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COST APPROACH <br /> The Cost Approach to value establishes the present fair market value <br /> of the site, as if unimproved, plus current reproduction cost new of <br /> all improvements less accrued depreciation. <br /> Land Value Analysis <br /> In analyzing comparable land transactions or potential transactions <br /> in the Carbondale area, a number of factors of comparability have <br /> been taken into consideration. These include the following: <br /> 1 . Location. <br /> Location is the primary factor in the valuation of <br /> virtually all land. As applied to this appraisal , the <br /> highest land values are found with those tracts having <br /> good frontage access and close proximity to existing <br /> development . Also of critical importance is the <br /> availability of utility services at reasonable cost . <br /> 2. Size of Tract. <br /> Another important factor in valuing commercial land is <br /> the size of the tract being considered. As a rule , the <br /> smaller the parcel of land , the higher the unit value <br /> and , conversely, the larger the tract, the lower the unit <br /> value ( price per square foot) . This is primarily because <br /> the smaller tracts are in greater demand and within the <br /> means of many more investors or potential purchasers , <br /> while the large tracts have a wholesale aspect and <br /> require greater financing capacity , equity investment, <br /> expense and time to develop. <br /> 3. Zoning and Potential Use. <br /> The highest land values are normally found under the <br /> higher density commercial uses, followed in succession by <br /> industrial and multi-family residential use , single <br /> family residential use , suburban residential and , <br /> finally, agricultural use . While the existing zoning <br /> classification may not absolutely dictate future use , it <br /> usually has a direct bearing on sales prices . A <br /> prospective purchaser who must rezone to a higher or <br /> different use must consider not only the probability of <br /> rezoning , but also the time required and expense <br /> incurred . <br /> U. Terms and Conditions of Sale. <br /> Sales prices indicated for comparable sales tracts may be <br /> heavily influenced by terms and conditions of sale <br /> offered by the seller and by the motivation of both buyer <br /> -9- <br />