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When necessary for
credible assignment results in applying a calibrated mass appraisal model
an appraiser must:
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(a) |
value improved parcels by
recognized methods or techniques based on the cost approach, the sales
comparison approach, and income approach;
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(b) |
value sites by recognized methods or techniques;
such techniques include but are not limited to the sales comparison approach,
allocation method, abstraction method, capitalization of ground rent,
and land residual technique;
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(c) |
when developing the value
of a leased fee estate or a leasehold estate, analyze the effect on value,
if any, of the terms and conditions of the lease;
Comment:
In ad valorem taxation the appraiser may be required by rules or law to
appraise the property as if in fee simple, as though unencumbered by existing
leases. In such cases, market rent would be used in the appraisal, ignoring
the effect of the individual, actual contract rents.
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(d) |
analyze the effect on value,
if any, of the assemblage of the various parcels, divided interests, or
component parts of a property; the value of the whole must not be developed
by adding together the individual values of the various parcels, divided
interests, or component parts; and
Comment:
When the value of the whole has been established and the appraiser seeks
to value a part, the value of any such part must be tested by reference
to appropriate market data and supported by an appropriate analysis of
such data.
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(e) |
when analyzing anticipated
public or private improvements, located on or off the site, analyze the
effect on value, if any, of such anticipated improvements to the extent
they are reflected in market actions. |
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