20D - AA VACANT LAND PURCHASE - Laserfiche WebLink

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TERMS AND DEFINITIONS Certain technical terms have been used in the following report which are de- fined, herein, for the benefit of those who may not be fully familiar with said terms. MARKET VALUE (or Fair Market Value): Fair market value is defined in The California Code of Civil Procedure, §1263.320, as: "(a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (b) The fair market value of property taken for which there is no rele- vant, comparable market is its value on the date of valuation as de- termined by any method of valuation that is just and equitable." SALES COMPARISON APPROACH: One of the three accepted methods of estimating Market Value. This ap- proach consists of the investigation of recent sales of similar properties to determine the price at which said properties sold. The information so gath- ered is judged and considered by the appraiser as to its comparability to the subject property. Recent comparable sales are the basis for the Sales Comparison Approach. COST -SUMMATION APPROACH: Another accepted method of estimating Market Value. This approach con- sists of estimating the new construction cost of the building and yard im- provements and making allowances for appropriate amount of depreciation. The depreciated reconstruction value of the improvements is then added to the Land Value estimate gained from the Sales Comparison Approach. The sum of these two figures is the value indicated by the Cost -Summation Ap- proach. LIDGARD AND ASSOCIATES APPRAISERS -CONSULTANTS 11 20D-26