Opinion ID: 3218859
Heading Depth: 3
Heading Rank: 4

Heading: Appraisal of especial property

Text: In some cases, a property has no immediate market value. In that circumstance, the real market value is determined based on just compensation. See ORS 308.205(2)(c) (“If the property has no immediate market value, its real market value is the amount of money that would justly compensate the owner for loss of the property.”). The department has implemented that statute through its “especial property” rule, OAR 150-308.205-(A)(3). See STC Submarine, Inc. v. Dept. of Rev., 320 Or 589, 595, 890 P2d 1370 (1995) (so noting). Under the especial property rule, an appraiser does not need to use the comparable sales approach, because there are no comparable sales. Instead, real market value is determined by estimating just compensation through the cost approach and/or the income approach. The rule provides: “Valuation of Especial Property: Especial property is property specially designed, equipped, and used for a specific operation or use that is beneficial to only one particular user. This may occur because the especial property is part of a larger total operation or because of the specific nature of the operation or use. In either case, the improvement’s usefulness is designed without concern for marketability. Because a general market for the property does not exist, the property has no apparent immediate market value. Real market value must be determined by estimating just compensation for loss to the owner of the unit of property through either the cost or income approaches, whichever is applicable, or a combination of both.” OAR 150-308.205-(A)(3).