Sales Comparison Approach
Analysis of Subject Parcel 1
The comparable sales utilized in the sales comparison approach analysis for subject property parcel 1 were compiled by researching vacant land sales of comparable properties within the Detroit Metro market. The vacant land comparable sales were chosen based upon date of transfer, size and location characteristics. An additional consideration is that in urban locations with very few vacant desirable building sites it may be necessary for a purchaser to demolish an existing building to redevelop the site. The cost of demolishing buildings to redevelop the site must be considered along with the purchase price to estimate the consideration the purchaser paid for the site.
All comparable …show more content…
The demolition costs to be considered along with the purchase price to acquire the property are estimated as follows:
Per assessing records Comparable 2 was improved with a small two-story home which was demolished post sale by the purchaser. The demolition costs to be considered along with the purchase price to acquire the property are estimated as follows:
Per assessing records Comparable 3 was improved with a 1,552-square foot class C structure and 5,000 square feet of asphalt paving which were demolished post sale by the purchaser. The demolition costs to be considered along with the purchase price to acquire the property are estimated as follows:
Additionally, all the comparable sales presented in the analysis of subject property parcel 1 are legally described using a lot and block system. Therefore, the legal descriptions for these comparable sales do not include road right of way with net site area equal to gross site area. The transactions in the tables below represent properties that were not encumbered by any use restrictions at the time of sale. A map of the vacant land sales, as well as detailed information regarding these sales is presented on the following …show more content…
The sale price of a vacant lot, for example, can be expressed as a cost per square foot or cost per front foot.
I examine both the price per square foot and the price per front foot to determine the appropriate comparison unit to be utilized in this analysis. The Coefficient of Variation (COV) is utilized as a measure of consistency in pricing real estate assets. When examining a dataset, the comparison unit with the smaller COV indicates the most consistent comparison unit utilized by market participants in purchase
Analysis of Subject Parcel 1
The comparable sales utilized in the sales comparison approach analysis for subject property parcel 1 were compiled by researching vacant land sales of comparable properties within the Detroit Metro market. The vacant land comparable sales were chosen based upon date of transfer, size and location characteristics. An additional consideration is that in urban locations with very few vacant desirable building sites it may be necessary for a purchaser to demolish an existing building to redevelop the site. The cost of demolishing buildings to redevelop the site must be considered along with the purchase price to estimate the consideration the purchaser paid for the site.
All comparable …show more content…
The demolition costs to be considered along with the purchase price to acquire the property are estimated as follows:
Per assessing records Comparable 2 was improved with a small two-story home which was demolished post sale by the purchaser. The demolition costs to be considered along with the purchase price to acquire the property are estimated as follows:
Per assessing records Comparable 3 was improved with a 1,552-square foot class C structure and 5,000 square feet of asphalt paving which were demolished post sale by the purchaser. The demolition costs to be considered along with the purchase price to acquire the property are estimated as follows:
Additionally, all the comparable sales presented in the analysis of subject property parcel 1 are legally described using a lot and block system. Therefore, the legal descriptions for these comparable sales do not include road right of way with net site area equal to gross site area. The transactions in the tables below represent properties that were not encumbered by any use restrictions at the time of sale. A map of the vacant land sales, as well as detailed information regarding these sales is presented on the following …show more content…
The sale price of a vacant lot, for example, can be expressed as a cost per square foot or cost per front foot.
I examine both the price per square foot and the price per front foot to determine the appropriate comparison unit to be utilized in this analysis. The Coefficient of Variation (COV) is utilized as a measure of consistency in pricing real estate assets. When examining a dataset, the comparison unit with the smaller COV indicates the most consistent comparison unit utilized by market participants in purchase