1999-10-26 CC Workshop Meeting - Laserfiche WebLink

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Standard Rule 1 -3 (a) "Consider the effect on use and the value of the following factors: existing • land use regulations, seasonably probable modifications of such land uses regulations, economic demand, the physical adaptability of the real estate, neighborhood trends, and the highest and best use of the real estate." Explanation of Departure: We are familiar with the neighborhood and did not feel that any of the above factors existed nor had a direct impact on market value. Standard Rule 1 -3 (b) "recognize that land is appraised as though vacant and available for development to its highest and best use and that the appraisal of the improvements is based on their actual contribution to the site." Explanation of Departure: An in -depth Highest and Best Use analysis was not required for the needs of the client. The land was appraised per its highest and best use as of the time of appraisal. Standard Rule 1-4 (b) "collect verify, analyze, and reconcile: (i) such comparable cost data as are available to estimate the cost new of the improvements (if any) (ii) such comparable facts as are available to estimate the difference between cost new and the present worth of the improvements . (accrued depreciation), (iii) such comparable sales data, adequately identified and described, as are available to indicate a value conclusion; (iv) such comparable operating expenses data as are available to estimate the operating expenses of the property being appraised; (v) such comparable operating data as are available to estimate the operating expense of the property being appraised; (vi) such comparable data as are available to estimate rates of capitalization and/or rates of discount." Explanation of Departure: The income approach did not apply. Standard Rule 1-4 (c) "base projections of future rent and expenses on reasonably clear and appropriate evidence." Explanation of Departure: The income approach did not apply. Standard Rule 1 -4 (d) "when estimating the values of a leased fee estate or a leasehold estate, consider and analyze the effect on value, if any, of the terms and conditions of the leases." Explanation of Departure: Not applicable to this appraisal problem. Standard Rule 1 -4 (e) "consider and analyze the effect on value, if any, of the assemblage of the various estates or component parts of a property and refrain from estimating the value of the whole solely by adding together the individual values of the various estates or component parts:" Explanation of Departure: Not applicable to this appraisal problem. 10