6. This question requires solving for the answers requested in 6.1 thru 6.14, below, and neatly showing your work with appropriate labels in 6.15. Subject Property - You are appraising a 500-acre irrigated farm with a current valuation date. Improvements contribute $457,000 to the property value. The property is located within the Lotawater Irrigation District; all irrigation water is obtained from the district. The entire property needs leveling. County zoning for properties in this area is AG (General Agriculture). The property is not located in a known flood hazard area. Market Data Sale 1: 550 acres sold recently (1 month ago) for $3,875,000. Building improvements contributed $375,000 to the price. The property is not located in an irrigation district; irrigation water is obtained from on-site wells and related pumping systems. The property was well leveled. County zoning for properties in this area is AG (General Agriculture). The property is in a known flood hazard area. Sale 2: 600 acres sold 1 year ago for $4,760,000. Building improvements contributed $490,000 to the price. The property is not located in an irrigation district; irrigation water is obtained from on-site wells and related pumping systems. 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 3: 450 acres sold 2 years ago for $3,533,000. Building improvements contributed $180,000 to the price. The property is located in Lotawater Irrigation District; all irrigation water is obtained from Lotawater Irrigation District. Supplemental leveling was needed for the entire property at the time of this sale. County zoning in this area is AG (General Agriculture). The property is in a known flood hazard area. Your market analysis leads you to the following conclusions: 1. Market Conditions Change ("Time"); Land values have increased at an annual compound rate of 3.75% for the last few years. No "time" adjustment is necessary for sales that occurred less than three months ago. 2. Property Size: Current land prices (after time adjustment) are 5% higher for each 50 acres smaller than 500 acres, and 5% lower for each 50 acres larger than 500 acres. 3. Leveling: Supplemental leveling cost has remained steady for the past three years at $560/gross acre. 4. Water Source: Land located in Coldwater Irrigation District sells for $1,500/acre more than land outside the district. 5. Flood Hazard: Land located in a known flood hazard area sells for $2,000 per acre less than land located outside a known flood hazard area. 6.1-6.3 (4 Points Each): What is the indicated land only sale price per acre for each sale at the time of sale? Be Careful! Read the instructions on page one of the homework again! Round to the nearest whole dollar. 6.1 Sale 1: $ 6.2 Sale 2: $ 6.3 Sale 3: $ 6.4-6.6 (4 Points Each): What is the land only "time-adjusted" price per acre for each sale? Round to the nearest whole dollar. 6.4 Sale 1: $ 6.5 Sale 2: $ 6.6 Sale 3: $ 6.7-6.9 (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. 6.7 Sale 1: $ 6.8 Sale 2: $ 6.9 Sale 3: $ 6.10-6.12 (4 Points Each): What is the $/acre adjustment for flood hazard differences for each sale? Round to the nearest whole dollar. Be sure to include + or - for your answer. 6.10 Sale 1: $ 6.11 Sale 2: $ 6.12 Sale 3: $ 6.13 (4 Points): What is the concluded land $/acre value for the subject property after all applicable adjustments (not just those in 6.4 thru 6.12)? Round to the nearest $10/acre. $ 6.14 (4 Points): What is the subject property value? Round to the nearest $10,000.