Locational Obsolescence [3144]

A 2-story residence with a garage is located adjacent to an all-night repair garage.  The residence is currently rented for $400 per month unfurnished.  Similar residences located in a residential subdivision rent for $650 per month.  The market GRM is 100. The typical building to land ratio of sale price is 3:1.  What is the indicated loss in value from the locational obsolescence to the improvements only? [3144]

The difference in value is $25,000.  Since the building to land ratio is 3:1 only 75% of the difference is attributable to the improvements.  75% of $25,000 is $18,750.