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DIRECT SALES COMPARISON APPROACH <br /> This approach applies the"Principle of Substitution." It considers what a substitute or <br /> alternative similar property sold for, and then adjusts for the most recognizable differences. <br /> When applying this principle to sin g le family residential properties, where a wealth of <br /> market data exists, this is a highly effective appraisal tool. However, when little or no <br /> market data exists it loses a great deal of its effectiveness. <br /> In the case of the subject property, as I have previously indicated, we are dealing with <br /> a highly unique subject in which little or no data exists. <br /> I have spent countless hours attempting to find any sale of what could be called a truly <br /> similar building without success. I have contacted other appraisers to see if they had any <br /> such data in their data banks with no success. <br /> In this instance we are dealing with the original part of the building being very old with <br /> a newer addition containing a bowling alley and being utilized as a private club. Its <br /> adaptability for alternate uses is severely restricted since the bowling alley is a key <br /> component as far as the existing value of this property, and must be recognized as such. <br /> Converting the building into offices or a similar alternate use would negate the value of the <br /> bowling alley completely,which is undoubtedly a major component of the building's value. <br /> For this reason, I felt it significant in my selection of Comparables, to incorporate <br /> bowling alley as a part of the structure. <br /> Admittedly, the Comparable Sales that I have located are less than ideal. However, <br /> they represent the best market data that I was able to locate. <br /> The sales I have located are detailed as follows; <br /> COMPARABLE NO. 1 1121 West 8th Street <br /> Mishawaka,IN <br /> This is a former bowling alley located on the west side of Mishawaka. It was a one-story <br /> building constructed in 1959 containing 28,710 sq. ft. My data source did not indicate the <br /> number of lanes contained in the building. However, since this was actually a bowling <br /> alley,it is presumed that the number exceeded the 12 lanes in the subject property. <br /> The building sold on 02/21/2013 for$160,437, which equated to a sales price of$5.58 per <br /> sq.ft. of land and building merged. <br /> 29 <br />