SALES COMPARISON APPROACH ANALYSIS

The Sales Comparison Approach Analysis, in essence, is a backward glance. This approach utilized data provided by recent sales of similar vacant land properties, normally in close proximity to the subject of the appraisal. This approach is a comparison process. by virtue of this process, this approach is limited in its applicability by the lack of sales activity in the marketplace. Limitations can also be presented by the motivations of the participants in the marketplace even with an abundance of sale data. The Sales Comparison Approach recognizes and provides for the normal process of change in the market; however, abrupt modifications of conditions existing in and/or impacting on a property may render any seemingly comparable market data worthless. Market value is the most frequently requested estimate notwithstanding, the market is constantly in the mind of the appraiser. It is the market which will temper the appraiser's learning judgments even if conclusive data is not available on which to formulate his opinions.

A thorough search of the area and neighborhood surrounding the subject provided some sales directly applicable to the appraisal of the subject. This search of the Oakwood/Montgomery County area produced several recent vacant single family residential land sales. These sales were used for comparison because they represent the most similar sales found, and they are the most recent sales available.

On the following page is a summary of the vacant single family residential land sales that were given the most consideration in arriving at a value estimate for the subject's land by utilization of the Sale Comparison Approach.

As shown on the Improved Sales Summary Sheet, following this page 3 market sales of similar vacant properties have been analyzed for comparison to the appraised property.

The adjusted value range for the subject is from $7.79/SF to $8.59/SF. After analyzation, all 3 sale are considered most similar to the subject. Consequently, the total value of the subject, according to the Sales Comparison Approach is $8.25/SF for a total estimated property value at $181,200.

Most buyers negotiate the sale price on a per square foot of land area basis. Therefore, the value of the subject according to the Sales Comparison Approach is estimated at the value determined by this indicator of value.