20D - AA VACANT LAND PURCHASE - Laserfiche WebLink

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VALUATION ANALYSIS (Continued) SALES COMPARISON APPROACH: (Continued) Land Value: (Continued) Elements of Comparability: (Continued) improvements exist on the site which either contribute or detract from the value. In many instances, an additional expense must be incurred to demolish existing improvements which expense increases the cost of the underlying land. In contrast, however, a nominally improved property may be receiving income for an interim period during the planning and entitlement phase of a future development. Site Prominence/Exposure: Multiple family residential properties rely on site prominence/ - exposure as a means of attracting tenants. The advertising exposure along commercial thoroughfares is viewed beneficial, however, increased traffic noise is also a detriment. In general terms, signalized corner parcels offer superior prominence/ - exposure than interior sites. Land Area: The functional utility or desirability of a site often varies depending on the types of contemplated uses. Different prospective uses have ideal size and shape characteristics that influence value as well as highest and best use. The purchase price per square foot of land area can fluctuate greatly depending on the size of property. Smaller parcels lend themselves to a higher degree of market participants capable of purchasing and developing the sites. Due to the precept of "economies of scale", it is the general consensus that smaller parcels tend to sell on a higher per square foot basis than larger parcels. Based on a review of the land value indicators employed herein, it is apparent that there is no significant differential in value attributable to land size. Marketability of each sale property was also considered. Marketability is the practical aspect of selling a property in view of all the elements constituting value, and certain economic and financing conditions prevailing as of the date of sale. All of the sale properties employed herein are considered having generally similar marketability as the subject property. LIDGARD AND ASSOCIATES APPAA [ SE RS -CONSULTANTS 10 I+11ir: