Laserfiche WebLink
_ � i <br /> ; <br /> HIGHEST AND BEST USE <br /> DEFINITION: <br /> The most profitable 1ikely use to which a property <br /> can be put. The op�nion of such use may be based � <br /> on the highest and most profitable continuous use ! <br /> to which the property is adapted and needed, or � <br /> 1ikely to be in demand in the reasonably near ; <br /> future. However, elements affecting value which I <br /> depend upon events or a combination of occurrences ; <br /> which, while within the realm of possibility, are <br /> not fairly shown to be reasonably probable, should � <br /> be excluded from consideration. ' <br /> � <br /> � The highest and best use for the subject property is for a i <br /> service type company which needs a small amount of office ; <br /> space and a larger percentage of warehouse area. ; <br /> i <br /> � <br /> i <br /> i <br /> APPRAISAL APPROACHES TO VALUE ; <br /> There are three generally recognized principal approaches to ; <br /> valuation problems: � <br /> �! � <br /> ' I, <br /> , 1 . Cost estimating the cost of reproduction of <br /> the improvements and deducting the I' <br /> � accrued depreciation , physical , �' <br /> functional and economic, then adding i: <br /> value of the Zand � <br /> I� <br /> 2. Market Data comparing properties that have sold I; <br /> and/or are lfsted in the market , �,, <br /> making adjustments for the difference ! <br /> 3. Income capitalizing the estimated net income !' <br /> I' <br /> The availability of data often dictates the choice of the ! <br /> appraisal method on which to place the most reliance. The <br /> i cost approach is a summation process in which the value of � <br /> ! the land is estimated from the market and cost of <br /> ; �' <br /> � improvements is secured from data from Marshall Valuation II <br /> � Service, R S Means Construction Guide or other sources, but � <br /> j <br /> � the proper amount of depreciation is difficult to ascertain. <br /> � �� <br /> In the income approach it must be checked in the market to ii <br /> determine that the contractual rental is in line with �' <br /> � economic rental . An overall capitalization rate may be '' <br /> � estimated from market data or from the t ' <br /> ype of financing <br /> 'j available. <br /> i ' <br /> � ; <br /> i 13 � <br /> � '. <br /> i � <br /> , <br /> __ ,�_ __._._.___—_ �� <br /> RnTF+r�_ICC _ ��I�c ponq��cc�G <br />