized format for encoding material
breakdown data. This could include using a spreadsheet or database to
organize and calculate the values of each type of material.
Consider the local market: When incorporating the material
breakdown data into the valuation of the property, it is important to
consider the local market conditions. For example, properties in certain
areas or neighborhoods may have higher or lower values based on the
types of materials used in construction, as well as other factors such as
location, amenities, and market demand.
Consult with a professional: If you are unsure about how to properly
encode material breakdown data for property valuation, it can be
helpful to consult with a professional such as a real estate appraiser or
agent. They can provide guidance and expertise to ensure that the
data is accurate and the valuation is reliable.
Overall, encoding material breakdown data for property valuation is an
important process that can help ensure accurate and reliable valuations. By
Page 42 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
following best practices and using reliable data sources, real estate
professionals can provide their clients with the information they need to
make informed decisions about buying, selling, or investing in real estate.
Self-Check – 2 Written test
-Name…………………………………………… ID………………………… Date…….
Directions: Answer all the questions listed below.
Test I: Multiple choice
1. Among the following which strategies are important for
identify the appropriate area for real property data at the
planning stage.
A. Consider future growth and development:
B. Consult with stakeholders:
C. Use existing geographic boundaries:
D. Conduct a spatial analysis:
E. All
2. Among the following which one of the following is Real
Property data includes.
A. Property characteristics:
B. Ownership and transaction history:
C. Market value and appraisals:
D. Zoning and land use:
E. All
3. Which one of the following valuation approach is best?
A. Sales comparison approach,
B. Cost approach,
C. Income approach.
D. Reconciliation.
E. None
Test II: Short Answer Questions
Page 43 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
1. What is the deference between Valuation Approach and Valuation
methods---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
---------------------------------------------------
2. What is real property data
format?----------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
3. Mention and list Reliable methods of data collection?
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
4. List the steps for material breakdown data for property valuation?
---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
You can ask you teacher for the copy of the correct answers.
Note: Satisfactory rating - 5 points Unsatisfactory - below 5 points
Page 44 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Operation Sheet -2
1.2. Techniques/Procedures/Methods for Collecting Valuation data for
expropriated land.
A. Tools and equipment’s
I. Official Letters permission for data collection
II. Stationery
III. HHGPS
IV. Meter.
B. Procedures/Steps/Techniques for fixing the scale side.
Prepare an action plan for the specific tasks
Prepare forms for data collection.
Provide orientation for data collector, and for the community.
Collect non spatial Data from the concerned body
Select and Collect spatial Data from the selected place.
Record on the appropriate platforms.
Page 45 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
LAP TEST-2 Performance Test
Name………………………………. ID……………………………..
Date…………………………………….
Time started: ________________________ Time finished: ________________
Instructions: Given necessary templates, tools and materials you are required to perform the
following tasks within 1 minute. The project is expected from each student to
do it.
Task-1 Collect the data on the place in which the land is required for structural plan
implementation.
Page 46 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
LG #45 LO #3- Data Organizing and
Reviewing
Instruction sheet 3
This learning guide is developed to provide you the necessary information
regarding the following content coverage and topics:
Data organizing technology
Documentation and reports
Update information in standard forms
Information management
Maintain database and modification
This guide will also assist you to attain the learning outcomes stated in the
cover page. Specifically, upon completion of this learning guide, you will be
able to:
Use data organizing technology.
Approve and transfer data for encode
Obtain documentation and reports
Store and organize update information in standard forms
Consult sufficiency of information.
Identify gaps information and data collection
Identify and incorporated documented in modifications
Perform decision making and modifications
Learning Instructions:
7. Read the specific objectives of this Learning Guide.
8. Follow the instructions described below.
9. Read the information written in the information Sheets
10. Accomplish the Self-checks
11. Perform Operation Sheets
12. Do the “LAP test”
Page 47 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Information Sheet 3
3.1 Data organizing technology
For property valuation data, a common technology used for organizing data
is a Relational Database Management System (RDBMS). RDBMS is well-suited
for organizing structured data with a clear and consistent schema, such as
property attributes and transaction data.
