Milestone AssignmentSubmit Assignment· Due Aug 18 by 1159pm.docx

Milestone Assignment
Submit Assignment
· Due Aug 18 by 11:59pm
· Points 250
· Submitting a file upload
This assignment will be your milestone assignment, which is an
assignment to reflect on what you have learned in this course.
The objectives of this assignment are to (1) gain practice
applying microeconomic theory, (2) to become familiar with
sources of economic market information and (3) present various
economic concepts and apply to a firm. You will answer the
following questions based on a company that you have
identified. It is important to make sure to pick a company that
has relevant data that is easy able to access.
1. Identify the company by name and location.
2. Identify the firm’s primary industry and market structure
3. Describe the firm’s customers (households, business, schools,
governments, etc.).
4. Explain the major determinants of demand for the firm’s
primary product that they sell.
5. Does the firm face elastic or inelastic demand with regard to
its primary product? Relate the characteristics of the price
elasticity of demand in your answer.
6. How would you describe the market structure of the industry
in which your firm operates? You will need to relate to each of
the characteristics of the market structure in your answer. Make
sure that you pick the correct market structure and are able to
relate the market characteristics. Does the firm have pricing
power? If yes, by how much?
7. Calculate the company’s sales and profit growth rates for the
past year and the past three

years. Do the same for the firm’s rivals (firms with the same
industry classification). Has the
firm’s growth rates matched its rivals? Summarize the
company’s performance relative to
its rivals.
8. Has the Department of Justice or the Federal Trade
Commission (FTC) taken action
recently against this firm? Report any major findings.
You will submit a 8-12 page paper. It will need to be formatted
using APA style. I am grading your APA on the following areas:
title page, running headers, in-text citations, reference page.
You will need to use subheadings for each of the above listed
points to make it very easy for the reader to understand each of
your points.
Rubric
Milestone Rubric
Milestone Rubric
Criteria
Ratings
Pts
This criterion is linked to a Learning OutcomeGuidelines
20.0 pts
Excellent
Topic was approved, the paper includes a tile page, table of
contents, introduction, subheadings for each of the 8 questions,
conclusion, and reference page. The paper meets the 8-12 page
guides and is written in APA format (Times New Roman font
12, double spaced, 1" margins, running header etc.)
15.0 pts
Good
One of the guidelines was not met.
6.0 pts
Acceptable
2 of the guidelines were not met.

0.0 pts
Unacceptable
3 or more of the guidelines were not met.
20.0 pts
This criterion is linked to a Learning OutcomeIntroduction
30.0 pts
Excellent
Strong introduction of topic’s key question(s), terms. Clearly
delineates subtopics to be reviewed. Includes background on the
company chosen for the project.
25.0 pts
Good
Conveys topic and key question(s). Clearly delineates subtopics
to be reviewed
20.0 pts
Acceptable
Conveys topic, but not key question(s). Describes subtopics to
be reviewed.
0.0 pts
Unacceptable
Does not adequately convey topic. Does not describe subtopics
to be reviewed
30.0 pts
This criterion is linked to a Learning OutcomeFocus &
Sequencing
30.0 pts
Excellent
All material clearly related to subtopic, main topic. Strong
organization and integration of material within subtopics.
Strong transitions linking subtopics, and main topic.
25.0 pts
Good
All material clearly related to subtopic, main topic and logically
organized within subtopics. Clear, varied transitions linking

subtopics, and main topic
20.0 pts
Acceptable
Most material clearly related to subtopic, main topic. Material
may not be organized within subtopics. Attempts to provide
variety of transitions
0.0 pts
Uacceptable
Little evidence material is logically organized into topic,
subtopics or related to topic. Many transitions are unclear or
nonexistent
30.0 pts
This criterion is linked to a Learning OutcomeSupport
40.0 pts
Excellent
Strong peer - reviewed research based support for each question
33.0 pts
Good
Sources well selected to support questions with some research
in support of the questions.
28.0 pts
Acceptable
Sources generally acceptable but not peer - reviewed research
(evidence) based
0.0 pts
Unacceptable
Few sources supporting the questions. Sources insignificant or
unsubstantiated.
40.0 pts
This criterion is linked to a Learning OutcomeConclusion
10.0 pts
Excellent
Strong review of key conclusions. Strong integration with the
questions that were asked. Insightful discussion of impact of the

