2012 Advanced Real Property Seminar

1. 2012 Advanced Real Property Seminar Income Approach: Before Appeals Linda Brown RES CAE Real Estate/Land Records Manager Buncombe County

2. Why Use the Income Approach During Reappraisal • Consistency • Relationships • Information • Confidence • Limit informal appeals • Saves time • Value income producing property when limited sales data is available

3. What Type of Properties? • Retail • Apartments • Office Buildings • Golf Courses • Hotels • Manufactured Housing Rental Parks

4. Problem One • 228,000 Square foot Resort Hotel built in 1912 • Donald Ross Golf Course • 150 acres • Last sold 1955 • $40 million dollar Spa added in 2001 cost exceeded value added to property

5. Grove Park Inn Using the income approach Assessed in 2006 for $115,000,000 Sold May 2010 for $103,528,000

6. Problem Two • 175,000 square foot residence with 250 rooms, indoor pool, elevators, bowling alley, stables • Original construction completed 1895 • Main building estimated reproduction cost $200 million • Winery, multiple restaurants and retail shops • Hotel • 2,400 acres • Property has never sold

7. Biltmore Estate

8. Why it Works for Us. • Consistency • Ability to value income producing property when limited sales data is available • Information developed by staff • Relationships with property owners • Staff confidence • Most appeals are settled locally