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9786-2 18 <br /> <br />BEFORE VALUE <br /> <br />Sales Comparison Approach to Value <br />The sales comparison method is the most common way of developing a market value <br />estimate for land. In the sales comparison method, sales of vacant land comparable to <br />the subject property are gathered and analyzed. The sales prices are adjusted for time, <br />location, physical characteristics and other relevant variations. The adjusted prices are <br />reduced to some common unit of comparison, such as price per acre or per square foot. <br />The appraiser analyzes this information and derives a unit value applicable to the subject <br />property. When applied to the appropriate unit measure, this value results in an estimate <br />of the market value of the land as if vacant. <br /> <br />The validity of this approach is based on the assumption that a continuity exists between <br />similar properties of like adequacy and their market values. The reliability of this <br />technique is dependent upon the availability of sales data and the degree of <br />comparability of the sales analyzed. <br /> <br />The unit of comparison for industrial land is typically price per square foot or price per <br />acre. Industrial land value is driven by utility and how much can be built on a particular <br />parcel. Thus, wetlands are significantly less valuable than uplands on a given parcel. <br /> <br />The following sales were selected based on their comparability to the subject property. <br />The sales were selected based on similarity in size, rural residential and/or industrial <br />development potential, location and appeal. The sales used are presented on individual <br />write-ups, followed by a location map, adjustment grid and analysis. <br /> <br />Patchin & Associates, Inc. <br /> <br />Valuation Consultants <br /> <br /> <br />