researched material on topic.
6.0 pts
Good
Strong review of key conclusions. Strong integration with the
questions that were asked. Discusses impact of researched
material on topic.
4.0 pts
Acceptable
Review of key conclusions. Some integration with the questions
that were asked. Discusses impact of researched material on
topic
0.0 pts
Unacceptable
Does not summarize evidence with respect to the questions
asked. Does not discuss the impact of researched material on
topic.
10.0 pts
This criterion is linked to a Learning OutcomeGrammar &
Mechanics
40.0 pts
Excellent
The paper is free of grammatical errors and spelling &
punctuation.
33.0 pts
Good
Grammatical errors or spelling & punctuation are rare and do
not detract from the paper
28.0 pts
Acceptable
Very few grammatical, spelling or punctuation errors interfere
with reading the paper.
0.0 pts
Unacceptable
Grammatical errors or spellin g & punctuation substantially
detract from the paper.

40.0 pts
This criterion is linked to a Learning OutcomeAPA Style &
Communication
40.0 pts
Excellent
No errors in APA style. Scholarly style. Writing is flowing and
easy to follow .
33.0 pts
Good
Rare errors in APA style that do not detract from the paper.
Scholarly style. Writing has minimal awkward of unclear
passages.
28.0 pts
Acceptable
Errors in APA style are noti ceable. Word choice occasionally
informal in tone. Writing has a few awkward or unclear
passages
0.0 pts
Unacceptable
Errors in APA style detract substantially from the paper. Word
choice is informal in tone. Writing is choppy, with many
awkward or unclear passages.
40.0 pts
This criterion is linked to a Learning OutcomeCitations &
References
40.0 pts
Excellent
All references and citations are correctly written and present.
33.0 pts
Good
One reference or citations missing or incorrectly written.
27.0 pts
Acceptable
Two references or citations missing or incorrectly written

0.0 pts
Unacceptable
Reference and citation errors detract significantly from paper
40.0 pts
Total Points: 250.0
DISCLAIMER: This publication is intended for
EDUCATIONAL purposes only. The information contained
herein is subject to change with no notice, and while a great
deal of care has been taken to provide accurate
and current information, UBC, their affiliates, authors, editors
and staff (collectively, the "UBC Group") makes
no claims, representations, or warranties as to accuracy,
completeness, usefulness or adequacy of any of
the information contained herein. Under no circumstances shall
the UBC Group be liable for any losses or
damages whatsoever, whether in contract, tort or otherwise,
from the use of, or reliance on, the information
contained herein. Further, the general principles and
conclusions presented in this text are subject to local,
provincial, and federal laws and regulations, court cases, and
any revisions of the same. This publication is
sold for educational purposes only and is not intended to
provide, and does not constitute, legal, accounting,
or other professional advice. Professional advice should be
consulted regarding every specific circumstance
before acting on the information presented in these materials.
© Copyright: 201 by the UBC Real Estate Division, Sauder
School of Business, The University of British
Columbia. Printed in Canada. ALL RIGHTS RESERVED. No
part of this work covered by the copyright

hereon may be reproduced, transcribed, modified, distributed,
republished, or used in any form or by any
means – graphic, electronic, or mechanical, including
photocopying, recording, taping, web distribution, or
used in any information storage and retrieval system – without
the prior written permission of the publisher.
©Copyright 2018 by the UBC Real Estate Division©Copyright
2018 by the UBC Real Estate Division
PROJECTS
©Copyright 2018 by the UBC Real Estate Division
SAGAR GARIKIPATI
Projects.1
PROJECTS
In this course, you will be required to prepare and submit two
written project assignments that
are intended to synthesize your understanding of the course
content. You will be presented with
challenging, stimulating, and thought-provoking work that
requires you to go beyond the course
manual in applying this content in a practical context. These
projects are also worth a significant

