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Article: The Sales Comparison Approach and the Appraisal of Complete Facilities.
- Article from:
- Appraisal Journal
- Article date:
- July 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Abstract
The application of the sales comparison approach to complete facility assets deserves special consideration since these facilities possess characteristics that require particular attention during the appraisal process. Complete facilities encompass the physical plant--including the land, buildings and installed equipment necessary to deliver a product or service. Appraisers must make adjustments in the sales comparison approach to account for the past, current, and future use of a facility's physical elements.
The sales comparison approach as a valuation benchmark has evolved into a cornerstone of the appraisal profession. Consequently, the ...