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significant differences between petitioner's experts and
respondent's experts can be found in the following four factors:
(1) The number of lots into which the property could have been
divided; (2) the selling price of the developed lots; (3) the
time required to sell the developed lots; and (4) the development
expenses relating to sewage improvement and road construction.
We will attempt to reconcile these differences in the experts'
subdivision development analyses in reaching our determination as
to the fair market value of the Property. In addition, we will
determine what, if any, value should be allocated to the Special
Use Permit.
We begin our determination by recognizing local conditions
that would affect the real estate market at the time of the
transfer. Both parties agree that 1985 and 1986 were extremely
prosperous times in the eastern Massachusetts real estate market
as prices for homes and lots reached record highs. Developers in
the area aggressively sought land on which to create residential
subdivisions. Moreover, during this time, there was full
employment, interest rates were low, and substantial amounts of
money were available for real estate loans. Although the real
estate surge did not continue at this volatile pace, it is
important to reflect the conditions existing at the time in a
proper valuation of the Property, e.g., aggressive lot pricing, a
9(...continued)
equals 15 percent.
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