Agenda - 09-02-2008 - 4e - Laserfiche WebLink

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costs which may be applicable. This method of using basic units can also be extended to establish prices for larger components in-place such as complete structural floors (including the finish flooring, sub-floors, joists, and framing) which are likely to reoccur repeatedly in a number of buildings. The Model Method is still a further extension in which unit-in-place costs are used to develop base unit square foot or cubic foot costs for total specified representative structures in place, which may then serve as "models" to derive the base unit cost of comparable structures to be appraised. The base unit cost of the model most representative of the subject building is applied to the subject building and appropriate tables of additions and deductions are used to adjust the base cost of the subject building to account for any significant variations between it and the model. Developed and applied properly, these pricing techniques will assist the appraiser in arriving at valid and accurate estimates of cost as of a given time. That cost generally represents the upper limit of value of a structure. The difference between its cost new and its present value is depreciation. The final step in completing the Cost Approach then is to estimate the amount of depreciation and deduct said amount from the cost new. (See Section IV, Depreciation) 2. MARKET DATA APPROACH In the market data approach an estimate of value is obtained by comparing the subject property (the property under appraisal) with recent sales of generally comparable properties (properties similar to the subject) . Since no two parcels of real estate are exactly alike, each such property must be compared to the subject property and the sales prices adjusted for any dissimilar features. After careful analysis of the differences between comparable properties and the subject property, the appraiser assigns either a dollar or a percentage value to these differences.