1. North Carolina Department of Revenue 2012 Advanced Real Property Seminar Joseph S. Koury Convention Center Greensboro, North Carolina September 19, 2012

3.  The sales comparison approach is considered the best method for appraising single family homes.  The cost approach is used to appraise special purpose buildings such as churches, schools and public buildings.  The income approach is used to determine the market value of income producing properties such as office buildings, warehouses, apartment buildings and shopping centers.

4.  Income producing properties are usually purchased for the right to receive future income.  This income is then evaluated for quantity, quality, direction and duration, then converted by means of an appropriate capitalization rate into an expression of present worth that equates to market value.  The income approach should be used when reliable financial data is available for sales of similar income producing properties in a given market area.

5.  A property’s net operating income and sales price are used to calculate a capitalization rate for the sale of each similar property in a given market area  If sufficient sales of similar income producing properties are available, a market cap rate can be determined by averaging the cap rate values from the individual sales.  Appraisers will sometimes use a market gross rent multiplier or gross income multiplier instead of the cap rate to determine the value of single-family and multi-family rental units

6.  The courts have stated that for income producing properties, the income approach to value is the applicable method.  Many CAMA systems have an income module.  Create models for your various commercial properties  Your value results are based on supportable up- to-date market rates, ratios and verifiable market parameters.

7.  The Triangle Business Journal, a multimedia business platform, is the leading provider of local business news for the Raleigh-Durham-Chapel Hill area.  A weekly publication along with a digital edition and archives available online 24/7.

10.  CoStar Group is a commercial real estate provider of information and analytical services.  Maintains and provides a comprehensive database of commercial real estate information.  Their online services allow us to analyze, interpret and gain insight on commercial property values, market conditions and current availabilities.

13.  The CAMA system should provide for the maintenance of income and expense data so the income approach to value can be automated.  Sufficient data is needed to estimate typical income and expenses for various types of income producing properties.