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Rocky Hill Greenway Zewski-Easthampton Rd AppraisalREAL ESTATE APPRAISAL Property: 17.091 Acres- Easthampton Road Northampton, Massachusetts Owner: RWZ, Inc. Robert W. Zewski of Moultonboro, NH Prepared for and at the request of: Wayne Feiden Director of Planning and Sustainability City of Northampton 210 Main Street, Room 11 Northampton, MA 01060 Date of the Report: June 15, 2015 Effective Date of the Appraisal: June 1, 2015 File #13847 Prepared by: Kim A. Levitch, SRA MA Certified General Real Estate Appraiser, Lic. #258 K. Levitch Associates 40 School Street, Greenfield, MA 01301 K. LEVITCH ASSOCIATES Real Estate Appraisers June 15, 2015 Wayne Feiden, Director of Planning and Sustainability City of Northampton 210 Main Street, Room 11 Northampton, MA 01060 Dear Mr. Feiden: At your request I have inspected and appraised the 17.09 acres located off Easthampton Road, Northampton, MA. The property is listed in the assessors records as Map 44 lots 29 with a deed reference of Book 8156 Page 151 at the Registry. A copy of the assessors map, deed and surveys are included with this report. This is an appraisal report that along with the reported analysis, opinions and conclusions were developed and prepared in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), 2014-2015 Edition and rules for narrative appraisal reports for the Land Grant Program. At the request of the client, I have provided an opinion of the value of the full property and of the proposed smaller 1.4 acre lot of the identified parcel. The client is trying to purchase the property and the appraisal will be used support of a Massachusetts LAND grant application. The client and officials administering the Land grant program are the only intended user of the appraisal and report. The report is 41 pages including this letter of transmittal. Therefore with these factors in mind, based on my analysis and my experience as a real estate appraiser, I have formed the opinion of the market value of the property, as of June 1, 2015, to be: $165,000. Based on the hypothetical condition that the proposed 1.4 acre lot would be drawn and approved as assumed as of June 1, 2015 I have concluded with a market value opinion of $60,000 for this parcel. I performed the analysis that is the basis for this valuation and inspected the property. If you have any questions concerning the appraisal, please feel free to contact me. Very truly yours, Kim A. Levitch, SRA MA Certified General Real Estate Appraiser, Lic. #258 P. O. Box 1553 ! 40 School Street Greenfield, MA 01302 (413) 774-2959 TABLE OF CONTENTS Part I - Introduction LETTER OF TRANSMITTAL....................................................2 EXECUTIVE SUMMARY.......................................................5 PHOTOGRAPHS OF THE SUBJECT PROPERTY...................................5 CERTIFICATION..............................................................7 CONTINGENT AND LIMITING CONDITIONS.....................................8 PURPOSE AND INTENDED USE OF THE APPRAISAL..............................9 PART II - Factual Data PURPOSE OF APPRAISAL......................................................9 IDENTIFICATION OF THE PROPERTY AND FIVE YEAR SALES HISTORY............9 AREA, CITY AND NEIGHBORHOOD DATA......................................10 PART III- Property data MARKET ANALYSIS.........................................................11 SITE........................................................................12 SITE CONDITIONS AND IMPROVEMENTS......................................12 ASSESSED VALUE AND ANNUAL TAX LOAD...................................13 ZONING....................................................................13 PART IV - Analysis and Conclusion THE VALUATION PROCESS...................................................14 HIGHEST AND BEST USE.....................................................14 SALES COMPARISON APPROACH.............................................16 INCOME APPROACH - COST OF DEVELOPMENT................................17 FINAL RECONCILIATION AND VALUE CONCLUSION..................................22 ADDENDA LOCATION MAP - STATE......................................................ii LOCATION MAP - EASTHAMPTON ROAD, NORTHAMPTON.......................iii ASSESSORS MAP 44 LOT 29 WITH ZONING OVERLAY............................iv SURVEY PLAN BOOK 231 PAGE 62 Parcel 3 .....................................v DEED BOOK 8156 PAGE 151 ...................................................vi COMPARABLE SALES ........................................................xi APPRAISER QUALIFICATIONS...............................................xxii EXECUTIVE SUMMARY OWNER OF RECORD:RWZ Inc, (Robert W. Zewski) PROPERTY LOCATION:Easthampton Road, Northampton, MA INTEREST APPRAISED:Fee simple interest PARCEL SIZE:17.09 acres ( by survey) ASSESSORS REFERENCE:Map 41 lot 29 being 17.091 acres assessed at $229,700 ZONING:BP - Business Park PROPERTY DESCRIPTION: Hillside woodlands parcel with 498.66' frontage and a size of 17.09 acres DEED REFERENCE:Hampshire County Registry of Deeds, Book 8156 page 151 (DD 2/7/2005 - for $1.00) HIGHEST AND BEST USE: Two single family lot development OPINION OF MARKET VALUE: $165,000 (full property) and $60,000 (for the 1.4 acre lot alone) EFFECTIVE DATE OF VALUATION: June 1, 2015 DATE OF THE REPORT:June 15, 2015 HYPOTHETICAL CONDITION (PER USPAP): At the clients request a proposed 1.4 acre section of the subject is considered alone. This part of the valuation is based on the hypothetical condition that this proposed 1.4 acre lot would be drawn and approved as described in this report. The lot has not be surveyed and or approved as of this date. APPRAISED FOR USE BY AND AT THE REQUEST OF:Wayne Feiden Director of Planning and Sustainability City of Northampton 210 Main Street, Room 11 Northampton, MA 01060 PURPOSE AND INTENDED USE, AND USERS AND USER OF THE APPRAISAL: To form an opinion of the value of full property and of the proposed smaller 1.4 acre lot of the identified parcel. The client is trying to purchase the property and the appraisal will be used in support of a Massachusetts LAND grant application to the state. The client and officials administering the Land grant program are the only intended users of the appraisal and report. APPRAISAL AND REPORT TYPE: Appraisal Report, in compliance with the Uniform Standards of Professional Appraisal Practice, USPAP, 2014-2015 edition and Land grant standards for real estate appraisals. APPRAISER:Kim A. Levitch, SRA MA Certified General Real Estate Appraiser Lic. #258 K. Levitch Associates P. O. Box 1553, 40 School Street, Greenfield, MA 01302 Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 5 PHOTOGRAPHS OF THE SUBJECT PROPERTY - Taken 6/01/15 by Kim A. Levitch Street view looking south with subject on the right. North end at the street. East side, just off the road. Mid site looking southerly. Mid site looking weste r l y . South end looking westerly. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 6 PHOTOGRAPHS OF THE SUBJECT PROPERTY - Taken 6/01/15 by Kim A. Levitch South end looking e a s t e r l y . South end looking north easterly. Mid site along the street. North end looking northerly Street view looking north, subject on the left. