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Fgo CITY O F ASSESSMENT DEPARTMENT May 27, 2014 Cass County Board of Equalization PO Box 2806 Fargo, ND 58108 Dear Commissioners: This is in response to information submitted to the Board regarding the assessment of the property at 12 Broadway, Unit 203 owned by Michael and Pamela McNair. Mr. McNair is appealing the value of$266,400. This value is a result of a recent revaluation of all units in this complex. The most recent prior value for this unit was $219,200. Previous sales were $229,400 in April 2005 and Mr. McNair's purchase for $208,000 in August 2008. Mr. McNair refers to a recent sale of one of three of the 1,229 square foot units in the building. That unit sold for $222,000. The terms and details of that sale are unknown because it was a private sale and not listed on the market through the Multiple Listing Service. We do know that the unit was being rented at the time. There was a 2011 sale of one of the other 1,229 square foot units for $267,900; one percent above our current value.. That property was exposed for 147 days on the market through the Multiple Listing Service. Of all units either resold or completed, listed, and sold in this complex, the average days on the market was 107. There also was no remaining Renaissance Zone exemption at the time of sale to potentially affect the price. There have been 15 sales since 2011 of downtown loft condominium units between 1,000 and 1,300 square feet. The average square foot price of those sales is $221.57. The median square foot price is $197.20. The square foot price of Mr. McNair's unit is $216.76. Mr. McNair also refers to two of the high end units in the complex pointing out their lower square foot assessment value and the low ratio of assessment value to sale price. These two units were purchased as unfinished and were fit up to the purchasers' desire. Sales of this nature are not considered legitimate in appraisal for comparison purposes because they have never been exposed to the market as a finished product. They represent a combined cost to acquire and construct rather than a true market transaction. 404 4th Avenue N. • Fargo,ND 58102 • Phone(701)241-1340• Fax (701)241-1339