Valuation Process of Petrol Station as a Specialized Property

1. INTRODUCTION
Valuation is recognized using characteristics of properties in the markets. Additionally, it is char-
acterized dependending on financial specialist, including income and potential rental, personal
tax reductions or restrictions, and discernments about future development in market value. This
implies the properties are valued on procedures, strategies, and premise of valuation. Likewise,
there are different kinds of features for which judgment might be required for various purposes.
Properties with exchange potential are the precise class of real estate intended for a particular
sort of business. They are regularly purchased and sold in the market, having respect to their ex-
changing potential. Regularly, the value is assumed on account of its temperament, valuers are
looked with particular difficulties which, on occasion, may call the valuer “s proficient skill to
questions.
Properties valuation has been utilitarian important to sellers, home buyers, lenders and real estate
investors. It helps to determine how much does a property worth in order to make a right and
good financial decision. Since the market of property is very diverse, there are factors which de-
termine how a property will be valued into a market such as; demand, utility, scarcity and trans-
ferability. However, the process of determining a price of property may vary depending on the
type of properties such as; specialized, rural or property affected by certain factors. The purpose
of this report is to analyze how valuation process takes place into petrol station, as one of the
types of specialized properties. This report will define types of property that have been selected,
oversee the valuation methodologies and process based on literature sources acquired.
2. NATURE, TYPES AND ELEMENTS OF PROPERTIES WITH TRAD-
ING POTENTIAL

2.1. Specialised Properties
Specialized properties are characterized as "those which, because of their specialized nature, are
once in a while, sold on the open market for single occupation for a continuation of their current
use, with the exception of as a major aspect of a clearance of the business in occupation. Their
specialized nature may emerge from the development, course of action, size or area of the prop-
erty, or a mix of these components, or might be because of the idea of the plant and apparatus
and things of hardware which the structures are intended to house or the capacity, or the reason
for which the structures are given".
According to Jackson (2013) specialized property can be defined as a property which are im-
proved in such a manner that it would not be used for any other purpose than for which it was
originally designed. The researcher explains that the owner of the property would not be able to
change or alter drastically the design and layout of the improvements. He also states the main
characteristic of specialized property is their business ability to generate profit. In general, a spe-
cialized property often located at a unique location with legal status and having monopoly value.
Artemenkov, Mikerin and Artemenkov (2018) claim a specialized property usually are not held
on a leasehold basis because of its significance investment in fitting, fixtures, equipment and fur-
niture. In consequence, there is less rental evidence where the time period of lease tends to be
longer and having restrictive clauses.
Specialized properties can be classified from numerous points of view, one of which is the idea
of business/reason they are being utilized. Particular sorts of organizations have an imposing
business model component and require individual licenses to work, and this will affect their ex-
changing results. Properties used for these kinds of organizations are alluded with exchanging
potential. The exchanging potential might be because of the structure, the utilization to which it

is put, the area, or a blend of these highlights (Scarrett, 2018). Instances of properties in this class
incorporate lodgings, petroleum stations, bars and cafés, films and theaters, gambling clubs and
clubs, and so forth. The valuer is credited value to the property that houses most occasion. These
properties are planned extraordinarily to suit the idea of business it is utilized for, the valuation
needs to think about the pay producing a limit of such activity. This is because fascination for
such properties is vigorously dependent on the benefits created from their organizations.
These type of property mirrors a scope of elements, for example, the area, structure and charac-
ter, level of adjustment, and exchanging history of the property inside the market conditions win-
ning that are natural to the property resource. Therefore, it would not be proficient at valuing a
filling station just by assessing the expense of structures and gear. The area is of prime signifi-
cance, particularly for present-day oil filling stations. Availability, plan, rivalry, evaluating, and
nearby expert recommendations will likewise highlight in the general appraisal of this specific
kind of property. The primary connection between these kinds of real estate is that they contain
structures that are reason worked for a particular sort of business movement.
2.2 Petrol Station as Type of Specialized Properties
Artemenkov, Mikerin and Artemenkov (2018) define petrol station as one of types of specialized
properties. Petrol station focuses on self-contained at main road and motorway facilities. In gen-
eral, petrol station operated by major oil companies. It provides a purchase and leaseback sup-
plied by major wholesaler and operated by dealer paying a low rent. Artemenkov, Mikerin and
Artemenkov (2018) state the valuation of petrol station is affected by several factors such as fa-
cility, age, visibility, layout, dealer management, pricing policy, category of road, traffic volume,
and demographics.

Additionally, because the structure can just be utilized for that action or business for which it is
planned. The value of the property intrigue is regularly characteristically connected to the ex-
changing potential for that action that area, except if some elective utilize progressively gainful.
Nonetheless, there is a restricting perspective that there is no splendid line that decides when the
potential productivity of a business in occupation turns into a prime pointer of the value of the
real property intrigue (IVSC, 2012). It is along these lines deceiving to recognize exchange re-
lated property from different sorts of the property exclusively based intentionally assembled.
3. VALUATION METHODOLOGY
Nowadays, the use of traditional valuation has been shifted away although the standards are al-
ways available. Maliene (2011) claims researchers and experts are confronting the shortcomings
inherent in the traditional valuation method when it uses to estimate the price of property. The
task of valuer is to provide a fact that customers can easily and precisely understand the value of
a property. Since the application of unconventional method of property valuation has no legal
framework, therefore valuer needs to use other methods which involve mathematical and superfi-
cial description (Maliene 2011).
The first method to evaluate a property is by using a mathematical model. It applies a number of
criteria to determine the price of property. It overlooks qualitative aspects such as local infra-
structure, status of property, location and legal restrictions. Moreover, it also considers quantita-
tive aspects such as number of building, volume, number of floors, and years of construction).
Maliene (2011) explains in order to carry out the mathematical valuation, it requires a calculation
using a matrix which needs to be prepared in several stages. The first stage requires valuer to col-
lect all information about petrol station as specialized property. The second stage requires valuer
to define the aim of criteria analysis which are determined. The third stage, it requires a value