PROPERTY EVALUATION (RESTRICTED REPORT)
Overall, we have concluded that the easement would have a larger effect on the southern portion of the lot than the eastern portion. For the southern portion of the lot, we have utilized a 25% discount, or concluded to 75% of the fee simple value. For the eastern portion of the lot, we have utilized a 10% discount, or concluded to 90% of the fee simple value. A summary of our concluded value can be seen the table below.
CONCLUDED LAND VALUE
Concluded
Total Subject
Land Value Concluded Land Value
Land Value
Land Sq Ft
(Fee Simple) (Considering Easements)
Eastern Portion 4.25 $
x
2,205
=
$
9,371
Times Easement Value @ 90%
$
8,434.13
Southern Portion 8.50 $
x
3,848
=
$
32,708
Times Easement Value @ 75%
$
24,531
Subtotal
$
32,965
Rounded
$
30,000
Selling the eastern portion of the lot would represent an almost complete loss in use to the seller as the primary easement in play for this section is a subterranean pipeline easement. The buyer would obtain most of the utility as a result. This would justify a sales price equal to 90% of the fee simple value. The seller will retain a substantial rights for the southern portion of the lot which includes access to the well site. Typically, this would result in a larger discount as the potential utility to the buyer is diminished. However, the southern section is currently utilized for parking and the presence of the access easement only results in a net loss of +/-2 parking spaces. Therefore, the buyer will still maintian a majority of the site’s utility, justifying a price equal to 75% of the fee simple value.
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