Methods to Appraisal forest lands

Methods to appraisal forest lands were used by these after rules:

Compaire method: it was used when we collected all informations, databases of the forest needed to appraise

Collection method: it was used to appraise different kind of forests when we know the income form these forests, we can’t have enough information about changing price, renting price or can’t count the square of the forest which war compaired similar price on the market

The costing method: it was used to appraise the ownership of production forests which is plantation when we know available expenses which invested in forest regeneration, can’t know incomes from forests or price databases, lease or can’t counte the forest price of the similar forest comparable in the market.

When the forest can simultaneously was collected the transfer price, the lease price of the forest use right, the right to own planted forest on the market or the price determined by a competent state agency, it can be calculated the income of the forest should be determined by the valuation , while it is possible to determine the reasonable expenses that have been invested in creating forests (for production forests being planted forests), we use method in priority way is beginning the comparative method, income method, cost method.

c) In the following cases, it is necessary to use a combination of appraise forests methods which was specified in this Circular to check and compare with the prices to determine specific prices:

- The transfer, lease of forest use rights, ownership of planted production forests has not yet been popularized in the market, the data collected is not systematic;

- Transfer and rental prices in the market fluctuate abnormally, it don’t reflect the supply and demand relations for forests under normal conditions;

- The price of forest used rights and ownership of planted production forests is determined by one of the methods with a higher or lower result than above or below 20% of the forest use right price and forest ownership price. Production is the actual plantation forest on the market.