Part B $$ Problem Solving

Subject Property

The subject property has a modern and efficient hay storage facility that has some

deferred maintenance $($normal maintenance that has not been done$).$ The subject$$s

actual age is $12$ years, and its effective age is $15$ years. Based on market data, the

current land value is $$1,300,000.$ Replacement Cost New of the facility improvement is

$$2,130,000.$ External obsolescence does not impact the subject.

Market Data

Following is information about two local properties with similar hay storage facility

improvements that have sold recently. The properties had no other improvements.

External obsolescence does not impact either sale.

Sale $1$ sold recently for $$2,500,000.$ Land value at the time of sale was $$1,275,000.$

RCN $($Replacement Cost New$)$ of the hay storage facility improvements at the time of

sale was $$2,785,000.$ Actual age of the facility improvements at the time of sale was $14$

years and the effective age was also $14$ years.

Sale $2$ sold recently for $$2,020,000.$ Land value at the time of sale was $$1,000,000.$

RCN $($Replacement Cost New$)$ of the hay storage facility improvements at the time of

sale was $$1,700,000.$ At the time of sale, the actual age of the facility improvements

was $15$ years and, due to recent renovation and particularly good maintenance, the

effective age was only $10$ years.