€.
calculated preliminary land value to the sale properties to ensure accuracy before the land valuation
tables and unit costs are implemented;
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; front acre; rear acre; and, other
appropriate units of comparison;
Document site specific characteristic land adjustments, which may include, but not be limited to:
topography; view; size; location; and, access; and,
Document the calibration of land tables and models.
(2) In developing building cost tables, Contractor shall provide the following:
a.
b.
d.
Investigate, with documented analysis, the building costs of residential, commercial, industrial and
any other special use properties in the area;
Document the testing of Contractor’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;
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 in 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.
Document the calibration of all building cost tables and models.
3.4.3. 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, commercial,
industrial and any other special use property;
Describe property specific characteristics;
c, Document statistical testing for the income valuation models to known sales of similar properties;
d. Create valuation models consisting of market data based upon:
e&.
{i) Defined descriptions and specifications based upon property type; and,
(ii) Quality and size of the improvements; and,
Document the calibration of all income approach valuation tables and models.
3.4.4 Market-Sales Comparison Approach:
(1) The market-sales comparison approach, when utilized, shall be implemented by calibrating and
applying valuation models as follows:
a.
b.
Contractor shall qualify, analyze, and use sales as direct units of comparison in the valuation of
residential, commercial, industrial and any other special use properties;
Investigate with documented analysis comparable sales;
c. Document the adjustments for specifics, which may include, but not be limited to: location; time;
size; features; and, condition;
Document how the adjustments were derived;
e, Document final value reconciliation; and,
f.
Document calibration of all sales comparison tables and models.
3.4.5 In the utilization of the appraisal approaches to valuation, Contractor shall make and document adjustments
made to properties for depreciation factors, which may include, but not be limited to: physical; functional;
and, economic conditions.
12
