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CORRELATION AND FINAL CONCLUSION <br /> The subject property is appraised as tho free and clear of all <br /> encumbrances and in fee simple. The two approaches to value are <br /> the generally accepted methods of determining the fair market <br /> value of the subject. The cost approach develops the replace- <br /> ment cost of the improvements at current construction costs . <br /> The market approach reflects the current real estate resale <br /> market and the actions of buyers and sellers in that market. <br /> Both approaches are comparative work-ups inasmuch as the infor- <br /> mation comes from both direct and indirect comparisons in the <br /> market. The cost approach, typically the higher of the -two, is <br /> a "check" for the appraiser in the search thru the market data <br /> available. The truest test of the value conclusion is the market <br /> data approach. <br /> Some of the properties appraised are currently experiencing <br /> varying degrees of failure of the private septic systems . <br /> While information was avialable to your appraiser as to the <br /> systems which were failing and those that could be expected <br /> to fail in the future, no consideration was given in the <br /> analysis of "before" and "after" values . Inasmuch as each <br /> situation would require different methods of correcting those <br /> failures , it was- not possible to reasonably estimate cost of <br /> the replacement of the septic system. In addition, in a <br /> market sale, the septic system is required to be working in <br /> proper fashion and is guaranteed as such for a 6 month period <br /> after the sale. The value estimate in the "before" and "after" <br /> therefore considers that the system is in working order at the <br /> time of the inspection of the property. <br /> The value conclusion estimate for the subject system is based <br /> on the theory that a property with a private system would <br /> sell in the lowest range of the estimates . Conversely, a <br /> residence- with a public sanitary system and new roadways <br /> would sell in the higher end of the range. Therefore, based <br /> on the information developed in this report, it is my opinion <br /> that the subject ha-s a "before" and <br /> of value as follows : <br /> Before installation of a public sanitary system $1159400 <br /> After installation of a public sanitary system $130, 700 <br />