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CABARRUS COUNTY 2012 APPRAISAL MANUAL <br />LAND MODEL 04 <br />THE BASE PRICE METHOD FOR RURAL ACREAGE <br />The Base Price Method of appraising land is referred to as Land Model 04. This land model is utilized to reflect <br />market value when appraising acreage. The market indicates that land values change when properties have <br />different amenities such as road frontage, public utilities, road types and the size of tract. <br />Land Model 04 is also an excellent appraisal tool when utilizing the neighborhood concept for different locations <br />within the jurisdiction being appraised. <br />The following is a description of how these factors affect each parcel of land: <br />A. Location: <br />Location is the key factor in the determination of market value in the County. Depending on market demand and <br />sales prices, Base Price Areas were established throughout the County. Within each base price area other <br />location factors may be applied to a given parcel. The concept of neighborhood homogeneity may tend to affect <br />values as the parcel comes more under the influence of the neighborhood and less under the influence of the <br />total base area. The market demands higher prices for property in or near active market areas. Desirable <br />subdivisions, availability of water and sewer, proximity to shopping areas, higher base price areas and the <br />existence of amenities are factors which tend to increase market demand. The inverse may be true for parcels <br />near a declining subdivision or undesirable industrial or commercial use area. These influences must be <br />determined and adjusted on an individual bases by the appraiser. <br />B. Size: <br />The size of a parcel plays a major role in determining the per acre price at which a parcel of land will sell. The <br />total price asked for a parcel of land has an indirect correlation with the number of potential buyers in the market. <br />This situation stimulates more price negotiation and longer turnover periods for large tracts. Consequently, the <br />actual cash value per acre decreases as the size of the parcel increases. <br />The value of small lots containing less than one acre depends greatly on zoning and health department <br />restrictions, therefore, these lots are typically priced by the lot. Tracts priced by the acre are typically priced using <br />the base price method in conjunction with following size factor chart: <br />Cabarrus County — 2012 Revaluation LAND APPRAISAL PROCEDURES 4- 22 <br />Attac1W9nn1imber 6 <br />G -3 Page 315 <br />