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sales for differences in location (i.e., proximity to shipping or
delivery points and desirability of location) and concluded that
the total gross value (before discount) of the bare land was
$7,770,699.
Mr. Prochnau took the sum of the gross values for each of
the components (i.e., merchantable timber, reproduction timber,
and bare land) and determined an indicated value under two
different approaches--the comparable sales approach and the
income approach. Under the comparable sales approach, Mr.
Prochnau utilized 33 comparable sales of between 20 and 53,916
acres that occurred between December 1983 and September 1991.
For each comparable sale, Mr. Prochnau calculated a comparable
sales ratio equal to the actual sale price divided by the gross
value of the components as estimated by Mr. Prochnau. The
comparable sales ratio is relative to the term "discount" or
"premium" commonly referred to in appraisals. He then performed
a regression analysis to plot the variation of comparable sales
ratios over the range of comparable sale sizes. The comparable
sales ratio chosen by Mr. Prochnau for each tract of the subject
property was between .7549 and .9957, indicating a discount of
between .43 and 24.51 percent. Applying the appropriate
comparable sales ratio to the total gross value of each tract of
the subject property, Mr. Prochnau calculated an indicated value
of $63,980,100 for the subject property under the comparable
sales approach.
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