portion of your final course grade.
Aspects of the projects are field assignments designed to give
you practical experience in the tasks
performed by real estate appraisers. You will, in effect, do what
appraisers do in valuing real property.
Expectations for Your Reports
In general, your reports are expected to provide the level of
detail that the intended reader would
require in a practical context. This means that you need to
report in a clear manner any informa-
tion that will be helpful to the reader in making their decision,
for example, deciding whether
or not to provide a loan or purchase a property. Therefore, your
report must cover all pertinent
information, be well-organized, and be professionally presented.
Please keep in mind that the intent of these projects is to
simulate the type of report that you
would actually deliver to someone in a real-world context. You
should assume that your report
will be read by someone who has knowledge in general business
matters, but has no specific
knowledge of real estate practice. You must write your report
specifically to address the infor-
mation needs of this person so that he or she can understand and
apply your work. It is your
job to focus the reader and provide him/her with the relevant
information needed to make an
informed decision, ensuring that the report is neither
excessively long, nor too short. As such,
brevity would be considered a positive point by the reviewer of
your report. You will need to
exercise some judgment as to what is and is not relevant and
what should be included or omitted.

If you are in doubt, you may wish to contact the course tutor or
your fellow students on the course
discussion forum in order to discuss what they are doing and get
their advice.
Finally, students are also reminded that, in addition to a
practical demonstration of appraisal
and consulting processes, this is also an examination of the
underlying theory. You must ensure
that you provide sufficient explanations of the processes and
procedures in order to demonstrate
your knowledge of the material.
Report Specifications
Below are some specific guidelines for preparing and submitting
your projects:
• font must be of 11 point or larger, 12 point preferred;
• preferred line spacing is 1.5 (not required on forms on Project
2);
• preferred margins are 1 inch margins, maximum 1.5 inches
(not required on forms on
Project 2);
• pages must be numbered consecutively in the top right corner
or bottom of page, separately
numbered for the report body and appendix; and
• all sources of information relied upon in producing your
submission should be carefully
documented in a bibliography or list of references (references
used should be acknowledged).
The suggested pages for each project are specified below. An
appendix should provide necessary
supporting documentation. Note that these are only rough

limits; you should provide all
pertinent information, i.e., anything that you used to
substantiate your decisions. Note also that a
well-written and organized report could require fewer pages.
Project 1 Project 2
Report Appendix Report Appendix
Suggested 10-15 pages 10-15 pages 25-30 pages 15-20 pages
Maximum 25 pages 25 pages 40 pages 30 pages
Projects.2 Foundations of Real Estate Appraisal
Under no circumstances should you need more than the stated
maximum number of pages for
your report. If your submission exceeds these limits, EITHER:
1) you will be requested to resubmit
within the page length requirements before the project is
graded; OR 2) the additional pages will
not be read by the marker and marks will be deducted for their
inclusion.
Submitting Your Projects
The project due dates can be found on the BUSI 330 Course
Resources website under Important
Dates and Deadlines. Projects must be submitted electronically
using Turnitin, a web service
that checks for content originality. Turnitin accepts Microsoft
Word and PDF formats. Any
supplemental files that cannot be inserted into your word

processed file must be emailed to
your tutor. You can find your assigned course tutor’s email
address on the “Tutorial Assistance”
webpage. Please include your course name, last name, and
student number in the subject line of
your email. You can find additional information for project
submission under Submit Projects on
your Course Resources website.
Project Grading and Return
Your tutor will make a concerted effort to return your marked
project in a timely fashion. The
target turnaround time for marking is one week from the date of
receipt. However, please keep in
mind that the Real Estate Division’s tutors are generally full-
time professionals who do tutoring
on a part-time basis, and sometimes business pressures make it
difficult to attain this target date
(e.g., up to one additional week may be required). The tutors
have been instructed to give priority
to students who are working on time according to the course
schedule. This means that if your
project is submitted on time, it will receive top priority. If your
project is submitted late, then your
project will be marked after those on time are graded and other
duties, such as tutoring, are taken
care of.
This is particularly important towards the end of the course,
when projects and exam
preparation require a lot of the tutor’s time. You are best
advised to keep to the course schedule
and to submit your work on time. All projects submitted on time
should be returned before the
final exam. Those submitted late may not be returned before the
date of the exam.

