30) When researching sales for an appraisal assignment of a commercial building,the appraiser found three useful sales, all of similar construction, differing in sizeand lot only. The subject is a 5,000 sf building on 8 acres of land.Sale 1 is a 3,000 sf building on 1 acre of land, the minimum for commercial zoning,and sold for $450,000. At the typical rent for this market, its net operating income is$36,000 per year.Sale 2 is a 4,000 sf building on 12 acres, sold for $765,000.Sale 3 is a 4,500 sf building on 9 acres and sold for $795,000.What do these sales indicate is the value of excess land on the subject site?A) $106,667B) $105,000C) $82,963D) $110,000

In the process of appraising commercial real estate, particularly a building with specific size and…

Answered: 30) When researching sales for an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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