Agenda - Council - 04/11/2017 - Laserfiche WebLink

Home

SCOPE OF WORK To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors. Our concluded scope of work is described below. Insight Realty Advisors, Inc. requires a "second read" of all appraisals. Assignments are read by another appraiser who is not participating in the assignment. For this assignment, quality control oversight was provided by Nathan Hansen. In addition to a qualitative assessment of the appraisal report, Nathan Hansen is a signatory to the appraisal report and concurs in the value opinions set forth herein. Valuation Methodology Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property.These are the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. Use of the approaches in this assignment is summarized as follows: APPROACHES Necessary for Approach Credible Results? Use in Assignment Cost Approach No Not Utilized Sales Comparison Approach Yes Utilized Income Capitalization Approach Yes Utilized This appraisal utilizes the Sales Comparison and Income Approaches. The Cost Approach was excluded due to the presence of significant depreciation at the subject, and to the concluded highest and best use resulting in a remodeling of the improvements, and finally because most market participants do not rely on this approach for properties such as the subject. Data Research and Analysis The process employed to collect, verify, and analyze relevant data is detailed in individual sections of the report, which included the following: • Background information on the subject property was obtained relating to ownership, occupancy, property history, financial performance, and site and improvement data. • Records and data were reviewed relating to real estate taxes, zoning regulations, flood plain status, and other public and governmental influences. • Regional, city and neighborhood data were gathered and examined. • Market research was conducted to find the best available comparable land and improved sales, rental comparables, comparable expense data and capitalization rate data. Unless otherwise stated, the comparables were not personally visited or verified by the appraisers for this assignment. • The subject's competitive position in the appropriate real estate market was examined. 211 Page