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7 <br />Moorefields Proposed Conservation Easement, Hillsborough, North Carolina <br />DISCUSSION OF COMPARABLE LAND SALES ADJUSTMENTS — FOURTEEN-ACRE PARCEL <br />Since no two properties are identical, minor adjustments are often necessary to the comparable <br />sales to recognize differences in comparison to the subject. Adjustments to the comparable sales <br />were considered, and applied where applicable, in order to obtain an indication of the current <br />Market Value of the subject property. <br />Adjustments are typically applied in a specific sequence in order to properly reflect differences in <br />value. The first three items in the adjustment grid are, 1) Property Rights Conveyed, 2) Financing <br />Terms and 3) Conditions of Sale. This set of adjustments serves to adjust the comparable <br />transaction to the market at the time of sale. The next adjustment is for market conditions, or time <br />of sale, and is applied to the adjusted value from the previous set of adjustments. This serves to <br />adjust the comparable sale price to the current market at the time of the appraisal. These first four <br />adjustments are known as primary adjustments. <br />After application of the primary adjustments each comparable has now been adjusted to the market <br />at the time it was sold and for changes in market conditions occurring between the sale date and <br />the appraisal date. The comparable sale price is then adjusted for differences with the subject <br />property to obtain a final value indication for the subject as of the effective date of the appraisal. <br />Typically, adjustments are made for differences in location, access /exposure, utilities available, <br />zoning, size, topography and entitlements. A discussion of each adjustment category as it applies <br />to this analysis follows. <br />Primary Adjustments <br />Property Rights Conveyed: The comparable sales represent the transfer of the Fee Simple <br />Estates. No adjustments were necessary. <br />Financing Terms: All comparable sales appear to have transacted with either cash or typical <br />institutional market financing resulting in all cash purchases to the seller. No adjustments were <br />necessary. <br />Conditions of Sale: This adjustment considers atypical motivation on the part of the buyer or <br />seller. All comparable sales appear to have transacted without atypical motivation, so no <br />adjustments were necessary. <br />Market Conditions: Land values for sites with development potential, similar to the subject; have <br />appreciated significantly over the past few years. Adjustments at 5% per annum were made to the <br />comparables. The adjustments for market conditions are summarized in the following table. <br />;, <br />aikei,Con. tftons;•(.tse _ . <br />Adjustment <br />Subject <br />NA <br />Sale #1 <br />Dec -06. <br />5% <br />Sale #2 <br />Jun-06 <br />8% <br />Sale #3 <br />Feb -06 <br />9% <br />Sale #4 <br />Jan -06 <br />1 10% <br />Analytical Consultants Sates Comparism-78 <br />