An RDBMS can be used to store property data in tables with rows
representing individual properties and columns representing the different
attributes of the property, such as location, size, number of bedrooms, and
so on. RDBMS can also be used to store transaction data, such as sale price
and date, and to link this data with the corresponding property.
In addition to RDBMS, other technologies such as data warehousing and data
lakes could also be used to store and manage property valuation data. Data
warehousing can be useful for consolidating data from multiple sources and
generating reports, while data lakes can be useful for storing raw data that
may not fit neatly into a relational database schema.
It is also worth noting that specialized software solutions exist for property
valuation, such as property management software, real estate appraisal
software, and real estate valuation software. These solutions may include
data organizing technologies specifically designed for property valuation
data, such as property tax software that can integrate with county property
tax records.
Here's some more information on data organizing technologies for property
valuation data:
Property Management Software: Property management software is
a type of software designed to help property managers and landlords
manage their properties. This software often includes tools for
Page 48 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
managing rental properties, tracking maintenance requests, and
generating financial reports. Some property management software
solutions also include features for managing property valuation data,
such as tracking property values over time and generating property
valuation reports.
Real Estate Appraisal Software: Real estate appraisal software is a
type of software used by real estate appraisers to generate property
valuations. This software often includes tools for collecting and
organizing property data, analyzing market trends, and generating
valuation reports. Real estate appraisal software can be used by both
commercial and residential appraisers.
Real Estate Valuation Software: Real estate valuation software is a
type of software used by real estate professionals and investors to
analyze property values and investment opportunities. This software
often includes tools for collecting and organizing property data,
performing financial analysis, and generating reports. Real estate
valuation software can be used to analyze both commercial and
residential properties.
Property Tax Software: Property tax software is a type of software
used by property owners and managers to manage property tax
payments and compliance. This software often includes tools for
organizing property data, tracking assessments and tax bills, and
generating tax reports. Property tax software can integrate with county
property tax records to provide up-to-date and accurate property
valuation data.
Geographic Information Systems (GIS): GIS software is used to
capture, store, manipulate, analyze, and present spatial or geographic
data. GIS technology can be used to manage property valuation data
by organizing it in a spatial context, allowing for analysis of property
values based on location, proximity to amenities or infrastructure, and
other geographic factors. GIS can be used to create maps that display
Page 49 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
property values, zoning information, land use data, and other relevant
information.
Machine Learning and Artificial Intelligence (AI): Machine
learning and AI technologies can be used to analyze property valuation
data and identify patterns and trends that may not be immediately
apparent. These technologies can be used to build predictive models
that can estimate property values based on a variety of factors, such
as location, property size, number of bedrooms, and other relevant
data. Machine learning and AI models can also be used to identify
outliers or anomalies in property valuation data, which can help to
improve the accuracy and reliability of valuation models.
Blockchain: Blockchain technology can be used to create a secure
and tamper-proof ledger of property valuation data. By using block
chain technology, property valuation data can be stored in a
decentralized manner, making it more difficult for data to be
manipulated or altered. Block chain technology can also be used to
create smart contracts that automate property transactions, such as
property sales or rental agreements, based on pre-defined rules and
conditions.
Overall, the choice of data organizing technology for property valuation data
will depend on the specific needs and goals of the organization. Some
organizations may find that a combination of different technologies, such as
GIS, machine learning, and block chain, provides the best solution for
managing and analyzing property valuation data. It's important to evaluate
different options and choose the technology that best fits the organization's
requirements, taking into account factors such as data volume, complexity,
and security. Additionally, it's important to ensure that the technology
chosen is compatible with existing systems and can be easily integrated into
the organization's workflows.
