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J. Brown &Associates Appraisal House <br /> Appraisal of Land, Mounds View, Minnesota 17. <br /> Interpretation and Correlation of Estimates <br /> • The three approaches to value have been considered in this appraisal. <br /> The first consideration is the Cost Approach. This appraisal is for land only therefore the <br /> cost approach was not used. <br /> The Income Approach is usually considered as the third approach to value. Again this has <br /> not been considered since the appraisal is for land only and no rent is obtainable. <br /> The Sales Comparison Approach is the second method of appraising property and in this <br /> appraisal is the best method. In this approach a number of comparable sales have been <br /> analyzed and compared to the subject property to reflect an Estimated Value of $28,258 <br /> Cost to Develop <br /> The typical developer's cost, in the subject's area, to develop a right-of-way is approxi- <br /> mately $100.00 per front foot. The Highest and Best Use and The Most Profitable Use is, <br /> as stated earlier in this report, to develop the subject and adjoining land as single family <br /> residential sites. The development of a cul-de-sac and 400' of right-of-way from Hillview <br /> Road would provide the potential of 7 buildable sites. 400' x 2 = 800' of road frontage x <br /> $100.00 (development cost/front foot ) = $80,000. <br /> $80,000 divided by 7 sites equals ($11 ,428) the cost to develop each available site. <br /> Conclusion: <br /> The subject contains approximately 11 ,125 square feet and, with the assumption that the <br /> right-of-way is paved and all utilities are available to the site, the site would have a value of: <br /> 11,125 sq ft x $2.54 = $28,257.50 <br /> (minus development cost) <br /> $28,258 - $11 ,428 = $16,830 <br /> Rounded to $17,000.00 <br /> Reconciliation <br /> The estimated market value of the subject as of April 23, 1997 (date of inspection) is: <br /> • <br /> $17,000 <br /> Seventeen thousand dollars <br />