1. Kenneth L Joyner, RES, AAS UNC School of Government September 16, 2010 Cost Approach: Carrying the Weight of Equity

2. Kenneth L Joyner, RES, AAS UNC School of Government September 16, 2010 One man’s tirade about how we lost the purpose of the appraisal in the booming economy that was the 90’s and 00’s

3. Purpose of a Reappraisal General TermsUSPAP Statutory Requirement Bring values to market Correct weaknesses in the previous reappraisal Redistribute the tax base Statutory Requirement Bring values to market Correct weaknesses in the previous reappraisal Redistribute the tax base

4. Purpose of a Reappraisal General TermsUSPAP Statutory Requirement Bring values to market Correct weaknesses in the previous reappraisal Redistribute the tax base Statutory Requirement Bring values to market Correct weaknesses in the previous reappraisal Redistribute the tax base

5. Beginning our Journey Where do we start?

6. 1. Identify the Problem 2. Determine and perform the scope of work necessary to develop credible results 3. Disclose the scope of work in the report Beginning our Journey

7. Identify the problem to be solved Appraisal Judgment Communication with Client Awareness of competency Step 1

8. Meet or exceed intended users expectations Meet or exceed “what an appraiser’s peers’ actions would be Credible Assignment Results STEP 2

9. Disclose in Sufficient Detail Client and Other Intended Users Research and Analyses Performed Research and Analyses NOT Performed STEP 3 DISCLOSE SCOPE OF WORK

10. Continuing our Journey What is our next step?

11. Continuing our Journey What is our next step?

12. Continuing our Journey What is our next step?

13. Continuing our Journey What is our next step?

14. Continuing our Journey What is our next step?

15. Continuing our Journey What is our next step?

16. Continuing our Journey What is our next step?

17. Continuing our Journey What is our next step?

18. Continuing our Journey What is our next step?

19. Continuing our Journey What is our next step?

20. Continuing our Journey What is our next step?

21. Continuing our Journey What is our next step?

22. Continuing our Journey What is our next step?

23. Continuing our Journey What is our next step?

24. Continuing our Journey What is our next step?

25. Continuing our Journey What is our next step?

26. Reappraisals in Today’s Market EquityReappraisal Limited Market Data Hard to predict what is coming next Pressure-Board, Citizens, Media Applicable to All Properties Replicates the Market

27. Reappraisals in Today’s Market Citizen Acceptance Professional Following the Statutes Following correct Appraisal Procedures Following correct Appraisal Standards Market Conditions Market Perception

28. Continuing our Journey What is our next step?

29. Perfectly Balanced COST ProfessionalEquityCitizen AcceptanceReappraisal OUR GOAL

30. Residential 1. Sales Comparison 2. Cost3. Income Commercial 1. Income2. Cost 3. Sales Comparison Special Purpose 1. Cost 2/3. Sales Comparison 2/3. Income *Information comes from IAAO ODF 960

31. Neighborhood Realignment NEW Neighborh ood A Neighborhood 1 Neighborhood 2 Neighborhood 3 Neighborhood 4 Neighborhood 5 Neighborhood 6

32. Neighborhood Realignment NEW Neighborh ood A Neighborhood 1 Neighborhood 2 Neighborhood 3

33. Neighborhood Realignment NEW Neighborh ood $75 $75.75$76.42$77.04$74.52$74.91$73.85

34. Neighborhood Realignment NEW Neighborh ood $75 99%$98%97%101%100%102%

35. Advantages of Neighborhood Realignment More data Larger areas of consistent valuations Less neighborhood adjustments needed More time spent on quality control Less neighborhood maintenance EQUITY

36. Ending our Journey Do we have to come back?