page 3 of 3
Comments on the sales comparison:Very low density, rural area with few sales or offerings in any given year and long periods of time may pass between sales of residential properties which are reasonably similar to each other. See the attached exhibit addendum for all sales in Hopland during the previous 24 months. Due to lack of recent and proximate sales of similar properties it was necessary to use comparables which are somewhat distant, dated or required numerous adjustments or total adjustments exceeding ideal guideliines. This is typical when valuing property in southern Mendocino County. Most of the sales or listings presented are located in the general Hopland area with sale comp 1 being the closest to the subject. Sale comp 3 is a recent sale northwest of the city of Ukiah and was included to present a sale of a similar size lot with a residence more similar in GLA to the subject. This location is the farthest from the subject. Site adjustments for differences in size vary depending on the amount of surplus land involved. Small differences in size not adjusted. See below for comments on the individual sales or listings. Some properties used in this report as comparable sales have small wine vineyards. The adjustment used was developed during the course of various appraisasl assignments in this area and based on extraction of this amenity using paired sales as well as income capitalization. For this particular area, a small 2 to 10 acre vineyard can contribute $30,000 to $35,000 per acre. Comp 1 has a 2.2 acre vineyard of Siraz grapes and comp 3 has a 7 acre vineyard of Syrah grapes. I estimate a downward adjustment of about $30,000 per acre to be reasonable. Quality adjustments when required were difficult but based on differences in quality of construction, finishes and amenities an adjustment of plus or minus $25 per square foot of the GLA is a reasonable estimate, again based on numerous property appraisals in the area over the years and the resulting relatively narrow range of market value indicators after applying the adjustment. Differences in GLA made at a rate of $40 per square foot. This amount is somewhat lower than I might have made for residence at this quality level but the subject is substantially larger than most where typically the larger residences are 2,500 to 3,500 square feet.
Comp 1: 1301 University Rd, Hopland. Located about one mile east of town on a 6.5 acre lot. The sale included an additional half acre buildable lot with a water hookup. The value that this lot contributed to the sale of comp 1 is roughly equal to the difference in value between 6.5 acre primary lot and the subject's larger 10.5 acre lot and an adjustment was not made. The residence is a 2,300 sq.ft vintage farmhouse which was extensively remodeled and updated prior to the sale. Good quality work and finishes, comparable to the subject's residence. The property features a 2.2 acre wine grape vineyard, a 2 car garage and a high quality, inground swimming pool with concrete decking and a small pool house. The contributory value of these outdoor amenities are more or less equal to the subject's large steel building and additional outbuildings and no adjustments were necessary.
Comp sale 2: Recent sale of a 30 acre property in McNab Ranch area, 6-7 miles northwest of Hopland. This property has three county assessor parcel numbers with each tract having 10 acres. As there are no certificates of compliance total area is considered one legal lot of record. The additional 20 acres of surplus land was adjusted downward at $5,000 per acre based on analysis of both improved and unimproved properties in this size range. Somewhat remote location with dirt and gravel roads but good views and seclusion. Outdoor features include a 960 Sqft shop area and a small hobby vineyard with about 250 vines. Simlar to the subject in condition and quality.
Comp sale 3: Located about 16 miles (measured in a straight line) from Hopland along Orr Springs Road. The location is an outlying area to the city of Ukiah and has similar rural chacteristics to the subject's neighborhood. Slightly larger 14 acre lot and the surplus was adjusted downward at about $20,000 per acre. Large custom home built in the early 1970's. Good quality custom construction and appointments but very little updatijng over the years. Selling agent states most potential buyers considered the costs of updating when viewing the property. A large upward adjustment based on cost and profit was made. Property features a 7 acre wine grape vineyard and a downward adjustment was made for this feature as explained above. 4 car tandem garage and a good quality inground pool and a small workshop. No adjustments made versus the subject's steel building and outbuildings.
Sale comp 4: Located about 2 miles west of the subject. This property is not ideal as a comparable sale due significant difference in lot size but is relevant due its location in Hopland where there are few sales in any given year. This sale demonstrates market acceptance of large, high quality residential improvements on acreage. 90 acre site located adjacent to larger commercial vineyards owned by a prominant wine producer. Comp 4 features a 20 acre wine grape vineyard, irrigation pond, 4 detached guest rooms and an older 2 bedroom accessory unit. Rammed earth construction of very good to excellent quality, high quality inground pool and patio.
Sale comp 5: A 2005 sale of an 11 acre property in the Felize Creek area, west of downtown Hopland (This Feliz Creek Road is not the same Felize Creek Road that Comp 2 is located on.) This sale is relevant due it's very similar lot size and because it demonstrates the marketability of very large residences in Hopland. More than 5,000 square feet and of very good quality construction and appointments. Similar in room, bedroom and bath count to the subject. Property features a 1,300+- square foot accessory dwelling unit and an inground pool as well as an older barn. Little change in property pricing during the past 24 months and a date of sale adjustment was not required.
Listing comp 6: On the market for 6 days, Comp #6 is located in the western hills of Ukiah. Older home of lesser quality than the subjet but which has had some updating and additions with the garage being converted into an office. Comp #6 is inferior in condition. Above ground pool has little value and no adjustments made.
The income approach was not developed. The cost approach was developed as a secondary valuation method and is given little consideration in the reconciliation of the approaches to value. Comp sale 1 required fewest adjustments (most similar property), comp sale 2 is the most recent sale of a reasonably similar property. It is reasonable to conclude that market value of the subject property is between $1,141,000 and $1,183,000. Point value opinion rounded to nearest $50,000,
