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9786-2 <br /> <br />BEFORE VALUE <br /> <br />26 <br /> <br />Sales Comparison Approach to Value <br />Explanation of Adiustments <br /> <br />Time of Sale: <br /> <br />Appreciation in industrial land is estimated to be <br />4% per year over the time period represented by <br />the comparable sales. <br /> <br />This adjustment is based upon the observation <br />that larger sites tend to sell for less per SF and <br />vice versa. The 90% curve is typically found for <br />land markets where growth is occurring and new <br />land for development is available. <br /> <br />The principle of the learning curve is that a site <br />twice as large as the subject would sell for only <br />90% as much per SF. <br /> <br />Location: <br /> <br />Based on the appraiser's judgement of location <br />features, as they affect industrial land. <br /> <br />Usable vs. Unusable <br /> Land Area: <br /> <br />· The subject has approximately 28.5% of wetland <br /> area in the before condition. Based on pairing <br /> Sales #4 and.#5, and #3 and #5, it appears that <br /> non-buildable areas contribute approximately <br /> 25% of the value of upland areas. In this case, <br /> we have given the subject's unbuildable area and <br /> the ponding easements on Sales #3 and #4, a <br /> .weight of 25% of the buildable areas. <br /> <br />Other: <br /> <br />Comparable Sale #1 included a small garage. A <br />15% adjustment was made for the value of this <br />building. <br /> <br />Sale #5 had a triangulated easterly corner and <br />irregular northerly lot line. It is considered to <br />have a less usable shape than the subject, thus it <br />was adjusted 5%. <br /> <br />Analysis <br />The five comparable industrial lot sales indicate a value range from $7,028 per acre to <br />$14,135 per acre after adjustments. The average of all the adjusted sale prices is <br />$11,094 per acre. <br /> <br />Patchin & Associates, Inc. <br /> <br />Valuation Consultants <br /> <br /> <br />