TABLE 2

Comparison of Results between Sale Price (SP) Model and Appraised Value (AV) Model, 203 Land Parcels, Southwestern Michigan, 2003–2007

DetailsSignif. ModelSPAV
Coef.p-ValueCoef.p-Value
Environmental Production and Consumption Variables
Lake area % of parcelSP0.042**0.0210.0200.302
River length in parcelSP−0.001**0.0310.0000.472
Distance to lake0.0000.2260.0000.114
Distance to river0.0000.1660.0000.671
Wetland area % of parcelAV0.0060.181−0.004***0.001
Wetland area % of surroundingSP0.032***0.0040.0080.214
Conservation land % of surroundingSP/AV0.016**0.0170.010**0.019
Distance to recreational land0.0000.5870.0000.406
Forest area % of parcelSP0.011**0.023−0.0020.411
Cultivated land % of parcelSP0.015***0.008−0.0010.530
Pasture area % of parcel0.0110.314−0.0020.253
Grassland area % of parcelSP/AV0.010*0.0650.014**0.015
Cultivated land % of surroundingSP0.014**0.0100.0010.676
Pasture area % of surroundingSP/AV0.014*0.0550.008**0.049
Well drained dummySP/AV0.494**0.0390.577***0.002
Poorly drained dummySP/AV0.420*0.0570.631***0.001
Prime farmland if drained−0.0450.7000.0070.866
Local important farmlandSP0.310***0.0070.0100.860
Not prime farmlandSP0.528***0.008−0.0290.743
Soil loss tolerance factor−0.0890.3000.0460.283
Built Production and Consumption Variables
Total acresSP/AV−0.003**0.020−0.003***0.000
Land class: livestockAV0.1540.203−0.142***0.005
Land class: residentialSP0.311**0.0160.1910.185
Representative slopeSP−0.047***0.0020.0040.734
Building area %SP/AV0.079***0.0000.060***0.000
No. of residential buildingsAV0.1960.1550.224***0.000
No. of agricultural buildings0.0190.6570.0080.568
Location and Transaction Variables
Distance to citySP/AV0.009*0.0670.005*0.081
    LansingSP/AV0.374***0.0030.231***0.000
    KalamazooSP/AV0.501***0.0060.256***0.002
    Grand rapidsSP/AV0.511***0.0000.480***0.000
    HollandAV0.0700.6750.446***0.000
Distance to road0.0000.3520.0000.830
Developed land % of surrounding0.0220.2250.0120.342
Land contract0.2240.113
ConstantSP/AV5.662***0.0006.211***0.000
N203203
Adjusted R20.300.74
  • * Significant at the 10% level;

  • ** significant at the 5% level;

  • *** significant at the 1% level.