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Mid-Continent Resources <br /> July 14, 198E <br /> Page - 7 - <br /> RECONCILIATION AND CONCLUSIONS <br /> During the intervening time since the original appraisal, the general <br /> marketplace has shifted from a rapidly increasing sellers market to a static <br /> to declining buyers market. The land value increased during the intervening <br /> period and subsequently decreased. Overall there was no change. <br /> The income approaches and the cost approach continue to be given the most <br /> weight in making the final estimate of value. <br /> Four revised estimates of values have been developed. These are as follows: <br /> Cost Approach $2,31 1 ,874 <br /> Market Approach $2,295,970 <br /> Income Approach (Direct capitalization) $2,241 ,323 <br /> Income Approach (Mortgage - Equity) $2,305,31 1 <br /> The total property value conclusion increased by 15% or $300,000 generating a <br /> revised property value estimate of $2,300,000. <br /> The increase is about equally caused by the new construction of the truck wash <br /> facility and the value increase in the remaining improvements which reflect <br /> the increase in replacement cost less additional depreciation. It is the <br /> writer's opinion that this increase is normal and in accordance with typical <br /> patterns. <br /> Mathematical calculations are useful and necessary in guiding thought <br /> processes into structured and disciplined conclusions. However, in the final <br /> analysis , estimating value is a matter of judgement. <br /> REVISED FINAL ESTIMATE OF VALUE <br /> JULY 14, 1986 <br /> Land $1 ,000,000 <br /> Improvements $1 ,300,000 <br /> Total Property Value $2,300,000 <br /> Applegate & CO_ Real Estate Appraisers <br />