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Approved 3113117 1 to? Someone might want to live on the highest peak and I don't remember his sphere but with that 2 view and so on and so forth? 3 4 Michael Ogburn: We understand that somebody that purposely selects a lot on one of the highest 5 points in Orange County is buying it to catch that vista view. Otherwise you're going to build down 6 it on the bottom of the hill. You're going to be on top of the mountain because you want a top of 7 the mountain experience. 8 9 Samantha Cabe: I wouldn't call this a mountain. 10 11 Michael Ogburn: Well, technically it is. I won't argue with you but technically it is a mountain. So 12 you're going to build it up there. Now, let's face it, in excess of $1,000,000 you're talking about 13 something that's relatively rare. So these people that may consider purchasing a like property, 14 their number one competition is not of the houses that are currently on the market. His point of 15 buying a piece of dirt and building it just the way they want to. But I'll buy yours if I can get it for 16 the right price and adapt it to my taste, so they are marketable. They often have a loss between 17 value in use and value in exchange, they do. But, if I have this period discretionary buyer that's 18 looking for this top of the mountain it is going to affect them the same or greater than somebody 19 that's buying a subdivision house. I would argue it's going to affect them a great deal more. They 20 have the discretionary income to go any doggone place they want to. Why pick one with a 200- 21 foot pole in view? I can't name a single reason. 22 23 Samantha Cabe: Except that it's the highest point in Orange County. 24 25 Michael Ogburn: Well, you can go over to the next ridge, which is Governor's Club, and that's 26 where the build their estate homes up on top of that. Not on golf course, they're up on top of the 27 ridge so you can get that 40 -mile vista. Ok. 28 29 John Price: The property that you're talking about that you studied the sales prices of those 30 properties, that's the same development as David Smith used in his report, is that correct? 31 32 Michael Ogburn: That's correct. Yes, sir. And so the first thing then is, ok let's see what immediate 33 proximity to that cell phone tower is, does it have an affect? And then the next logical thing, to me, 34 would be, ok does it have an affect on that neighborhood versus a near by neighborhood. So 35 when you look in the MLS for the same time frame period new construction the majority of the 36 new construction was in the development immediately west on Holly Springs Road, Sunridge. And 37 so I did a study where I pulled all of the new construction, same time frame from the properties in 38 Sunset Ridge and the ones in Cobble Ridge. And found that the difference between those two 39 neighborhoods was a difference of 1- square foot, on median. But the difference in sales price on a 40 per foot basis was something like 16 -17% difference for the same size house. I looked a little 41 more and it turns out that the lots inside of Sunset Ridge, on average, were selling for more than 42 the ones in Cobble Ridge. So I adjusted down for that and then the differential between those two 43 was 12 %. 44 45 John Price: When you say all things being equal, smaller houses going to sell for larger square 46 foot price, when you say all things being equal does that include lot size? 47 48 Michael Ogburn: So then what we're expecting is that the smaller houses got a similar value site, 49 it's got similar amenities, two car garage, 2 and a half baths, kitchen, HVAC, porch, deck, 50 whatever, the amenities happen to be whatever is standard for that particular market area, so yes OC Board of Adjustment — 12/12/16 Page 86 of 156