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 7 CERTIFICATION I certify that, to the best of my knowledge and belief: - The statements of fact contained in this report are true and correct. - The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions. - I have no present or prospective interest in the property that is the subject of this report and no personal interest or bias with respect to the parties involved. - I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. - I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. - My engagement in this assignment was not contingent upon developing or reporting predetermined results. - My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and Massachusetts LAND Grant standards. - I have made a personal inspection of the property that is the subject of this report. - No one provided significant real property appraisal assistance to the person signing this certification. - The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. - The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representative. - As of the date of this report, I have completed the continuing education program of the Appraisal Institute. Kim A. Levitch, SRA MA Certified General Real Estate Appraiser, Lic. #258 Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 8 PURPOSE, SCOPE AND INTENDED USE OF THE APPRAISAL The purpose of the appraisal is to form an opinion of market value. INTENDED USER(S): The client and Massachusetts Land Grant Officials. The valuation is to include all the relevant appraisal methods. At the request of the client, this is an appraisal and report in compliance with the Uniform Standards of Professional Appraisal Practice, USPAP, 2014-2015 Edition, by the Appraisal Foundation and standards for narrative appraisal reports for the Land Grant application to the Commonwealth of Massachusetts. A variety of sources have been consulted to obtain market data. Internal files and records of sales in my office have been utilized as well as records from County Comp Service, Banker and Tradesman, and the Multiple Listing Service, records from the Northampton Assessor's Office, and the Hampshire County Registry of Deeds have been consulted. Sales data and information that are used in the valuation sections of the report have been independently confirmed using a variety of sources. These include the Multiple Listing service, a number of real estate brokers. SCOPE OF WORK: The development of this appraisal report included: a visual inspection of the accessible areas of the subject parcel, a review of the online version of the assessor's field cards, a review of the deed, review of the zoning regulations, consideration of highest and best use, research of Multiple Listing Service sales and listings for the subject area over the past three to four years from the effective date of the appraisal, verification and analysis of data, reconciliation of this data and presentation of my findings in a summary appraisal report in compliance with USPAP and Land Grant narrative appraisal report standards. DEFINITION OF MARKET VALUE Market value is the amount in cash, or in terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal.1 HYPOTHETICAL CONDITIONS: At the clients request a proposed 1.4 acre section of the subject is considered. This part of the valuation is based on the hypothetical condition that this proposed 1.4 acre lot would be drawn and approved as described in this report. The lot has not be surveyed and or approved as of this date. A hypothetical condition is “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.” (USPAP - 2014-2015 edition page U-3, The Appraisal Foundation) EXTRAORDINARY ASSUMPTIONS: None An extraordinary assumption is “an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraisers opinions or conclusions.” (USPAP - 2014-2015 edition page U-3, The Appraisal Foundation) 1Uniform Appraisal Standards for Federal Land Acquisitions, 2000 Edition, Section A-9 Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 9 IDENTIFICATION OF THE PROPERTY, SALES HISTORY The last conveyance was a change in the form of ownership being from Robert Zewski, of Wilbraham, MA to RWZ, LLC, of Wilbraham, MA for $1.00 by Warranty Deed as of 2/07/2005 as recorded in Book 8156 page 151 at the Hampshire County Registry of Deeds. The deed references an unrecorded plan by Davis Engineering Co, of Northampton MA dated 2/20/1962 with the parcel being 16.93 acres. Previously the property had been conveyed to Zewski as of 8/26/1973 as recorded in Deed Book 1719 Page 36. A copy of the deed is included in the report addenda. The property is not now listed for sale or under contract but the client is considering a purchase of the property. AREA, CITY AND NEIGHBORHOOD The subject is located in north Hampshire County which is located in western Massachusetts. The county is small-town in character, with most of the towns outside the Northampton-Amherst influence being rural and residential. The county had a population of 146,568, according to 1990 census data. This represents an increase of 7,755 persons over the decade or an increase of 5.6%. Then in 2000 the population is listed at 152,251 up 3.88% form the 1990 figures. The county seat is Northampton which is near its geographic center. Worcester County is to the east, on the south is Hampden County, on the west is Berkshire County and to the north is Franklin County. The following shows overall population trends since 1970 with the latest count. Hampshire County Population Change U.S. Census 1970 123,981 - U.S. Census 1980 138,813 +12.0% U.S. Census 1990 146,568 +5.6% U.S. Census 2000 152,251 +3.88% U.S. Census 2010 158,080 +3.83% Northampton is served by Interstate Route 91 (N/S), Route 5 and a number of state highways, including Route 9 which bisects the county and connects the towns of Ware, Belchertown, Amherst, and Northampton with its eastern and western neighbors. Route 9 connects Williamsburg to Northampton which is just to the south. Route 9 is the main highway passing though town. Northampton's population has not risen or fallen more than 10% in the last 37 years and in fact has dropped by 1.48% between 2000 and 2010. This maybe the result of some student relocation. The following shows population since 1970. Northampton Population Change U.S. Census 1970 29,664 - U.S. Census 1980 29,286 -1.3% U.S. Census 1990 29,289 +0.01% U.S. Census 2000 28,978 -1.06% U.S. Census 2010 28,549 -1.48% Northampton has had one of the strongest and most vibrant housing markets in this part of the state. Despite a lack of growth and new housing opportunities according to statistics from the Franklin Hampshire MLS, Northampton had more single family sales than any other community in the two county area. The subject is located to the south of the city center about a mile from the town line with Easthampton. This is a mixed use transitional area that has single family and residential uses along with some commercial/industrial uses and mostly large woodland areas. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 10 REAL ESTATE MARKET CONDITIONS AND MARKET ANALYSIS Population has declined slightly in the city. At the same time marketing times are up. Inventory is likely to increase in most property segments and overall there is upward pressure on prices. No particular market segments stick out as outliers to this but the subject market segment may be picking up as sales increase this spring and summer. As part of my market research I have compiled statistics for Northampton. The Northampton figures are relevant because they show the trends in the market. Northampton had more single family sales than any other community in the two county area. The following shows the trend in MLS sales for Northampton since 2005. On the right side of the table are statistics for land sales. For land the unevenness in numbers of sales, and sales prices is even more dramatic than for single family property. Prices for single family are back to 2006 and 2007 levels while land shows more unevenness. The following shows sales, sales prices and time on the market for MLS property within the city: Northampton MLS Single Family Sales and Land Sales: Year # Sales DOM Mean S.P.Median S.P.# Land DOM Mean S.P. 2014 181 107 $341,157 $305,000 14 500 $117,981 2013 214 96 $328,919 $292,500 6 388 $90,850 2012 182 101 $307,941 $275,000 12 371 $97,875 2011 167 103 $334,352 $275,000 8 206 $104,313 2010 153 116 $297,648 $262,205 9 153 $220,522 2009 152 122 $320,503 $266,000 4 319 $115,938 2008 144 98 $302,656 $259,950 5 248 $134,400 2007 173 107 $326,152 $278,000 8 146 $159,750 2006 213 83 $328,399 $285,000 6 153 $158,442 2005 198 70 $332,908 $305,000 13 69 $141,808 Another key measure of market activity, which is very meaningful for land development, is the number of permits issued for single family new construction. These are one of the best measures of growth in housing in the market. As of the effective date of the appraisal there were 79 active MLS single family listings in Northampton. This group of listings had an average DOM of 140 days, and an median list price of $359,900 and average price of $429,181. The number of listings is down from a year ago when there were 100 single family listings in Northampton. They had a median list price of $382,000 and average list price of $432,226. In terms of land listings there are 35 in Northampton as of 6/01/2015 and these have had an average time on the market of 503 days. The median list price is $153,500 and the average list price is $175,091. One year ago there were 36 land listings and they had an average time on the market of 509 days and a median list price of $156,750. