The appraiser researched several sales of residential development land as shown in the table. Reconcile the...

Transcribed Image Text:

The appraiser researched several sales of residential development land as shown in the table. Reconcile the data in the following sales com- parison grid. What are the strengths and weaknesses of this analysis? Should the adjustments be larger or smaller? Should the more recent sales be emphasized over the properties that are more similar in size? Address Data source Sale price Price per acre Rights transferred Subtotal Financing Subtotal Conditions of sale Subtotal Market conditions Subtotal Topography Location Access Visibility Flood area Road frontage Average depth Size (acres) Zoning Utilities Other factors Net adjustment Indicated value per acre Subject Comparable 1 1125 Rookery Road SR 44 at Rookery Road Site visit Co-op # 29601 n/a n/a fee simple assume cash arm's-length current rolling/wooded Rookery Road limited-2 points fair-no major road 0.00% 200 1,720 100.0 Residential R-3 water/sewer/gas none fee simple cash sale arm's-length 6 months equal equal equal equal 0.00% $859,654 $13,225 0.0% $13,225 0.0% $13,225 0.0% 1,000 1,720 65.0 Residential R-2 water/sewer/gas none $13,225 1.5% $13,423 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -3.5% 5.0% 0.0% 0.0% 1.5% $13,624 Comparable 2 Comparable 3 SEC Hadley and Smallson Road Bridge Street west of SR76 Co-op # 2586 Co-op # 2586 fee simple cash sale arm's-length 12 months equal superior superior superior 0.00% $1,556,987 $14,551 1,200 1,720 107.0 Residential R-3 water/sewer/gas none 0.0% fee simple $14,551 0.0% cash sale $14,551 0.0% arm's-length $14,551 3.0% 18 months $14,988 0.0% equal -5.0% superior -5.0% equal -5.0% equal 0.0% 0.00% 0.0% 900 0.0% 2,640 0.7% 72.0 $1,066,000 $14,806 0.0% 0.0% Residential R-4 0.0% water/sewer/gas 0.0% none -14.3% $12,845 $14,806 0.0% $14,806 0.0% $14,806 4.5% $15,472 0.0% -5.0% 0.0% 0.0% 0.0% 0.0% 0.0% -2.8% -5.0% 0.0% 0.0% -12.8% $13,491 The appraiser researched several sales of residential development land as shown in the table. Reconcile the data in the following sales com- parison grid. What are the strengths and weaknesses of this analysis? Should the adjustments be larger or smaller? Should the more recent sales be emphasized over the properties that are more similar in size? Address Data source Sale price Price per acre Rights transferred Subtotal Financing Subtotal Conditions of sale Subtotal Market conditions Subtotal Topography Location Access Visibility Flood area Road frontage Average depth Size (acres) Zoning Utilities Other factors Net adjustment Indicated value per acre Subject Comparable 1 1125 Rookery Road SR 44 at Rookery Road Site visit Co-op # 29601 n/a n/a fee simple assume cash arm's-length current rolling/wooded Rookery Road limited-2 points fair-no major road 0.00% 200 1,720 100.0 Residential R-3 water/sewer/gas none fee simple cash sale arm's-length 6 months equal equal equal equal 0.00% $859,654 $13,225 0.0% $13,225 0.0% $13,225 0.0% 1,000 1,720 65.0 Residential R-2 water/sewer/gas none $13,225 1.5% $13,423 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -3.5% 5.0% 0.0% 0.0% 1.5% $13,624 Comparable 2 Comparable 3 SEC Hadley and Smallson Road Bridge Street west of SR76 Co-op # 2586 Co-op # 2586 fee simple cash sale arm's-length 12 months equal superior superior superior 0.00% $1,556,987 $14,551 1,200 1,720 107.0 Residential R-3 water/sewer/gas none 0.0% fee simple $14,551 0.0% cash sale $14,551 0.0% arm's-length $14,551 3.0% 18 months $14,988 0.0% equal -5.0% superior -5.0% equal -5.0% equal 0.0% 0.00% 0.0% 900 0.0% 2,640 0.7% 72.0 $1,066,000 $14,806 0.0% 0.0% Residential R-4 0.0% water/sewer/gas 0.0% none -14.3% $12,845 $14,806 0.0% $14,806 0.0% $14,806 4.5% $15,472 0.0% -5.0% 0.0% 0.0% 0.0% 0.0% 0.0% -2.8% -5.0% 0.0% 0.0% -12.8% $13,491

Answer rating: 100% (QA)

Strengths of the analysis The sales comparison grid includes all the relevant data sources including ... View the full answer