If you wish to view your project grades on the Assignment
History webpage or the project
answer guides, Project 1 is listed as “Assignment 12” and
Project 2 is listed as “Assignment 13”.
Tips from the Tutor: The Details … Communicating Your
Results Effectively
The projects simulate the type of report that you would actually
deliver to someone who is paying you to prepare it. You
should assume that your report will be read by someone who has
some general real estate knowledge, but who does
not have your familiarity with real estate valuation. You must
write your report specifically to address the information
needs of your client.
But also keep in mind that, in addition to a practical
demonstration of an appraisal analysis, the projects are also an
examination of the underlying theory. You must ensure that you
provide sufficient explanation of the process and
procedures in order to demonstrate your mastery of the learning
objectives.
Ensure that your project is logically organized and presented
professionally. There will be marks allocated for
presentation. Reports may be failed if spelling or grammatical
errors are excessive, or if they are extremely poor in
composition. The report must flow logically, whereby the reader
is led to the conclusions reached by the student. A
demonstration of professional report-writing skills within the
context of a structured format is expected.
Also ensure you do not overwhelm your reader with excessive
details. The supporting documentation and photographs
in the appendices should be limited to that which helps you to

build your case regarding the property; i.e., you should
not include every single piece of information you find on the
property, you have to exercise judgment on what you
believe is relevant to the reader of the report. A very well-
written and organized report could require significantly less
than the maximum number of pages and this brevity would be
considered a positive point by the reviewer of your report.
If you are in doubt, you may wish to contact the course tutor or
your fellow students on the course discussion forum to
discuss what they are doing and get their advice.
Projects.3
Individual Work Requirements
The projects count for significant credit towards completion of
this course, which is an
educational requirement in a degree credit program and for
accreditation by professional real
estate associations. Because of these important consequences, it
is vital that students produce
and submit work that is entirely their own. Completing the
projects in a group is NOT allowed
– answers must be produced on an individual basis. The marker
of this project must be able
to certify that each individual student has a reasonable
understanding of the concepts and
techniques taught in this course.
Any recognized academic misconduct, including copying other
students’ work or plagiarism
from any source, will result in academic consequences as
specified in the “Program Regulations”

section of the Real Estate Division Student Handbook.
PROJECT 1: Appraisal Research Exercises
This first of two projects will provide you with practical
applications of the appraisal concepts
presented in the first four lessons in this course. You will
answer some specific questions on the
theories underlying real property appraisal and then complete a
field project. This project is
designed to delve deeply into the theories and concepts you
have learned so far in this course,
providing you with an in-depth look at how these theories and
concepts apply to appraisal.
Total Marks for Project 1: 100
10% of course grade
Project 1 continues on the following page
Learning Objectives
After completing this project, the student should be able to:
1. Make connections between the appraisal theory covered so
far in this course, seeing how the
components blend together in practice
2. Discuss the nature of value and its various categories and
definitions
3. Explain the forces that affect the determination of value(s)

and how these forces interact
4. Describe the nature of real property and its various
components, such as ownership rights,
property rights, and types of ownership
5. Recognize the basic social and economic principles that
affect the market value of property and
how these various principles must be analyzed and applied in
the appraisal of a subject property
6. Explain the principle of highest and best use and demonstrate
how it is applied in appraising
residential properties
Project Grading
Your grade on this project will be based upon:
1. Part A: Selected questions on Lessons 1-4 (50%)
2. Part B: Field project (50%)
PART A – Questions on Lessons 1-4 (50 marks)
The following questions should be answered in paragraph
format. It is expected that students will provide
a suitable discussion, and therefore short answers and point-
form are not acceptable.
1. Discuss two examples from your own personal experience
when you found yourself assigning or
justifying a “value” for something. What category or definition
of value were you applying? What
factors influenced your final decision to buy and pay the price
you did for the item? (6 marks)
2. Consider the following list of possible land use controls:
• zoning