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 11 The following is a list of permits for new single housing in Northampton. Year Permits Year Permits 2012 26 2004 47 2011 17 2003 47 2010 21 2002 25 2009 7 2001 16 2008 19 2000 21 2007 22 1999 64 2006 22 1998 33 2005 8 1997 45 The permit data is taken from City-Data and was not further verified from other sources. Exposure Time: Exposure time is the time prior to the effective date of the appraisal. This is estimated as less than one year. PROPERTY DESCRIPTION - 17.09 acres by the survey The subject is located about 100 yards south of the intersection of the Manhan Rail Trail and Easthampton Road just short of a mile from the Easthampton city line. Most of the property on the subject west side of the highway is upland woodlands. Uphill to the west about a half mile is the Pine Grove Golf Course. Across the street to the east is the Manhan Rail Trail and the Arcadia Wildlife Sanctuary. Directly across the street is an auto towing and storage business. Abutting on the north side is a single family home and other woodlands. The subject area drains to the south and east into Pinchon Meadows off the Oxbow and the Connecticut River area. Much of this area is in the Arcadia Wildlife Sanctuary and Manhan Meadows. Some of the area to the east on that parcel is low lying and is poorly drained. The survey shows there to be 498.66' of road frontage and a total parcel size of 17.09 acres. The entire subject parcel slopes up to the west. There are several small plateaus and on the south edge there is a small ravine. This area along the south east corner just off the road frontage may have some small wetlands areas. The entire parcel is scattered with small and moderate sized surface rocks. There is a mix of hardwood types on the property including maple, birch and cherry of moderate growth. There does not appear to be any muck on the property and the soils appear generally well drained. There is public water and no sewer along the road frontage. Proposed 1.4 acre Parcel: The client has also requested that a section of the full property be valued. This has been drawn and represented as a 1.4 acre section located on the northeast corner of the full property drawn as having 279.16' of road frontage. This is the northeast corner of the full property which is located along Easthampton Road. Its north side is just south of a garage on the abutting parcel in other ownership to the north. There are some moderate slopes up into the parcel. It is all woodland. A copy of the full property survey with this parcel drawn in is included in the report addenda. As drawn this would still allow a remaining additional building lot out of the subject to the south and west. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 12 Rivers Protection Act: As of its enactment date of August 7, 1996, the Massachusetts Rivers Protection Act amended and expanded the state Wetlands Protection Act. The Rivers Act authorizes local conservation commissions to regulate land use activities within a 200' wide buffer or “wetland resource” area along the perennial (flowing all year, not just seasonally) rivers and waterways in the state. Activity or disturbance within the "river-front area" is allowed only with issuance of a permit by the local Conservation Commission and requires adequate proof to the Commission that the proposed activity has no economically practical alternative and that sufficient mitigating and corrective measures are in place to protect the wetlands. None of the subject appears within the Rivers area. Wetland Regulations The Massachusetts Wetlands Protection Act (Chapter 131, Section 40 of the Massachusetts General Laws) applies to areas that are designated such land types. Development and use of areas classified as wetlands and their buffer zones are controlled by these laws and subject to approval by the local Conservation Commission. Vegetated wetlands and year-round and seasonal streams are affected. Impact and mitigation procedures are required within their 50' and 100' protective buffer zones. Along the south east corner of the parcel is an area that maybe wetlands. This area appears as a small ravine or seasonal drainage area. Natural Heritage & Endangered Species Program: This program is under the Massachusetts Endangered Species Act of 1978, 321 CMR 10. The most recent mapping was as of June 1, 2008. Also checked is the Estimated Habitats of Rare Wildlife and Certified Vernal Pools overlays. Both the Priority Habitats of Rare Species Map and the Estimated Habitats of Rare Wildlife Map shows the parcel is not in mapped areas. However directly across the street to the east almost all of the area extending to the east out to the Connecticut River appears in areas with Species of Conservation Concern with Priority Natural Communities. ASSESSED VALUE AND ANNUAL TAX LOAD The subject is assessed as Map 44 lot 29. The property is listed as being 17.09 acres in these records and as shown on the assessors map. The property has a total assessment of $229,700 for FY 2015 and a based on a tax rate for the year there is a total tax of $3,630.84. The assessors classify the property as Industrial Developable Land. Like all Massachusetts cities and towns Northampton is required to assess property at 100% of its fair market value. ZONING Northampton zoning was adopted by the City Council on 7-22-1975. BP DISTRICT: Business Park District: The subject is located in Business Park District. The Business Park District is to “encourage economic developed with an area for light industrial uses, research facilities, and large scale business offices, and encourage planned and integrated land uses which minimize impacts on public services and natural resources and which links housing needs to housing production.” Permitted uses are listed in section 350 attachment two in the bylaws and include: One family dwellings; accessory apartment in single-family homes; home office; accessory structures and fences; tag sale for the purpose of disposing of used personal and household articles from the vendor’s residence on a temporary basis; horses and animals as accessory use; cemetery; education use; day care, school aged child care program and family day care; historical association or society and non profit museum; temporary event or use with a temporary events Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 13 permit from the City Council; agriculture, horticulture, floriculture, noncommercial forestry, the growing of all vegetables and temporary greenhouse or stand for retail sale of agricultural or farm products. (Many of the permitted uses carry more restrictions and limitations further stated in the by-laws than summarized here). Also there are a number of uses allowed with either a Special Permit from the Planning or Zoning Board of Appeals. The following is a summary table of the general dimensional requirements for the BP zone: Principal Use Minimum Lot Minimum Setback(ft.)Min. Ht. Min. Open Sp Sq.ft.Ftg.Depth Front Side Rear feet Municipal facilities none none none 20 15 20 40 30% Residential uses 10,000 75 80 20 15 20 40 30% Community/retail/comm 10,000 100 100 20 15 20 40 15% Service/office/indust.80,000 100 100 20 15 20 50 15% *There are separate sizes required for solar photovoltaic with areas and setbacks which are the same for other accessory buildings in the district. The table is a summary of the dimensional requirements only. Additional details in the zoning are shown in section 350 attachment 3:6 of the bylaws. Also noted in the bylaws all BP development must comply with 350-17 (including open space requirements). All buildings must be setback at least 100 feet from collector streets in existence in 1991. Residential buildings must be setback at least 100 feet from non residential buildings in the business park. BP requires screening and buffers in accordance with 350-6.5A. Parking is not permitted in these one-hundred foot setbacks. The client has indicated that if acquired that the city may rezone the parcel to GI. There are GI areas abutting to the north and all of the frontage areas directly across the street and because of the similarity of many of the uses it is likely that this change could be achieved. The following is a summary of the GI District regulations: GI DISTRICT: General Industrial District (350 Attachment 15) The GI zone allows the following uses: All manufacturing, wholesale trade and distribution; research and development, trades, non retail sales and supply of goods/services; repair services, non medical office, corporate/professional back office not including banks, law office, real estate; health/athletic club, indoor recreation; community center; contractors yard; artist’s space; motor freight terminal/warehousing associated with adjacent commercial/industrial uses; commercial motor vehicle maintenance, garaging and parking facilities; single or multi modal passenger terminal, yards and rail freight service; membership club; commercial or public parking lot or structure; facilities for essential services; municipal facility; educational, religious use, day-care; telecommunication antennas; new telecommunications structures; private utility; auto repair, junk cars, motor vehicle accessories, scrap metal, liquid storage; bus passenger terminal and taxi facilities; processing and treating of raw materials; access to parking over residential lot; new commercial structures; rooftop solar; solar photovoltaic of any size ground mounted; accessory solar photovoltaic ground-mounted; and reuse of an historic education or religious building for any residential use on the ground floor. Several of the permitted uses require Planning Board approval and or Site Plan Approval. Also several of the permitted uses have some variation in the required dimensional requirements including additional landscaping, minimum parking and some have additional building design standards. