wingap residential imp / accessory / rural land schedules & pricing

WinGAP Residential Imp / Accessory / Rural Land Schedules & Pricing

WinGAP Residential Pricing

Tracy Thomas DOR, Business Analyst

Contact Info

atthomas@wingap.net 404/831-0158

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Schedule

Start at 9:00 am Morning Break around 10:15 Lunch from 11:30 to 1:00 Afternoon Break around 2:45 Dismiss at 4:00

Successful Completion

Thursday Morning we will complete course evaluations, following evaluations we will begin the exam.

Exam is multiple choice 25 questions

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Residential Imp Schedules Residential Imp Calculations Point Cost Study Neighborhood Adjustment Accessory Improvements

Schedules Rural Land Schedules

Goals: Provide the appraiser with

information regarding access to the various schedules in WinGAP

Acquaint the appraiser with the use of the schedules through the manual calculation process

Goals (cont): Provide methodology for deriving a

residential improvement point cost Demonstrate how to fine tune

schedules with neighborhood codes and adjustments.

WinGAP Residential Schedules

Residential Improvement Point Cost Converts points to dollars Change impacts all non-overriden res

imps Locally derived and maintained Converted to multiplier with division by

100 Pt cost = 100 Multiplier = 100 / 100 = 1.00

Preferences: Res Imp Depr Year The Residential Improvement

Depreciation Year (RIDY) field contains the base year from which system generated depreciation is calculated.

The age of a Residential Improvement is determined by subtracting the year built or effective year built from the depreciation year.

This locks depreciation in until the county decides to change it.

Any houses with a year built greater than the depreciation year will be determined to have an effective age of one year.

Preferences: RIDY The RIDY is used, in lieu of the calendar year,

to stabilize depreciation and values. If the calendar year were used to calculate the

age of houses, value changes would occur each year because of the increasing amount of depreciation.

With the use of the RIDY, the appraiser has control over the timing of the application of new depreciation.

Normally, this is done when other aspects of the schedules such as Base Cost, Heating, etc., are updated.

Preferences: RIDY

Change affects “calculated” physical depreciation

Exercises 1

Depreciation Year

Appraisal Year = 2004 Res Dep Yr = 2001 Imp Yr Blt = 1988 Age = ? Age = 2001 – 1988 = 13

Depreciation Year

Appraisal Year = 2004 Res Dep Yr = 2001 Yr Blt = 1977 Eff Yr Blt = 1966 Age = ? Age = 2001 – 1966 = 35

Depreciation Year

Appraisal Year = 2004 Res Dep Yr = 2001 Yr Blt = 2003 Age = ? Age = 2001 – 2003 = -2

Age will default to 1 year old.

Appraisal Year Among other things, used to

determine the default year built of new structures

Default Yr Built = Appraisal Year – 1 Incremented by 1 during yearend

cleanup

Truncate Values Not rounding If calc value > 1000, drops the 100’s

digits and replaces with 00 If calc value >10 and < 1000, drops

the 10’s digit and replace with 0 Truncated value of 98,877 = 98,800

Exercises 2

Truncation

Imp Calc Value = 44,567 Trunc FMV = 44,500 Imp Cal Value = 259,988 Trunc FMV = 259,900 Imp Calc Value = 567 Trunc FMV = 560

Classroom Exercise

Truncate the following improvement values. DEPR shown is the value lossRCN DEPR VALUE

212,850 7%

212,850 17%

212,850 27%

2,150 37%

2,150 47%

2,150 57%

2,150 67%

RCN DEPR 1-DEPR RCN*(1-DEPR) 100 or 10 Product INT(Product)TRUNCATE

212,850 7% 93%

197,950.50 100

1979.505 1979 197,900

212,850 17% 83%

176,665.50 100

1766.655 1766 176,600

212,850 27% 73%

155,380.50 100

1553.805 1553 155,300

2,150 37% 63%

1,354.50 100 13.545 13 1,300

2,150 47% 53%

1,139.50 100 11.395 11 1,100

2,150 57% 43%

924.50 10 92.45 92 920

2,150 67% 33%

709.50 10 70.95 70 700

WinGAP Residential Schedules Rnd Area Mult to 6 dec

Used to determine rounding of area multiplier

If not checked, area multiplier is rnded to 2 decimal places

“2 decimal places” has been only option until release of 3.6

2 decimal rounding generates size adj anomaly

Area Multiplier Rounding

WinGAP Residential Schedules Attic: Use Max/Min Area

Used to specify of Max/Min Area restrictions are imposed in attic calculations

If not checked, area multiplier continues to change beyond the Max/Min Area

WinGAP Residential Schedules Bsmt: Use Max/Min Area

Used to specify of Max/Min Area restrictions are imposed in attic calculations

If not checked, area multiplier continues to change beyond the Max/Min Area

Residential Imp Submenu

Tools >> Schedules/Tables >> Residential Improvements

Base Points (Area Multiplier) Parameters Base Area Minimum Area Maximum Area Increment Base Increment Factor

Base Area Median size of sold homes Area multiplier is 1.00 Area mult above Base Area < 1.00 Area mult below Base Area > 1.00

WinGAP Residential Schedules Minimum Area

Square foot level where $/SF ceases to change

All areas below Minimum Area will be priced at the same $/SF calculated for Minimum Area

$/Sq Ft @ 500 SF = 65.00 500 SF * 65.00 SF = 32,500 400 SF * 65.00/SF = 26,000

WinGAP Residential Schedules Maximum Area

Square foot level where $/SF ceases to change

All areas above Maximum Area will be priced at the same $/SF calculated for Maximum Area

$/Sq Ft @ 3000 SF = 60.00 3000 SF * 60.00 SF = 180,000 4000 SF * 60.00/SF = 240,000

Increment Base Area increment where cost per SF

changes Higher increment results in less

changes @ Min Area values are less (area mult is

lower) @ Max Area values are higher (area mult

is higher)

WinGAP Residential Schedules (Inc Base w/ Inc Factor @.005)

0102030405060708090

50 25 100

250017501000600

$ / SF

Increment Factor Determines rate @ which cost/SF

changes at each Increment Base Not a dollar per square foot adjustment Factor applied in the calculation of the

area multiplier Lower factor slows down rate of

change

WinGAP Residential Schedules (Inc Factor w/ Inc Base @ 50)

0.005 0.0035

250017501000600

$ / SF

Residential Improvements

Increment Base vs Increment Factor

Impact Value inversely. Inc Base Increases, Value changes

less Inc Factor Increases, Value changes

Correction Notice

I gave the example that $/SF didn’t change between increment base

1500 = 40 1480 = no change 1450 = incremental adjustment Wrongo! 1480 will be adjusted also,

wingap interpolates to adjust an area not equal to the base area.