3.2 Documentation and reports
Page 50 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Documentation and reports are important components of property valuation,
as they provide a clear and concise summary of the property's value and the
factors that have been considered in the valuation process. Here are some
common types of documentation and reports used in property valuation:
Appraisal Reports: An appraisal report provides an estimate of the
value of a property based on an appraiser's evaluation. The report
typically includes a description of the property, an analysis of market data
and trends, and an explanation of the valuation methods used. Appraisal
reports are often used in real estate transactions, such as buying or
selling a property.
Comparative Market Analysis (CMA) Reports: A CMA report provides
an estimate of a property's value based on recent sales of similar
properties in the same area. The report typically includes a list of
comparable properties, their sale prices, and an analysis of how they
compare to the subject property. CMA reports are often used by real
estate agents to help clients determine a fair price for a property.
Property Inspection Reports: A property inspection report provides an
assessment of the condition of a property, including any defects or issues
that may affect its value. The report typically includes a detailed
inspection of the property's structure, systems, and components, as well
as recommendations for repairs or improvements. Property inspection
reports are often used by buyers and sellers during real estate
transactions.
Tax Assessment Reports: A tax assessment report provides an
estimate of a property's value for the purpose of calculatingproperty
taxes. The report typically includes a description of the property, an
analysis of market data and trends, and an explanation of the assessment
methods used. Tax assessment reports are often used by local
government agencies to determine the property taxes owed by property
owners.
Page 51 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Feasibility Studies: A feasibility study report provides an analysis of the
financial and economic viability of a real estate project. The report
typically includes an assessment of the property's market demand,
construction costs, potential revenue, and operating expenses. Feasibility
studies are often used by real estate developers and investors to evaluate
the potential profitability of a project.
Title Reports: A title report provides a summary of the property's
ownership history and any liens or encumbrances that may affect its
value. The report typically includes a description of the property, a chain
of title, and a list of any outstanding liens or encumbrances. Title reports
are often used by buyers and sellers during real estate transactions.
Environmental Reports: An environmental report provides an
assessment of the potential environmental risks associated with a
property. The report typically includes an analysis of the property's
environmental history, potential contamination sources, and
recommendations for remediation or mitigation. Environmental reports
are often used by buyers and lenders to assess the potential
environmental liabilities associated with a property.
Rent Rolls: A rent roll report provides a summary of the rental income
generated by a property. The report typically includes a list of all rental
units, their current rental rates, and the dates of lease agreements. Rent
rolls are often used by real estate investors and lenders to evaluate the
income potential of a property.
Market Trend Reports: A market trend report provides an analysis of
market data and trends that may impact the value of a property. The
report typically includes data on sales prices, rental rates, vacancy rates,
and other market metrics. Market trend reports are often used by
appraisers, real estate agents, and investors to evaluate the current state
of the market and make informed decisions about property valuation.
Cost Approach Reports: A cost approach report provides an estimate of
the value of a property based on the cost of constructing a similar
Page 52 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
property. The report typically includes an analysis of construction costs,
depreciation, and other factors that may impact the property's value. Cost
approach reports are often used in conjunction with other valuation
methods to provide a comprehensive estimate of a property's value.
Income Approach Reports: An income approach report provides an
estimate of the value of a property based on its potential income. The
report typically includes an analysis of rental income, expenses,
and market trends that may impact the property's income potential.
Income approach reports are often used in conjunction with other
valuation methods to provide a comprehensive estimateof a property's
value.
Zoning Reports: A zoning report provides an assessment of the
property's zoning classification and any restrictions that may impact its
value. The report typically includes a description of the property's current
zoning classification, as well as an analysis of any zoning regulations or
restrictions that may apply. Zoning reports are often used by buyers,
sellers, and developers to evaluate the potential uses and value of a
property.
Property Condition Reports: A property condition report provides an
assessment of the physical condition of a property, including any defects
or issues that may impact its value. The report typically includes a
detailed inspection of the property's structure, systems, and components,
as well as recommendations for repairs or improvements. Property
condition reports are often used by buyers and lenders during real estate
transactions.
