Common use of Applicable Valuation Techniques Clause in Contracts

Applicable Valuation Techniques. For the appraised Parcel, the sales comparison approach, utilizing sales of individual vacant lots and sales of improved properties for land value only, shall be the primary appraisal technique. For this appraisal, sales of improved properties for land value only means that the purchaser intends to demolish the existing improvements, or in fact has demolished the existing improvements after the purchase. Absent any comparable sales of vacant lots and land-value properties, the market extraction technique shall be the secondary valuation technique. By the market extraction technique, land value is extracted from the sale price of an improved property comparable sale by deducting the contributory value of the improvements.