Base Area, Inc Base & Inc Factor are used in the determination of Area Multiplier (((Base Area – TBA) / Inc Base) *

Inc Fact) + 1.00 {6} See chart – page 13

Base Dollars Represents Base Cost for Res Imps Should exclude all items that will be

added via other schedules (heat, plumbing, etc)

Function of the Res Imp Point Cost Formula for calculating actual dollars

base d/s/f * (point cost / 100) 40 * (200 / 100) = 80.00

Effect of Area Multiplier on Base Dollars – See Chart on pg 15

Area Multiplier Rounding Comparison

res_base_cost_all.XLS

Attic Types 3rd item in list & assoc value is base

cost for attics (usually unfinished)

Attic Types Formula for converting base attic cost

attic $/SF / (res imp point cost / 100) 2.53 / (100 / 100) = 2.53 / 1 = 2.53

Other attic types maybe added for Descriptive Method

Attic Types Formula for converting Attic Type

Dollars to actual cost Attic Type $ per SF * (res imp point

cost /100)

Basement Coverage 4th item in list & assoc value is base

cost for basements

Basement Coverage Formula for converting basement cost

bsmt $SF / (res imp point cost / 100) 6.20 / (100 / 100) = 6.20 / 1 = 6.20

Other basement coverages maybe added for Descriptive Method

Basement Coverage Formula for converting Basement

Coverage Dollars to actual cost Basement Coverage $ per SF * (res

imp point cost /100)

Heat Dollars A value of [1.00 / (pt cost / 100)]

would allow entry of actual $/SF for heating types

Heat Dollars Adjusted cost for base heating type Formula for converting heat cost

Base heat cost / (res imp point cost / 100)

Formula for converting Heat Dollars to actual cost

Heat Dollars * (res imp point cost /100)

Area Multiplier Size adjustment Used to adjust value contribution for

each of the items below: Base Dollars Attic Types Basement Coverage Heat

Area Multiplier Calculation ((((Base Area – TBA) / Inc Base) *

Inc Fact) + 1.00) {6} TBA – total base area of

House {6} Attic {3} Basement {3} Area Multiplier for House, Attic, and

Basement are independent calculations.

Area Mult can be broken down into four basic steps: Base Area – TBA = Area Increment Area Inc / Inc Base = Area % Area % * Inc Factor = Area Adj Area Adj + 1.00 = Area Mult {6}

Exercises 3

Calculate area mult for a 1200 sq ft house using the values in the manual

(((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00 {6}

(((1500 – 1200) / 50) * .005) + 1.00

((300/50) * .005) + 1.00 (6 * .005) + 1.00 .03 + 1.00 = 1.030000

Calculate area mult for a 2600 sq ft house using the values in the manual

(((1500 – 2600) / 50) * .005) + 1.00

((-1100/50) * .005) + 1.00 (-22 * .005) + 1.00 -.11 + 1.00 = .890000

Inc Base / Inc Fac

Base Value

50 / .005 86,480

50 / .0037 88,360

100 / .0037 91,180

Value Comparison for 2350 SF residence

Exercises 4

Calculate base cost for a 4200 square foot house

((((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00) {6}

((((1500 – 3000) / 50)*.005)+1.00 ((-1500/50)*.005) + 1.00 (-30 * .005) + 1.00 -.15 + 1.00 = .85 Area mult = .850000

Area Multiplier Example

(40 * .85) * (100 / 100) (34) * (1) = 34.00 34.00 * 4200 = 142,800

Exercises 5

Area Multiplier for House, Attic, and Basement are independent calculations.

Calculate area multiplier(s) for a 1500 sf residence w/ 750 sq ft basement

((((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00) {3}

Bsmt = ((((1500 – 750) / 50)*.005)+1.00

Bsmt Area Mult = 1.075 Res Imp Area Mult = 1.00

Area multiplier for a 1800 sf residence ((((Base Area – TBA) / Inc Base) * Inc

Fact) + 1.00) {2} ((((1500 – 1800) / 50) * .005) + 1.00) {6} 1500 – 1800 = -300 -300 / 50 = -6 -6 * .005 = -.03 -.03 + 1.00 = .97

Area Multiplier Example Calculate an area mult for a 635

square foot residence ((((Base Area – TBA) / Inc Base) *

Inc Fact) + 1.00) {6} ((((1500 – 635) / 50) * .005) + 1.00 1500 – 635 = 865 865 / 50 = 17.3 17.3 * .005 = .0865 + 1.00 =

1.086500

Area Multiplier Example Calculate Area Mult for a 3000 SF house

but chg increment factor to .002 & calculate truncated base value

((((1500 – 3000) / 50)*.002)+1.00 Area mult = .94 (40 * .94) * (100 / 100) 37.60 * 1 = 37.60 37.60 * 3000 = 112,800 Truncate to 112,800

Calculating Value of Base Item Determine Area Multiplier Adj $/SF = AM * Base $/SF {2 dec places} Total $ = Adj $/SF * TBA IF previous example HEAT DOLLARS=1.30

for 635 SQFT house, AM=1.0865 Total heat $

1.0865 * 1.3{2} = 1.41 1.41 * 635 = $895

Exercises 6

Use Schedules in back of the book

Calculating Base Heat $ for a 1800 sf res imp where base heat dollars=$1.30 Area Mult{6} = ((((1500 – 1800) / 50)

* .005) + 1.00 = .97 $ / SF{2} = .97 * 1.30 = 1.26 Total Dollars = 1.26* 1800 = 2268

Exercise 7

Exercise # 1A AM = ((((1500 – 2350) / 50) * .005) +

1.00) = .915 $ /SF = .915 * 40 = 36.60 Total Dollars = 36.60 * 2350 =

86,010

Exercise # 1B AM = ((((1500 – 2350) / 50) * .0037)

+ 1.00) = .9371 $ /SF = .9371 * 40 = 37.48 Total Dollars = 37.48 * 2350 =

88,078

Exercises 8

What would be the base value of the imp if the inc base was change to 100?

(((1500 – 2350) / 100) * .0037) + 1.00 ((-850/100) * .0037) + 1.00 (-8.5 * .0037) + 1.00 -.03145 + 1.00 = .96855 .96855 * 40.00 = 38.74 38.74 * 2350 = 91,039

Adjustments to Base ValuesPg. 20 In arriving at Replacement Cost New (RCN),

adjustments for exterior wall types, story height , attic/basement finish and coverage, and heating types will be applied to the base values

Adjustments to Base Dollars Area Multiplier Exterior Wall Story Height Occupancy Grade

Adjustments to Attic Dollars Area Multiplier Finish Quality Grade

Adjustments to Basement Dollars Area Multiplier Finish Quality Grade

Adjustment to Heat Dollars Area Multiplier Story Height Heating Type Grade

Adj to Base Dollar Amounts

Ext Wall

Sty Hght

Finish/Coverage

Heat Type

Quality Occupancy

Base $

X X X X

Attic X X X

Bsmt X X X

Heat X X X

Adjustments to Base Values The menu options

Exterior Wall (# 1), Occupancy (# 2), and Improvement Labels (# 11)

contain factors that are used in the adjustment of Base Dollars.

