Real Estate Appraisal Report - 1984

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'THE APPRAISAL PROCESS The valuation part of the appraisal process is a series of "checks" on the appraiser' s judgment. The "checks" are used as a guide in arriving at a final estimate of "value". The first appraisal procedure is an estimate of the value of the vacant land or underlying land in the case of improved properties , recognizing its highest, best, and most profitable use. This, then is the "estimate of value" in vacant land. . The market place normally recognized three approaches as guides for calculating "value" of improved properties . Any and/or all of these three methods are used, as applicable. The first appraisal procedure if known as the Cost Approach to Value. This approach is an emphasis on cost, realizing that a buyer for the property being appraised has an alterna- tive of erecting all-new facilities of his choice. After the cost of all-new facilities has been estimated, the appraiser then related the subject property to the all-new facilities , applying "depreciation" factors where applicable. The second appraisal procedure is known as the Direct Compari- son Approach to Value, sometimes called the "Market" approach to value. This approach is a consideration of the subject property as it competes with sales of other already improved properties , with the emphasis placed on market sales and/or offerings of competitive property. This procedure is also the normal approach to estimating value of vacant or under- lying land. The third approach to value is known as the. Income Approach to Value. In this estimate the emphasis is placed on the investment potential for the subject property, recognizing the past, present and future income potential for the property. In this appraisal the value of- the subject site, if vacant, has been estimated. After that estimate all three of the approaches to value have been considered and applied where applicable, or explained where not applicable. Following the application of the approaches is a correlation of the various approaches and a statement as to the final estimate of value.