RockSpringCluB-Hendricks Appraisal.pdf

VALUATION METHOD An estimate of value will usually be based on one (1) or more valuation indicators. Generally accepted appraisal practice will usually consider a Cost Approach, an Income Approach and a Comparative Approach to Value. THE COST APPROACH - AS A VALUATION INDICATOR The cost new of the improvements, less appropriate depreciation and obsolescence. The replacement cost new of the improvements is based on a nationally recognized building cost index. Depreciation and obsolescence is deducted to the extent of market recognition. Land value is also market oriented. The Cost Approach is often a mechanical technique more relevant to special purpose or limited market properties such as the subject. However, it does offer an independent indication of value when considered in the context of the Income Approach and the Comparative Approach. THE INCOME APPROACH - AS A VALUATION INDICATOR The net income after expenses is capitalized into a valuation. The resulting sum is the present value of the net income produced by the property payable over a period of time. This valuation indicator is particularly appropriate with investment properties, as it reflects buyer and seller reaction to the market. THE COMPARATIVE APPROACH - AS A VALUATION INDICATOR The property being appraised is compared with similar properties recently sold. After adjustments for differences in time, location and physical characteristics, a value or range of values is suggested for the subject property. This valuation technique is usually considered one of the most appropriate valuation indicators if sufficient market data is available. As previously discussed, the subject property involves a private golf and country club which includes an eighteen (18) hole golf course with related amenities and improvements. As discussed on the preceding pages, it is my opinion, based on the analysis presented that the highest and best use of the property, both as vacant land and as improved is residential single family subdivision and development. Therefore, only the Comparative (market data) Approach has been employed in this appraisal. In view of the highest and best use of the property, neither the Cost Approach nor the Income Approach have any relevance in the valuation estimate. However, the Cost Approach utilizing the Marshall & Swift - Core Logic has been employed in connection with the

the Cost Approach nor the Income Approach have any relevance in the valuation estimate. However, the Cost Approach utilizing the Marshall & Swift - Core Logic has been employed in connection with the demolition of the subject improvements. On the following pages will be found an introduction to the Comparative (market data) Approach followed by several transactions of competitive single family residential subdivisions. These sales have been employed in the valuation of the subject property as contained herein. [T] REALRNIATS #104 = a 6 RESEARCH