1st Reading - Jersey City

Portion of PJPLandlil1 Site, Jersey City New JerseyExplanationof AdjustmentsElements of ComparisonElements of comparison are the characteristics ,of properties and transactions that,cause prices paid for real estate to vary.5 All reåsonable differences between thecomparable'sales and the subject property are. identified and analyzed. Market datais examined to determine which elements affect the market value of a property.Adjustments for differences that impact value are in order. Adjustments can bemade to the total sales price, the common unit price,or both. The amount of'adjustment depends on the'degree ofdifference between the subject andcomparable properties. Special care must betaken to ènsure adjustments areapplied consistently and noadjustment should be made more than once.. 'Elements of comparison common in land valuation include property rights, legalencumbrances, financing terms, conditions of sale (motivation), market conditions(sale date), location, physical characteristics, available utilities, zoning, and highestand best use, The most variable elements ,of comparison for warehouse locationsare the physical characteristics of the site, which inçlude size and shape, frontage,topography, and ,location.The most common units of comparison for land tracts are price per acre, price persquare fqot oflandarea, and piice per squarefootof potential building. After,, r,eviewing thécomparable sales data and discussing the appropriate unit of 'comparison with several localreal estate brokers, 1 concluded that the most.' . . .reliable way of comparing thesubject site to comparable sites is on a price pet acre, ,,basis, Thisis supported by the comparable sales that reflect a narrow price per acre, ,range.'i have considered adju~ting each of the comparáble landsales for property rights'conveyed, conditions of salè, financing" market conditions, location, site approvalsat the time of sale, and physical characteristics (size, shape, etc.), andzoning.Where the subject is superior to the comparable an upward (+) adjustment to thecomparable sale is made. If thesubject is inferior to the comparable sale, thecomparable sale is adjusted downward (-). The adjustments to the comparable salesare explained in the following paragraphs. ', ,Pfhe AI1praisal of Real Estate, ,12th Edition. Chicago, Ilinois: Appraisal Institure, 2001.VALUE REEARCH GROUP, LLC 27