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<br />Nagell Appraisal Incorporated | 952.544.8966 Page 65 <br /> <br />RECONCILIATION <br /> <br />Indicated Value by Cost Approach Not Applied <br />Indicated Value by Sales Comparison Approach See below <br />Indicated Value by Income Approach Not Applied <br /> <br />The Cost Approach to value was considered less reliable due to subjective depreciation adjustments <br />and was therefore not applied. <br /> <br />The Direct Sales Comparison Approach to value analyzed recent sales of commercial land as <br />compared with the characteristics of the subject pr operty. Adjustments were made to the comparables to <br />make them as similar to the subject as possible. This results in an indication of market value at which a <br />typical buyer would be willing to pay for the subject property. <br /> <br />The Income Approach is typically preferred for income-producing properties. Vacant development land <br />is rarely leased in the market; this approach was not considered reliable and was therefore not applied. <br /> <br /> <br />Conclusion: The sales comparison approach was considered the most relevant approach to value. <br />Therefore, the following values are concluded for each of the city’s scenarios: <br /> <br />Note: The estimated $110,000 +/- should be deducted from each value below to account for the non- <br />market cost to relocate the road. <br /> <br /> <br />Final Value Opinion – 135-Unit Apartment (100% <br />multifamily) $1,750,000 <br />Final Value Opinion – 63-Unit Apartment with Kwik <br />Trip <br />$820,000 Apartments + <br />$620,000 Kwik Trip = <br />$1,440,000 <br />Final Value Opinion – 63-Unit Apartment with General <br />Commercial <br />$820,000 Apartments + <br />$750,000 Commercial = <br />$1,570,000 <br />Final Value Opinion – 100% Commercial <br />Development $1,550,000 <br /> <br />NOTE: Typically, unstable, distressed, properties with unusual conditions and/or motivated sellers tend <br />to sell below market value. Based on market observations and discussions with various market experts, <br />discounts can range from 10%-50%+. <br /> <br />EXPOSURE TIME / MARKETING TIME <br /> <br />Reasonable Exposure Time: Typically 12 months before <br />the effective date of the appraisal. <br />Marketing Time Opinion: 6 to 18 months or less after the <br />effective date of the appraisal. <br />