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MARKET DATA APPROACH <br /> Market Data is good evidence of value because it represents <br /> the actions of users and investors . In this approach to <br /> value the appraiser compares the subject property with recent <br /> sales and offerings of similar properties . This np proach to <br /> value is based on the principle of substitution , which states <br /> that "when a property is replaceable on the market its value <br /> tends to be set by the cost of acquiring an equally desirable <br /> substitution". Thus , sales in the open market of properties <br /> with generally similar characteristics and utility are good <br /> indicators of value. <br /> This data was adjusted to the subject property, relating <br /> factors such as time, location, age and condition, utility <br /> and special features , in order to indicate a value range for <br /> the subject property on a per unit basis , usually per square <br /> foot or cubic foot of gross building area, including land, <br /> and when possible obtaining a gross income multiplier which <br /> is calculated by dividing the sale price by either the monthly <br /> or yearly gross, rent. This figure, times the gross income, <br /> produces an estimate of value of that property, usually monthly <br /> gross for residentail properties and yearly gross for income <br /> and/or commercial properties . <br /> This approach is a process of correlation and analysis of <br /> similar recently sold properties . The reliability of this <br /> technique is 4pendent upon, (a) the degree of comparability <br /> of each property with the property under appraisal , (b) the <br /> time of sale, (c) the verification of the sale data, and (d) <br /> the absence of unusual. conditions affecting the sale. <br /> The following pages show recent. market transactions indicating <br /> date of sale, sale price, size of building, and the adjustments <br /> to the subject property. <br />