Risk Assessment Reports: A risk assessment report provides an
analysis of the potential risks associated with a property, such as
environmental, regulatory, or legal risks. The report typically includes an
assessment of the property's history, potential liabilities, and
recommendations for mitigating any identified risks. Risk assessment
Page 53 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
reports are often used by buyers, lenders, and insurers to evaluate the
potential risks associated with a property.
Overall, the choice of documentation and reports for property valuation will
depend on the specific needs and goals of the organization. It is important to
choose the appropriate documentation and report types based on the
purpose of the valuation, the intended audience, and the requirements of
any regulatory or legal frameworks that may apply. Additionally, it is
important to ensure that the documentation and reports are accurate,
complete, and compliant with applicable standards and best practices.
Communication is also an important aspect of documentation and reports, as
it is important to clearly explain the valuation methods used, the
assumptions made, and the conclusions reached. A well-
documented property valuation report can provide valuable insights and help
stakeholders make informed decisions about buying, selling, or investing in a
property.
3.3 Update information in standard forms
Standard forms for property valuation are typically used to capture and
document key information about a property, such as its location, size,
condition, and market value. Updating this information is important to ensure
that the valuation report is accurate, reliable, and compliant with applicable
standards and regulations. Here are some tips for updating information
in standard forms for property valuation:
Review the form carefully: Before updating any information, it is
important to carefully review the standard form to ensure that all
required information is included. Check to see if any updates have
been made to the form or if any new requirements have been added
since the last time it was used.
Gather all relevant information: Gather all relevant information
about the property, including any recent changes or updates. This may
include information on recent sales or leases of similar properties in
Page 54 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
the area, any changes in zoning regulations or building codes, and any
repairs or renovations made to the property.
Verify the accuracy of information: Verify the accuracy of all
information before updating the form. This may involve conducting
a site visit to confirm the condition of the property, reviewing public
records to verify ownership or zoning information, and reviewing
market data to ensure that the property is being valued appropriately.
Use consistent terminology: Use consistent terminology throughout
the form to ensure that the information is clear and easy to
understand. This may involve using standard terms and definitions
for property attributes, such as square footage, number of bedrooms,
and building materials.
Be transparent about any assumptions or limitations: Be
transparent about any assumptions or limitations that may impact the
accuracy of the valuation. For example, if there is limited market data
available for a particular property type or location, it is important to
note this in the form and explain how the valuation was arrived at.
Similarly, if there are any limitations on the scope of the valuation,
such as a restricted access to the property, these should also be noted
in the form.
Use technology to streamline the process: Use technology tools,
such as property data management software or valuation software, to
streamline the process of updating information in standard forms.
These tools can help automate data entry, reduce errors, and improve
the overall efficiency of the valuation process.
Follow applicable standards and regulations: Ensure that all
updates to the standard form are compliant with applicable standards
and regulations, such as the Uniform Standards of Professional
Appraisal Practice (USPAP) or International Valuation Standards (IVS).
Page 55 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
These standards provide guidance on the information that should be
included in a property valuation report and the methods that should be
used to arrive at a valuation estimate.
Overall, updating information in standard forms for property valuation is an
important step in ensuring that the valuation report is accurate, reliable, and
compliant with applicable standards and regulations. By following these tips
and using technology tools to streamline the process, property valuation
professionals can ensure that they are providing the highest level of service
to their clients.
3.4 Information management
Information management is a critical component of property valuation, as it
involves collecting, organizing, and analyzing data related to the property
being valued. Effective information management can help ensure the
accuracy and reliability of the valuation estimates, as well as improve the
efficiency of the valuation process. Here are some key considerations for
information management in property valuation:
Collect and verify data: Collect and verify all relevant data related to
the property being valued, including information on the property's
location, size, condition, and market value. This may involve
conducting site visits, reviewing public records, and analyzing market
data to ensure that the information is accurate and up-to-date.
Organize data in a consistent manner: Organize the data in a
consistent and structured manner, using standard terms and
definitions for property attributes. This can help ensure that the data is
easy to understand and can be used consistently throughout the
valuation process.