• planning
• municipal/community plan
• building standards
• development controls
• subdivision controls
• rent controls
• land preservation legislation
• environmental legislation
Research ONE of the above controls that is prevalent in your
community (or another land use control
not listed above if it is relevant in your community). Provide a
brief report (1-2 paragraphs) on how
this affects the market value of land in your area. (4 marks)
Projects.5
PROJECT 1, continued
3. A client has hired you to appraise his home for refinancing
purposes. He has asked you to conclude a
value that is approximately 10% higher than its market value.
Write a letter to respond to the client’s request, making
reference to the ethical standards of an
appraisal organization of your choosing. Your letter should be
in business format and should include
the name of your professional association, the title of the
standards, and their guidelines to follow
when completing a valuation assignment.

The Online Readings webpage provides links to various
appraisal standards. A recommended
reference is the Canadian Uniform Standards of Professional
Appraisal Practice (CUSPAP). (6 marks)
4. Externalities can have a significant positive or negative
effect on a property’s value. Find an example
of an externality in your neighbourhood and discuss how it
affects (or affected) the adjacent land(s)
value, either positively or negatively, and can it be corrected or
adjusted to reduce the impact on
property values? (4 marks)
5. The Appraisal Institute of Canada’s First Principles of Value
break down the valuation process into
fundamental considerations that are universally applicable to
any value-related situation:
a. Problem Identification
b. Purpose and Intended Use
c. Property Content
d. Property Rights
e. Land Use Regulations
f. Legal Considerations: Legislation and Litigation
g. Highest and Best Use
h. Economic Variables
i. Research
Outline a situation from your work or personal experience
where property value was a consideration and
briefly explain the relevance of any five of the First Principles
in this situation. The situation you focus on
could be related to real estate practice (e.g., appraisal,
assessment, consulting, etc.) or it could simply be
establishing a price in your own real estate purchase or sale. (5

marks)
6. The following questions refer to the Nygard et al v. District
of Surrey case included at the end of
Lesson 4. Also included with this case was a summary and site
plan.
a. How does the principle of contribution relate to the existing
improvements? (2 marks)
b. Explain how the following factors affect the highest and best
use of the site in this case. Use the
facts in the case to support your answers: (7 marks)
i. present use
ii. future use
iii. legal use
iv. physically possible
v. financially feasible
vi. demand
vii. maximally productive use
c. In this case, what factors did each of the appraisers examine
when considering the probability of
a change in zoning? (4 marks)

d. The claimant’s and respondent’s appraisers were both
accredited appraisers with considerable
experience. Why did the Board disagree with both appraisers?
Discuss the rationale of the board
in determining market value. In your answer, ensure you state
and discuss the final market
value as estimated by: (6 marks)
i. the Claimant Appraiser
ii. the Respondent Appraiser
iii. the Compensation Board
e. Discuss three legal or appraisal principles flowing from this
case and briefly explain the relevance of
each to appraisal practice. In other words, outline lessons
learned that may be useful for real estate
appraisers in resolving future disputes over other properties? (6
marks)
PART B – Field Project (50 marks)
You are required to complete a physical inspection of a
residential property and inventory its
characteristics. The purpose of this assignment is to acquaint
you with the methodology used in
residential property inspection by having you actually carry out
your own analysis. Note that aspects of
this analysis may be useful in completing Project 2.
You may choose any residential property for this assignment.
Condominiums are acceptable, although
a single-family house is recommended. Physical access will be
an important consideration in your choice
of property – to carry out this assignment effectively, you will
need to inspect all parts of the building/
property, including some that may not be publicly accessible,
such as mechanical rooms and the roof in a

condominium building. It is recommended that students choose
their own place of residence or another
property they are familiar with as the subject property for this
project. This will allow the greatest
freedom of access for inspection and may also mean that some
of the research requirements are taken
care of, e.g., site sketch, photos of house, etc.
You are to report your inspection results using the first two
pages of the Appraisal Institute of Canada’s
“Full” Residential Appraisal Report form. A fillable PDF
version of this form is found on the Online Readings
webpage. Note that some of the characteristics on the forms will
not be answerable for all properties.
In addition to this form, you are required to complete on
separate pages the following specific questions
and items. For (b), (c), and (e), the separate report can be
completed in lieu of the Comments section of the
report (i.e., your report replaces the Comments sections).
a. Photographs of Subject:
i. Provide one front that shows depth of the property, one rear,
and one street scene with
other dwellings.
ii. Your appendix should contain additional photographs, if
necessary, to assist the reader
in understanding the report – such as the site, the surrounding
area/neighbourhood, and
in particular any defects noted (within reason). The photographs
and all other supporting
Property Selection / BUSI 398 Property Registration