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 14 The following is a summary of the general dimensional requirements for the GI zone. Minimum Area 0 square feet Frontage/width/depth:0 Setbacks: Front/Side/Rear:20'/15'/20' Max Bld. Height 45' Open space:20% Abandonment: Abandonment is defined in the by laws as the following: The cessation of a nonconforming use as indicated by the declared or otherwise apparent intention of an owner to terminate a nonconforming use of a structure or lot; or the removal of characteristic nonleasehold equipment used in the performance of the nonconforming use without its replacement within six months by similar equipment or furnishings; or the cessation of a nonconforming use or structure cased by its replacement with a conforming use or structure. A nonconforming use which has been abandoned for a period of two years cannot be reestablished. THE VALUATION PROCESS2 “The valuation process is a systematic procedure an appraiser follows to provide answers to a clients’s questions about real property value.” There are eight steps in the valuation process. They are the definition of the problem, a determination of the scope of work, data collection and property description, data analysis, site value opinion, application of the approaches to value, reconciliation of value and final opinion of value, and finally reporting of the defined value. Valuation usually is by the three traditional valuation methods. These are the cost approach, the income capitalization approach and the sales comparison approach. Each can be applied in a number of ways utilizing a wide range of techniques and procedures. Each shares the fact that they are based on and supported by market data. The first method is the cost approach to value. This is an estimate of either the replacement or reproduction cost of improvements, less depreciation, plus land value, plus site improvements, with the resulting figure the conclusion of value. This is particularly useful in new construction, special use properties, or in active markets where there is new construction going on to extract actual costs from. The second method is the income capitalization approach. This approach is based on the relationship between income and value. Anticipated net operating income of the property is either capitalized into a value estimate, if it is considered a stabilized income stream, or using a discounted cash flow analysis, if it is not. In both cases a net operating income before income taxes and debt service is forecast. The standard for the income, the expense and the capitalization and discount rate estimates, is that they be market based with the best most direct method being that they be extracted from other similar sales. The third method is the sales comparison approach. Recent sales of like kind properties are compared to the property and are either adjusted for differences with the subject or ranked by valuation elements to arrive at a comparative value. The viability of the approach rests with the strength or weakness of the set of sales used in the comparison. 2 The Appraisal of Real Estate, 14th edition, Appraisal Institute, Chicago, Ill, page 35. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 15 After the three approaches are developed or considered the final step is reconciliation or correlation of the value indications. In this part of the valuation process each approach is considered based on the relative applicability and appropriateness of each with consideration of the quality and quantity of market data used to support each. The valuation is presented in a report that complies with the reporting requirements and needs of the client in compliance with the Uniform Standards of Professional Appraisal Practice, USPAP, and any other appropriate required reporting and valuation and reporting standards. HIGHEST AND BEST USE ANALYSIS Highest and Best Use is defined in the, The Dictionary of Real Estate Appraisal, 5TH Edition, 2010, published by the Appraisal Institute, Chicago, Ill., page 93 as: "The reasonable, probable and legal use, of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.” The subject is a 17.091 acres with 498.66' of road frontage. The entire parcel is upland woodlands. There are a variety of slopes on the parcel with some areas along the frontage being slight to moderate but all are uphill from the road frontage. At the south end is a ravine area that may have some wetlands areas. The parcel is rocky with surface rocks at points. The slopes would pose limitations to use since at points they appear more than building codes would allow for a driveway. This would probably lead to additional development costs to overcome the slopes, with switch backs and grading to access a point off the road suitable to build on. The subject is in the PB - business park zone. A number of industrial and business uses are allowed but the slopes are enough that any sizeable business use is highly unlikely. Single family uses are allowed by right but there is a 100' setback from the road and additional buffering required by zoning. Both of these factors would lead to more development costs than in competiting areas where this additional setback and buffering is not required. Additionally the location along Easthampton Road includes higher traffic counts and traffic speed than in most or many of the competiting residential areas. As a result I have concluded that residential development of frontage lots is much more likely than development of a hillside parcel into an industrial or one of the allowed business uses. As noted there were 181 MLS single family sales in Northampton in 2014. This is down from 2013 levels, the same as 2012 and from all the years between 2007-2011. Mean sales prices are also up over the past three years. In terms of MLS land sales in Northampton there were 14 in 2014 which is the highest level in the past ten years. Mean sales prices for land are at there highest levels in four years as well. Current inventory includes 35 land listings but there have a mean list price over $175,000 and very few building lots under $100,000. With these factors in mind the subject as two single family building lot would tend to maximize the subject value. The parcel is large enough so that access into a building site could be achieved by use of grading and switch backs and allow setbacks to each of the two lots, the street and abutters. A residential use also has the advantage of reducing over all marketing times since pricing in the lower quadrant of land listings would almost assure a relatively short sell out time. This compares with a business or industrial uses which more typically would have a multi year sell out. As a result of these factors I have concluded the highest and best use of the subject is development into two frontage single family house lots. Highest and Best Use Conclusion: Development into two frontage single family building lots. