MARKET LAND APPROACH ANALYSIS

The basic premise underlying market land approach analysis is that the subject property site value can be estimated by analyzing transaction prices of similar properties. In other words, it is based upon a comparison of prices paid for similar land in recent times. This approach is probably based upon a comparison of prices paid for similar land in recent times. This approach is probably the most readily applied method utilized by investors in purchasing land. Both buyers and sellers normally familiarize themselves with the local real estate market as they propose to sell or purchase property by making a comparison of relative values within the real estate area under consideration. The individual characteristics inherent in each parcel of real estate necessitates comparison and adjustment to put transactions in order to properly arrive at an estimate of value. The unit of comparison used by the appraiser is sales price per acre.

Analysis of Sales: A thorough investigation of the subject neighborhood and comparable areas was conducted to find recent sales of vacant sites considered similar in utility to the subject. Sales found are similar to the same general influences as the subject site. All sales have been verified and unless otherwise noted, all are arms length transactions. A physical inspection has been made of each site for any significant features different from the subject site.

The appraiser reviews each sale for comparison between the subject property and the comparable sales and makes adjustments for each as necessary. The five elements of comparison are 1) condition of sale; 2) financing terms; 3) market conditions (time); 4) location; and 5) physical characteristics.