Help with problem 6
neatly showing your work with appropriate labels in 6g Subject Property-You are appraising a 360 acre irrigated farm with a current valuation date Improvements contribute $190,000 to the property value. The property is located within the service area of Crop Quencher Irrigation District, all irrigation water is obtained from Crop Quencher Irrigation District. The entire property is well leveled. County zoning for properties in this area is AG (General Agriculture). The property is located in a known flood hazard area. Market Data Sale 1: 390 acres sold recently (2 months ago) for $4,055,000. Building improvements contributed $205,000 to the price. The property is located outside Crop Quencher Irrigation District, irrigation water is obtained from an on-site well and pumping system. 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 2 330 acres sold 1 year ago for $3,257,000. Building improvements contributed $170,000 to the price. The property is located outside Crop Quencher Irrigation District, irrigation water is obtained from an on-site well and pumping system. The property is adequately leveled. County zoning for properties in this area is AG (General Agriculture). The property is located in a known flood hazard area. Sale 3: 420 acres sold 2 years ago for $4,045,000. Building improvements contributed $175,000 to the price. The property is located in Crop Quencher Irigation District all irrigation water is obtained from Crop Quencher 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 not located in a known flood hazard area. Your market analysis leads you to the following conclusions: men Land values have increased at an annual compound rate of 3.8% for the last few years. No Ttime" adjustment is necessary for sales that occurred less than three months ago. 2 Propertysmi Current land prices (aner time adjustment) are 3% higher for each 30 acres smaller than 360 acres, and 3% lower for each 30 acres larger than 360 acres. 3. Leveling; Supplemental leveling cost has remained steady for the past three years at $250/gross acre. 4. Water Source: Land located in Crop Quencher Irrigation District sells for $350/acre more than land outside the district 5. Flood Hazard: Land located in a known flood hazard area sellis for $1,000 per acre less than land located outside a known flood hazard area. ARE 145-Homework #2 Page 4
