FCS Cost Approach
Cost Approach (FCA)
The subject's land and building information and ratios flow automatically from the Subject QuickStart page. Then, the user pulls in the sales desired.
The top of the Cost Approach is populated from the “d” or “i” numbers, or from those selected sales populating ClickForms. Again, the subject’s value cannot be opined from merely entering the sales; thus, the solid green box is NOT a manual user entry and has been shaded out. In the second grid, the values for the respective subject's land categories are back-filled after the user concludes the final "blended price per acre" shown in the small green box.
ASFMRA education stresses valuing each land type, i.e., Cropland 1, Cropland 2, etc., bracketing each individually after time-adjustment only. However, this Cost Grid calculates the blended $/Acre after time and other adjustments duplicating the Sales Comparison approach procedure. Essentially, this is the SCA procedure applied twice --- once in the Cost Grid here, and once in the SCA Grid and does not provide clear separation and independence between both approaches.
The next graph shows the “back-fills” into that portion that was under the solid green box; then moves to the building contribution portion on the bottom portion of the page.
The buildings are summed (purple box) to $439,695 illustrated on the lower left corner (calculation not shown); then added to the $3,200,000 land estimate (small red box) for the final opinion of $3,640,000 (rounded in yellow box).