Students who plan to continue on to the BUSI 398 Residential
Guided Case Study course may want to consider
using the same property for this BUSI 330 project and for BUSI
398. If so, you may wish to confirm now that you are
choosing a property that is suitable for BUSI 398. The Online
Readings webpage provides a checklist from BUSI 398,
which outlines mandatory and recommended conditions for
property approval. For example: condominiums are NOT
acceptable in BUSI 398.
You may also pre-register your subject for BUSI 398 by
submitting the ASubject Property [email protected] from the
BUSI 330
website. The subject property must be approved by a BUSI 398
course tutor before it is officially accepted; pre-registration
here DOES NOT guarantee this approval, it simply holds the
property for your use later (for up to five years).
Projects.7
documentation in the appendix must be clearly labelled and
referenced within the report in
the relevant sections. Note that a table of contents may be
helpful for you in organizing your
work and for the tutor in grading it.
b. Neighbourhood Analysis: the form requires you to identify a
number of neighbourhood features.

The Comments section requires analysis of these neighbourhood
features as to how they
ultimately affect housing prices in that location. You do not
need to fill out the Comments section
of the form; instead, discuss the Comments section’s
requirements in your associated report:
i. provide the neighbourhood name and a two-three paragraph
description of the major
characteristics that define the neighbourhood, such as its
historical significance, the
socioeconomic mix of residents, employment and amenities, and
the form of boundaries that
distinguishes it from other neighbourhoods.
ii. discuss the neighbourhood’s growth and life cycle, the value
influences within it (i.e., economic,
governmental, environmental, and social issues, both positive
and negative), value trends, and
market appeal.
iii. provide a city map showing the neighbourhood boundaries
and the subject’s location.
c. Site Analysis: similar to above, you do not need to complete
the Comments section; instead,
discuss this section’s requirements in your associated report:
i. discuss in two-three paragraphs how the positive and negative
features of the property
ultimately impact its value: e.g., its orientation, appropriateness
for surrounding uses,
environmental issues, etc.
ii. provide a plot/site plan showing the dimensions of the lot,
the siting of the building and all

setbacks and any easements. (If you have instead been provided
with pre-produced site plans,
you must evaluate them in detail and comment on their
accuracy).
iii. note any improvements on the site such as hedges, rock
walls, garage, or driveway, and
adjoining streets and lanes.
d. Land Use Controls and Zoning: in addition to the
requirements on the form:
i. detail the subject property’s zoning designation: stated uses,
maxima and minima defined by
the zoning. Present a comparison table that summarizes the
zoning criteria and subject’s data.
ii. explain the reasoning for your conclusion on the form as to
whether or not the subject
property conforms to the land use controls.
iii. comment on how strictly the zoning requirements are
enforced and your opinion on the
likelihood of any zoning changes in the foreseeable future (e.g.,
review Official Community
Plan, recent redevelopment permits in the area, granting of
variances, etc).
iv. discuss any other related legal issues that may affect the
subject’s site, such as title
restrictions, oil tanks, environmental or heritage laws, etc.).
e. Improvements Description: in addition to the requirements on
the form:
i. provide a floor plan or rough sketch of the building that