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 16 SUBJECT VALUATION The three traditional valuation approaches are the cost approach, the income capitalization approach and the sales comparison approach. The following is a discussion and development of the valuation approaches. THE COST APPROACH The cost approach is not appropriate for vacant land parcels since there are no improvements. An alternative approach is titled the cost of development approach. In this method development costs along with acquisition are balanced against an eventual sell of the development lots. A present valuation calculation of the expense outlays verses the income from sales of lots results in a conclusion of value. The subject fits neither of these methods. SALES COMPARISON ANALYSIS The basis of the sales comparison analysis is in the use of like kind sales that share the same value elements as the subject. The closer the similarity usually the stronger and more valid the approach. There are two main categories or elements of comparison. The first set are known as Transactional Adjustments and are as follows: •Real property rights conveyed •Financing terms •Conditions of sale •Expenditures made immediately after purchase •Market conditions This set of elements of comparison are sequential in that the order they are made is important to the bottom line. The second set of elements of comparison are non-sequential and are known as Property Adjustments. They are as follows: •Location •Physical characteristics •Economic characteristics •Use/zoning •Non-realty components of value Comparative analysis is accomplished by either a quantitative or qualitative techniques. Quantitative techniques include paired sales analysis, group data analysis, and secondary data analysis. There are statistical analysis techniques which include graphic and scenario analysis. Cost-related adjustments include cost-to-cure, and depreciated cost analysis. Finally capitalization of income differences are used in a variety of formats to account for differences between properties. Qualitative Analysis may be accomplished by the use of trend analysis, relative comparison analysis, and ranking analysis. When statistical methods do not lead to precise adjustments they can be combined to service as part of ranking or RCA comparisons. For the subject, I have concluded that the most likely use would be to sell as two frontage building lots. The best comparison would be other sales of two lot properties. However I could find no single sales that latter sold off into two building lots. As a result I have started the comparison using single building lots and then making a comparison and adjustments for the subject potential as two lots. Also at the request of the client a proposed smaller 1.4 acre lot off the northeast corner it to be considered. The sales are listed in terms of size with the smallest first. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 17 Location S. Date S. Price Ac $/AC Comments/ dev. potential 1. 99 Water Street, Northampton 9/5/14 $70,000 .4 $175,000 Several easements / wetlands 2. Chesterfield Rd. Westhampton 8/28/14 $35,000 2.44 $14,344 Hillside wood lot 3. 1006 Florence Rd., Northampton 5/29/14 $104,000 3.01 $34,551 Off a common driveway 4. Linseed Rd., Hatfield 9/13/13 $100,000 6.84 $14,620 Wooded w/cleared bldg. site 5. Turkey Hill, Northampton 12/12/12 $180,000 13.18 $13,657 Long views 51' ftg. 6.Audubon Rd., Northampton 3/14/14 $200,000 13.66 $14,641 Wooded level lot w/ 150' ftg. 7. Sylvester Road, Northampton 6/27/13 $60,000 14.5 $4,138 Woodland parcel Mean $107,000 7.72 $38,707 The sales are the most similar that I could find after reviewing MLS and Warren Group records over the past four years. They are intended to “bracket” the subject for size, location, physical and economic characteristics. With this in mind the subject value should fall within the data set. At the request of the client the entire parcel is to be value and a proposed lot off the northeast corner of about 1.4 acres. This lot has been drawn as the client may elect to resell this part of the property and thus will need a value. The following is a further summary of the sales. Full comparable sales pages are included in the report addenda. All the sales were of the fee simple interest. None of the sales were sold subject to atypical conditions of the sale. The sales have occurred over the past three years. While there has been some appreciation in parts of the market I have not adjusted for any changes in land values of the subject type of land over the last several years. Sale 1 is a small single building lot that is open and cleared but which has a number of easements and rights of way. It is across the street from the Mill River. The size is .4 acres and it has a fence on one side. There is both city water and sewer to the site. It had been listed for sale at $79,000 and sold after 107 days on the market. Sale 2 is a single upland woodland parcel which has no public water or sewer in its location. It is 2.44 acres with 250' of road frontage. Most of the site is hardwoods and there are many rock outcroppings on site as well as the slopes up into the site. It had been listed for sale at $39,000 and was on the market for 102 days. Sale 3 is a single building lot of 3.01 acres and 125' or frontage. There are several easements on the site and access from a common driveway. There is public water to the site but no sewer hook up. It had perc’d prior to the sale. It had been listed for sale at $119,900 and was on the market for 614 days. Sale 4 is a single 6.84 acre lot with 119' of road frontage and access off of a common driveway. There is public water to the site but no sewer service. There is a building site that has been cleared but the balance of the site is woodlands. There is a stream and some wetlands and slopes. Sale 5 is a 13.18 acre building lot that is located northwest of the subject. This lot is in an area of upper priced newer homes. The lot has a shared driveway and is setback from the road to a spot with long range views. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 18 Sale 6 is a 13.66 acre building lot in west Northampton. It is in a subdivision with large lots. There are conservation restrictions in place on all the properties within the subdivision including on 9.75 acres of this lot. There is no public water or sewer to this site. Sale 7 is a single 14.5 acre building lot. The property was marketed as having “potential” as multiple building lots. There is no public water or sewer in this location. This is a woodland parcel except for an area along the road frontage where it had perc site. The property has split road frontage. It had been listed for sale at $100,000 and was on the market for 591 days. The sales range in size from .4 to 14.5 acres with a mean of 7.72 acres. I have not compared the subject on a per acre basis since its highest and best use is slightly different from the sales being a potential two lot property. Since there are two valuations requested I have considered and used the most similar set of sales to each of the two parcels. The first valuation is for the full subject property. For this part of the valuation of the 17.091 acres I have used sales 4,5,6 and 7. These sales are the most similar out of the seven sales. They bracket the subject for size and other factors. The following comparison table shows these sales arrayed against the subject. Market conditions, conditions of the sale are considered typical and not adjusted for. Each sale was of the fee simple interest so there is no adjustment for this element. There were no atypical sale conditions or financing so there are no adjustments to either set of sales for these factors. I have adjusted the sales for surplus size. This is for land that does not have a separate highest and best use but is attached to the sale or subject. I have not made this adjustment for sale 1 which is smaller than the subject but with neither the subject or this sale have any surplus area. I have made adjustments for a sale not having public water at $5,000. The location adjustments are qualitative adjustments based on my own estimates of the relative differences in location, and physical aspects of the sales. The following land sales are limited use land sales that tend to show the value or price paid for “surplus” land. They are almost all woodlands and they do not or have very limited building lot potential. As such they show market values for “surplus” land and land that is considered as limited use such as backland parcels. 