You have been hired by Agirich Appraisal. Your next assignment is to provide the indicated value for a subject property using the cost approach. Be sure to adjust for land classification, financing terms, date of sale, and location. Your associates have already collected unimproved comparable sales that will help you with your analysis (see table 5.1). The subject property has 500 acres in a good location and will be a cash sell. It has 300 acres of cropland and 200 acres of pasture land. There is also an improvement with a reproduction cost of $400,000. The improvement has an effective age of 15 years. There is also a similar property with improvements. The land is valued at $300,000. The reproduction cost of the improvement is $450,000 and has an effective age of 10 years. This property sold for $500,000 Show all of your calculations and supporting tables. Your new "boss" must be able to review your work and determine if your work has been done correctly. If your analysis is hard to follow, you will be fired (poor grade) Table 5.1 Comparable Sale Summary Date Acres Terms Location $/Acre Sale No. Crop Acres Pasture Acres 1 6 mo. 450 Cash Avg. $500 0 450 Sales Price $225,000 525,000 373.275 2 6 mo. 500 Cash 1,050 500 0 Avg. Avg. 3 6 mo. 525 Cash 711 200 325 4 Current 335,625 375 Cash 895 300 75 Avg. Avg. 5 1 year 725.900 700 Cash 1,037 600 100 6 Current 532.680 690 Cash Good 772 300 390 7 6 mo. 260,000 300 Cash Good 867 200 100 8 1 year 535200 446 Seller/Finance Good 1200 346 100 You have been hired by Agirich Appraisal. Your next assignment is to provide the indicated value for a subject property using the cost approach. Be sure to adjust for land classification, financing terms, date of sale, and location. Your associates have already collected unimproved comparable sales that will help you with your analysis (see table 5.1). The subject property has 500 acres in a good location and will be a cash sell. It has 300 acres of cropland and 200 acres of pasture land. There is also an improvement with a reproduction cost of $400,000. The improvement has an effective age of 15 years. There is also a similar property with improvements. The land is valued at $300,000. The reproduction cost of the improvement is $450,000 and has an effective age of 10 years. This property sold for $500,000 Show all of your calculations and supporting tables. Your new "boss" must be able to review your work and determine if your work has been done correctly. If your analysis is hard to follow, you will be fired (poor grade) Table 5.1 Comparable Sale Summary Date Acres Terms Location $/Acre Sale No. Crop Acres Pasture Acres 1 6 mo. 450 Cash Avg. $500 0 450 Sales Price $225,000 525,000 373.275 2 6 mo. 500 Cash 1,050 500 0 Avg. Avg. 3 6 mo. 525 Cash 711 200 325 4 Current 335,625 375 Cash 895 300 75 Avg. Avg. 5 1 year 725.900 700 Cash 1,037 600 100 6 Current 532.680 690 Cash Good 772 300 390 7 6 mo. 260,000 300 Cash Good 867 200 100 8 1 year 535200 446 Seller/Finance Good 1200 346 100