If the ownership rights of the comparison property are not the same as those of the subject, an adjustment should be made to compensate for the differences.
The concern in the context of property rights conveyed is the degree to which an easement adversely affects the use of a comparison property.
is said to have a sequential limit comparison property
if every non-decreasing sequence (non-increasing sequence) (Eq.
Statistics show that over the past decade rural land prices have risen by 168%, while by comparison property
in London rose on average by 113% and outside of the capital by less than 100%, which puts into perspective the value in investment terms of land ownership.
The homes more accurate value was $540,000 and was reflected in the one lower comparison property
that, wouldn't you know it, happened to be the closest," Ogden said.
This is relevant because a fundamental premise of the sales comparison approach is that the subject and comparison property
should have the same or similar highest and best use of the site as if vacant and the property as improved.
Each comparison property
was zoned single-family residential and was in average condition.
Bar D represents the reproduction cost indicator of market value of a substitute comparison property with equivalent utility and desirability as if the subject property was already cured.
The fact that a substitute comparison property operates more efficiently does not in and of itself equate to the existence of functional obsolescence.
2] Thus, the Principle of Substitution makes clear that the substitute or comparison property contemplated by a hypothetical buyer that features design, materials, and equipment of desirability and utility equivalent to the subject property.
The significance of correctly applying this principle to both types of cost indicators is that the final costs in both cost indicators must reflect the costs of the same comparison property.