2024 02 20 City Council Packet 1

Unverified text extraction. Check the original page for numbers, names, and layout.

ADDENDUM
Client: Estate of Patricia Hutsell Parker File No.: BC33875Current
Property Address: 2201 Decatur Pike Case No.:
City: Athens State: TN Zip: 37303
Addendum Page 1 of 2
Neighborhood Description
The subjects neighborhood has a very wide variety of home styles, sizes ages and values.  The one unit housing
price and age of the housing as noted by appraiser represents the majority of properties in this area, there are
some one unit homes with ages more than 100 years old and some properties with prices more than $650,000
and some less than $100,000 but they are considered as outliers. The majority of one unit homes are well
maintained and the area has average market appeal. Although the predominant one unit price differs from the
opinion of the subject's value, it is not an adverse factor, the subject is not over-improved for this area. Overall
the subject has typical marketability for the area in its segment of the market. Convenience to shopping and work
centers is typical of many other similar area's in the county.  Overall the subject's neighborhood is typical of
many other similar neighborhood's in the area and typically properties/homes in this area have average
marketability.
Highest and Best Use
The subject is a residential home, built in 1991, that is located in B-3 zoning, Intensive Business District.  The
subject's current use as a residential home is an interim use due to the fact that if the dwelling is destroyed, it
could NOT be built back as a residential home in this zoning.  However, as long as the dwelling continues to exist
as such, this is a grandfathered use (Legal Nonconforming).  
Currently, there is a low commercial demand for properties such as the subject.  There are infrastructure costs
concerns regarding crossing the creek and adding heavy vehicle supports for both bridges.  Also, the
topography is elevated and wooded and clearing and grading costs would be incurred.  Commercial demand is
not at the point where buyers would demolish the existing dwelling and develop the property into commercial;
thus the current highest and best use of the subject is residential.
If the subject was marketed as commercial, it would be on the market for a long time, possibly over two years.  
This is supported by an actual commercial listing almost across the street from the subject.  On 07/12/2021, a
32.0 acre tract of vacant land zoned B-3, with frontage on Decatur Pike and Velma Road was listed for sale for
$1,050,000.  On 12/31/2023, the listing expired and did not sell after more than 2.5 years on the market.  Several
conclusions can be made in regards, but one of the most obvious is that the property was listed too high, but
another is that the commercial demand is low.  
The adjoining property to the subject, 2113 Decatur Pike, a 2,646 sq.ft. older ranch style home with an unfinished
basement on 1.70 acres sold on 03/16/2020 for $199,000 and more recently sold on 02/07/2022 for $265,000.  
Neither of these sales reflect a commercial market but instead reflect a residential market.
Condition of the Property
Continued from Condition of the Property: electrical and mechanical systems functioned correctly, but your
appraiser is not a certified home inspector.
Comments on Sales Comparison
All comparables represent the latest known or recorded sales of properties most similar to, or best bracketing
the subject with particular regard to location, style, GLA, condition and overall appeal. Every effort is made to
verify and obtain any concessions amount which were paid on the comparables. Traditionally it is customary for
sellers to pay between 0% to 5% towards closing costs in this area, any concessions or gifts exceeding this are
considered a true concession and it will be reported and appropriately adjusted for.  Due to the low sales volume
in this market area and the very wide variety of home styles and low sales volume of homes with large acreage, it
was necessary to expand the search to all of McMinn County and parts of Monroe county, up to twenty miles
from the subject and consider sales over six months old (common practice in this area for homes with large
acreage).  All of the comparables are from the subjects market area and any typical buyers would view all the
physical locations of the comparables equal in appeal and marketability to the subject when making purchasing
choices.  
A contributory $35 per sq.ft. GLA adjustment was made for GLA differences greater than 100 sq.ft.  A $8 per sq.ft.
total basement area adjustment was made for total basement area differences.  A $15 per sq.ft. finished
basement area adjustment was made for finished basement size differences.
A contributory $7,000 per acre site adjustment was made for site size differences greater than 0.50 acre.
A $4,000 full bathroom count adjustment was made for full bathroom count differences.   
A $3,000 bedroom count adjustment was made for bedroom differences.
Although the subject and its comparables have varying actual ages they are all considered to have similar
effective ages, but the across the line adjustment was made for the subject's needed repairs as described on
page one.
The Indicated Value by Sales Comparison Approach, $465,000, is calculated using the following weights:
29.3% - 722 County Road 255; Sale Price $489,900; Adjusted Value $454,295; Gross Adj: 16.0%
32.7% - 208 County Road 134; Sale Price $585,000; Adjusted Value $532,395; Gross Adj: 13.4%
38.0% - 894 Head of the Creek Rd; Sale Price $399,000; Adjusted Value $416,245; Gross Adj: 9.3%
45