Most of the above mentioned schedules can be customized according to the needs of the county.

Exterior Walls

The Exterior Wall option on the Residential Improvements menu provides the user with access to the exterior wall schedule.

The schedule contains the various exterior wall types and their associated adjustments which are applied to the base dollars.

Exterior Walls

Exterior Walls Contains factors used to adjust base cost Base ext wall type should be set to 1.00 $/SF of house / base $/SF See example Pg 21 38 / 40 = .95 As many items as needed can be added

Calculate Ext Wall Factor for (1) Plywood, (2) Vinyl & (3) Wood Shingles using Wood as base @1500 SF

Exterior Wall Factors

Plywood = 41.85 / 42.43 = .99 Vinyl = 42.47 / 42.43 = 1.00 Wood = 42.43 / 42.43 = 1.00 Wood Shing = 42.63 / 42.43 =

Occupancy

The Occupancy schedule provides a listing of the current Occupancy types.

Occupancy cost multipliers, or factors, can be used to adjust Residential Improvement values for types of Occupancy.

Occupancy

Attic Finish Adjustment

The Attic Finish Adjustment is a dollar per square foot amount that is used to add value for attic finish when an attic is being valued under the Square Footage method.

Dollar contribution used to add value for attic finish

$ / Square Feet value is converted before saving using the following formula Attic finish Adj ÷ res imp pt cost 12 ÷ 100 = .12

$ / Square Feet value converted to actual dollars by Attic Finish Adj * res imp pt cost .12 * 100 = 12.00 / sf

Attic Quality

The Attic Quality factors are used to adjust the value of attics based on the quality of construction and finish.

The factors entered in the field Cost Multiplier are used in the Square Foot method of calculating attics.

Attic Quality

Multiplier used to adjust attic values for construction and materials that are above or below the primary structure

Unlimited quality types can be added

Attic Quality

Multiplier is applied in the following manner to arrive at an Attic Value: (((attic fin % * Fin Adj) + attic $psf) *

attic area) * attic qual mult {0 dec} Attic $psf = attic base $ * area mult

Exercise 9

Calculate Attic Example

Calculate the value of an attic with the following characteristics 800 square feet 100% finished Excellent quality – 1.50 factor

Attic Value

Area multiplier (AM) ((((1500 – 800) / 50) * .005) + 1.00) =

Attic Value

(((attic fin % * fin adj) + (attic $psf * AM) * attic area) * attic qm

(((1.00 * 12.00) + (1.00 *1.07) * 800) * 1.50

15,684

Basement Finish Adjustment Dollar contribution used to add value

for basement finish $ / Square Feet value is converted

before saving using the following formula

Basement finish Adj ÷ res imp pt cost 12 ÷ 100 = .12

Basement Finish Adj

Basement Finish Adjustment

$ / Square Feet value converted to actual dollars by Basement Finish Adj * res imp pt cost .12 * 100 = 12.00 / sf

Basement Quality

Basement Finish Adj - Fox

Basement Quality

Multiplier used to adjust basement values for construction and materials that are above or below the primary structure

Basement Quality

Multiplier is applied in the following manner:

(((bsmt fin % * Fin Adj) + bsmt $psf) * bsmt area) * bsmt qual mult {0 dec}

Exercise 10

Basement Coverage 4th item in list & assoc value is base

cost for basements

Basement Calculation Example

Calculate the value of a basement with the following characteristics 650 square feet 75% finished Excellent quality – 1.50 factor

Basement Value

Am = ((((1500 – 650) / 50) * .005) + 1.00) = 1.085

Basement Value

bsmt $ = (((bsmt fin % * bsmt adj) + (bsmt $psf * AM) * bsmt area) * bsmt qm

bsmt $ = (((.75 * 12.00) + (6.20 * 1.085)) * 650) * 1.50

bsmt $ = 15,334

The Heat schedule contains the various heating types and associated cost multipliers which are applied to the heat dollars.

Multiplier used to adjust Heat Dollars for the particular type of heat/ac source

Heat Cost Multiplier Calcs

$psf for heat type / heat dollars

What is the cost multiplier when our new Heating Type is $.50/sf and the base Heat Dollars is $1.30 CM = .50 / 1.30 CM = .38

Heat Multiplier Application

Base Heat $ * Heat Cost Mult Heating Type is Cent Heat/AC with

a CM of 1.90 & base Heat Dollars is $1.30 Heat $psf = 1.90 * 1.30 Heat $psf = 2.47

Miscellaneous Items

The Miscellaneous Items schedule is designed to accommodate lump sum value items for residential improvements.

Examples of miscellaneous items are fireplaces, extraordinary plumbing such as whirlpools, saunas, etc, bay windows, etc.

Miscellaneous Items

Misc Items (Fireplace)

Lump Sum dollar for each miscellaneous item

Plumbing

The Plumbing schedule in WinGAP contains just two items Standard Complement and Extra Fixtures.

Plumbing

The Standard Complement would include the number of fixtures that are associated with the standard plumbing complement found in the base house.

Generally, represents one 3-fixture bath, kitchen fixtures, and washer hookup.

Plumbing

A Standard Complement may be defined as any set of plumbing fixtures with the value contribution reflecting the definition.

Any plumbing beyond the Standard Complement in the Residential Improvement is valued on a per fixture basis using the Extra Fixtures item.

Plumbing

Plumbing is valued using the Lump Sum method based upon the Residential Improvement Point Cost.

The Plumbing Schedule shown uses a Lump Sum value of $5000 for a Standard Complement and $900 for each Extra Fixture

Plumbing

The value of the Lump Sum $ would reflect the total cost of the fixtures.

Extra Fixtures would add value for any fixtures above the number included in the Standard Complement.

Plumbing Lump Sum dollar for std complement

and extra fixtures Std Comp = 6 fixtures

3 kitchen fixtures 1 3-fixture bat

No additional items can be added to plumbing schedule

WinGAP Residential Schedules – Other Items

Ceiling $/SF

Floor Const$/SF

Floor Finish$/SF

Foundation$/SF

Interior Wall$/SF

OccupancyMultiplier

Roof Shape $/SF

Roofing$/SF

WinGAP Residential Schedules – Other Items

Accessed and maintained in the same manner as previously discussed items

All items except Occupancy are $ per Square Foot entries

Occupancy is a cost multiplier 4th item in Occupancy MUST be Mobile

Home Pages 33-38

Improvement Labels Cost Factors / Story Height Adjustments The Improvement Labels schedule

contains adjustments for user defined story height labels.

In addition to story height adjustments, the appraiser can also key factors that are used in the process of calculating total heated area.

Improvement Labels

Label id’s Cost/SF for appendages &

additions Cost Factor for sketching labels Area Factor for heated area Unlimited labels can be added

Improvement Labels

Label 4 positions Letters and numbers NO commas or semicolons

Description Definition of label

The description should be clear and precise enabling the user to clearly identify which label is appropriate to assign to a polygon when sketching takes place.

