7.0. EDSR 07-11-1994 - Laserfiche WebLink

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EXPLANATION AND BASIS FOR ADJUSTMENTS : ll Time: The adjustment for time is an inflationary adjustment which compensates for the loss in buying power from the dollar. We have used a 3% per year adjustment to bring all sales into equality with the subject relative to the date of appraisal. No evidence of appreciation, over inflation, could be found from the market. Traffic: Sales 4 and 5 are located on U.S. Highway 10 just south of the Highway 101 intersection. The basis for this adjustment is the higher traffic count in front of these sales when compared to the subject. A copy of the Minnesota Department of Transportation 1990 traffic count map is included in the addendum of this report. The subject has a daily traffic count of 15, 000 vehicles per day while sales 4 and 5 have approximately a 20, 000 vehicle count per day. 15, 000 divided by 20, 000 equals .75 The reciprocal, .25 is the indicated downward adjustment needed to sales 4 and 5 to bring them into equality with the subject. Location: After making the traffic count adjustment above, the average adjusted price of sales 4 and 5 can be compared to the average price of the rest of the sales comparables which are all situated in areas with no direct visibility or access to major arterial highways. .90 (average adjusted price of sales 4 and 5) .45 (average time adjusted price of sales 1, 2, 3, 6, 7, ) .90/.45 = 2.00, indicating a 100% adjustment to those industrial sales with no major arterial influence. No other adjustments were deemed necessary. An adjustment for city services was explored, however, no adjustment can be measured from the market. Sales 6 and 7 have full city services. Sales 2 and 3, while similar in other aspects, have private well and septic systems. Sales 2 and 3 sold for the same or higher then those lots with city services. ill The following grid will demonstrate the adjustments necessary to bring the comparables into equality with the subject property. il ii e ell ° 25