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ERIC Number: ED021422
Record Type: RIE
Publication Date: 1967-Aug
Pages: 1
Abstractor: N/A
Reference Count: N/A
You Can Accurately Predict Land Acquisition Costs.
Garrigan, Richard
College and University Business, v43 n2 Aug 67
Land acquisition costs were tested for predictability based upon the 1962 assessed valuations of privately held land acquired for campus expansion by the University of Wisconsin from 1963-1965. By correlating the land acquisition costs of 108 properties acquired during the 3 year period with--(1) the assessed value of the land, (2) the assessed value of the improvements, (3) the area in square feet, and (4) a time factor related to the months elapsed between January 1, 1963 and the acquisition of the parcel, a correlation coefficient of 0.97 was obtained. Using these developed variables the estimated acquisition costs of 33 parcels subsequently purchased during 1966 varied only 2% from the actual price paid: $1,033,535 estimated versus $1,012,085 total acquisition cost. The proximity of acquisition to estimated cost may be related to the fact that city appraisers and the appraisers employed by the university use the same valuation methods. The formula developed for estimating land costs is included and explained for computer application. (NI)
Harold W. Herman, Editor, 1050 Merchandise Mart, Chicago, Illinois. 60654
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A
Identifiers: Madison; Wisconsin