1) Assume that the box below represents the 14th section. Darken in the area of the section that is represented by this address: W ½ NE ¼ N ½ Section 14.
2) You have been hired by Agirich Appraisal. Your next assignment is to provide the indicated value for a subject property using the cost approach. Be sure to adjust for land classification, financing terms, date of sale, and location. Your associates have already collected unimproved comparable sales that will help you with your analysis (see table 5.1). The subject property has 500 acres in a good location and will be a cash sell. It has 300 acres of cropland and 200 acres of pasture land. There is also an improvement with a reproduction cost of $400,000. The improvement has an effective age of 15 years. There is also a similar property with improvements. The land is valued at $300,000. The reproduction cost of the improvement is $450,000 and has an effective age of 10 years. This property sold for $500,000
Show all of your calculations and supporting tables. Your new "boss" must be able to review your work and determine if your work has been done correctly. If your analysis is hard to follow, you will be fired (poor grade).
Table 5.1 Comparable Sale Summary
|
Sale No. |
Date |
Sales Price |
Acres |
Terms |
Location |
$/Acre |
Crop Acres |
Pasture Acres |
|
1 |
6 mo. |
$225,000 |
450 |
Cash |
Avg. |
$500 |
0 |
450 |
|
2 |
6 mo. |
525,000 |
500 |
Cash |
Avg. |
1,050 |
500 |
0 |
|
3 |
6 mo. |
373,275 |
525 |
Cash |
Avg. |
711 |
200 |
325 |
|
4 |
Current |
335,625 |
375 |
Cash |
Avg. |
895 |
300 |
75 |
|
5 |
1 year |
725,900 |
700 |
Cash |
Avg. |
1,037 |
600 |
100 |
|
6 |
Current |
532,680 |
690 |
Cash |
Good |
772 |
300 |
390 |
|
7 |
6 mo. |
260,000 |
300 |
Cash |
Good |
867 |
200 |
100 |
|
8 |
1 year |
535200 |
446 |
Seller/Finance |
Good |
1200 |
346 |
100 |
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