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and gravel . The building is equipped with sliding metal doors on <br /> the east , south and west . Day time lighting is provided by <br /> fiberglass panels in the roof. <br /> Minor additional improvements include a metal clad storage building <br /> of 288 square feet and a mobile home converted to a storage area of <br /> 470 square feet. <br /> Site improvements consist of a chain link fence with vision blocking <br /> inserts topped with three barbed wires surrounding the area. The <br /> fencing system contains four sets of gates with two pairs of gates <br /> facing the north access road and two pairs of gates facing 10th and <br /> 11th Streets . Additional site improvements include graveled <br /> portions of the storage yard and the access road. <br /> METHODS OF VALUATION <br /> In the valuation of real estate , there are three commonly accepted <br /> approaches to value. These are described as the Cost Approach , the <br /> Income Approach and the Market Data Approach. <br /> The Cost Approach to value establishes the current fair market value <br /> of the land, as if unimproved , plus current reproduction cost new of <br /> all building improvements, less accrued depreciation. For appraisal <br /> purposes , accrued depreciation is defined as the difference between <br /> current cost and present value. <br /> The Income Approach to value converts net income attributable to the <br /> real estate into an indication of property value by the use of a <br /> capitalization rate . After developing the gross economic income <br /> potential , deductions are made for vacancy and all operating <br /> expenses . The remaining net income is then capitalized with a rate <br /> or factor which represents the relationship between net income and <br /> property value. <br /> The Market Data Approach compares and relates the property under <br /> study to other similar properties which have sold in the general <br /> area in recent years . Units of comparison are developed from the <br /> comparable sale properties and applied to the the property under <br /> appraisement to indicate the market value . This approach has the <br /> greatest application and reliability when sufficient market data is <br /> available. <br /> In this appraisal , all three approaches to value have been utilized. <br /> The Cost Approach is well supported because of the availability of a <br /> number of comparable land sales in the area and a sufficient amount <br /> of information on the cost of reproducing the buildings. The Market <br /> Data Approach also has some application , but is somewhat limited <br /> because of the lack of a sufficient number of highly comparable , <br /> recent sales in the immediate area. The Income Approach, of primary <br /> importance in valuing most investment properties , renders credence <br /> to the final value estimate. <br /> -8- <br />