I have given you numerous sales comparables: you may use all, some, or none of these. It is up to you to determine the appropriateness of these sales to compare to the subject. You may assume these data are correct. You may use other sales if you have access to such data. You will need to inspect the exterior of the subject (maybe lobby area if you wish) and the comparables you select to make a valid qualitative analysis to the subject. Do NOT contact the subject’s owner/manager/broker/anyone else for information. I repeat, do NOT contact anyone associated with the subject property. I have also provided you a hypothetical – but reasonable – operating pro forma for your review. Do not do an Income Approach – that comes later.
1. Set up, on one typed page, a market data grid showing all relevant elements of comparison for use in the appraisal of this property via the Sales Comparison Approach (SCA). Refer to your class notes and textbook for a sample market data grid.
2. In about four or so pages give me your opinion as to the estimated current market value of the subject based solely upon these data and the logical application of the SCA. This process should therefore include an adjustment grid as well. If you use multiple methods (i.e., more than one unit of comparison), reconcile the individual values into a single, point value. (Note: although logic prevails, at this stage of your professional careers, I do not expect there to be a consensus of the class as to the “right” or “correct” answer.) Use any comparison/method you wish, but you must be logical, reasonable, mathematically and technically correct as suggested by the class lecture and your text material.
Market data grid (these are improved sales, not vacant land): Adjust the unit of comparison – rent: how does an office building make its money?
Adjustment grid – “market conditions” goes FIRST.
Tell reader why each adjustment is needed for each comparable
Adjustment grid – “market conditions” goes FIRST.
Tell reader why each adjustment is needed for each comparable