The 3 Appraisal Methods & Building Numbers

First Independent Bank appraised the building around 2002 & again 2005-2007 for $225,000.00

Cost Approach
The cost approach is not commonly used. The primary assumption of this method is that the value 
is the same as the cost to construct the property or replacement cost. This method requires an in-depth knowledge of construction and material costs.

If this method was used, maybe because it is a old building with approximately 9500 Sq. ft. - We could do 2 estimates. 

#1 - As stated above with new construction cost or replacement cost. Which would be too high as even if we used a low price per sq. ft. of $50.00, it would then be $475,000.00.00 - They always say you get a lot of building for your money with older buildings.
New cost or replacement value: $475,000.00

#2 - Original purchase price, then add the cost of the improvements & remodeling cost. The original purchase price was $82,000.00 - The 3 different phases of remodeling total $130,000.00 for a total of $212,000.00.

#2 Cost Approach Value: $212,000.00

Sales Comparison/Market Approach
This is the method most are familiar with as it is the accepted method for valuing residential real estate. Typically this method involves selecting properties with similar characteristics in the the same market area that have recently sold. Once those properties are found they are compared to the property in question and a professional appraiser will deduct value from the subject property for comparative deficiencies and increase 
value for advantages. Typically this method is required if the investor is seeking conventional financing.

With the lack of sales, or low sale prices for a building of this nature, it would be difficult to substantiate the real & true value of this property.

Use Value
"Use Value" is a term that may also be worth consideration. While a particular property may not have mass appeal in the market, it may serve the needs of a business owner so well that it may be worth above current market value to the business owner.
If a business building allows the business owner to operate at a advantage because of location or because of its appeal to their clients, or employees, the business or building owner may be willing to pay "Above Market Prices" because of the "Unique Factors" of the property that allow them to have the value added equity of "Use Value".  

Use Value Value: $150,000.00


Income Approach

The income approach is used to estimate the market value of income producing properties such as office buildings, warehouses, apartment buildings and shopping centers.

Hair Salon:       $500.00
Flower Shop:    $500.00
Photography:    $500.00
Total:              $1,500.00/month x 12 = $18,000.00 Yearly x the life of the loan of 15 years, the property would generate $270,000.00.

Sale price: $150,000.00
with a 15 year amortization @ .05% payments would be $989.00 with a total payout with interest of $237,584.00.

Even with interest, the property will generate a surplus of $32,416.00 that could be applied to maintenance & insurance.

Income Approach Value: $270,000.00



Total value of the building 

If you take these 3 Appraisal Values & add them together & divide them by 3.
Cost Approach #2 lower method: $212,000.00
Use Value:                                       $150,000.00
Income Approach:                          $270,000.00
Total                                                 $632,000.00
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Divided by 3 for average:               $158,000.00 

Final Value: $158,000.00

Floor Plan

Floor Plan of Hair Salon & Studio

Corner Building & Upstairs Dimensions

Wall Mural by Artist Susan Sommer!

Susan Sommer-Luarca is a friend of mine & was lucky to have her create a mural on the outside wall of the outdoor court yard. It certainly adds "Aesthetic Value" to the Downtown look & feel. Susan is a World-Wide Artist & has many accomplishments. I have included a piece from her Bio. You may also visit her web site to see more of her art at: http://www.sslworldwide.com/index.php

Susan was chosen to paint at all three "Triple Crown" horse races for 2007 and 2008, including the "Breeders Cup World Championships" and the "Travers" at the famed and historic Saratoga racetrack in New York. Susan was the first artist to be chosen paint at all of these events in a single season and has been honored recently as the Official Triple Crown artist. Susan is also the Official Artist of the 2012 Kentucky Derby winner and Preakness winner, "I'll Have Another".

Susan was invited to paint at Super Bowl XLII in 2008 by the NFL. She completed two paintings LIVE of the competing quarterbacks Eli Manning and Tom Brady, and those paintings were unveiled on FOX "Super Bowl Sunday" to millions of television viewers worldwide.

Susan was chosen for the very rare and distinguished honor to be an Official Olympic Artist for the 2008 Olympic Games in Beijing. Susan is honored again as Official USA Olympic Artist for the 2010 Olympic Games in Vancouver. Being chosen to be an "Official Olympic Artist," Susan follows in the footsteps of other internationally known artist including Andy Warhol, Leroy Neiman, Peter Max, Michael Delacroix, Pierre Matisse and very few other artists who have had this honor.

Susan's talents to paint not only wildlife but a varied subject matter in any number of different mediums and styles has been recognized throughout the art world from Susan's abstracts to realism, fine art paintings, and sculptures.  NASA invited Susan to paint live and commemorate the last space shuttle launch of Discovery, at Cape Canaveral, 2011. 

In 2003, Susan was commissioned to create Official Paintings for the P.G.A. Nationwide Tour.  Susan was the first woman chosen for this distinguished honor. Susan was honored again when she was chosen in 2004. Both paintings were inducted into the Sports Hall of Fame in Susan's Home state of Missouri.

Susan received the pretigious Ellis Island Medal of Honor in New York City May 7, 2011. She joined medal recipients; Legendary Entertainer Jerry Lewis, Actress Doris Roberts (Everyone Loves Raymond), Actor John O'Hurley (Seinfeld), Legendary NFL Coach Don Shula,  & FDNY  Commissioner & 9-11 Hero Salvatore Cassano. Past Ellis Island Medal of Honor recipients include six Presidents of the United States, Nobel Prize winners, athletes, leaders of industry, artists and others whose work has made a lasting impact on humanity.  They are awarded annually to outstanding American citizens, from all walks of life, who have distinguished themselves through their significant contributions to this country.  The Ellis Island Medal of Honor ranks among the nation's most prestigious awards.  The U.S. Senate and House of Representatives have officially recognized the Ellis Island Medals of Honor, and each year the recipients are listed in the Congressional Record.

Susan's work has been seen and aired by many of the national media outlets including NBC, ABC, CBS, FOX, ESPN, New York Times, LA Times, LIFE and People Magazine just to name a few. In 2006, Susan started her own wildlife conservation and preservation foundation. The Susan Sommer-Luarca for habitat (SSL4HABITAT.ORG) was formed as a not for profit organization. Susan is committed to her vision of garnering awareness to the preservation of wildlife and its natural habitat. Susan serves as a board member, national spokesperson, and helps raise funds for the Alzheimer's Association. Susan began the first "Memories in the Making" painting therapy for Alzheimer's patients in southwest Missouri. Her mother is stricken with early-onset Alzheimer's. Thanks to the program, this therapy is now benefiting many patients yearning to express themselves. Susan is the Official artist of the Cattle Baron's Ball , the largest fund raising event for the American Cancer Society. Her father passed away from lung cancer in 2005 so this cause is also very near to her heart.

Upper Balcony Deck Design

The Design was for a upstairs restaurant called "Giovani's" Italian Restaurant. On the Downtown Aurora Corner 4-way stop, it surly would captivate the attention of all the traffic that would pass by. Because of the "Ozark Mountain Parkway" detour to Branson, over time would have become a destination for many travelers.

Interior Pictures of Building

Video of Interior

Structural Engineer Facts & Drawings