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Unformatted text preview: is a percentage of cost. It requires that the analyst contact contractors and estimate the cost of the single feature. The maximum adjustment will be the cost of the feature in current dollars. The appraiser needs to weigh by judgment how important the feature is to the market of typical buyers in this submarket. A systematic way to judge importance is to ask, How many properties of a similar age as the subject property and within the relevant submarket have this feature? The higher the percentage with a given feature, the more important the feature and the greater will be the adjustment as a percentage of cost. The second method is based on paired sales analysis. This is more difficult, however it is better than the first method. The problem with this method is that it can be difficult to isolate the effect of the single feature unless it is the only difference separating it from another comp...
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- Spring '11