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I. Comparison of Two Plots – Method of Valuation
Paired data analysis is the best and fastest way to compare two plots. Adjustments will be made according
to the five primary attributes as shown below. These attributes are weighed according to importance that
affect the value of the property while taking into consideration the flexibility of organic farm and eco‐
tourism conversion in the future.
1. Location and Accessibility
Accessibility and distance to transport of goods to market places entail huge economic cost if
accumulated. In the long run, this has huge chunk of operating expenses. If the site is too far or hardly
accessible, this will limit the number of tourists visiting the site. Economic loss could be possible.
2. Soil
Soil is the primary agent of production and an indicator of the climate as it is one of the soil’s forming
factor. If the soil characteristic is poor, the quality and quantity of organic products will be very low.
Soil stability is also considered to withstand the load of farm and eco‐tourism structures. Soil condition
is also an indicator of any hazards such as potential soil erosion and flooding.
3. Roads Infrastructure
Even the location of the farm/eco‐tourist destination is near to urban centers or residential
communities but if the quality of the road is low, the transportation time will still be long, fuel
consumption will still be high and it may increase the maintenance cost of the trucks or cars. Several
tourists do not mind the distance, but they mind the experience in their travel and the quality of road
and other infrastructure such as bridges contribute to this experience.
4. Topography
Topography is important since it is an indicator of the type of soil (i.e. upland and lowland soil have
differences that cater for different types of crops), the drainage system (if the area will be subject to
flood hazards), water availability (presence of natural sources and water from the public grid), built or
non‐built zones in accordance to the slope and possible hazards such as soil erosion and landslide.
Varying terrains could have the potential to create scenic views that will attract tourism in the area.
5. Availability of Utilities Combined (Water, Power and Telecommunication)
Water is also an agent of land production and a basic necessity of human needs. Where water for
irrigation or for human consumption/use is far or difficult to obtain, the extraction coupled by energy
cost increase the capitalization and operation costs. Power enables the sourcing of water, the lighting
of farm and eco‐tourist facilities, and operation of electricity driven machines or equipment. The
presence of telecommunication enables the business transaction (e.g. booking of lodging facilities for
tourists, organic products buyers) and emergency calls.
All of them have cost factors that are difficult for the buyer to ignore. Other factors are also important but
the effects are less substantial in case‐to‐case basis. One example is the climate. Although the climate is a
primary consideration in assessing agricultural land, it was not considered since usually an owner will opt
to have a property with close proximity of his whereabouts or to his other properties for ease of
management. Hence, climate may not vary that much between two comparable lands.
Classification: Internal
Below is the is example of the paired analysis of qualitative values that could be used in comparing the two
properties. There are variables which are not known such as the specific type of organic farm, specific
locations, areas, etc. Therefore, only the example of the weighing factor is shown.
Attributes Rating Weight
Location Distance to market centers: 25%
0 to 1 km = 50; Over 1 to 3 km = 40; Over 3 to 6 km = 30; Over 6 to 9
km = 20; Over 9 km = 10
Soil Soil Suitability for Organic Farming (50% of soil rating): 25%
Very High = 50; High = 40; Moderate = 30; Low = 20; Not Suitable =
10
Soil Stability (50% of soil rating):
Very High = 50; High = 40; Moderate = 30; Low = 20; Not Stable = 10
Roads and Provincial or National Road = 50; All‐weather road (good quality) = 20%
Infrastructure 40; All‐weather road (low to fair quality) = 30; Along dirt road =
20; No road outlet = 10
Topography Highly suitable (0‐3% slope) = 50; moderately suitable (3‐8%) = 40; 15%
Poor (8‐18%) = 30; Very Poor (18‐30%)=20; Not suitable (>30%) = 10
Availability of Water Supply (60% of the utilities rating): 15%
Utilities
Highly adequate supply for the site = 50; Moderately adequate supply
for the site = 40; Unstable supply for the site = 30; Supply is available
at a distance, extraction is required = 20; No supply either on site or
surrounding areas = 10
Power (30% of the utilities rating)
Highly adequate supply for the site = 50; Moderately adequate supply
for the site = 40; Unstable supply for the site = 30; Supply is available
at a distance, extraction is required = 20; No supply either on site or
surrounding areas = 10
Telecommunication, Fiber Optics and Other Utilities (10% of the
utilities rating)
Highly adequate supply for the site = 50; Moderately adequate supply
for the site = 40; Unstable supply for the site = 30; Supply is available
at a distance, extraction is required = 20; No supply either on site or
surrounding areas = 10
Total 100%
Each rate should be multiplied with weight to come up with the weighted point scores of comparable
properties. The property with highest score represents the best suitable land in terms of qualitative
assessment. These weighted score is usually converted into a price and added to the quantitative values
(market elements) to weigh the most suitable property in terms of the market price.
Classification: Internal