Use technology tools: Use technology tools to help manage and
organize the data more efficiently. This may involve using property
data management software, valuation software, or other tools to
Page 56 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
automate data entry, reduce errors, and improve the overall efficiency
of the valuation process.
Ensure data security and privacy: Ensure that all data is stored and
managed in a secure manner, in compliance with applicable data
security and privacy regulations. This may involve implementing
appropriate access controls, encryption, and other security measures
to protect the data from unauthorized access or disclosure.
Document the data and analysis: Document all data used in
thevaluation process, as well as the analysis and conclusions reached
based on the data. This may involve creating a comprehensive
valuation report that summarizes the data, analysis, and conclusions,
as well as any assumptions or limitations that may impact the
accuracy of the valuation estimate.
Update data and analysis as needed: Update the data and analysis
as needed to ensure that the valuation estimate remains accurate and
up-to-date. This may involve conducting periodic updates or reviews of
the data, or updating the valuation estimate based on changes in
market conditions or other factors that may impact the property's
value.
Comply with applicable standards and regulations: Ensure that
all information management practices are compliant with applicable
standards and regulations, such as the Uniform Standards of
Professional Appraisal Practice (USPAP) or International Valuation
Standards (IVS). These standards provide guidance on the information
that should be included in a property valuation report and the methods
that should be used to arrive at a valuation estimate.
Overall, effective information management is critical to the accuracy and
reliability of property valuation estimates. By collecting, organizing, and
analyzing data in a consistent and structured manner, using technology tools
Page 57 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
to streamline the process, and complying with applicable standards and
regulations, property valuation professionals can provide their clients with
the highest level of service and ensure that the valuation estimate
accurately reflects the value of the property being valued.
There are several common challenges in information
management for property valuation that can impact the accuracy and
reliability of the valuation estimate. Here are some of the most common
challenges:
Data quality: One of the biggest challenges in information
management for property valuation is ensuring the quality of the data
being used. Data quality issues can arise due to errors in data entry,
incomplete or inconsistent data, or outdated or inaccurate data. These
issues can impact the accuracy of the valuation estimate and may
require additional time and effort to correct.
Data security and privacy: Another challenge in information
management for property valuation is ensuring the security and
privacy of the data being used. Valuation professionals must ensure
that all data is stored and managed in a secure manner, in compliance
with applicable data security and privacy regulations. This may involve
implementing appropriate access controls, encryption, and other
security measures to protect the data from unauthorized access or
disclosure.
Data storage and retrieval: Managing large volumes of data can be
a challenge in property valuation, particularly when it comes to storing
and retrieving the data. Valuation professionals must ensure that all
data is stored in a manner that is easily accessible and can be
retrieved quickly when needed. This may involve using database
management systems or other technology tools to help organize and
store the data more efficiently.
Page 58 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Data analysis and interpretation: Analyzing and interpreting large
volumes of data can also be a challenge in property valuation.
Valuation professionals must have the skills and expertise to analyze
the data effectively, identify trends and patterns,and draw meaningful
conclusions from the data. This may involve using statistical analysis
tools, database management systems, or other technology tools to
help streamline the analysis process.
Data integration: Valuation professionals may also face challenges in
integrating data from multiple sources, particularly when the data is in
different formats or uses different terminology. This may require
additional time and effort to reconcile the data and ensure that all data
is being used consistently throughout the valuation process.
Data availability: Another challenge in information management for
property valuation is ensuring that all relevant data is available. This
may be particularly challenging in cases where data is not readily
available, such as in emerging or niche markets or for unique or
specialized properties. Valuation professionals may need to conduct
additional research or analysis to ensure that all relevant data is being
considered in the valuation process.
Compliance with regulatory requirements: Valuation professionals
must also ensure that all information management practices are
compliant with applicable regulatory requirements, such as
the Uniform Standards of Professional Appraisal Practice (USPAP)
or International Valuation Standards (IVS). This may require additional
time and effort to ensure that all data is being collected and analyzed
in compliance with these standards.
