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ADDENDUM - PAGE 3 OF 3
<br /> COMMENTS ON SALES(MARKET)DATA(continued):
<br /> Sale 1, situated in the Ahualoa Homesteads sector, reflects an assemblage situation,
<br /> similar to the subject property. The sale reflects two contiguous road remnants(454 SF&9,892
<br /> SF)acquired by the adjoining/surrounding property owners(TMK: 4-6-09-94-6.454 acres)from
<br /> the County of Hawaii. The-18%time adjustment reflects a continued declining market through
<br /> late 2010. The subject's superior Kukulhaele location (desirability and marketability) is
<br /> substantially offset by Sale l's superior(more moderate)topography.
<br /> Sale 2,also situated in Ahualoa Homesteads,represents a road remnant,obtained by the
<br /> County of Hawaii,subsequent to an adjacent realignment. Adjustments were also warranted to
<br /> reflect time(-32%decline since mid-2005),the subject's superior location(+25%)and its inferior
<br /> topography (-25%). This transaction was further verified by the undersigned with the seller's
<br /> certified public accountant.
<br /> Safe 3 is situated some ten-lots westerly of the subject property and reflects a court
<br /> ordered quiet tide/partition auction that has a substantially larger land area,as compared to the
<br /> subject. Again, a time adjustment(-25%)was made to reflect the declining market(prices and
<br /> values), subsequent to the late-2005 market peak. This property has a superior moderate
<br /> topography (-25%), as compared to the subject, and it enjoys a superior primary/main road
<br /> paved access(-40%indudes proximity to utilities).
<br /> Sale 4 reflects the most recent remnant property sale uncovered, having been conveyed
<br /> on February 3, 2011. Public records indicate a consideration (safes price)of$1,001 on February
<br /> 2, 2011, but Multiple Listing Service recited a $5,000 cash sales price on February 3, 2011.
<br /> Efforts to verify the sale with the listor/buyer proved futile, as telephone voicemails were not
<br /> returned. Further, the property could not be inspected, as roadway access was blocked by a
<br /> locked gate. This property is situated in the Paauflo Mill area and the undersigned has passed by
<br /> this site at previous times; thus, the area's topography is from memory. Again, the property is
<br /> deemed equal to the subject in relative location and lot shape, but it Is also superior on the basis
<br /> of relative topography (-25%). The subject's superior access is represented by the +25%
<br /> adjustment.
<br /> Sale 5, a finished house lot(readily buildable),is situated some 4 miles E of the subject
<br /> property and deemed slightly inferior in relative location (+10% for desirability and
<br /> marketability). The site is superior in all remaining categories of comparison. This transaction
<br /> reflects an all cash conveyance with a recited 942-day market time. This listing started on July
<br /> 17, 2008 at a $139,000 asking price with subsequent price reduction to$99,000 on August 15,
<br /> 2011. A prior expired listing of the site by the same listor was uncovered over the period May 11,
<br /> 2006 through June 30, 2008 @ $179,000. The previous information illustrates the soft market
<br /> subsequent to its late-2005 peak.
<br /> Sale 6 also reflects the recent conveyance of a finished house lot. This site is located in
<br /> the Kaao Homesteads sector of Honokaa Town, some 8 miles E of the subject and deemed
<br /> inferior in relative location (+25%). The site is superior to the subject in relative shape(-25%),
<br /> topography(-25%)and access(-40%). This transaction also reflects an all cash conveyance with
<br /> a recited 778-day market time. This listing started on March 3,2010 at a $179,000 asking price
<br /> with three subsequent price reductions to $99,000 on July 15, 2011. Again, the previous
<br /> information illustrates the softening market,subsequent to its late-2005 peak.
<br /> Sale 7 represents the recent acquisition of the property adjoining/surrounding the
<br /> subject, by the client and primary intended user of this appraisal report. Owing to its
<br /> substantially larger land area,as compared to the subject,Sale 7 could also be considered a rural
<br /> house site, like Sales 5&6(different market segment),though it is deemed equal to the subject
<br /> in all categories of comparison (no physical adjustments made). This sale reflects a seller-
<br /> financed agreement of sale with an approximate 20%cash down payment.
<br /> In conclusion, only Sales 1 through 4 were weighted in determining the subject's final
<br /> value opinion, as they reflect remnant parcel character conveyances (similar market segment to
<br /> the subject). Greatest weight was placed on Sales 1 &2(45%each)with minimal weight given
<br /> to Sales 3 (5%) & 4 (5%). Again, like the subject, Sale 1 reflects an assemblage type of
<br /> situation; whereby, the adjoining/surrounding land owner acquired the two mad remnant lots
<br /> property from the County of Hawaii. Sale 2 represents a road remnant acquisition by the County
<br /> of Hawaii, after roadway realignment. Of the four weighted-sales, Sale 3 Is most proximate to
<br /> the subject property, being some 10 lots westerly of the subject. Yet, Sale 4 reflects the most
<br /> current date of sale (02/02/11). Bureau of Conveyance (recorded) documents were also
<br /> reviewed(if available)to further verify each recited sale.
<br /> The undersigned is cognizant that all four weighted sales deviate from optimal guidelines
<br /> in one way or another, which Is common in the valuation of properties in a market segment
<br /> where sales are scarce. Simply stated, more current and/or comparable sales were nonexistent
<br /> and other transactions considered were older and/or in the adjoining South Kohala district.
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