Improvement Labels

Label Type Drop down list (combo box) w/ 5

options Addition Appendage Interior Primary Upper

Improvement Labels Interior, Primary, and Upper are the

three label types that are assigned story height (cost) factors which are used in the adjustment of the base dollars.

Interior and Upper label types are often referred to as “upper level” labels since they are normally used to define sketches that represent an upper level footprint.

Improvement Labels

Primary labels are generally assigned to lower level footprints.

Primary, Interior, and Upper labels contribute to the accumulation of heated area.

The label type Addition, also, contributes to the sum of the heated area.

Improvement Labels

However, only Primary and Upper label types contribute square footage to the Total Base Area of the improvement which in turn is used in the calculation of the area multiplier.

Improvement Labels

Addition Label Type Identified as double black lines Story height factors (Cost Factor) Contributes to heated area (Area

Factor) Does not contribute to Total Base Area

(TBA) Best used for unfinished regions or

regions without heat/air.

Improvement Labels

Appendage Label Type Identified as solid blue lines Story height factors (Cost Factor) Does not contribute to heated area

(Area Factor should be 1.00) Does not contribute to Total Base

Area (TBA)

Improvement Labels

Interior Label Type Identified as broken green lines Story height factors (Cost Factor) Contributes to heated area (Area

Factor) Does not contribute to Total Base

Area (TBA)

Improvement Labels

Primary Label Type Identified as solid red lines Story height factors (Cost Factor) Contributes to heated area (Area

Factor) Contributes to Total Base Area (TBA)

Only the polygon’s base area (Sketch area without Area Factor adjustment) contributes to TBA

Improvement Labels

Upper Label Type Identified as broken violet lines Story height factors (Cost Factor) Contributes to heated area (Area

Factor) Contributes to Total Base Area (TBA)

Area Factor * sketch area

Improvement Labels

40 x 25 = 1000 (primary label 2.0st) Area factor = 2.0 TBA = 1000

Upper level label (2.0st) Area factor = 2.00 TBA = 2000

Improvement Labels

Cost / SQFT Used only with Addition and

Appendage label types Enter $/SF value Value saved with following formula Item cost ÷ res imp pt cost Wood Deck cost is 12.00 / sf

12 ÷ 100 = .12

Improvement Labels

Cost Factor Applies to all label types

Interior & Primary types can have any number Other types should be assigned cost factor of

1.00 Story height adjustment Used to adjust

Base Dollars Cost / SQFT

Improvement Labels The cost factor should depict the

difference in value that is attributable to the label and associated construction.

For example, if a study of the residential improvement market indicates that 1500 sq ft one story homes are selling for $40 per square foot, the calculation of the cost factor would be as follows:

Improvement Labels

Cost factor = residual improvement sales price per sf / base dollars

Cost factor = 40 / 40 Cost factor = 1.00

Improvement Labels

Should a comparable two story house with 1500 sq ft on the ground floor sell for $72 / sf of ground floor area (108,000 residual imp sales price) with a Primary label type of 2st, the cost factor for the 2st label would be calculated as follows:

Improvement Labels

Cost factor = 72 / 40 Cost factor = 1.80

Improvement Labels

Cost Factor Primary, Upper & Interior Labels

CF = $/sf ÷ Base Dollars Addition & Appendage Labels

CF = $/sf ÷ Cost / SQFT

Improvement Labels

Area Factor Applies to Additions, Interior, Upper

and Primary areas Adjusts sketch sq ft to account for

upper level or restricted use

Exercise 11

Exercise

Calculate the value difference using a 2 Story primary label versus a 2 Story upper label for a residence with 1200 square foot on the ground floor. Area factor is 2.00 Cost factor is 2.00 Use base values from schedules in

manual

Primary Label Type

(((1500 – 1200)/50)*.005) + 1.00 ((300/50)*.005) + 1.00 (6*.005) + 1.00 .03 + 1.00 = 1.03 40.00 * 1.03 * 2.00 * 1200 =

98,880

Primary Label Type w/ Schedule

(((1500 – 1200)/50)*.005) + 1.00 ((300/50)*.005) + 1.00 (6*.005) + 1.00 .03 + 1.00 = 1.03 40.00 * 1.03 * 1.80 * 1200 =

88,992

Upper Label Type

(((1500 – 2400)/50)*.005) + 1.00 ((-900/50)*.005) + 1.00 (-18*.005) + 1.00 -.09 + 1.00 = .91 40.00 * .91 * 2.00 * 1200 = 87,360 Value Diff = 98,880 – 87,360 = 11,520 Value Diff = 88,992 – 87,360 = 1,632

Exercise 12

Exercise

Calculate the “base” value of a structure with the following info. Also, calculate heated area. Use schedules in manual. 1 Story area of 2675 sq ft 2nd Story area of 750 sq ft Garage with 400 sq ft Addition of 650 sq ft

Exercise – Area Mult

(((1500 – 2675)/50)*.005) + 1.00 ((-1175/50)*.005) + 1.00 (-23.5*.005) + 1.00 -.1175 + 1.00 = .8825 40.00 * .8825 * 1.00 * 2675 =

94,428

Exercise – Base Value 1st = 40.00 * .8825 * 1.00 * 2675 = 94,428 2nd = 40.00 * .8825 * 1.00 * 750 = 26,475 Gar = 11.55 * 400 = 4,620 Add = 37.95 * 650 = 24,668 Total Base =150,191

Exercise – Heated Area 1st = 2675 2nd = 750 Add = 650 Ht Area = 4075

Observed Condition The Observed Condition schedule

provides a listing of available Observed Condition types.

Observed Condition types are descriptive only and add no value to the Residential Improvement.

Observed Condition types are hard-coded within WinGAP and cannot be changed by the user.

Observed Condition

Story Height

The Story Height schedule provides a listing of the current Story Height types. Story Height types are descriptive only, and add no value to the Residential Improvement.

Story Height

Physical Depreciation

Physical Depreciation Depreciation based on

Age Grade Observed Condition

Excellent Good Average Fair Poor

Depreciation table can be setup with as many combinations of age and grade as necessary

Grade and/or age ranges can be used to decrease entries in table

Physical Depreciation The schedules are set up with grade

ranges of: 60 to 84, 85 to 109, 110 to 134, 135 to 159, 160 to 184, 185 to 999,

age increments beginning at 1 extending to 100, and

using all five conditions: Ex, Gd, Av, Fr, Pr.