Valuation professionals must be aware of these common challenges and take
steps to mitigate them in order to ensure that the valuation estimate
accurately reflects the value of the property being valued.
Page 59 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
3.5 Maintain database and modification
Maintaining a database of property valuation information is an important
aspect of information management. A well-maintained database can help
improve the efficiency and accuracy of property valuations by providing easy
access to relevant data, enabling analysis of historical trends, and facilitating
the identification of patterns and outliers. Here are some key considerations
for maintaining a database and making modifications for property valuation:
Choose the right database management system: Choose a
database management system that is well-suited for property
valuation, such as a relational database or a document-oriented
database. The database management system should be able to handle
large volumes of data, provide efficient querying and indexing
capabilities, and be easy to use and maintain.
Define the database schema: Define the database schema, which is
the structure of the database and the relationships between different
data elements. The schema should be designed in a way that reflects
the needs of the valuation process, such as the types of properties
being valued, the attributes of those properties, and the valuation
methods being used.
Collect and enter data: Collect and enter relevant data into the
database, including property information, market data, and valuation
estimates. It is important to ensure that the data is entered accurately
and consistently, using standard terms and definitions for property
attributes.
Regularly update the database: Regularly update the database
with new data and modifications, such as changes in property
ownership, market conditions, or valuation methods. This can help
ensure that the database remains current and relevant.
Page 60 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Ensure dataintegrity: Ensure that the data in the database is
accurate and consistent by implementing data validation and
verification procedures. This may involve using data entry
forms or automated data validation tools to ensure that data is entered
correctly and consistently.
Backup and secure the database: Regularly backup the database
to ensure that data is not lost in case of system failure or data
corruption. Implement appropriate security measures, such as access
controls and encryption, to protect the database from unauthorized
access or disclosure.
Modify the database schema as needed: Modify the database
schema as needed to reflect changes in the valuation process or in
response to feedback from users. This may involve adding new data
elements, modifying existing data elements, or restructuring the
database schema altogether.
Use technology tools to streamline database management: Use
technology tools, such as database management software or data
analytics software, to streamline database management and analysis.
These tools can help automate data entry, reduce errors, and improve
the overall efficiency of the valuation process.
Comply with applicable standards and regulations: Ensure that
the database and any modifications made to it are compliant with
applicable standards and regulations, such as the Uniform Standards of
Professional Appraisal Practice (USPAP) or International Valuation
Standards (IVS). These standards provide guidance on the information
that should be included in a property valuation report and the methods
that should be used to arrive at a valuation estimate.
Overall, maintaining a well-organized and up-to-date database is critical to
the accuracy and reliability of property valuation estimates. By following
Page 61 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
these key considerations, property valuation professionals can ensure that
their databases are accurate, reliable, and compliant with applicable
standards and regulations.
Self-check 3 Written test
Name…………………………………………… ID………………………… Date…….
Page 62 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Directions: Answer all the questions listed below.
Test I: Choose the best answer (4 point)
1. Among the following which one is data organizing technologies
for property valuation data:
A. Property Management Software
B. Real Estate Appraisal Software:
C. Real Estate Valuation Software:
D. Property Tax Software:
E. Geographic Information Systems (GIS)
F. All
2. Among the following which one is not about value of the
property?
A. Appraisal Reports
B. Comparative Market Analysis
C. Tax Assessment Reports
D. Property Inspection Reports
E. None
3. Which of the following is key information about a property,
A. Location,
B. Size,
C. Condition,
D. Market value
E. All
F. None
Test II: Short Answer Questions
4 List and explain data quality challenges in property
valuations?----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
5 List and explain key considerations for maintaining a database and
making modifications for property
Page 63 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
valuation?-----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Page 64 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
Reference Materials
ALADWAN, Z. & AHAMAD, M. S. S. 2019. Hedonic pricing model for real
property valuation via GIS-A review. Civil and Environmental
Engineering Reports, 29, 34-47.
ASRES, H. B. 2019. Real property Valuation in expropriation in Ethiopia:
Bases, approaches and procedures. African Journal on Land Policy and
Geospatial Sciences, 2, 40-51.
