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Hulberg concluded that the eight lots into which a developer
would subdivide the Quito Property would be sellable by the
developer for $500,000 per lot.
Both Atkinson and Hulberg concluded that the prospective
developer would expect to make a $50,000 profit per lot, or
$400,000 for the entire Quito Property.
In his admitted notes, Atkinson lists various costs that the
developer might be expected to incur, in addition to the expected
profit; these costs, which include several items calculated as a
percentage of gross, aggregate 33 percent of the $300,000 per lot
gross. Hulberg, in his expert report, has a similar but more
sophisticated elaboration of developer costs, which aggregate
34-7/8 percent of the $500,000 per lot gross. Hulberg’s
elaboration of costs is somewhat greater in amount and in
percentage-of-gross than the list in Atkinson’s notes.
Accordingly, the substantial difference between Atkinson’s
$1,497,000 cost approach amount and Hulberg’s $2,210,000 land
development approach is attributable to their differing estimates
of the price a developer could get for each of the eight lots
into which the Quito Property would be subdivided.
Hulberg also does not set out the adjustment process;
however, he provides information about the terrains of the
comparable properties. His comparable properties average
$587,000 per lot. When we make adjustments based on his terrain
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