3.4.2
3.4.3
Cost Approach:
(1) The cost approach, when utilized, shall be implemented by calibrating
and appiying iand vaiuation tabies, building vaiuation tabies and unit
costs as follows:
(a) Investigate, with documented analysis, land values for
residential, commercial, industrial and any other special use
properties in the area;
(b) Document the land valuation tables and unit costs by including
statistical testing to compare the calculated preliminary land
value to the sale properties to ensure accuracy before the land
valuation tables and unit costs are implemented;
(c) Document the development of the units of comparison that
shall be used for the base land prices, which may include, but
not limited to: site; front foot; square foot; base acre; excess
acre; and, other appropriate units of comparison;
(d) Document site specific characteristic land adjustments, which
may include, but not be limited to: topography; view; size;
location; and, access; and,
(e) Document the calibration of land tables and models.
(2) In developing building cost tables, Company shall provide the following:
(a) Investigate, with documented analysis, the building costs of
residential, commercial, industrial and any other special use
properties in the area;
(b) Document the testing of Company’s building valuation tables
and unit costs by comparing the calculated preliminary building
value to the sale properties, for which the building costs are
known, to ensure accuracy before the building valuation tables
and unit costs are implemented;
(c) The building cost tables shall consist of unit prices based upon
relevant factors, which may include, but not be limited to:
specifications for various types of improvements; the quality of
construction; the building customs and practices within the
Municipality; various story heights and square foot areas
adequate for the valuation of all types of buildings and other
improvements to the land; tables for additions and deductions
for variations from the base cost improvement specifications;
and, tables for depreciation based upon age and condition of
the improvements; and,
(d) Document the calibration of all building cost tables and models.
Income Approach:
(1) The income approach, when utilized, shall be implemented by
calibrating and applying valuation models as follows:
(a) Investigate and qualify, with documented analysis, market data,
which may include but not be limited to: rental income;
expenses; vacancy; and, capitalization rates for: residential,
13 City of Nashua, NH
Full Statistical Revaluation Contract