shows the exterior dimensions of the
improvements; locations of windows, doors, and other openings;
and any other prominent
features of the improvements (if you have instead been provided
with pre-produced floor
plans, you must evaluate them in detail and comment on their
accuracy).
ii. note the measurements for various walls and calculate the
areas for the various component
parts: e.g., gross floor area; ground floor area; garage; patio;
basement; finished basement, etc.
Ensure the floor areas are based on the external measurements
of the home.
iii. similar to above, you do not need to complete the Comments
section; instead, discuss this
section’s requirements in your associated report. In 2-3
paragraphs, analyze the value impact
of the improvement features.
End of Project 1
f. Assessment and Property Tax: the assessment and property
taxation information is summarized
in the Subject section of the form; in addition to this
requirement:

i. identify the assessment authority and explain how the
assessed value is derived. State the
effective date of the assessed value.
ii. briefly discuss your opinion of the accuracy and equity
(consistency, fairness) of the subject’s
assessment. Comment on the likelihood of a change in assessed
value in the foreseeable future.
iii. explain how the tax rate is derived in the local municipality.
Show the subject’s tax
calculation, explaining all elements of the current tax amount.
Comment on past trends in
tax amounts and its expected future level.
Submitting Projects
Please note that the projects must be submitted directly to your
course tutor by Turnitin.com, a web service that checks
for content originality. See the “Submitting Written
Assignments” link on your Course Resources webpage for
details.
Note that Turnitin accepts only one submission per
assignment/project so all relevant information must be in one
Word
or PDF file when submitting your project. Suggestions for
including this project in a single file:
1. Complete the report in MS Word; for the 2-page form, copy a
“screen capture” and paste it into the document. You
can also insert or paste photographs into this document.
2. Complete the report in Adobe Professional (if you have
access to this program): fill out the PDF form, complete the
rest of report in Word and save it as a PDF, then combine the

two PDF files.
If you have technical problems with incorporating the form
report required in Part B, you may email this directly to your
tutor.
Projects.9
PROJECT 2: Residential Property Appraisal
Project 2 requires you to analyze and appraise a residential
property. The purpose of this
assignment is to acquaint you with the methodology used in
residential property appraisal by
having you actually carry out your own analysis. You will be
required to gather and analyze
information from a variety of external sources. This could
include interviews with appraisers,
internet searches, visits to local government offices, and so on.
The goal is to make this exercise
as realistic as possible.
Total Marks for Project 2: 100
25% of course grade
Learning Objectives
There are two major, implicit learning objectives for this
project. After completing this project, you should
be able to:

1. logically analyze an appraisal situation, determine what
information needs to be gathered, and
gather this information systematically and effectively; and
2. apply your research skills to better understand the market and
to become very familiar with all
aspects of a specific property and sub-market.
Client Expectations (Purpose and Intended Use)
Brendan and Lena Fanella have made an offer to purchase a
residential property. As a part of their
mortgage financing application, the Jordan River Credit Union
has commissioned you to prepare an
appraisal report. The client has requested that your appraisal
report follow the format described below in
“Report Specifications”. The effective date of this appraisal is
today. You are to find the market value of this
property for sale purposes, assuming there is clear title, with no
mortgage or other encumbrances against
the property, such as easements or restrictive covenants.
Tips from Your Tutor: Tackling Project 2
Project 2 is a big part of this course and can be intimidating to
start. Here are some tips to help you ease into the process:
Keep it in perspective: This project offers a practical
introduction to some of the issues confronted by real estate
appraisers. Although it requires more effort, simulating what
real estate practitioners do in practice is a much more
effective learning exercise than just reading about appraisal.
You will not be expected to get everything right the first
time, but you will learn more than just reading about the
subject. Hopefully, you can achieve a rewarding balance by
both reading and doing.

Benefits of networking: In completing this project, you may
wish to establish a relationship with a knowledgeable
industry practitioner, e.g., appraiser, analyst, or broker. Such
relationships may lend valuable assistance in completing
the project, in terms of accessing the required sales data. A
secondary benefit is that it may also lead to future
networking benefits for your career! A good place to start may
be with local real estate offices or by contacting some of
the following sampling of real estate institutes and associations:
• Appraisal Institute of Canada (www.aicanada.org)
• Real Estate Institute of BC (www.reibc.org)
• Canadian Real Estate Association (www.crea.ca)
All members of these organizations have had to go through
extensive education similar to what you are doing in this
course, and should be willing to devote some time to helping
out someone new to the profession. However, these are
generally very busy people, so be advised that you may have to
knock on more than one door in order to find someone
who will help you and, when you do establish contact with
someone who will help you, you will have to be very well-
organized in order to take up as little of their time as possible.
Grading worksheet: The tutors for this course have prepared a
grading worksheet that is used to mark your project. For
your reference, it has been posted to “Online Readings” on the
Course Resources webpage. We hope that this extra
guidance will help you in preparing your Project 2 submission.

