The Student Handbook toTHE APPRAISAL OF REAL ESTATE

1

Chapter 8

Data Collection

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 2

Types of Data

General data Economic trends

International economic trends National and regional economic trends Local economic considerations Trends affecting rural land

Social trends (demographics) Government regulations Trends in building activity Taxes Financing

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 3

Types of Data, continued

Specific data Competitive supply inventory Demand study

Data sampling

Student Handbook to THE APPRAISAL OF REAL ESTATE

Data Collection

Sources of general data Sources of specific data

Public records Listings and offerings Multiple listing services National property databases Published news Market participants

Sources of competitive supply and demand data

Chapter 8 4

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 5

U.S. Census Bureau Population Data by State

USA - Statistics in Brief - Resident Populations of States and DCResident Resident Percent

State population population change,April 2, 2004 July 2, 2008 2000 - 2004

United States 281,424,602 293,655,404 4.3

Alabama 4,447,351 4,530,182 1.9Alaska 626,931 655,435 4.5Arizona 5,130,632 5,743,834 12.0Arkansas 2,673,398 2,752,629 3.0California 33,871,653 35,893,799 6.0Colorado 4,302,015 4,601,403 7.0Connecticut 3,405,602 3,503,604 2.9Delaware 783,600 830,364 6.0District of Columbia 572,059 553,523 -3.2Florida 15,982,824 17,397,161 8.8Georgia 8,186,816 8,829,383 7.8Hawaii 1,211,537 1,262,840 4.2Idaho 1,293,956 1,393,262 7.7Illinois 12,419,647 12,713,634 2.4Indiana 6,080,517 6,237,569 2.6Iowa 2,926,382 2,954,451 1.0Kansas 2,688,824 2,735,502 1.7Kentucky 4,042,285 4,145,922 2.6Louisiana 4,468,958 4,515,770 1.0Maine 1,274,923 1,317,253 3.3Maryland 5,296,506 5,558,058 4.9Massachusetts 6,349,105 6,416,505 1.1Michigan 9,938,480 10,112,620 1.8

Minnesota 4,919,492 5,100,958 3.7Mississippi 2,844,656 2,902,966 2.0Missouri 5,596,683 5,754,618 2.8Montana 902,195 926,865 2.7Nebraska 1,711,265 1,747,214 2.1Nevada 1,998,257 2,334,771 16.8New Hampshire 1,235,786 1,299,500 5.2New Jersey 8,414,347 8,698,879 3.4New Mexico 1,819,046 1,903,289 4.6New York 18,976,821 19,227,088 1.3North Carolina 8,046,491 8,541,221 6.1North Dakota 642,204 634,366 -1.2Ohio 11,353,145 11,459,011 0.9Oklahoma 3,450,654 3,523,553 2.1Oregon 3,421,436 3,594,586 5.1Pennsylvania 12,281,054 12,406,292 1.0Rhode Island 1,048,319 1,080,632 3.1South Carolina 4,011,816 4,198,068 4.6South Dakota 754,840 770,883 2.1Tennessee 5,689,262 5,900,962 3.7Texas 20,851,790 22,490,022 7.9Utah 2,233,198 2,389,039 7.0Vermont 608,827 621,394 2.1Virginia 7,079,030 7,459,827 5.4Washington 5,894,140 6,203,788 5.3West Virginia 1,808,350 1,815,354 0.4Wisconsin 5,363,715 5,509,026 2.7Wyoming 493,782 506,529 2.6

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 6

Sample of School Statistics Available on the U.S. Census Bureau Web site

Sample of school statistics available on the US Census Bureau website.

A set of basic characteristics for the School District you selected is provided below. Subject Number Percent

 Total Population 64,709 N/A

 Male 31,668 48.9

       Under 5 Years 2,731 4.2

       5 to 9 years 3,031 4.7

       10 to 14 years 2,989 4.6

       15 to 17 years 1,598 2.5

       18 to 19 years 645 1

 Female 33,041 51.1

       Under 5 Years 2,620 4

       5 to 9 years 2,877 4.4

       10 to 14 years 2,836 4.4

       15 to 17 years 1,559 2.4

       18 to 19 years 529 0.8

 Total Population in Households 64,149 100

       In Family Households 58,630 N/A

       Householder 18,174 100

              Male 15,268 84

              Female 2,906 16

 Total Occupied Housing Units 22,817 100

       Owner Occupied Housing Units 19,267 84.4

       Renter Occupied Housing Units 3,550 15.6

 Average Household Size 2.81 N/A

 Average Family Size 3.2 N/A

 AVERAGE FAMILY SIZE 

 SEX AND AGE 

 RELATIONSHIP BY HOUSEHOLD TYPE (INCLUDING LIVING ALONE) 

