M Civ JI 90.16 Comparable Market Transactions

The witnesses who have expressed opinions about market value have relied upon various market transactions to help them arrive at their opinions. These transactions are referred to as “comparables” and may include sales, offers to sell, offers to buy and rentals.

These witnesses have been permitted to testify as to the price and other terms and circumstances of these transactions which they consider to be comparable to the owner’s property as shedding light on the value of the owner’s property. Generally, the more similar one property is to another, the closer the price paid for the one may be expected to approach the value of the other. *(Thus, in weighing the opinion of a witness as to the value of the subject property based upon other market transactions, you may consider the following matters:

(a) Was the transaction freely entered into in good faith?

(b) If the transaction was on credit, how much should the price be discounted to reflect the amount which the property would have brought in cash?

(c) How near is the date of the other transaction to the date of valuation in this case?

(d) How near is the size and shape of the property to the size and shape of the owner’s property?

(e) How similar are the physical features, including both improvements and natural features?

(f) How similar is the use to which the other property is, or may be, put, to the use which is, or may be, made of the owner’s property?

(g) How far is the other property from the owner’s property, and is the distance important?

(h) How similar is the neighborhood of the other property to the neighborhood of the owner’s property?

(i) Is the zoning classification the same on both properties?)

You should also consider the extent to which the witness has taken into account whatever dissimilarities may exist. If you are not satisfied that the transactions being used as comparables are, in fact, comparable, then you may consider that fact in weighing [ his / or / her ] opinion.

You should bear in mind that comparable sales are not themselves direct evidence of value, but merely the basis on which the witnesses have formed their opinions of value.

You should apply these standards to all witnesses rendering an opinion of value.

Note on Use

*The list of matters that the jury may consider is illustrative, but not exclusive. If there is no evidence as to one or more of the matters, it should be deleted from this instruction.

Comment

See Western Michigan University Board of Trustees v Slavin, 381 Mich 23; 158 NW2d 884 (1968); In re Brewster Street Housing Site, 291 Mich 313; 289 NW 493 (1939); Commission of Conservation v Hane, 248 Mich 473; 227 NW 718 (1929); State Highway Commission v McGuire, 29 Mich App 32; 185 NW2d 187 (1970).

History

M Civ JI 90.16 was added February 1, 1981.