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Neighborhood Analysis Paper

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Neighborhood

Neighborhood Definition and Source

The IAAO Glossary for Property Appraisal and Assessment defines a neighborhood as:

(1) The environment of a subject property that has a direct and immediate effect on value. (2) A geographic area (in which there are typically fewer than several thousand properties) defined for some useful purpose, such as to ensure for later multiple regression modeling that the properties are homogeneous and share important locational characteristics.

An additional consideration in establishing the boundaries for a neighborhood is the economic influence of price.

Description and Support of Boundaries

The neighborhood boundaries were determined to be the retail building corridor along Bus 127 bisecting …show more content…

Access to major freeways makes the area a very desirable neighborhood. The vacancy rate is typically lower than surrounding areas of Mid-Michigan and should therefore help properties to have greater worth than other areas. The low turnover rate will cause improved properties to stabilize in value. As time goes on, some of the older buildings in the area which are reaching the end of their life cycle may need to be remodeled, enlarged, or replaced. Supply and demand seems to be in balance. This has resulted in the flattening of sale prices and rental rates for several years. No external obsolescence was observed either inside or outside of the neighborhood. All utilities are sufficient to cover the demands of potential buyers or tenants and should not have a negative impact on value. Overall, the neighborhood characteristics are deemed to positively impact the subject property market value with no external or economic obsolescence observed.

Subject Property

IDENTITY OF SUBJECT PROPERTY

The common address of the property is 910 S Bus 127, St. Johns, Michigan 48879. The legal description of the property is contained within the appendix. The property is within the boundaries of the City of St. Johns and the St. Johns School District.

Sale History of the Subject Property

The subject property last sold on 08/20/2015 for $1,116,000 from A & R Development II, LLC to Realty Income Properties 28, LLC by covenant …show more content…

Ceilings – Portions of the ceiling are suspended acoustical tile.
Interior Finish – The interior has some drywall finish and partitions.
Plumbing – The building has two bathrooms considered to be adequate for the current use configuration. The plumbing was not inspected but deemed to be in good working order. I am not qualified to inspect such systems.
HVAC –The heating and cooling is provided by a rooftop package unit. The HVAC is considered to be adequate for the current use configuration and in good working order but was not inspected. I am not qualified to inspect such systems.
Electrical – The electrical service is considered to be adequate for the current use configuration and in good working order but was not inspected. I am not qualified to inspect such systems.
Exterior Walls – The building has exterior walls of concrete block with a partial glass exterior. The exterior upon inspection was deemed to be in average condition.
Roof Structure/Cover – The roof structure is a flat built-up composite. The roof structure is considered to be adequate for the current use configuration and in good working order but was not inspected. I am not qualified to inspect such

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