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EXHIBIT 3 <br />Public Pay Parking Lotg <br />(INValbrid a APPRAISAL METHODOLOGY <br />, <br />,,. PROPERTY ADVISORS <br />Appraisal Methodology <br />Three Approaches to Value <br />There are three traditional approaches typically available to develop indications of real property <br />value: the cost, sales comparison, and income capitalization approaches. <br />Cost Approach <br />The cost approach is based upon the principle that a prudent purchaser would pay no more for a <br />property than the cost to purchase a similar site and construct similar improvements without undue <br />delay, producing a property of equal desirability and utility. This approach is particularly applicable <br />when the improvements being appraised are relatively new or proposed, or when the improvements <br />are so specialized that there are two few comparable sales to develop a credible Sales Comparison <br />Approach analysis. <br />Sales Comparison Approach <br />In the sales comparison approach, the appraiser analyzes sales and listings of similar properties, <br />adjusting for differences between the subject property and the comparable properties. This method <br />can be useful for valuing general purpose properties or vacant land. For improved properties, it is <br />particularly applicable when there is an active sales market for the property type being appraised — <br />either by owner -users or investors. <br />Income Capitalization Approach <br />The income capitalization approach is based on the principle that a prudent investor will pay no <br />more for the property than he or she would for another investment of similar risk and cash flow <br />characteristics. The income capitalization approach is widely used and relied upon in appraising <br />income-producing properties, especially those for which there is an active investment sales market. <br />Subject Valuation <br />As stated within the Scope of Work, we have relied upon the Sales Comparison Approach. The Sales <br />Comparison Approach is most applicable to a Land Value appraisal. Since there are no <br />improvements the result of a Cost Approach analysis would be considered irrelevant. As previously <br />discussed, the highest and best use of the subject is for office development. Any current income <br />generated by the property would be considered an interim use, thus resulting in an Income <br />Approach that inaccurately reflects the market value of the property. <br />© 2015 VALBRIDGE PROPERTY ADVISORS I Penner and Associates, Inc. <br />SA4-59 <br />Page 27 <br />