Reference no: EM132999584

Question - Philip has been asked to appraise the site of a potential apartment building, containing 25,000 square feet. The land is zoned R-4, which permits a density of 40 units to the acre. A 25,000 square foot site zoned R-6, two blocks away, sold recently, between two unrelated parties, at market value.

R-6 is also a residential zoning, and it permits 60 units to the acre. How would Philip treat the R-6 sale in considering whether or not to use it as a comparable for the subject's appraisal?

(1) Philip would reject this sale as it has a much greater permitted density for development.

(2) Philip would use this sale to develop a sale price per actual square foot of land as an indicator of the subject's value.

(3) Philip would use this sale to develop a sale price per developable unit as an indicator of the subject's value.

(4) Since the sites are the same size, Philip would value the subject property based on the unadjusted sale price of the nearby sale.