PROPERTY EVALUATION (RESTRICTED REPORT)
LOCATION ADJUSTMENT
Subject
Sale I
Sale 2
Sale 3
Sale 4
Sale 5
Sale 6
City
Cathedral City Cathedral City Cathedral City Cathedral City Cathedral City Cathedral City Cathedral City
Zip Code
92234
92234
92234
92234
92234
92234
92234
Median Housing Price
$
307,143
$
307,143
$
219,538
$
248,792
$
230,830
$
298,870
$
307,143
% Difference
0%
40%
23%
33%
3%
0%
Adjustment @
50%
0%
20%
12%
17%
1%
0%
Source: CoStar Comps Demographics
Location (primary/secondary street):
The subject and all comparables are located on secondary streets which are generally preferred for residential uses. Therefore, no adjustments have been made.
Physical Characteristics 3 : Land Size:
We have made adjustments based on the land square footage of the comparables in comparison to the subject property. Typically, larger sites sell for less on a price per square foot basis and smaller sites for more. We have made our adjustments accordingly. This is best explained by the law of diminishing returns where the next square feet have less value than the one prior. We have made a downward adjustment to all comparables given that they are regularly shaped while the subject is irregularly shaped. Irregularly shaped properties typically sell for a discount given various development restrictions.
Shape:
The subject and all comparables have level topography, warranting no adjustments.
Topography:
Comparables #1 and #6 both consist of finished RV pads and include a foundation and utilities to the site. The remaining comparables consist of finished lots with no foundations or other improvements. The subject primarily consists of a paved parking lot with no concrete foundation and some undeveloped land along the eastern portion of the site. A downward adjustment was made to comparables #1 and #6 as these lots were sold in their finished condition with no other improvements necessary. No adjustments were made to the remaining comparables as the lot conditions are similar to the subject property. The subject is zoned RR – Resort Residential District by Cathedral City. Comparables #1, #5, and #6 are also zoned RR and therefore required no further adjustments. The remaining comparables are zoned R1 – Single Family Residential District. As previously noted, the RR district allows no uses by right as all uses require either a PUD permit or a CUP. R1 properties, on the other hand, allow single family homes, parking lots, and various home occupation uses without a PUD permit or a CUP. As a result, a downward adjustment has been made to the comparables given the less restrictive zoning. It should be noted that only a small adjustment was made as the RR zoning allows for substantially more conditional uses including hospitality and restaurant uses.
Lot Condition:
Zoning:
3 Physical characteristics include such things as building size, quality of construction, architectural style, condition, functional utility, site size, attractiveness, amenities, inclusion of non-building elements such as parking. In general, assuming all other factors are similar, larger structures and developments will sell for less than smaller ones on a per square foot basis due to the economics of constructing and operating larger developments. In addition, unit prices for most real estate products tend to decline as the number of units purchased increases.
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