Mastering Special Purpose Property Appraisal With This Trusted Approach

Real-World Applications and Examples

Consider a scenario where an appraiser is tasked with valuing a large church. Using the cost approach, they would assess the replacement cost of the building and subtract any depreciation. They might also explore potential income from leasing parts of the property for community events. In another example, an amusement park appraisal would heavily rely on income capitalization, considering ticket sales, concessions, and other revenue streams³.