Table Sample: Page 41

Physical Depreciation Interpolation is performed if grade/age

combination is not found in table If grade not found, next lower grade level is

used. For example: Grades of 60 and 85 are in table & a grade of 70 is

assigned to the imp. Grade of 60 is used for depreciation

Imp has grade = 40, 60 grade level is used Imp has grade above maximum grade found in

schedule, the max grade in table is used. If age not found, the following formula is used

Physical Depreciation If age not found, the following

formulae are used: Dep Inc = abs(Dep from Lower Age

Level – Depr from Higher Age Level) Inc Factor = Dep Inc / abs(Higher Age

Level – Lower Age Level) {rnd to 2 dec)

Dep Adj = (Act Age – Lower Age Level) * Inc Factor {rnd to 2 dec)

Calc Dep = Depr from Lower Age Level – Depr Adj

Exercise 13

Depreciation for 7 yr old imp

Age Dep Factor

10 .82

Dep Increment = .95 – .82 = .13

Inc Factor = .13 / abs(10 – 5) = .13 / 5 = .03 {2 dec}

Depr Adj = (7 – 5) * .03 = 2 * .03 = .06 {2 dec}

Calc Dep = .95 – .06 = .89

Exercise 14

Depreciation Exercise

Dep Yr = 2001, Yr Blt = 1988 age 10 = .85, age 15 = .78 Depr Inc = abs(dep from lower age

– depr from higher age) Depr Inc = abs(.85 - .78) = .07

Inc Fact = Depr Inc / abs(higher age – lower age) {2}

Inc Fact = .07 / abs(15 – 10) Inc Fact = .07 / 5 = .01 Depr Adj = (act age – lower age) *

inc fact {2} Depr Adj = (13 – 10) * .01 = .03

Calc Depr = depr from lower age – depr adj

Calc Depr = .85 - .03 = .82

Depreciation

Complete exercise #2 on page 92 Same as handout exercise 15

Depreciation Exercise – Pg 92

Dep Yr = 2001, Yr Blt = 1976 age 20 = .74, age 30 = .62 Depr Inc = abs(dep from lower age

– depr from higher age) Depr Inc = abs(.74 - .62) = .12

Inc Fact = Depr Inc / abs(higher age – lower age) {2}

Inc Fact = .12 / abs(30 – 20) Inc Fact = .12 / 10 = .01 Depr Adj = (act age – lower age) *

inc fact {2} Depr Adj = (25 – 20) * .01 = .05

Calc Depr = depr from lower age – depr adj

Calc Depr = .74 - .05 = .69

Manual Calculations – Pg. 49 Adj DSF1 = Area Mult * Base Dollars

[6 d] Adj DSF2 = Adj DSF1 * Ext Wall Fact *

Occupancy Fact [6 d] Sum Adds = (AM * Foundation) + (AM

* Roof) + (AM * RoofShape) + (AM * FlrCons) + (AM * FlrFin) + (AM * IntWall) + (AM * Ceiling)

Total DSF = Adj DSF2 + SumAdds Base Value = TotalDSF * Area *

StoryHeightAdj [100]

Manual Calculations Heat Value = Heat DSF * AM * Heat

Adj * StoryHeightAdj * Area [100] Bsmt Value = (((Bsmt Fin % * Fin Adj)

+ (Bsmt $/SF * AM)) * Bsmt Area) * Bsmt Qual Mult [100]

Attic Value = (((Attic Fin % * Fin Adj) + (Attic $/SF * AM)) * Attic Area) * Attic Qual Mult [100]

Appendage Value = Appen DSF * Area * Story Height Adj [100] {sum value of all appendages}

Misc Items Value = Misc Lump Sum Value * # of Items [100] {sum value of all misc items}

Plumbing Value = (Std Comp Value * # of Std Complements) [100] + (Extra Fix Value * # of Extra Fixtures) [100]

RCN = (Base Value + Heat Value + Bsmt Value + Attic Value + Appendage Value + Misc Item Value + Plumbing Value) * Grade [1]

FMV = RCN * Phy Dep * Func * Neighborhood * Econ * Per Comp * CDU

Manual Calculation

Exercise #3 Pg 93 (handout #16) Screen_Dollars Calc-Class Exercise

Manual Calculation

Exercise #3 Pg 93 Screen Dollars Calc - worked by ha

nd.xls

Point Cost Study

The point cost is derived from the market analysis of qualified residential improvement sales.

The sales should be no more than 2 to 3 years old with an optimum age of 1 year and if possible, only sales with houses within a grade range of 80 to 120 should be used.

Point Cost Study

The minimum number of sales for a valid point cost study is 10.

No maximum number of sales exists.

It is imperative that accurate land values have been established for the parcels that are being used in the study.

Point Cost Study

A point cost is determined for each sale and then averaged.

Any existing outlying point costs should be disregarded.

The steps that should be used to calculate a point cost for a qualified residential improved sale are as follows:

Point Cost Study 1. RESIDUAL IMPROVEMENT VALUE (RIV)

SALES PRICE - (LAND VALUE + OTHER VALUE)

2. ADJ RIV RIV / DEPRECIATION

3. POINT COST ADJ RIV / ADJUSTED POINTS

4. RES IMP PT COST SUM OF POINT COSTS / NUMBER OF SALES

Point Cost Study

Sales Price The sales price is the dollar amount

listed on the PT-61 for the property. This amount should be validated and

include all items that were part of the sale.

Point Cost Study

Land Value The land value should be the fair

market value of the land that is associated with the property sale.

If a revaluation is under way or a county sees a need to change land values, the land value should reflect the anticipated land value for the property.

Point Cost Study

Other Value Other value includes all items, such

as, pools, utility buildings, timber, etc., which are not part of the primary residential improvement value.

Point Cost Study

Depreciation The percent good that has been assigned

or calculated for the residential improvement.

If any economic, functional, or percent complete exists, those items must become part of the depreciation by using the following formula:

Physical Dep x Economic Obs x Functional Obs x Percent Complete

Point Cost Study

Adjusted Points...The adjusted points for a residential improvement can be found on the Improvement Calculation Summary screen

Point Cost Study

Res Imp Pt Cost…The residential improvement point cost is generated by taking the average of the point costs that have been calculated via the procedures described.

Point Cost Study

CAUTION should be observed when averaging the point costs.

The appraiser must use judgment in discarding outlying point costs.

At times, it may be more appropriate to use other measures of central tendency, such as the median, rather than the arithmetic average or mean.

Point Cost Study

After the residential improvement point cost is calculated it can be entered into the field for the Residential Impr. Point Cost on the Preferences screen.

However, the appraiser should be certain to ??????

Point Cost Study

The point cost can then be applied across the board by running the Reappraise.

However, the appraiser should be certain to run the appropriate ratio studies to confirm that the newly generated point cost study is producing statistics that are acceptable.

Neighborhood Adjustments

At times, the calculation of the residential improvement point cost will not produce satisfactory results with regard to ratio studies and the subsequent statistical information.

The statistics could possibly be the result of unaccounted for influences that are being exerted on properties placed on the market.

The appraiser may find that similar properties in different parts of the county are bringing distinctly different prices on the market.

If all other value components, structure size, quality, land, etc., are the same, the primary reason for the difference is that one location is preferred over the other.

The appraiser should account for this value difference with location or neighborhood adjustments.

it is imperative that accurate land values be established and the accuracy of all other data be confirmed.

Incorrect land values as well as bad data can greatly distort the influences

Table on page 63 sales produce a residential point cost

of 217.73 which would probably be accepted as $215.00.

looking at the sales in a map id array, the appraiser should readily see a market trend that indicates a need for an adjustment due to location or neighborhood.

