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THE APPRAISAL PROCESS <br /> The process of estimating the value of a parcel of real estate is essentially a research project. <br /> The appraiser gathers as much applicable data as is available from the market place,analyzes the <br /> data and draws conclusions,which results in an estimate of value. <br /> The data gathered includes,but is not limited to, factual data about the subject,comparable sales, <br /> rental and vacancy surveys, operating expenses,costs, etc. The specific data types collected for <br /> this report is outlined in the scope of the assignment chapter of the report. <br /> The data is then analyzed via three approached to value. They are known as cost, sales, and <br /> income approaches. Each approach yields an estimate of value based on the data and rationale <br /> pertinent to that approach. The rationale of each approach is explained within each approaches <br /> respective chapter. <br /> From the three estimates of value the appraiser derives a final estimate of value of the subject <br /> property by correlating the individual estimates. The correlation process entails four steps. The <br /> presentation of the individual value estimates; evaluation of each approaches rationale as it <br /> relates to the specific problem; analysis of the quantity and quality of the presented data; and the <br /> emphatic declaration of final value estimate. <br /> The final value figure may be the result of one of the three approaches or may be a figure which <br /> represents a typical value estimate within the range of values determined by the three <br /> approached. In any case, it is not determined by averaging the results of the three <br /> approaches,but a logical analysis of the results thereof. <br /> 19 <br />