# Property Assessment Valuation ## Metadata * Author: [Garth E. Thimgan, Diane M. Ange, Roger L. Gilliam, Lisa A. Hobart, Mark R. Linne, Thomas K. Tegarden, and James A. Thimgan](https://www.amazon.comundefined) * ASIN: B0CW1JBLYD * Reference: https://www.amazon.com/dp/B0CW1JBLYD * [Kindle link](kindle://book?action=open&asin=B0CW1JBLYD) ## Highlights value, than it would achieve if it were a conforming use. An appraiser should consider these dynamics when applying the approaches to value. As an example, in applying the direct sales comparison approach to value, an appraiser considers and analyzes the comparable sales to determine whether they have similar issues — location: [1745](kindle://book?action=open&asin=B0CW1JBLYD&location=1745) ^ref-20693 --- follows: Typically, the property is valued based upon its nonconforming use. Land value is based upon the legally — location: [1755](kindle://book?action=open&asin=B0CW1JBLYD&location=1755) ^ref-39233 --- There are classes of properties, primarily government-owned or public-oriented, for which the economic considerations underlying highest and best use analysis are different, because these properties are unique. Assets in the public or community sector are not always available for their highest and best use and may be built for reasons other than economic return. In these cases, the highest and best use can be interpreted as the feasible alternative use of an asset. Assets held to deliver a specific community service, such as schools, police stations, hospitals, prisons, fire stations, and government buildings, fall into this category. These assets do not normally have a feasible alternative use and are commonly non-market-oriented uses. — location: [1770](kindle://book?action=open&asin=B0CW1JBLYD&location=1770) ^ref-21280 --- The origins and causes of depreciation fall into the following three general categories of diminished utility: physical deterioration, functional obsolescence, and external (economic) obsolescence. Total depreciation is the summation of these three types of diminished utility. Depreciation can generally be considered either curable or incurable. Whether — location: [6579](kindle://book?action=open&asin=B0CW1JBLYD&location=6579) ^ref-42443 --- Functional utility is the overall usefulness and desirability of a property. The ultimate criterion is whether the improvement efficiently satisfies the wants and needs of the market. — location: [6621](kindle://book?action=open&asin=B0CW1JBLYD&location=6621) ^ref-12896 --- Indirect methods Sales comparison (market extraction) method Capitalization of income method Direct methods Economic age-life method Modified economic age-life method Breakdown method — location: [6645](kindle://book?action=open&asin=B0CW1JBLYD&location=6645) ^ref-38208 --- Sales Comparison Model: Mass Appraisal Method In mass appraisal, depreciation is usually estimated by using depreciation tables (schedules) that illustrate the typical loss in value for structures at various ages or effective ages. By nature, such tables primarily recognize physical deterioration, so additional adjustments are required to recognize functional and external obsolescence. Because different types of structures depreciate at different rates, depreciation schedules should be tailored to each type of structure. Depreciation tables or schedules prepared by cost estimation services must be adjusted to the local market. — location: [6743](kindle://book?action=open&asin=B0CW1JBLYD&location=6743) ^ref-43869 ---