Neighborhood Adjustment The properties outside of the 056A and

056B maps have a point cost around $200.00.

Those sales in the 056A and 056B have a point cost averaging about $235.00.

The difference of 17.5%, ((235-200)/200), indicates that one of the areas will be setup as a base area with the other area delineated as a market neighborhood.

If the area outside of the 056A and 056B neighborhood is chosen as the base, then a residential improvement point cost of $200.00 will be entered in the appropriate place in the schedules.

A neighborhood for 056A and 056B will be established with a neighborhood adjustment calculated using the following formula: Neighborhood Adj = Pt Cost in Area

outside of Base / Pt Cost in Base Area Neigh Adj = 235 / 200 = 117.50 1.17% or 1.15% would both be

reasonable N/H adjustments

The neighborhood will be established and the associated adjustment will be entered through the Tools >>Schedules / Tables >> Neighborhoods

Exercise 5 in book page 95

Code The code is a six position

alpha/numeric field that is user defined. The code must be unique.

Description A definition of the code that is precise

and informative should be entered in the description.

Adjustments Adjustment factors can be entered for

each of the five property components. The factors can be different for each component. A maximum value of 99.99 maybe entered for any factor. An adjustment factor of 0.00 will be interpreted as 1.00 in the calculation process.

At the conclusion of the entry of a neighborhood into the schedules, the user must assign the code to all parcels that are affected.

Neighborhood Adjustment

To assign the neighborhood code, the user will edit each parcel’s Real Property General Information field Neighborhood and choose the proper code from the drop-down list that appears when enter is pressed on a blank Neighborhood.

Neighborhood Adjustment

After the codes are assigned to all affected parcels, reappraise must be run before any values are adjusted.

The residential buildings on each affected parcel can be edited individually to cause the neighborhood adjustment to take effect.

Accessory Improvements

Accessory improvements are generally regarded as property components that are detached from the primary structure(s).

Pools, utility buildings, detached garages, barns, and poultry houses are examples of structures that would normally be considered as accessory improvements.

As is the case with residential improvements, some base schedule items are found on the Preferences screen which can be accessed from the Tools >> Preferences menu option.

The Accessory Point Cost located in the Point/Base Costs section of Preferences is a local index that can be used to update accessory values across the board.

If the Accessory Point Cost were doubled, the total value of all calculated accessories would also double.

Accessory Improvements The Accessory Depreciation Year found in the

Depreciation Years section of Preferences is used in the calculation of an accessory’s age.

The year built of the accessory is subtracted from the Accessory Depreciation Year producing the age which is used in the calculation of physical depreciation.

A Year Built that is greater than the Accessory Depreciation Year will result in an age of 1 year.

The Appraisal Year is used to determine the default year built for all accessories. The default year built will be one year less than the Appraisal Year.

The accessory improvement schedules can be accessed through Tools >> Schedules / Tables >> Accessories

Accessory Improvements The Accessories schedule is comprised of 3

submenu options: Building Schedule

list of all accessory improvements including pricing information

Size Adjustment Table factors used to adjust accessory values with

specified size ranges Lump Sum Tables

tables used to value accessories that are not valued by area

The Building Schedule menu option provides the user access to the listing of all accessory improvement types that are available for the purpose of adding such to a parcel.

Accessory Improvement

the Description of the item, the Comp # (Component Number), the Method (Calculation Method), the Table (used for Lump Sum

items only), the Cost (the Base Cost) are

displayed.

Accessory Improvements Comp #

a four character user defined code that is used to identify the accessory item.

The code MUST be unique. Any mix of letters and numbers is acceptable.

All four positions do not need to be used. An Edit button is located to the right of the Comp # field.

The button is placed there to prevent inadvertent chances to an existing component number.

If a component number is to be modified, the user must first click the Edit button.

Description definition of the accessory schedule item. The definition should be clear and precise. The user may access the accessory item

with the description. This applies to the schedule item and also

to data entry at the parcel level. Careful consideration should be given to

the descriptions to facilitate data entry.

Pricing Method - defines the manner in which the accessory will be valued. Three different pricing methods are available.

Pricing Method - Lump Sum used for accessories that will not be

valued on a square foot or area basis. The valuation of these accessories is

table driven. Consequently, any accessory with a

Lump Sum pricing method must also be assigned a Table Code.

No Base Cost is needed.

Pricing Method - Non-Value Item used for accessories where value

generation is not desired. Most often used for items such as

garbage collection or street lights where a user-fee system is established by the County.

Pricing Method - Square Foot used for accessories that will be

valued by the square foot or area. No Table Code should be assigned for

these accessories. A Base Cost is required.

Accessory Improvement Table Code – used to tie the accessory

item to the lump sum table entries. Clicking on the Table Code field

description will provide the user access to the accessory lump sum tables.

Accessory items that have been assigned a pricing method of Lump Sum must have a table code.

Accessory Improvement

Base Cost The displayed base cost is a result of

the following formula being applied to information stored in acc_ctrl.dbf:

Base Cost = acc_ctrl.base_cost * Acc Base DSF {round to 2 dec}

The Acc Base Dollars PSF is found in the Accessory Size Adjustment table

Accessory Improvements One of the entries in this table must be

marked as the base accessory size This is used to inform WinGAP as to

which Dollar PSF is the basis for the calculation of accessory values when stored in the tables.

The Base Size is designated by placing a check mark in the box to the left of Base Size.

Accessory Valuation

Values entered on Base Schedule screen are saved in the following fashion:

Base Cost / Acc Base DSF Attached Garage Base Cost =

48.00 48.00 / 1 = 48.00

Size Adjustment The Accessory Size Adjustment

schedule can be accessed through Tools >> Schedules / Tables >> Accessories >> Size Adjustment Table.

Accessory Improvements The Size Adjustment Table allows the user to

enter as many square foot ranges as deemed necessary to accurately value accessory improvements.

Each square foot range will be assigned a dollar per square foot cost which will form the basis for valuing Square Foot method accessories.

This table would normally be used to create a reduction in unit cost as size increases.

Accessory Size Adjustment

Acc Base Cost * Dollars PSF from Size Adj Table * area

Attached Garage w/ 800 sq ft 48 * 1.00 * 800 = 38,400

Attached Garage w/ 1500 sq ft 48 * .90 * 1500 = 64,800

Accessory Improvements Lump Sum Tables accessed from Tools >> Schedules /

Tables >> Accessories >> Lump Sum Tables

provides the appraiser with the ability to enter schedule items that will be used to value accessories which are not typically valued by the square foot grain bins, silos, fences, etc

Before an entry is made in the Lump Sum Tables, the appraiser should have established an accessory schedule item in the Building Schedule and provided the item with a Table Code as discussed in Building Schedules.

The column headings refer to the DESCRIPTION, TABLEREF code number, the DIM1 and DIM2 pointers, and the POINTS assigned to this type of Accessory Building

Table Reference – table code that was assigned to accessory on the Building Schedule.

