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■Direct: Sales Coiparison approach-That approach in appraisal analysis which it <br />based cn the proposition that an inforeed purchaser would pay no eore for a <br />property than the cost of acquiring an existing property with the saat utility. <br />This approach is applicable when an active aarket provides sufficient <br />quantities of reliable data which can be verified froi authoritative sources. <br />The direct sales comparison approach is relatively unreliable in an inactive <br />■arket of sales in estimating the value of properties for which no real <br />comparable sales aata are available. It is also questionable when no sales data <br />cannot be verified with principals to the transaction. Also referred to as the <br />Market comparison or Market Data Approach. " <br />“Income Approach-Gross income (rent) multiplier analysis. That approach in <br />appraisal ^sis which is based upon the proposition that an informed <br />purchaser w. d pay no more for a property thar the cost of obtaining a return <br />(in income or amenities) of the same amount a., embodving the same risk as that <br />involved in the subject property. This approach is applicable when sufficient <br />numbers of comparable properties are rented at the time of sale. The gross <br />income (rent) multiplier approach is not applicable when few or no comparable <br />properties art rented in the competitive market. This aboroach also is <br />ouestionable in aarket situations in which market rentals and sales prices do <br />not bear a constant relationship to each other." <br />"Cost Approach- That approach in appraisal analysis which is based on the <br />proposition that the informed purchaser would pay no more than the cost of <br />producing a substitute property with the same utility as the subject property. <br />It is particularly applicable when the property being appraised involves <br />relatively new improvements which represent the highest and best use of the <br />land or when relatively unique or specialized improvements are located on the <br />site and for which there exist no comparable properties on the market." <br />L