 TENURE 

 AVERAGE HOUSEHOLD SIZE 

 Total 41,675 N/A

       Male 19,980 47.9

          12th grade, no diploma 195 1

          High school graduate (includes equivalency) 1,960 9.8

          Some college, 1 or more years, no degree 2,430 12.2

          Bachelor’s degree 8,205 41.1

          Master’s degree 2,915 14.6

          Professional school degree 1,680 8.4

          Doctorate 710 3.6

       Female 21,700 52.1

          12th grade, no diploma 250 1.2

          High school graduate (includes equivalency) 3,755 17.3

          Some college, 1 or more years, no degree 3,060 14.1

          Bachelor’s degree 7,465 34.4

          Master’s degree 2,900 13.4

          Professional school degree 725 3.3

          Doctorate 335 1.5

 Median gross rent 772 N/A

 Median value 199,200 N/A

 Per capita income in 1999 41,359 N/A

 Total 84,729 N/A

       Owner occupied 94,942 N/A

       Renter occupied 41,176 N/A

 Total 18,215 N/A

       Income in 1999 below poverty level 225 1.2

       Income in 1999 at or above poverty level 17,990 98.8

 Total 22,835 N/A

       Income in 1999 below poverty level 465 2

       Income in 1999 at or above poverty level 22,370 98

     Total Students 11,628

     Total FTE Teachers 763.6

     Total Schools 14

 POVERTY STATUS IN 1999 OF FAMILIES 

 POVERTY STATUS IN 1999 OF HOUSEHOLDS 

  Common Core of Data, Local Education Agency Universe Survey, 1999-2000 (NCES)

 PER CAPITA INCOME IN 1999 (DOLLARS) 

 MEDIAN HOUSEHOLD INCOME IN 1999 (DOLLARS) BY TENURE 

 SEX BY EDUCATIONAL ATTAINMENT FOR THE POPULATION 25 YEARS AND OVER 

 MEDIAN GROSS RENT (DOLLARS) 

 MEDIAN VALUE (DOLLARS) FOR ALL OWNER-OCCUPIED HOUSING UNITS 

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 7

Data Collection, continued

Real Estate Transaction Standard (RETS) and data standards

Geographic information systems (GIS) and Topographical Integrated Geographic Encoding and Reference (TIGER)

Selecting comparable data and establishing comparability

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 8

Data Organization

Units of comparison Price per square foot of gross living area Price per acre Price per front foot on the lake

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 9

Grid Analysis Example

Common Residential Sales GridSUBJECT

Address 6622 Lakeshore Blvd. 6663 Lakeshore Blvd. 6569 Lakeview Road 6987 Beech RoadProximity to subject Same platted addition Same platted addition Same platted additionSale price $376,000 $333,500 $391,000Sale price/GLA 129.66$ 110.21$ 118.48$ Data source/verification Inspection MLS 40037 MLS 19816 MLS 33388Value adjustments Description Description Adjustment Description Adjustment Description AdjustmentSales—financing concessions Assume none No concessions -$ No concessions -$ No concessions -$ Date of sale/time @ 3% Now 6 months ago 5,600$ 9 months ago 7,500$ 11 months ago 10,800$ Location Lakeshore acres Lakeshore acres -$ Lakeshore acres -$ Lakeshore acres -$ Leasehold/fee simple Fee simple Fee simple -$ Fee simple -$ Fee simple -$ Site/view 90x137/lake frnt 90x160/lake frnt (3,800)$ 98x146/lake frnt (6,700)$ 65x170/lake frnt (7,800)$ Design (style) 2 story/avg 2 story/avg. -$ 2 story/avg. -$ 2 story/avg. -$ Actual age/effective age @ $4,000 yr. 11 9 (8,000)$ 17 24,000$ 3 (32,000)$ Condition Average Average -$ Average -$ Average -$ Above grade room count 10 | 4 | 3.5 10 | 4 | 3.5 -$ 10 | 4 | 3.5 -$ 10 | 4 | 3.5 -$ Gross living area @ $45 3232 2900 14,900$ 3026 9,300$ 3300 (3,100)$ Basement @ $15 1200 1127 1,100$ 1706 (7,600)$ 900 4,500$ Finished area below grade @ $10 1,000 800 2,000$ 1,200 (2,000)$ 600 4,000$ Heating and cooling GFA/No AC GFA/Cent AC -$ GFA/Cent AC -$ GFA/Cent AC -$ Garage/carport 3 car/dt/gar 3 car/at/gar -$ 3 car/at/gar -$ 3 car/at/gar -$

Scr. porch Deck 5,000$ Deck 5,000$ Scr. porch -$ Other Pool (25,000)$ None -$ None -$ Net adjustment (8,200)$ 29,500$ (23,600)$ Adjusted sale price of comparable $367,800 $363,000 $367,400

Comparable 1 Comparable 2 Comparable 3

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 10

Address Price Sale Date Bd Bath F/HLegal Garage Level Bas GLA $ per s.f.