Dimension 1 & 2 – a numeric code that is user defined.

Unit Dollars – The entry in unit dollars should be the actual cost of the item.

Accessory improvements can be depreciated with an override depreciation or through a depreciation table lookup.

The depreciation table for accessories can be access by going to Tools >> Depreciation >> Accessory Tables

Accessory Improvements Number of Grade and Age combinations is

virtually unlimited. However, the only category under the

Depreciation Factors section of the schedule that need be completed is the Av column.

Accessory items are not assigned a condition.

Consequently, all accessory conditions default to average.

If the grade of the improvement does not match a grade in the table, the next lowest grade is chosen.

If no lower/higher grade level exits in the table, the factors associated with the lowest/highest grade level are used.

Accessory Improvements Calculation Steps

1. the accessory item is found in the Building Schedule and the Base Cost is obtained

2. Calculate the square footage of the accessory 3. Lookup Dollars PSF in the Size Adjustment table 4. Calculate depreciation 5. Lookup Neighborhood adjustment if applicable 6. The internal WinGAP formula below is applied:

Value = (Base Cost * Dollars PSF) * Sq Ft * Grade (exp as decimal value) * Depr * Neighborhood Adj * Percent Complete * Func Obs

If the appraiser wishes to use the actual dollars that are displayed on the schedule screens, the following formula should be used: Value = (Base Cost * (Dollars

PSF / 10)) * Sq Ft * Grade (exp as decimal value) * Depr * Neighborhood Adj * Percent Complete * Func Obs

Using Wingap, enter these accessory improvements on G01-00 -011

Verify value via manual calculations

Item Grade

Year Built

Width Length N/H

Barn 75 2000 50 45 1.00

Barn w/ Loft 105 1998 60 75 1.00

Batting Cage 100 1996 30 60 1.00

Base Cost = 7.2 SQFT = 50*45=2250 Dollars PSF from Size Adj = 1.00 Depr

2001-2000=1 Depr = .98

Value = (7.20*1.0)*2250*.75*.98=11907

Item Grade

Year Built

Width Length N/H

Barn 75 2000 50 45 1.00

Base Cost = 9.36 SQFT = 60*75=4500 Size Adj = 1.00 Depr

2001-1998=3 Depr Inc = abs(.98-.70)=.28 Inc Factor = .28/abs(10-1)=.28/9=.03 Depr Adj = (3-1) * .03 = 2*.03 = .06 Calc Depr = .98 - .06 = .92

Value = (9.36*1.0)*4500*1.05*.92=40,688

Item Grade

Year Built

Width Length N/H

Barn w/ Loft 105 1998 60 75 1.00

Base Cost = 12.00 SQFT = 1800 Size Adj = 1.00 Depr

2001-1996=5 Depr Inc = abs(.98-.70)=.28 Inc Factor = .28/abs(10-1)=.28/9=.03 Depr Adj = (5-1) * .03 = 4 * .03 = .12 Calc Depr = .98 - .12 = .86

Value = (12*1.0)*1800*1.00*.86=18,576

Item Grade

Year Built

Width Length N/H

Batting Cage 100 1996 30 60 1.00

Exercise 6 in book

Lump Sum item The Table Code is acquired from the

Building Schedule Schedule items with the Table Code

are located in the Lump Sum Table Dimension 1 and Dimension 2 values

from the accessory record are used to isolate entry in Lump Sum Table

Accessory ImprovementsDimension 1 Dimension 2 Points

15 11 18.94

15 15 24.06

18 8 12.14

If an exact match of the Dimension1 and Dimension 2 values is found, the points associated with that record used

If an exact match is not found but a match for Dimension 1 is located, the next higher match is taken and the points assigned to that record are used.

For example, if the following two records existed in the Lump Sum table and the accessory Dimension 1 was 15 and Dimension 2 was 13, the Points value of 24.06 would be used. Dimension 1 Dimension 2 Points

15 11 18.94

15 15 24.06

18 8 12.14

If no match for Dimension 1 is found, the lookup will default to the highest entry of the next lowest Dimension 1 entry in the Lump Sum table.

For example, as shown below, if the following three records existed in the Lump Sum table and the accessory Dimension was 17 and Dimension 2 was 13, the Points value would be taken from the 18 x 8 row. Dimension 1 Dimension 2 Points

15 11 18.94

15 15 24.06

18 8 12.14

The number of units from the accessory record is obtained

The following internal WinGAP formula is applied: Value = Grade from Acc * # of

Units * Points * Acc Pt Cost * Neigh Factor * Depr * Percent Comp * Func Obs {round to 0 dec}

To calculate the value based on information from the Accessory Tables / Lump Sum Schedule screen, the following formula would be used: Value = Grade from Acc * # of

Units * Unit Dollars * Neigh Factor * Depr * Percent Comp * Func Obs {round to 0 dec}

Grade 1.00

Dim1 15

Dim2 16

Units 2

Phy Dep Ovr

% Comp 1.00

Func 1.00

NH 1.00

Point Cost 200

Dimension 1 Dimension 2 Points

15 11 18.94

15 15 24.06

18 8 12.14

Value = 1.00 * 2 * 24.06 * 200 * 1.00 * .75 * 1.00 * 1.00 = 7218

Exercise 7 in book

Rural Land

Rural land pricing in WinGAP is developed using the valuation methodology prescribed in the Appraisal Procedures Manual (APM).

Rural land is broken down into two categories, large tracts and small parcels.

Rural Land

Large tracts are valued based on use and production capabilities with adjustments for location and size.

Small parcels are valued on a tract basis or with the use of a base value.

Both small parcel methods incorporate adjustments for size and location into the valuation process.

Rural Land

One of the first steps in the valuation of rural land is to establish a small acre break.

The small acre break is the acreage level at which buyers and sellers of rural land begin to consider the capability of the land to produce crops more so than considering its potential for residential purposes.

Rural Land

The small acre break in WinGAP is found on the Preferences screen which is accessed through the Tools menu.

Rural Land

As shown on the Preferences form above, the Rural Acre Break is set to 30.00 acres indicating that entries in the accessibility/desirability (size/location) table will be tract values from 0.01 to 29.99.

Tract values represent the total land value of the parcel.

Rural Land

No multiplication of acres times a base land rate tables place.

Entries in the accessibility/ desirability table from 30.00 acres and above will represent factors that adjust base land values according to location, desirability and size.

Rural Land

The appraiser may opt to set the Rural Acre Break at 0.00 acres allowing the entry of only land adjustment factors in the accessibility/desirability table.

Rural Land

Other than the items discussed in Preferences for rural land, the other schedules can be accessed through Tools >> Schedules / Tables

Rural Land

Rural Land The Accessibility / Desirability table is

designed to accommodate tract values for small parcels and factors to adjust large parcel values.

The tract values and factors are assigned to acre increments and up to 45 accessibility / desirability code combinations at the acre increment.