1. Cullen Hill Road, Huntington, MA sold 4/5/2012 of 10.819 acres (111.12' ftg.) for $11,000 ($1,017/Ac) 2. Bray Road, Buckland, MA sold 4/11/2011 of 16.5 acres (no frontage) for $19,500 (1,182/Ac) 3. Old Center Heath Rd., Charlemont, MA sold 2/4/2013 of 45.4 acres for $40,000 ($881/AC) 4. Elder Road, Chester, MA sold 7/8/2011 of 52 acres (no frontage) for $36,500 ($702/Ac) 5. Off Main Street, Shelburne, MA sold 6/2/2014 of 53.27 acres ( no frontage) for $53,265 ($1,000/Ac) 6. Off Manhan Road, Southampton, MA sold 9/6/12 of 125 acres (no frontage) for $135,000 ($1,080/Ac) This set of sales shows a range in sales prices from $702 per acre to a high of $1,182 per acre. The subject back acreage or “surplus” area is most similar to the limited utility parcels. Much of this is uphill from the road and is difficult to access. With that in mind I have adjusted this “surplus” area at $1,500 per acre. This is in consideration of the subject area which tends to have higher prices than these mostly more rural locations. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 19 COMPARISON TABLE 17.091 ACRES: Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 20 The sales range from 6.84 acres for sale 4 to 14.5 acres for sale 7. They have an average unadjusted sales price of $135,000 and a size of 12.05 acres. I have divided the subject into two equal sections for the valuation at 8.55 acres each. The comparison is to one of these sections since the subject has been concluded to have a highest and best use as two building lots. An approximate division in half is the most logical division of the property. Once one lot is valued I have combined this into two lots and then discounted for it being a bulk sale. I have made no adjustments for market conditions between 2012 and 2015 in this market segment. All of the sales have the same highest and best uses which are for use as single building lots which does differ from the subject. I have not adjusted for differences in the property in terms of timber. In terms of areas I have inspected they appear roughly similar so I have made a surplus land adjustment at $1,500 per acre. The sales are all considered to have sold based on market conditions of sale, with property rights being the fee simple interest. Overall sale 4 is considered the most similar to the subject. It has the smallest overall adjustment at just under eight thousand dollars. This results in a conclusion at $92,302 per lot for the subject. Sales 5, and 6 have been adjusted to $94,024 and $93,798, both of which are taken as additional support for my conclusion. For the full property I have doubled this to $184,605 to account for both theoretical lots. However to reach this level there are some development costs that the property would incur that would be above what the other single lots incur. This would include some additional soft costs such as permitting, survey costs and sales costs and any additional marketing time. I have estimated this at 10% of the gross price and deducted this to conclude with a value of $166,144 which I have rounded to $165,000. My conclusion of $165,000 is bracketed by the sales both on an unadjusted and adjusted basis. As noted several of the sales have the size and frontage for being subdivided. The sales are mostly rural or out of town locations. The sales also bracket the subject for size both on a per lot basis and overall basis. These factors are taken as support for my conclusion. 2. VALUATION - 1.4 ACRES At the request of the client a 1.4 acre parcel is potentially to be taken out of the subject and resold if the purchase occurs by the client. This parcel is drawn in on the subject survey which is included in the report addenda. As noted in the report this part of the valuation is subject to the stated hypothetical condition that this lot could be drawn and approved as a building lot when that is not now the case. This lot has a preliminary drawing that shows it with 279.16' of road frontage and a total size of 1.4 acres. This parcel appears large enough to comply with the current zoning. The following comparison shows comparison to sales 1,2,3 and 4. These sales “bracket” the property for a number of variables including size, location and other physical and economic factors: Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 21 COMPARISON 1.4 ACRE PARCEL (PROPOSED) Because of the small scale of this market I have considered both sales from the Hampshire and Franklin County area over the past three years. The most similar of these are arrayed in the following table. The sales are ordered in terms of lot sizes since that is one of the keys for comparison. They “bracket” the subject property considered here for a number of factors including overall size, physical features including slopes, access, soils, road access to name several. I have concluded with a value based on the most similar of the sales. Sales 1 and 2 “bracket” the 1.4 acre subject parcel for size and other factors. Sale 1 is much smaller than the subject but it is a Northampton sale. Sale 2 is the most similar in size, and physical characteristics although it is in an inferior location. The final value is rounded to $60,000. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 22 1.4 ACRE PARCEL Easthampton Road June 15, 2015 Northampton, Massachuset ts Page 23 RECONCILIATION Sales Comparison $165,000 (full property -17.091 acres) Sales Comparison $60,000 (potential 1.4 acre lot) The sales comparison approach is based on my highest and best use conclusion which is for the subject with my concluded highest and best use as a parcel with a two lot potential. Also at the clients request I have developed a valuation for a proposed 1.4 acre lot which may be sold out of the property if it is acquired by the client. Therefore with these factors in mind, based on my analysis and my experience as a real estate appraiser, I have formed the opinion of the market value of the property, as of June 1, 2015, to be: $165,000. Also as noted the client has requested the valuation of a proposed building lot of 1.4 acres that would be taken out of the subject as described in this report. Based on the hypothetical condition that the lot would be drawn and approved as assumed as of June 1, 2015 I have concluded with a market value opinion of $60,000 for this parcel. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page i ADDENDA Easthampton Road June 15, 2015 Northampton, Massachuset ts Page ii CONTINGENT AND LIMITING CONDITIONS The certification of the appraiser appearing in the appraisal report is subject to the following conditions and to such other specific and limiting conditions as are set forth by the appraiser in the report. 1. The appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title thereto, nor does the appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. 2. Any sketch in the report may show approximate dimensions and is included to assist the reader in visualizing the property. The appraiser has made no survey of the property. 3. The appraiser is not required to give testimony or to appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been made therefore. 4.Any distribution of the valuation in the report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 5. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures which could render it more or less valuable. The appraiser assumes no responsibility for such conditions or for engineering which might be required to discover such factors. 6. Information, estimates and opinions furnished to the appraiser, and contained in this report, were obtained from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished to the appraiser can be assumed by the appraiser. 7. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the professional appraisal organizations with which the appraiser is affiliated. 8. Neither all, nor any part of the contents of this report, or any copy thereof (including conclusions as to property value, the identity of the appraiser, professional designations, reference to any professional appraisal organizations, or the firm with which the appraiser is connected) shall be used for any purposes by anyone but the client specified in the report, the borrower if appraisal fee is paid by the same, the mortgagee or its successors and assigns, mortgage insurers, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency, instrumentality of the United States or any state or the District of Columbia, without the previous written consent of the appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales or other media without the written consent and approval of the appraiser. 9. On all appraisals subject to satisfactory completion, repairs or alterations, the appraisal report and value conclusion are contingent upon completion of the improvements in a workmanlike manner. 