A basis of site valuation in which a
price per lot is established when all lots
in the particular development are
approximately the same size and where minor
changes in size may not affect market value.
Caution is advised in bulk price comparisons
as these lack the precision of other units
of comparison such as price per front
foot/meter or price per square foot/meter.
Bulk basis is often viewed as a rule of
thumb method as opposed to a precise method
of site valuation.
Example of Bulk Basis-Site
Valuation
A developer is attempting to value a
potential development site. According to the
preliminary plan, 15 more or less equal lots
can be created and no significant
differences in value can be attributed. All
lots are relatively level with no
distinguishing characteristics, views, or
special value attributed to abutting lands,
e.g., parkland. Based on research in the
immediate area, lots are being sold for
$34,000 each. Therefore, based on a bulk
basis valuation, Reed estimates that the
potential lots are worth approximately:
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