BAUM, A., MACKMIN, D. & NUNNINGTON, N. 2017. The income approach to
property valuation, Routledge.
BLACKLEDGE, M. 2016. Introducing property valuation, Taylor & Francis.
BLACKWELL, M. 2007. The relationship of geographical indications with real
property valuation and management. Property Management, 25, 193-
203.
BORST, R. A. 2007. Discovering and applying location influence patterns in
the mass valuation of domestic real property. University of Ulster.
CALHOUN, C. A. 2001. Property valuation methods and data in the United
States. Housing finance international, 16, 12.
D’AMATO, M. 2008. Rough set theory as property valuation methodology:
The whole story. Mass Appraisal Methods: An International Perspective
for Property Valuers, 220-259.
FRENCH, N. & GABRIELLI, L. 2018. Pricing to market: Property valuation
revisited: The hierarchy of valuation approaches, methods and models.
Journal of Property Investment & Finance.
KUCHARSKA-STASIAK, E. & ŹRÓBEK, S. 2015. An attempt to exemplify the
economic principles in real property valuation. Real Estate
Management and Valuation, 23, 5-13.
MILLINGTON, A. 2013. An introduction to property valuation, Taylor &
Francis.
Page 65 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
PYHRR, S. A., BORN, W. L., ROBINSON III, R. R. & LUCAS, S. R. 1996. Real
property valuation in a changing economic and market cycle. The
Appraisal Journal, 64, 14.
SCARRETT, D. 2008. Property valuation: The five methods, Routledge.
VANDELL, K. D. 1991. Optimal comparable selection and weighting in real
property valuation. Real Estate Economics, 19, 213-239.
WYATT, P. 2022. Property valuation, John Wiley & Sons.
Page 66 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
AKNOWLSIDEMENT
Ministry of Labor and Skills and Ministry of Agriculture Rural Land
Administration and Use wish to extend thanks and appreciation to the many
representatives of TVET instructors and respective industry experts who
donated their time and expertise to the development of this Teaching,
Training and Learning Materials (TTLM).
Page 67 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
The experts who developed the learning guide
N Name Qualification Educational Region/ Phone number E-mail
o background college
1 Dessalegn Addis MSc Land Administration Assosa +251-920104909 [email protected]
(BSc) ATVET
Land Administration
and Management(MSc)
2 AbayMustefa MSc Land Agarfa +251-910784067 [email protected]
Management(BSc) ATVET
Land
Management(MSc)
3 ShumetMengesha MSc Land Administration Addis Ababa +251_984004128 [email protected]
(BSc) MPTC
Geodesy and
Geomatics(MSc)
4 DessalegnGashu MSc Land Administration Addis Ababa +251-912604368 [email protected]
(BSc) MPTC
Business
Page 68 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III Ja 2023
Author/Copyright
Administration (MBA)
5 Hamid Kemal MSc Land Administration Assosa +251-938479541 [email protected]
(BSc) ATVET
Land Administration
and
Management(MSc)
6 DilnesaFentahun MSc Land Administration Assosa +251-989426464 [email protected]
(BSc) ATVET
Land Administration
and Management(MSc)
7 Abraham MSc Land Administration Addis Ababa +251-910006950 [email protected]
Desyibelew (BSc) MPTC
Geodesy and
geomatics(MSc)
8 RetaMoti MSc Natural Resource Agarfa +251-940626042 [email protected]
Management(Bsc) ATVET
Land administration
and management(MSc)
Page 69 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright
9 Solomon Eshete MSc Land Agarfa +251-912307088
[email protected] Management(BSc) ATVET
Land
Management(MSc)
10 AgonafirBogale MSc Land Administration Agarfa +251-902838317 [email protected]
and Surveying(BSc) ATVET
Land Administration
and Management(MSc)
Page 70 of 74 Ministry of Labor and Rural land administration Version 1
Skills Level -III May 2023
Author/Copyright