10. The final opinion of value reached in this appraisal is based on the assumption that the subject property conforms to all regulations under Massachusetts Statute C.21E, the Massachusetts Oil and Hazardous Material Release Prevention and Response Act. Determination of this conformance, based on a qualified environmental report, was not provided to the appraiser. 11. The forecasts or projections included in this report are used to assist in the valuation process and are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions which cannot be accurately predicted by the appraiser and could affect the future income and/or value forecasts. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page iii LOCATION MAP - STATE Easthampton Road June 15, 2015 Northampton, Massachuset ts Page iv EASTHAMPTON ROAD, NORTHAMPTON, MA Easthampton Road June 15, 2015 Northampton, Massachuset ts Page v ASSESSORS - MAP 44 LOT 29 ( ALSO SHOWING THE PROPOSED 1.4 ACRE LOT) Easthampton Road June 15, 2015 Northampton, Massachuset ts Page vi SURVEY PLAN BOOK 231 PAGE 62 Easthampton Road June 15, 2015 Northampton, Massachuset ts Page vii FLOOD MAP Easthampton Road June 15, 2015 Northampton, Massachuset ts Page viii BOOK 8156 PAGE 151 HAMPSHIRE COUNTY REGISTRY OF DEEDS Easthampton Road June 15, 2015 Northampton, Massachuset ts Page ix COMPARABLE SALE DATA Sale 1 a. Grantor:Redo LLC, of South Deerfield, MA Grantee:Julie A. Cardinal and Elizabeth A. Cardinal b.Sale Date:9/05/2014 c.Confirmation/Verification: With public records and broker d.Buyer motivation: Purchased as a single building lot e.Location: 99 Water Street, Northampton, MA f.Size: .4 acres per deed with 100' of road frontage g.Deed Reference:Hampshire County Registry of Deeds Book 11744 page 235 by Quitclaim Covenants Previous sale/recording was May 5, 2011 recorded in Book 10542 pages 75-79 from D. Drewitz (release deed - giving up rights acquired by encroachment for $1.00) h.Property rights conveyed: Fee Simple Marketing Time: Listed in the MLS 107 days on the market at a list price of $79,900. i.Consideration/ Sale Price:$70,000 Sales Concessions: None j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: Mostly cleared level lot with fence installed along one of the lot boarders. woodland parcel m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:URB - residential o.Current use vacant p.Topographic map/sale plan Plan Book page q.Confirmation/Verification: MLS #71685135 r.Buyer motivation:Market- to construct a single family house s.Comments: This is a .4 acre parcel located across the street from the Mill River. Water Street is a deadend street so there is no through traffic. The property was marketed by Maple and Main Realty, LLC with UJ. Held the listing agent. There is public water or sewer to the site. Sale 1 - Unrecorded plan for D. Grant being lot #2 as of 12/6/1967. Assessors Map 10D Block 40 with an assessment of $87,600. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page x Sale 2 a. Grantor:Cheryl J. Cross Grantee:Elizabeth H. Wassmann and Daniel P. Rattelle b.Sale Date:8/28/2014 c.Confirmation/Verification: With public records and MLS d.Buyer motivation: Purchased as a single building lot e.Location: Chesterfield Road, Westhampton, MA f.Size: 2.445 acres per deed with 250' of road frontage g.Deed Reference:Hampshire County Registry of Deeds Book 11733 page 221 by Quitclaim Covenants Previous sale/recording was from R. Tucker on 3/7/2003 for $33,500 Book 7076 page 266 h.Property rights conveyed: Fee Simple Marketing Time: Listed in the MLS 102 days on the market at a list price of $39,000. i.Consideration/ Sale Price:$35,000 Sales Concessions: None j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: Hillside woodland lot with mostly moderate growth hardwoods m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:R1- residential o.Current use vacant woodland parcel p.Topographic map/sale plan Plan Book 176 page 241 q.Confirmation/Verification: MLS # 71662824 r.Buyer motivation:Market- to construct a single family house s.Comments: This is a 2.445 acre parcel woodlands that is uphill from the road frontage. There is a small cleared stip in front along the road but the balance of the property is mostly hardwoods. The broker listed that there was a valid perc test on file with a septic drawing. There are lots of surface rocks and outcroppings. It was assessed at $59,200 at the time of sale. There is no public water or sewer to this part of town. Sale 2 - PLAN Book 176 page 241 H.C.R.D Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xi Sale 3 a. Grantor:John W. Ewing of Northampton, MA Grantee:Matthias Kaindl of Hadley, MA b.Sale Date:5/29/2014 c.Confirmation/Verification: With public records and MLS listing d.Buyer motivation: Purchased as a single building lot e.Location: 1006 Florence Road, Northampton, MA f.Size: 6.84 acres per deed with 125' of road frontage g.Deed Reference:Hampshire County Registry of Deeds Book 11651 page 294 by Quitclaim Covenants Previous sale/recording was recorded in Book 10970 page 235. h.Property rights conveyed: Fee Simple subject to an order of conditions for wetlands (limits useable area) with a gas line easement, a storm water management agreement with the Northampton DPW(see Bk 9290 page 163) subject to a power line easement, and to a declaration of Restrictions and Covenants as to Road-Common Drive- Maintenance Agreement (see Book 11657 page 29) and to a decision by the Planning Board (see Book 9290 page 174). Marketing Time: Listed in the MLS 614 days on the market at a list price of $119,900. i.Consideration/ Sale Price:$104,000 Sales Concessions: None j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: Mostly woodland parcel m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:Rural residential o.Current use vacant parcel p.Topographic map/sale plan Plan Book 216 page 106 lot 2 H.C.R.D. q.Confirmation/Verification: Broker, MLS #71439070 r.Buyer motivation:Market- to construct a single family house s.Comments: This is a 3.01 acre parcel with 125' of road frontage. Ths parcel is L shaped. There is a common driveway for access. There are a number of easements and wetlands on site. The road is public and paved. The lot was assessed at $166,200. There is public water to the site but in this location a private septic system is needed. Sale 3 - PLAN Book 216 page 106 lot 2: H.C.R.D Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xii Sale 4 a. Grantor:Lawrence P. Whalen, Trustee of Whalen Family Trust Grantee:Daniel Custodio and Cindy Avalos of Easthampton, MA b.Sale Date:9/13/2013 c.Confirmation/Verification: With public records and MLS d.Buyer motivation: Purchased as a single building lot e.Location: Linseed Road, Hatfield, MA f.Size: 6.84 acres per deed with 119' of road frontage and 600' along a common driveway g.Deed Reference:Hampshire County Registry of Deeds Book 11462 page 83 by Quitclaim Covenants Previous sale was 6/30/1999 from H. Kabat Book 5726 page 25 for $40,000. And inner family in 2005. h.Property rights conveyed: Fee Simple Marketing Time: Listed in the MLS 296 days on the market at a list price of $119,000. i.Consideration/ Sale Price:$100,000 Sales Concessions: None j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: Mostly woodland parcel with a cleared building area m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:Rural residential o.Current use woodland parcel p.Topographic map/sale plan Plan Book 169 page 53 q.Confirmation/Verification: Broker, MLS #71442243 r.Buyer motivation:Market- to construct a single family house s.Comments: This is a 6.84 acre parcel woodland parcel with 119' of road frontage. There is a cleared building site that is best accessed via the 600' common drive. Maintenance costs for the road are shared wit #151 Linseed Road. The site has some wetlands a stream, and gentle slopes. At the time of sale the property was assessed by the town at $79,700 for taxes. It is listed as Map 216 lot 34. There is town water at the street as well as electric service. Sale 4 - PLAN Book 169 page 53 H.C.R.D: Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xiii Sale 5 a. Grantor:Jedoron Realty Inc., of Farmington, CT Grantee:Michael R. Banas and Qui Hui Chen-Banas, of Easthampton, MA b.Sale Date:12/12/2012 c.Confirmation/Verification: With public records and broker d.Buyer motivation: Purchased as a single building lot e.Location: Lot 1 Turkey Hill Road, Northampton, MA f.Size: 13.18 acres per deed with 51' of road frontage g.Deed Reference:Hampshire County