The subject property is the Yankee Avenue property described in Case Study 4.3. Based on the description from the case study and the information below, you must apply the direct comparison approach to estimate the market value of the subject lot as at December 31, this year. You are required to apply both quantitative and qualitative analysis.

 

Specifically, you need to do the following:

 

1. Determine a market value using QUANTITATIVE analysis. To execute this, you need to adjust for time, location, and a drainage connection fee. Show your calculations and provide an explanation for the market value determined under quantitative analysis.(20marks)

 

2. Determine a market value using QUALITATIVE analysis. To execute this, you need to describe each of theindices (without mathematical adjustments). To reconcile an appropriate market value, prepare anarray of unadjusted market values. Provide an explanation for the market value determined underqualitativeanalysis.(15marks)

3. Reconcilethevaluescalculatedunderquantitativeandqualitativeanalysistodetermine a finalmarketvalue.(5marks)

Description of Indices. The indices, as improved, are described in Case Study 4.3. The following tablesummarizes the indices, but shows their extracted land values (rounded) instead of their improved saleprices.Thelandvaluesshownonthefollowingtablearetobeusedinvaluingthesubjectproperty.

Index	Address	Sale Date(all thisyear)	Siting	Lot Size(ft)	Area(sq.ft.)	LandValue
1	9724ThirdSt.	16-Sep	Interior	50120	6,000	$307,300
2	9769SecondSt.	29-Jul	Interior	50120	6,000	$249,400
3	9750ThirdSt.	26-Aug	Interior	50120	6,000	$270,000
4	9781ThirdSt.	01-Aug	Interior	50120	6,000	$276,800
5	9751FifthSt.	01-Sep	Corner	50120	6,000	$288,000
Subject			Interior	50120	6,000

ElementsofComparison.InformationyouneedtoconsiderforadjustmentsofthefollowingelementsareprovidedinthedescriptionsoftheindicesinCaseStudy4.3:

Realpropertyrightsconveyed

Financingterms

Conditionsofsale

Expendituresimmediatelyafterpurchase

Physicalcharacteristics

Economic characteristics

Use

Non-realtycomponentsofvalue

Informationyouneedtoconsiderfortheremainingelementsofcomparisonisprovidedbelow:

MarketConditions.Applythefollowingmonthlytimeadjustments:

Past5months	4%
Past4months	3%
Past3months	2.5%
Past0-2 months	0%

Location. Assume that locations within a five-block radius of the subject property are considereduniform (and no adjustment is required for this). However, there is an adjustment required for acorner versus an interior location. All the information you need is shown in the following table.Assumethatnoadjustmentsneedtobeappliedtothesalesusedtocreatethelocationtable.

Sale LocationRelativetoSubject	Siting	Area(sq.ft.)	SalePrice
5blockswest	interior	6,600	$297,000
1blocknorth	interior	6,000	$264,000
2blockswest	corner	6,400	$312,800
1 block east	interior	5,800	$259,600
Sameblock	interior	6,150	$273,700
Sameblock	interior	6,275	$283,900
1blocknorth	interior	6,000	$268,500
4blockswest	corner	6,000	$294,500
3blockswest	corner	5,660	$275,100
2blocksnorth	interior	6,200	$275,600

Drainage.Todevelopthesubjectsite,thesubject'sdraintilewillhavetobeconnectedtotheCityofBlue Jay storm drainage system at a cost of $8,000. This cost will be incurred as at the effective date oftheappraisal,soitshouldbeappliedafteralltheotheradjustmentshavebeencarriedout.