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LI Z OMM <br />ACEP -ALE Appraisal Specifications and Scope <br />facts surfaced in the research. A property cannot be valued as if it <br />were already rezoned for a different use. The property must be <br />valued only in light of the probability of obtaining a zoning <br />change. <br />Value estimate by the cost approach <br />a. Estimate the value of the land as though vacant and available for <br />its highest and best use. Estimating land value by the use of <br />confirmed sales of comparable or nearly comparable lands having <br />like optimum uses is the preferred method. <br />Value estimate by the sales comparison approach <br />a. Nearby arm's length transactions that are comparable to the land <br />under appraisement and reasonably current are the best evidence <br />of market value. The Federal courts recognize the sales <br />comparison approach as being normally the best evidence of <br />market value. <br />b. Analyze the last sale of the subject property if relevant. If not <br />used, explain why. An unsupported claim that a sale of the subject <br />property was a forced sale or is not indicative of its current value <br />is unacceptable. <br />c. When supportable by market evidence, the use of quantified <br />adjustments is preferred. Percentage and dollar adjustments may <br />and often should be combined. Use qualitative adjustments when <br />there is inadequate market data to support quantitative <br />adjustments. Factors that cannot be quantified are dealt with in <br />qualitative analysis. When quantitative and qualitative <br />adjustments are both used in the adjustment process, all <br />quantitative adjustments should be made first. <br />d. Provide market evidence and/or supporting narrative for each <br />adjustment used. <br />i. Each quantitative adjustment requires supporting market <br />evidence. Explain how the adjustment was determined <br />and how it is applied to the comparable. <br />ii. Each qualitative adjustment requires significant <br />discussion to explain why it is necessary and explain the <br />reason for the differences. <br />dude a sales adjustment chart summarizing the adjustments and <br />showing the final adjusted sale prices and how the sales compare <br />with the subject property. <br />f. The documentation of each comparable sale must include the <br />following: <br />i. Parties to the transaction <br />ii. Date of transaction <br />iii. Confirmation of the transaction <br />iv. Confirm the transaction with the buyer, seller, broker, or <br />other person having knowledge of the price, terms, and <br />conditions of sale <br />v. Buyer motivation <br />vi. Location <br />vii. Size <br />viii. Legal description <br />10 <br />F -7 <br />Attachment number 1 <br />Page 191 <br />