Real property appraisal
consulting assignments encompass a wide variety of problems to be
solved. In developing a real property appraisal consulting assignment,
an appraiser must identify the problem to be solved, the scope of
the work necessary to solve the problem, and correctly complete the
research and analysis necessary to produce credible results. The appraiser
must be aware of and correctly understand and employ those recognized
methods and techniques that are necessary to produce credible results.
The appraiser must also not commit a substantial error of omission
or commission that significantly affects the results of the appraisal
Grain elevators have various classifications. They can be country
elevators on or off rail; terminal grain elevators and export grain
elevators. Each of these has unique characteristics, but all three
approaches to value are applicable.
Fertilizer plants may be combined with an existing grain elevator
or they may be a standalone retail fertilizer facility. Wholesale
fertilizer plants are also a unique property. All three approaches
to value are applicable to these properties.
Soybean processing facilities include a grain elevator facility with
extensive amounts of machinery and equipment to produce soybean meal
and oil. The analysis of this type of property requires knowledge
of the crushing process, as well as experience in the valuation of
machinery and equipment. All three approaches to value are applicable.
Flour Mills: Flour
mills are specialty processing facilities including a grain elevator
facility with extensive amounts of machinery and equipment to produce
flour. The analysis of this type of property requires knowledge of
the milling process, as well as experience in the valuation of machinery
and equipment. All three approaches to value are applicable.
The three generally
accepted valuation procedures used to value real estate are the Cost
Approach, the Income Capitalization Approach, and the Sales Comparison
The Cost Approach
to value involves two procedures: