The Process 1
A systematic method for arriving at an estimate of value.
The appraisal process.
The three approaches to value.
Cost approach, comparative approach, income approach
Although a property is appraised as an integral unit, this is needed to reach a proper value.
Separate appraisal of the land (without improvements)
36 square miles
Township
With few exceptions, land is valued at this principal and the appraiser is concerned with the factors that affect it.
Highest and best use.
The rights most likely to be assessed.
Fee simple
The principle underlining both the cost approach and the comparative sales approach
The principle of substitution.
An appraiser is more precisely concerned with this value over raw land value.
Site value
640 acres
Zoning, building and safety, subdivision, and environmental regaulations are examples of this.
Governmental restrictions.
The primary means of property identification for an appraiser.
The income approach is primarily based on this principle.
The principle of anticipation
A description that gives the distance and compass directions of each boundary line of the property.
Metes and Bounds
160 acres
1/4 of a section
Parcel size and shape, frontage, topography, soil, and subsoil conditions and drainage, sit orientation, and existing on-site and off-site improvements are examples of this.
Physical characteristics.
This step should eliminate any ambiguity regarding the nature of the appraisal.
Step 1: Definition of the appraise problem
This is not done when reconciling vales.
Averaging
The system based on the principal of meridians running north and south and base lines running east and west and using landmark intersections.
Rectangular Survey
43,560 square feet
1 acres
The most important single attribute of land valuation.
Locational characteristics
A competent appraisal is supported by this kind of information.
"Market data."
This description contains a lot number, a block number, and a map number
Subdivision maps
458,947 square feet
11 acres (10.53)