4.7. SR 12-19-2016 - Laserfiche WebLink

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COST APPROACH Since the subject is vacant land, the Cost Approach is not applicable. INCOME APPROACH Very limited rental data of vacant land renders the Income Approach an unreliable indicator. Therefore, the Income Approach is not included. SALES COMPARISON APPROACH The Sales Comparison Approach to Value is predicated upon sales of properties with similar characteristics as the subject. The primary premise of this approach is that the market value of the subject is directly related to the prices of competing properties after adjustment. Adjustments are made to competing properties for significant differences. Land Value: Land value is estimated as if the land were vacant and available for development to its highest and best use. There are several different methods to analyze land values: sales comparison, allocation, extraction, subdivision development, land residual, and ground rent capitalization. One or more of these methods may be applicable depending on market conditions and the type of land. The preferred and most reliable approach is the sales comparison; however, when sales data is very limited, some of the other methods may be employed if appropriate data is available. For purposes of this appraisal, the sales comparison method has been utilized. A number of sales were reviewed in the subject's marketing area. Of the data analyzed, the most relevant sales were selected and used on the following pages. The Following Outline Is Used In The Sales Comparison Approach: A location map of the comparable sales. Comparable sales are listed. An adjustment grid using the comparable sales. A discussion of adjustment and conclusion of value. Primary Data Selection Criteria/Scope: Emphasis on similar Northwest Metro communities. Small commercial lots with access to city sewer and water. Nagell Appraisal&Consulting 1 952-544-8966 1 www.callnagell.com 35