Building appraisal report


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Title Page
Transmittal Letter
Table Of Content :
1. Summary
2. Survey
3. Calculation
4. Conclusion

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Building appraisal report

  2. 2. INTRODUCTION • Documentation / Report prepared by professional appraiser to determine the value of building property. • Prepared when a person wants to buy a building property • It tells the homeowner if the purchase is a good deal or not. • The report is also submitted to lenders, who can use the valuation of the home to determine whether to grant the loan. •After making a careful evaluation of the specific item being appraised and the market conditions, the appraiser writes his appraisal report. • In it he specifies the appraised value of the item. He also specifies his methodology used to arrive at that value
  3. 3. TITLE PAGE It should include following data : • Property name and identification • Address or location of the property being appraised • Name and address of the client • Name and address of the appraiser • Effective date of the valuation • Date of report preparation
  4. 4. LETTER OF TRANSMITTAL Introduction • It presents the appraisal report to the client. • Letters of transmittal are drafted in proper business style • It is the part of an appraisal report & it should not be confused with cover page • The letter of transmittal is used to provide a permanent record for identifying the writer and intended reader Letter of transmittal includes : • • • • Property name or identification Effective date of the value estimate Type of value estimated A statement providing location of the property and a brief description • Statement that all investigation and analysis are done by appraiser • Final estimation • Signature of the appraiser.
  7. 7. TOWN HOUSE
  9. 9. SUMMARY • Provides summary of the appraisal problem, factors considered, analyses performed, and conclusions reached. • Everything is presented in bullet form with brief statements made about each topic covered.
  10. 10. SUMMARY
  11. 11. SURVEY : Market Analysis Location • Located in Southern portion of City Lawrence, Kansas • Lawrence is accessible via interstate 70 on the north & highway k-10 on the south which is a major four lane highway connecting Lawrence & suburban Kansas city
  12. 12. SURVEY : Market Analysis Population : Estimated population of the city of Lawrence for 1990 was 65,608 persons In year 2000 the estimated population was 80,098 (22 % increase 22 from year 1990 ) In year 2010 the estimated population was 87,643 ( 9% increase from year 2000 ) Education : Lawrence Public school consist of 15 elementary schools, 4 junior high & 2 high schools Haskell's Indian Nation University & the university of Kansas are the 2 university present in Lawrence Local & cultural attraction includes Clinton Lake & Perry Lake Employment : 2010 year information indicates approx. 36,739 households It indicates 57% of households in Lawrence have income greater than $ 35.000 Unemployment has historically been in 3% to 5% but due to economic conditions, it higher at present.
  13. 13. SURVEY : Building Permit Analysis • Table shows the historical results from 2001 to 2012 in the city Lawrence • There has been a drop in the smaller size residential construction industry in last few years • Multifamily has not seen a drop other than from the major ramp up year 2008 to now • Multifamily increase is due to attractive interest rated that are present available
  14. 14. SURVEY : Site Description Site is 152,460 square feet & long rectangular in shape Terrain is level to gently sloping Access is via seven curb cuts on the south side of West 26th Street. Consists of mixed zoning Eastern side consists of commercial building while Western side consists of residential buildings
  15. 15. SURVEY : Environmental Consideration
  16. 16. SURVEY : Flood Hazard Map
  17. 17. SURVEY : Description Of Improvement • It gives the detailed description of building property • It mainly gives the details of building material used by the building property • Appraiser informs about the changes needed to be done in the building property • Appraiser estimates the cost for building property
  18. 18. SURVEY : Description Of Improvement • • • • • • • • • • • • The apartment buildings are wood frame construction with painted lap siding and a small portion being brick. The foundations are all concrete slab on grade construction. The roofs are pitched and covered with asphalt shingles. Interior inspection of the subject did not indicate any areas of roof leakage Each unit has central air conditioning and forced air gas heat along with a 40 gallon hot water heater. Interior space is partitioned utilizing drywall construction. In addition, the property does not feature water sprinkler fire protection systems. Floor coverings in the units are a combination of vinyl, carpet and tile. Walls and ceilings are generally painted drywall. Bathrooms feature a stool, tub/shower insert, medicine cabinet, towel bars, exhaust fan etc Kitchens have stainless steel sinks, disposal, adequate wood cabinets, electric range, refrigerator and dishwasher. The landlord provides a washer/dryer set for all of the subject units. Each of the units has a 40 gallon gas fired hot water heater
  19. 19. SURVEY : Description Of Improvement
  20. 20. SURVEY : Floor Plans Single bedroom 615 sq. ft Two bedroom 800 sq. ft Two bedroom 1150 sq. ft Three bedroom 1556 sq. ft
  21. 21. SURVEY : Photographs
  22. 22. SURVEY: High And Best Use Conclusion HIGH AND BEST USE CONCLUSION • The site is located at West 26th Street in the southern portion of Lawrence. • The site contains an estimated 152,460 square feet or 3.50 acres. • The subject is rectangular shaped in configuration and access is via seven curb cuts on the south side of West 26th Street. • The site is generally level to gently sloping and has all utilities available for development. • The building property has a mixed zoning • Eastern side of the building consists of commercial building while western consists of multi dwelling residential building • Both zoning designations would allow for multifamily development. • Therefore the eastern portion of the site would allow for retail, office and multifamily and the western portion allow for multifamily developments.
  23. 23. CALCULATION : Valuation Methodology • The process of determining the value of a building property is known as Valuation Methodology. • The traditional methods of processing market data into a value indication include: Approach. Cost Approach Sales Comparison Approach Income Capitalization Approach 1. COST APPROACH : • It is an approach in which total cost of the property is estimated by summing up the cost of land and structure • Basic steps in the cost approach are : a) b) c) d) e) Estimate land value as though vacant and available to be put to its highest and best use Estimate reproduction or replacement cost of structures Estimate accrued depreciation Deduct depreciation from reproduction or replacement cost Add depreciated reproduction or replacement cost to the value of the land
  24. 24. CALCULATION : Sales Comparison Approach • It involves the comparison with the subject property of similar properties that have recently been sold or similar properties currently on the market. • The sales comparison approach focuses on the similarities and differences among comparable sales that affect value • A total of five sales of multifamily buildings in Lawrence were included in this report • Selection where on the basis of their location, size, design and features
  25. 25. CALCULATION : Sales Comparison Approach
  26. 26. CALCULATION : INCOME APPROACH • Introduce this section with a summary of the income approach and its foundation, including the principle of anticipation. • Include a discussion of the theoretical basis and the relationship of the income approach to the highest and best use of the property. • Points out income and expenses • Estimates conversion of improvements suggested in the highest and best use section is reflected within this approach..
  27. 27. INCOME APPROACH: Net Operating Income
  28. 28. CONCLUSION