2005-02-02 P&R Packet - Laserfiche WebLink

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The subj ect property has been inspected on various occasions and most recently on January 5,2005. The photographs of the subject induded in this report were taken on this most recent date of inspection. Neither the owner nor any representative were on the premises at the time of inspection. The parcel sizes were taken from a survey of the property. We have considered easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special assessments, ordinances, or other items of similar nature. These items have been reflected in the appraised market value. PROPERTY RIGHTS APPRAISED The subject property was appraised as title in fee simple, as a whole, unencumbered, and subject to the contingent and limiting conditions outlined herein. APPRAISAL PROCESS Theteare three basic valuation methodologies that may be used by appraisers in the estimation of Market Value. They are: the Cost Approach, the Direct Sales Comparison Approach and the Income Approach ( if an investment property). These three approaches analyze data from the market to develop an independent opinion of value for the subject. The Cost Approach is based on the premise that the informed purchaser would pay no more than the cost of producing a substitute property with the same or similar utility as the subject property. It is particularly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land. The Direct Sales Comparison Approach has as its premise a comparison of the subject property with others of a similar design, utility and use that have sold in the recent past. To indicate a value for the property, adjustments are made to the comparables for differences with the subject. This approach is most applicable when an active market provides sufficient quantities of reliable data and is unreliable in an inactive market. I ~ The Income Approach is the procedure in appraisal analysis which converts anticipated benefits (dollars and amenities) to be derived from the ownership into an opinion of value. The Income Approach which is widely applied in income-producing properties anticipates future income and /ot reversions and discounts this to a present value through the capitalization process. Normally, these three approaches will each indicate a different value. The final step for the appraiser is to analyze the strengths and weaknesses of each approach and correlate a fmal of This is a land appraisal. The omission of the Cost Approach and Income Approach are customary and complies with USP AP regulations. 12