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VALUATION ANALYSIS (Continued) <br />VALUATION METHODS: (Continued) <br />Inasmuch as the subject property consists of a vacant land parcel, the Sales <br />Comparison Approach, as applied to residential land value, is the only <br />approach considered applicable in the subject case. <br />SALES COMPARISON APPROACH: <br />The Sales Comparison Approach takes into account properties which have <br />sold in the open market. This approach, whether applied to vacant or <br />improved property, is based on the Principle of Substitution which states, <br />'The maximum value of a property tends to be set by the cost of acquiring <br />an equally desirable substitute property, assuming no costly delay is <br />encountered in making the substitution." Thus, the Sales Comparison <br />Approach attempts to equate the subject property with sale properties by <br />analyzing and weighing the various elements of comparability. <br />The Sales Comparison Approach was applied after conducting an <br />investigation of market data (residential land sales) in the greater subject <br />market area. The reader is referred to the Market Data Section for <br />comprehensive information pertaining to each sale property employed <br />herein. Reference the Market Data Map on the following page for an <br />illustration of the location of the various sale properties. <br />Primary indicators studied included sales of residential zoned land parcels <br />as well as land sales construction cost estimates and depreciation <br />schedules. Other elements considered included (1) pride of ownership <br />exhibited by an aggressive and on-going maintenance program, and (2) <br />trends toward change evidenced by private redevelopment and remodeling, <br />or gradual continued building degeneration in certain areas. <br />The knowledge and understanding of present and historical value patterns <br />and trends affecting the local real estate market are based on the <br />observation of market conditions and the appraisal of other residential <br />properties, as well as information obtained from various sources which <br />include the following: <br />• Owners: Interviews were conducted with owners of <br />residential properties in the general research area to <br />determine various market trends, and value patterns. <br />• Tenants: Interviews were conducted with various tenants of <br />properties located within the immediate subject market area. <br />LrDGARD ANDASSOC:IATES <br />APPRAISERS -CONSULTANTS <br />5 <br />20D-42 <br />