cabarrus county board of commissioners regular meeting november ...

October 17, 2011 (Regular Meeting)Pagepriced according to the base price and conditioned back at the discretion ofthe appraiser.THE BASE PRICE METHOD INDUSTRIAL ACREAGE LAND MODEL 06The Base Price Method of appraising industrial acreage is referred to as LandModel 06. This land model is utilized to reflect market value whenappraising acreage in areas that typically have access to all utilities. Themarket indicates that land values change when properties have differentamenities such as road frontage, road types, the size of the parcel, or lackpublic utilities.Land Model 06 is also an excellent appraisal tool when utilizing theneighborhood concept for different locations within the jurisdiction beingappraised.The following is a description of how these factors affect each parcel ofland:A. Location:Location is the key factor in the determination of market value in theCounty. Depending on market demand and sales prices, Base Price Areas wereestablished throughout the County. Within each base price area other locationfactors may be applied to a given parcel. The conceptof neighborhoodhomogeneity may tend to affect values as the parcel comes more under theinfluence of the neighborhood and less under the influence of the total basearea. The market demands higher prices for property perty in ornear active marketareas. Desirable subdivisions, availability of water and sewer, proximity toshopping areas, higher base price areas and the existence of amenities arefactors which tend to increase market demand.The inverse may be true forparcels near a declining subdivisionor undesirable industrial use area.These influences must be determined and adjustedon an individual bases bythe appraiser.B. Size:The size of a parcel plays a major role in determining the per acre price atwhich a parcel of land will l sell. The total price asked for a parcel of landhas an indirect correlation with the number of potential buyers in themarket. This situation stimulates tes more price negotiation and longer turnoverperiods for large tracts.Consequently,the actual cash value per acredecreases as the size of the parcel increases.The value of small lots containing less than one acre depends greatly onzoning and healthdepartmentrestrictions, therefore, these lots aretypically priced by the lot, square foot or front foot. Tracts priced by theacre are typically pricedusing the base price method in conjunction withfollowing size factor chart:SIZE ADJUSTMENTS INDUSTRIAL ACREAGE Land Model 06Acreage Range Size Factor Calculation Acreage Range Size Factor Calculation.001 - .250 Ac Acres x Base x 160% 25.001 - 100.000 Ac Acres - 25 x Base x 75%+[(25 x Base x 100%)Formula - ((Acres – 25) x 75%) +25.00Acres.259 - .750 Ac Acres - .250 x Base x 175%+ (.250 x Base x 160%) 100.001 - 250.000 Ac Acres - 100 x Base x 60%+ (25 x base x 100%)Formula -((Acres - .250) x 175%) + .40 + (75 x Base x 75%)]Acres Formula - ((Acres – 100) x 60%) + 81.25Acres.751 - 2.000 Ac Acres x Base x 170%250.001 - 500.000 Ac Acres - 250 x Base x 40%+ [(25 x Base x 100%)2.001 – 6.000 Ac Acres - 2.000 x Base x 115% + (75 x Base x 75%)+ (2.000 x base x 170%) + (150 x Base x 60%)]Formula - ((Acres – 250) x 40%) + 171.25Formula - ((Acres - 2.000) x 115%) + 3.40AcresAcres 500.001 - 750.000 Ac Acres - 500 x Base x 25%+ [(25 x Base x 100%)+ (75 x Base x 75%)6.001 – 20.000 Ac Acres - 10 x Base x 87% + (150 x Base x 60%)+ [(2.00 x Base x 170%) + (250 x Base x 40%)]+ (4.00 x Base X 115%)] Formula - ((Acres – 500) x 25%) + 271.25Formula - ((Acres – 6) x 87%) + 8.00AcresAcres750.001 – UP Acres - 750 x Base x 15%20.001 - 25.000 Ac Acres x Base x 100% + [(25 x Base x 100%)+ (75 x Base x 75%)+ (150 x Base x 60%)A-1Page 74