Homework 4 Sales Comparison Approach Use the data in Table 1 to apply the sales comparison approach to the questions listed below. Show all calculations. Round all dollar figures to the nearest whole number. Round percentages to 4 decimal places. Table 1. Selected Data Comparable Sales and Subiect Property Sale Date Price Acres Net Rental Income 1 8 months $952.000 680 $38.080 2 6 months 780.000 650 31,200 3 6 months 1020.600 700 40.824 4 3 months 1.100,500 710 44,020 5 2 months 1.224.000 720 61.700 6 1 month 1,114,350 690 44 574 Subiect 675 Productivity Improvements Rating TI were III averare VER IT average 1 vetare 11 average TI Fuerare Com Soybeans Acres Acres 200 480 250 400 300 400 710 0 120 600 410 280 400 275 a) Calculate the per acre unit price of all six comparable sales. Place your answer in Table 2 (next page) b) Adjust per acre unit prices of all six comparable sales for time using the average rate per month method. Base your time adjustment on comparable sales with a Productivity II rating. Show how you determined the appropriate rate of adjustment. Also show the adjustment factor for each comparable sale and the adjusted per acre current unit price in Table 2. c) Two sales have a Productivity Rating that differs from the subject property. Adjust the per acre current unit price indications (from part b) for differences in productivity. Explain how you determined the size of the adjustments. Show the adjustments and the per acre indicated unit value in Table 2. Based on these results, what per acre value do you assign to the subject property (do not use an average)? Explain how you selected this value. d) Calculate the per unit value of corn and soybean acres. Use sales 4 and 6 to make these calculations. Show the calculations e) Calculate the total final value of the subject property 1) using the per acre value from partc and 2) the com and soybean per acre values from part d. Based on this information, assign a final total value for the subject property, explaining your decision. Show your calculations for each part of the problem. Use the workspace on page 2 - 3. Tabla 2. Sales Comparison Approach Sale Date Price Acres Productivity Rating Per Acre Unit Price Time Adjust ment Per Acre Current Unit Price (b) Productivity Per Acre Adjustment Indicated Unit Value (a) (b) (c) 1 8 months $932,000 680 II 2 6 months 780,000 650 III 2 11 6 months 1,020,600 700 3 months 1,100,500 710 4 II 5 2 months 1,224,000 720 1 6 1 month 1,114,350 690 II Subject 675 II WORK SPACE FOR PROBLEM 1 a) See Unit Price column in Table 2. b) Do paired time adjustment only for Prod. Rating II sales using the average rate per month method. Round to 4 decimal places Paired Sales Paired Sales Paired Sales Show how you determined the appropriate rate adjustment. The time adjustments for each sale are: Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 c) There is only one Class I sale and one Class III sale among the comparable sales. The average of the class II sales is $ which I will use as the value of class Il sales. To find the value of productivity adjustment: Prod. II average of compal Homework 4 Sales Comparison Approach Use the data in Table 1 to apply the sales comparison approach to the questions listed below. Show all calculations. Round all dollar figures to the nearest whole number. Round percentages to 4 decimal places. Table 1. Selected Data Comparable Sales and Subiect Property Sale Date Price Acres Net Rental Income 1 8 months $952.000 680 $38.080 2 6 months 780.000 650 31,200 3 6 months 1020.600 700 40.824 4 3 months 1.100,500 710 44,020 5 2 months 1.224.000 720 61.700 6 1 month 1,114,350 690 44 574 Subiect 675 Productivity Improvements Rating TI were III averare VER IT average 1 vetare 11 average TI Fuerare Com Soybeans Acres Acres 200 480 250 400 300 400 710 0 120 600 410 280 400 275 a) Calculate the per acre unit price of all six comparable sales. Place your answer in Table 2 (next page) b) Adjust per acre unit prices of all six comparable sales for time using the average rate per month method. Base your time adjustment on comparable sales with a Productivity II rating. Show how you determined the appropriate rate of adjustment. Also show the adjustment factor for each comparable sale and the adjusted per acre current unit price in Table 2. c) Two sales have a Productivity Rating that differs from the subject property. Adjust the per acre current unit price indications (from part b) for differences in productivity. Explain how you determined the size of the adjustments. Show the adjustments and the per acre indicated unit value in Table 2. Based on these results, what per acre value do you assign to the subject property (do not use an average)? Explain how you selected this value. d) Calculate the per unit value of corn and soybean acres. Use sales 4 and 6 to make these calculations. Show the calculations e) Calculate the total final value of the subject property 1) using the per acre value from partc and 2) the com and soybean per acre values from part d. Based on this information, assign a final total value for the subject property, explaining your decision. Show your calculations for each part of the problem. Use the workspace on page 2 - 3. Tabla 2. Sales Comparison Approach Sale Date Price Acres Productivity Rating Per Acre Unit Price Time Adjust ment Per Acre Current Unit Price (b) Productivity Per Acre Adjustment Indicated Unit Value (a) (b) (c) 1 8 months $932,000 680 II 2 6 months 780,000 650 III 2 11 6 months 1,020,600 700 3 months 1,100,500 710 4 II 5 2 months 1,224,000 720 1 6 1 month 1,114,350 690 II Subject 675 II WORK SPACE FOR PROBLEM 1 a) See Unit Price column in Table 2. b) Do paired time adjustment only for Prod. Rating II sales using the average rate per month method. Round to 4 decimal places Paired Sales Paired Sales Paired Sales Show how you determined the appropriate rate adjustment. The time adjustments for each sale are: Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 c) There is only one Class I sale and one Class III sale among the comparable sales. The average of the class II sales is $ which I will use as the value of class Il sales. To find the value of productivity adjustment: Prod. II average of compal