13992 Washita CT  $ 310,000 568 days ago 4  2/1  Grande Est. 3CarAtt  2 Levels  N  2900 106.90$ 13960 Wildcat DR  $ 336,500 134 days ago 4  0/0  Grande Est. 2CarAtt  2 Levels  N  2991 112.50$ 13947 Wildcat DR  $ 345,000 321 days ago 4  2/1  Grande Est. 3CarAtt  2 Levels  N  2999 115.04$ 6779 Osage DR  $ 360,500 45 days ago 4  3/2  Grande Est. 3CarAtt  2 Levels  N  3100 116.29$ 14070 Planting $ 333,500 11 days ago 4  3/0  Grande Est. 3CarAtt  2 Levels  N  3104 107.44$ 2671Heather S. Dr  $ 345,000 548 days ago 3  3/1  Grande Est. 3CarAtt  2 Levels  N  3105 111.11$ 13976 Wildcat DR  $ 333,000 85 days ago 4  4/0  Grande Est. 3CarAtt  2 Levels  N  3164 105.25$ 13946 Wildcat DR  $ 329,000 25 days ago 4  3/1  Grande Est. 3CarAtt  2 Levels  N  3202 102.75$ 2420 Winfield DR  $ 339,000 18 days ago 4  3/1  Grande Est. 3CarAtt  2 Levels  N  3247 104.40$ 14233 Lacey St $ 336,000 32 days ago 5  3/2  Grande Est. 3CarAtt  2 Levels  N  3248 103.45$ 14260 Trailwind CT  $ 335,000 125 days ago 4  3/1  Grande Est. 3CarAtt  2 Levels  N  3258 102.82$ 6062 Clearview DR  $ 345,600 111 days ago 4  3/1  Grande Est. 3CarAtt  2 Levels  N  3330 103.78$ 2716 Windy Knoll LN  $ 356,800 258 days ago 3  2/1  Grande Est. 3CarAtt  2 Levels  N  3350 106.51$ 2666 Heather S. Dr  $ 355,000 45 days ago 3  3/1  Grande Est. 3CarAtt  2 Levels  N  3356 105.78$ 1031 Spring Highland $ 345,800 63 days ago 4  3/2  Grande Est. 2CarAtt  2 Levels  N  3450 100.23$ 6609 Woodlake Drive $ 375,000 211 days ago 5  4/1  Grande Est. 3CarAtt  2 Levels  N  3625 103.45$ 673 Allenhurst Circle CI  $ 435,000 8 days ago 3  3/0  Hunters Meadow 2CarAtt  2 Levels  N  2525 172.28$ 12462 Burke DR  $ 489,000 45 days ago 3  3/0  Hunters Meadow 2CarAtt  1 Level  N  2555 191.39$ 6103 Hummingbird CI  $ 465,000 25 days ago 3  2/0  Hunters Meadow 3CarAtt  2 Levels  N  2698 172.35$ 1077 Spring Highland DR  $ 489,000 456 days ago 3  3/1  Hunters Meadow 2CarAtt  2 Levels  N  2700 181.11$ 3714 Penzance PL  $ 475,000 14 days ago 4  4/0  Hunters Meadow 3CarAtt  2 Levels  N  2750 172.73$ 6961Champions Drive $ 485,000 35 days ago 4  3/1  Hunters Meadow 3CarAtt  1 Level  N  2879 168.46$ 12609 Branford ST  $ 489,000 65 days ago 3  2/1  Hunters Meadow 2CarDet  2 Levels  N  2968 164.76$ 6771 Herron Dr $ 489,000 92 days ago 4  3/1  Hunters Meadow 2CarAtt  2 Levels  N  3000 163.00$ 12062 Ashcroft PL  $ 515,000 359 days ago 4  3/1  Hunters Meadow 3CarAtt  2 Levels  N  3125 164.80$ 3792 Heathfield CT  $ 391,915 35 days ago 4  2/1  Longtree 3CarAtt  2 Levels  N  2800 139.97$ 3761 Branch Creek CT  $ 394,405 37 days ago 4  2/1  Longtree 3CarAtt  1 Level  N  2800 140.86$ 3772 Heathfield Ct $ 379,000 125 days ago 4  2/1  Longtree 3CarAtt  2 Levels  N  2850 132.98$ 3746 Castle DR  $ 432,500 354 days ago 5  3/1  Longtree 3CarAtt  1 Level  N  2881 150.12$ 11761 Sweeping Ridge  $ 404,000 65 days ago 4  3/1  Longtree 3CarAtt  2 Levels  N  2968 136.12$ 3746 Branch Creek CT  $ 415,000 158 days ago 4  2/1  Longtree 3CarAtt  2 Levels  N  2992 138.70$ 12069 Auburn Crossing   $ 417,568 52 days ago 4  3/1  Longtree 3CarAtt  2 Levels  N  3156 132.31$ 12143 Team Lane $ 439,750 245 days ago 4  3/1  Longtree 3CarAtt  2 Levels  N  3200 137.42$ 2644 Royal Blvd. $ 425,000 45 days ago 5  4/1  Longtree 3CarAtt  2 Levels  N  3255 130.57$ 3770 Heathfield CT  $ 460,655 952 days ago 4  3/1  Longtree 3CarAtt  2 Levels  N  3356 137.26$

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 11

Graphic Analysis

$-

$50

$100

$150

$200

$250

2400 2650 2900 3150 3400 3650

Gross Living Area

Pricer per sq. ft. GLA

Grande EstatesHunters MeadowLongtree

Student Handbook to THE APPRAISAL OF REAL ESTATEChapter 8 12

Suggested solutions begin on page 419.