PROPERTY EVALUATION (RESTRICTED REPORT)
Comp # List Price Sale Price % Difference 1 45,000 $ 45,000 $ 0% 2 55,000 $ 50,000 $ -9% 3 29,900 $ 28,000 $ -6% 4 60,000 $ 50,000 $ -17% 5 70,000 $ 65,000 $ -7% Average -8%
Date of Sale (Changes in Market Conditions):
In making time adjustments, we considered changes in rent levels, changes in the demand for residential land as well as the overall state of the local and national economies. Below we have provided a graph depicting the appreciation of residential lots under 0.5 acres and within a four-mile radius of the subject.
Average Sales Price
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
2016
2017
2018
2019
2020
As one can see, average land prices have increased steadily since 2017 with the number of transactions also increasing. The average sales price was $53,992 in 2017, $65,139 in 2018, and $81,604 after the first four months of 2019. This represents an appreciation rate of 20.6% between 2017 and 2018 and an appreciation rate of 25.3% between 2018 and 2019. It should be noted that the analysis included lots that are located in significantly superior areas, lots that sold with building plans, and lots that sold with some personal property. We a result, we have utilized a 25% scalar and made our adjustments accordingly. Adjustments were made for location by using the median housing price as a proxy variable for differences in location.
Location General : 2
2 Location adjustments include factors such as demand, traffic, exposure, corner view, surrounding uses, access to freeways, etc.
24
Made with FlippingBook - Online magazine maker