What is the concluded land $/acre value for the subject property after making all adjustments?

You are appraising a 480 acre irrigated farm with a current
valuation date. Improvements contribute $210,000 to the property
value. The property is located outside Lotta-Water Irrigation
District; irrigation water is obtained from an on-site well and
pumping system. Supplemental leveling is needed for the entire
property. County zoning for properties in this area is AG (General
Agriculture). The property is not located in a known flood hazard
area.
Sale 1: 440 acres sold 2 years ago for $4,055,000. Building
improvements contributed $215,000 to the price. The property is
located in Lotta-Water Irrigation District; all irrigation water is
obtained from Lotta-Water Irrigation District. Supplemental
leveling was needed for the entire property at the time of this
sale. County zoning for properties in this area is AG (General
Agriculture). The property is not located in a known flood hazard
area.
Sale 2: 520 acres sold 1 year ago for $4,640,000. Building
improvements contributed $195,000 to the price. The property is
located in of Lotta-Water Irrigation District; all irrigation water
is obtained from Lotta-Water Irrigation District. The property is
adequately leveled. County zoning for properties in this area is AG
(General Agriculture). The property is not located in a known flood
hazard area.
Sale 3: 400 acres recently sold for $4,025,000. Building
improvements contributed $170,000 to the price. The property is
located outside Lotta-Water Irrigation District; irrigation water
is obtained from an on-site well and pumping system. The property
is adequately leveled. County zoning in this area is AG (General
Agriculture). The property is not located in a known flood hazard
area.
Your market analysis leads you to the following conclusions:
Market Conditions Change (“Time”): Land values have increased at
an annual compound rate of 3.6% for the last few years. No “time”
adjustment is necessary for sale sales that occurred less than
three months ago.
Property Size: Current land prices (after time adjustment) are
4% higher for each 40 acres smaller than 480 acres, and 4% lower
for each 40 acres larger than 480 acres.
Leveling: Supplemental leveling cost has remained steady for the
past three years at $220/acre.
Water: Land located in Lotta-Water Irrigation District sells for
$345/acre more than land outside the district.
5. Flood Hazard: Land located in a known flood hazard area sells
for 15% lower than land located outside a known flood hazard
area.
SHOW YOUR WORK
2a. (4 Points Each): What is the indicated land only sale price
per acre for each sale at the time of sale? Round to the nearest
whole dollar.
Sale 1: $ Sale 2: $ Sale 3: $
2b. (4 Points Each): What is the land only “time-adjusted” price
per acre for each sale? Round to the nearest whole dollar.
Sale 1: $ Sale 2: $ Sale 3: $
2c. (4 Points Each): What is the $/acre adjustment for size
differences for each sale? Round to the nearest whole dollar. Be
sure to include + or – for your answer.
Sale 1: $ Sale 2: $ Sale 3: $
2d. (4 Points Each): What is the $/acre adjustment for location
(water district) differences for each sale? Round to the nearest
whole dollar. Be sure to include + or – for your answer.
Sale 1: $ Sale 2: $ Sale 3: $
2e. (4 Points): What is the concluded land $/acre value for the
subject property after making all adjustments? Round to the nearest
$10/acre.
2f. (4 Points): What is the subject property value? Round to the
nearest $10,000.


 

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