As many acre increments as needed can be added to the table.

Rural Land

The table above shows tract values for the 7.00 acre increment using 5 accessibility and all 5 desirability categories.

The table is loaded with tract values due to the 30.00 Rural Acre Break in Preferences.

Rural Land The tract values of the Accessibility /

Desirability table can be converted to factors by keying a base small parcel value in the Rural

Land table (recommend keying 1000) Changing the Rural Acre Break in Preferences

0.00 Converting the tract values in the table to

factors by dividing the tract value by the acre level and then by the base small parcel value

Rural Land

The tract value of 38,486 for the 7.0 acre 1A entry would be converted to a factor of 5.498. ( 38,486 / 7 / 1000) {round to 4 dec)

Exercise 11 in book

Rural Land

The next screen shows an Accessibility / Desirability table with factors for large tracts, those parcels that have acreage equal to or greater than the Rural Acre Break.

Rural Land

It is not necessary to add an acre increment for each acre.

An interpolation routine is used to calculate tract values and factors for acre increments that are not part of the table.

Rural Land Note: For WinGAP’s interpolation routines

to operate correctly, an additional acre increment must be inserted immediately below the primary Acre Break, which is 30.00 acres in our example above.

This acre increment must be .01 less than the primary Acre Break, as shown below in the Accessibility / Desirability table

.01 – 29.99

Rural Land

Calculation of a rural land tract with acreage less than the Rural Acre Break is as follows

(1) Tract value is obtained from the Accessibility / Desirability table based on the parcels acreage and accessibility / desirability code.

Rural Land

(2) If the exact acreage is not found in the table, the tract value is interpolated with the formula below: Int Value = ((( parcel acres – lower

acre level ) / ( higher acre level – lower acre level )) * ( value @ higher acre level – value @ lower acre level )) + value @ lower acre level

Rural Land

(3) The value or interpolated value is then multiplied by the total influences and then the neighborhood influence.

Rural Land

Example ((( parcel acres – lower acre level ) / ( higher acre

level – lower acre level )) * ( value @ higher acre level – value @ lower acre level )) + value @ lower

acre level ((( 7.75 – 7.0 ) / ( 8.0 – 7.0 )) * ( 19064 – 17738 )) +

17738 ((.75 / 1.00) * 1326) + 17738 (.75 * 1326) + 17738 995 + 17738 = 18733 FMV = 18,733 * 1.00 (other infl) = 18,733

Exercise 9 in book

Rural Land

The steps and formula for calculating a rural land parcel with acreage equal to or greater than the Rural Acre Break are as follows:

Rural Land

(1) Base per acre values are obtained from the Rural Land schedule for each land category and productivity rating, also referred to as a land subrecord, comprising the parcel.

Rural Land

(2) Accessibility / Desirability factor is obtained or interpolated from the Accessibility / Desirability Table based on the parcel’s acreage and accessibility /desirability code. A code of 0A always is assigned a

factor of 1.00.

Rural Land

(3) Raw land value is calculated by multiplying the acres assigned to each land subrecord by the category / rating base rate.

(4) The individual calculations from step 3 are summed.

Rural Land

(5) The sum of the raw land is multiplied by the acc / des factor.

(6) The result of step #5 is then multiplied by neighborhood adjustment and then by the total influence from the Land Influences section of the Land Info screen

Rural Land

Example ((( 155 – 100 ) / ( 200 – 100 )) * ( 1.1170 – 1.4336 )) +

1.4336 (( 55 / 100 ) * -.3166 ) + 1.4336 ( .55 * -.3166 ) + 1.4336 -.1741 + 1.4336 1.2595 Raw Land

Open3 = $1200 * 85 acres = 102,000 Wood4 = $800 * 70 acres = 56,000 Total = 158,000

FMV = 158,000 * 1.2595 * 1.00 * 1.00 = 199,001

Rural Land

The exception to the calculation process above is in a situation where a land subrecord (category / rating) has been assigned a per acre override.

The acc / des factor is calculated in the same manner but is not applied to the overridden subrecord.

Rural Land

For example, if the Wood 4 subrecord would have been assigned a per acre override of $500, the calculation would have proceeded as shown below: Open3 = $1200 * 85 = 102,000 Wood4 = $500 * 70 = 35,000 FMV = ((102,000*1.2595) + 35,000 FMV = 128,469 + 35,000 FMV = 163,469

Exercise 10 in book

Rural Land Interpolation ExerciseLand Type Prod Acres $/Ac Value

Open 2 10.00 1,168 11,680

Wood 1 15.00 1,520 22,800

Wood 4 10.35 442 4,575

Total Base 39,055

Interpolation Exercise

Int Value = (((acres – low ac)/(high ac – low ac)) * (value @ high ac – value @ low ac)) + value @ low ac

IV = (((35.35 – 34)/(36 – 34)) * (2.33 – 2.34)) + 2.34

IV = ((1.35/2) * -.01) + 2.34 IV = (.675 * -.01) + 2.34 = 2.3333

Rural Land Interpolation ExerciseOpen 2 10.00 1168 11,680

Wood 1 15.00 1520 22,800

Wood 4 10.35 442 4,575

Total Base 39,055

Acc/Des Adjustment 2.3333

FMV 91,127

Land Influences

The Land Influences table is reached from the Tools >> Schedules / Tables >> Land Influences menu option

These options will appear in the combo boxes in the Land Influence section of the Land Information screen

Land Influences

How these Land Influences are applied depends on which Land Influences option is selected on the Preferences Form

Land Influences

The Land Influences combo box on the Preferences Form offers two selections for applying land influences: Additive Compound

Land Influences The Additive method allows the

appraiser to apply land influences in the following manner: 1. If an influence is greater than 0, 1.00 is

subtracted from the influence 2. The results of step #1 are added together 3. The sum in step #2 is added to 1.00 4. The result of step #3 is then multiplied

times the raw land value

Land Influences

The Compound method of applying influences takes all of the influences that are greater than 0.00 and multiplies them together, rounding to two decimal places.

The product of the multiplication is then applied to the raw land value.

Land Influences Page 89 Example: Additive v.

Compound Raw Land Value = 10,000 Corner Influence = 1.25 Topo Influence = .90 Water Influence = 1.30 Corner 1.25 – 1.00 .25

Topo .90 – 1.00 -.10

Water 1.30 – 1.00 .30

Total .45

Additive Infl

Total + 1.00 1.45

FMV Raw Land * Infl

14,500

1.25 * .90 * 1.30 = 1.46

10,000 * 1.46 = 14,600

Land Influences

The method of applying land influences is strictly a call made by the appraiser. Once selected, the method will be applied globally to all land.

Rural Land Schedule

The Rural Land menu option on the Tools >> Schedules / Tables menu

Rural Land Schedule

Up to 99 categories of rural land can be added

Printing Schedules

Web Address

ftp://ftp.wingap.com/courses/res_schedules/

wingap residential imp / accessory / rural land schedules & pricing

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