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ATTACHMENT <br />Contributory Value of Commercial Building: <br />Certain elements of the Income Capitalization Approach have been employed herein to <br />estimate the contributory value of the rear commercial building which contains 410 <br />square feet of usable area. <br />The Income Capitalization Approach is based on the capitalization of net income <br />generated, or capable of being generated. The net operating income is the product of <br />the estimated gross rental income, less various expense charges. The income/expense <br />pro forma set forth herein is intended to reflect a typical stabilized holding period. The <br />capitalization rate employed in this study has been developed by an analysis of certain <br />sale properties wherein the net income was available to determine the overall <br />capitalization rate. <br />Following is the income and expense schedule considered applicable to the subject <br />property. <br />Monthly rental income: <br />410 SF @ $1.85 = $759. <br />Total gross annual income: <br />$759 x 12 = <br />$9,108. <br />Vacancy and credit loss (3.0%): <br />- 273. <br />Effective gross annual income: <br />$8,835. <br />Annual expenses (32%): <br />-2,827. <br />Net annual operating income: <br />$6,008. <br />Capitalization of net income: <br />$6,008 capitalized at 5.25% _ $114,438. <br />Adjusted: $115,000. <br />Final Estimate of Market Value: <br />Based on (1) an analysis of the various sale and rental properties employed herein, (2) <br />the overall condition, quality, and features of the subject property, and (3) current real <br />estate market conditions in the general market area, the market value of the subject <br />property in as -is condition, as of the date of value set forth herein, is estimated as <br />follows: <br />Single family residence: $460,000. <br />Contributory value of commercial building: 115.000. <br />Total market value of subject property: $575,000. <br />75F-30 <br />