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similar higher and best uses. They then valued each functional
unit by using the comparable sales method. Adjustments were made
for size, location, access, topography, view, and access to
utilities. No adjustment was made for the time of the comparable
sale, because Messrs. Monger and Griffin concluded that land
values in Jefferson County remained relatively stable throughout
the period. Messrs. Monger and Griffin concluded that the value
of the vacant land was $3,670,000.
Messrs. Monger and Griffin deducted $2.15 million from the
aggregate values of the individual components as a reserve to
cover future estimated sewer expansion costs. They concluded
that the Port Ludlow community had fair market value of
$6,270,000.
In evaluating the expert opinions with respect to the value
of the Port Ludlow community, we found several problems that seem
to account for much of the difference between the experts’ value
conclusions. First, we believe that Mr. Slack overstated the
costs associated with the developed lots, thus underestimating
the value of the developed lots. Mr. Slack estimated the costs
of sale at 55 percent of the sales price of the lots and
determined an additional cost of $40,000 per year for general and
administrative expenses. We note that petitioner’s actual costs
of sale for each of the years 1982 through 1985 were
approximately 25 percent of the sales price.
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