Registry of Deeds Book 11149 page 346 by Quitclaim Covenants Previous sale/recording h.Property rights conveyed: Fee Simple Marketing Time: Listed in the MLS 1660 days on the market at a list price of $,399,900. i.Consideration/ Sale Price:$180,000 Sales Concessions: None j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: Woodland parcel set back from the road with several utility easements, good views and subject to a drainage easement m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:RR - Rural residential o.Current use Single family house lot p.Topographic map/sale plan Assessors Map 34 Block 34 lot 1 q.Confirmation/Verification: Broker, MLS #71453828 r.Buyer motivation:Market- to construct a single family house s.Location: Residential area of low density development that is mostly newer upper priced single family housing on large lots t.Previous or transfer was when it was put into trust. u.Comments: This is a 13.18 acre flag lot that is required to be sprinklered. There are very good views from the home site on the parcel. There is a utility easement for the septic system, as a result of a special permit decision. There is a driveway easement drainage shown in plan 214 page 21. There is no public water or sewer to this part of city. There is electric service along the road frontage. The property had been listed at $399,900 and was on the market for 1660 days. Sale 5 - Plan Book 211 page 12 Lot 1 Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xiv Sale 6 a. Grantor:Jane Hill (Jane McClellan) Grantee:Elizabeth Vizentin and Barrett W. Newsome b.Sale Date:3/14/2014 c.Confirmation/Verification: With public records and broker d.Buyer motivation: Purchased as a single building lot e.Location: Lot 9 Audubon Road, Northampton, MA f.Size: 13.66 acres per listing with 150' frontage g.Deed Reference:Hampshire County Registry of Deeds Book 11600 page 144 by Quitclaim Covenants Previous sale/recording 11/12/2002 see Book 6903 page 349 h.Property rights conveyed: Fee Simple Marketing Time: Listed in the MLS days on the market at a list price of $225,000previously listed at $315,000 i.Consideration/ Sale Price:$200,000 Sales Concessions: None but subject to CR on 9.75 acres of the site (see plan 182 page 111) j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: flat woodland parcel m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:Rural residential single family permitted o.Current use single family p.Topographic map/sale plan Plan Book 117 page 5 as 13.62 acres (varies slightly from the listing) q.Confirmation/Verification: Broker, MLS r.Buyer motivation:Market- to construct a single family house s.Location: Rural residential in a subdivision of very large building lots t.Previous or transfer was when it was put into trust in u.Comments: Large single family woodland building lot. Mostly wooded with a stream, and wetlands, and irregular shape. There is no public water or sewer in the area, power is to the site. It had been listed at $225,0000 most recently and was on the market for 1771 days. Sale 6 - PLAN Book 182 page 111 Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xv Sale 7 a. Grantor:Stanley A. Boszko and Janina Boszko Grantee:Scott I Keiter & Jill M. Keiter b.Sale Date:6/27/2013 c.Confirmation/Verification: With public records and broker d.Buyer motivation: Purchased as a single building lot e.Location: Lot 1 Sylvester Road, Northampton, MA f.Size: 14.212 acres per deed with 201.91' of road frontage g.Deed Reference:Hampshire County Registry of Deeds Book 11364 page 36 by Quitclaim Covenants Previous sale/recording was 9/10/2004 for $32,500 from Rivard Funding Trust as recorded in Book 7984 page 24. h.Property rights conveyed: Fee Simple Marketing Time: Listed in the MLS 591 days on the market at a list price of $100,000. i.Consideration/ Sale Price:$60,000 Sales Concessions: None j.Financing:Market Conv. Cash k.Improvements: None l.Physical description: Mostly woodland parcel m.Non-Realty items: None n.Economic characteristics: One building lot p. Zoning:Residential o.Current use Vacant woodland small open area at the front along the road p.Topographic map/sale plan Plan Book 168 page 93 q.Confirmation/Verification: MLS #71329277 r.Buyer motivation:Market- to construct a single family house s.Comments: This is a 14.5 acre parcel with split road frontage with 87.64' on the north end and on the south end 114.27'. There is no public water or sewer in the area. The road frontage is along a paved road. The property has had a successful perc test. The lot is up hill from the road frontage. At the time of sale it was assessed for taxation at $74,000. Sale 7 - PLAN Book 168 page 93 H.C.R.D Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xvi REFERENCES As part of the assignment, a number of sources of information have been consulted. Market data has been compiled from records available from the Banker and Tradesmen, County Comps service, the Pioneer Valley MLS service, the property owner, the city planning department and client. Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xvii APPRAISER QUALIFICATIONS – KIM A. LEVITCH, SRA MA Certified General Real Estate Appraiser, lic #258, Exp. 12/05/15 State of Vermont License #80-0000064, Exp. 05/31/016 Realtor - National Association of Realtors Owner: K. Levitch Associates, 40 School Street, Greenfield, MA Mailing: P.O. Box 1553, Greenfield, MA 01302 413- 774-2959 (o) 413- 773-5887 (f) Professional Designations: SRA - The Appraisal Institute, Chicago, Ill. GRI - Graduate Realtors Institute, National Association of Realtors Education: General - Ohio University, Athens, Ohio - BGS 1971 Real Estate: Completed course work for the SRA designation which was awarded in 2008 Completed advanced commercial course work from the Appraisal Institute including but not limited to the following since 2000: USPAP- 2014-2015 National Update - Mckissock Education Advanced Residential Applications & Case Studies, Pt 1 and 2, Appraisal Institute, 2007 Highest & Best Use Analysis and Market Analysis, 520 Appraisal Institute, 2006 Yellow Book Seminar, Federal Land Acquisitions, 2004 Supporting Capitalization Rates, Appraisal Institute, 2004 Regression Analysis in Appraisal Practice, Appraisal Institute, 2003 Standards of Professional Practice, Course 430, Appraisal Institute, 2001 Highest and Best Use Analysis, Appraisal Institute, 2001 Real Estate Experience: 1979 - Present K. Levitch Associates Assignments includes a range from residential to commercial, industrial, land and a variety of special use properties. Clients include lending institutions, property owners, attorneys. Instructor Greenfield Community College: - Real estate courses from 1985 to1989 Professional Associations and Affiliations Franklin County Chamber of Commerce, Board of Directors 1996-present Shelburne Housing Authority, Chairman of the Board, 2000-present Franklin Council of Governments Brownfields Advisory Committee 2004- present Qualified Witness: Superior Court, Hampshire and Franklin Counties Family and Probate Court, Franklin, Worcester Counties MA Appellate Tax Court - Northampton Federal Bankruptcy Court, Worcester, MA Federal District Court, Boston, MA Northfield Mount Hermon School, Northfield Deerfield Academy, Deerfield, MA Bement School, Deerfield, MA Stoneleigh Burnham School, Greenfield, MA Northfield Mt. Herman School, Northfield, MA The Academy at Charlemont, Charlemont, MA Easthampton Road June 15, 2015 Northampton, Massachuset ts Page xviii The University of Massachusetts, Amherst, MA Hampshire College, Amherst, MA Farren Memorial Hospital, Montague Franklin Medical Center, Greenfield Franklin Land Trust, Buckland, MA Mt. Grace Land Conservation Trust, Athol, MA Rattlesnake Gutter Land Trust, Leverett, MA YMCA, Greenfield, MA GOVERNMENT AGENCIES US Fish and Wildlife Service, Regional Office Franklin County Regional Housing Authority, Greenfield, MA Franklin County Development Corporation, Greenfield, MA Massachusetts Land Bank Massachusetts Highway Department Department of Environmental Management, Comm. of MA Department of Fisheries and Wildlife Management, Comm. of MA Massachusetts Department of Capital Asset Management, Boston, MA Massachusetts Housing Partnership, Boston, MA Towns & Cities: Amherst, Athol, Ashfield, Bernardston, Buckland, Belchertown, Conway, Colrain, Deerfield, Erving, Easthampton, Greenfield, Gill, Heath, Deerfield, Leverett, Montague, Monroe, Northampton, Northfield, Orange, Pittsfield, Shelburne, Shutesbury, Springfield, Sunderland, Whately, Wendell, Westfield