Choosing Your Subject Property
You may choose any residential property for this assignment
(including carrying on with the property
researched in Project 1). You will be required to research
market data on this property, so you want a choose
one that allows for adequate information. You ideally want to
select the simplest, most standard subject
property available in your market. In particular, you probably
do not want to tackle the additional research
and analysis required for a property that is ripe for
redevelopment!
Condominiums are acceptable, although a single-family house is
recommended. Condominiums pose
difficult challenges for appraisers in the cost approach,
particularly in land valuation and in estimating
costs for common property. If you choose to value a
condominium, you MUST still carry out a land
valuation, even if there are hypothetical assumptions required.
You can ignore the value of common
property, but must attempt to estimate the cost of the
improvements. Contact your tutor for assistance
before proceeding (Also note again: condominiums cannot be
used in BUSI 398, should you wish to carry
on to that course with the property studied here).
Report Specifications
This project is to be completed using the formatted template
document found on the Online Readings

webpage. The document is prepared in Microsoft Word format,
though you may use any compatible
word processing program. Provided below are explanations for
what is required in each section of the
report. The document’s page numbers are provided in brackets.
Note that your explanations do not have
to always fit into the boxes given, as it is suitable to attach
extra pages if needed. Keep in mind that this
project is a learning exercise and there are many aspects of this
exercise that do not conform to the more
stringent requirements of a demonstration report or a “real”
appraisal.
Letter of Transmittal (BUSI 330.2)
This is a letter to the person who initiated the preparation of the
report, summarizing your understanding
of the scope of the work that was to be completed and the
conclusions of the report. It should be the first
page of the report. This letter should be in business format and
include the following:
• Full property address and legal description.
• Who the report has been prepared for and the date of the
letter.
• The purpose of the appraisal and type of value estimate.
• The final estimate of value, effective date of appraisal, and
estimated exposure time that would be
required to market the property at the final estimate of value.
• Your signature. If you have scanned image of your signature,
you can insert this; otherwise, you
may simply type this in.
Photographs of Subject (BUSI 330.3)

You should provide one front photograph that shows depth of
the property, one rear, and one street scene
with other dwellings. Your appendix should contain additional
photographs, as outlined below.
Table of Contents (BUSI 330.4)
Once the report is completed, number each page in the report,
except the Addenda, in numerical
sequence in the space provided in the upper right corner.
Include appropriate page references in the
Table of Contents. Note that only the first page number needs to
be shown for each section. The required
schedules must be titled and be listed either by letter (A, B, C,
etc) if included in the Addenda, or by page
number if inserted into the body of the report.
Summary of Salient Facts (BUSI 330.5)
This is effectively an “executive summary”, summarizing the
general conclusions of each section of the
report. Information required includes the type of dwelling,
complete address, effective date of appraisal,
Projects.11
dimensions and area of the site and improvements, assessments

and taxes, highest and best use, estimate
of vacant land value, estimate of value by the cost approach,
estimate of value by the direct approach, and
the final estimate of value.
Definition of the Problem (BUSI 330.6)
Discuss under the following headings:
• Purpose and function of the appraisal
• Registered owner
• Past sales history for the past five years
• Legal description
• Any encumbrances – mortgages, easements, or rights of way
• Definition of market value
• Effective date of appraisal
Encumbrances and rights of way can be found by searching the
title at your local Land Title or Registry
Office. You are NOT required to search the property’s title in
this course; this is optional.
Assumptions and Limiting Conditions (BUSI 330.7)
You must set forth all assumptions and limiting conditions that
affect the analyses, opinions, and
conclusions. Note, those limiting conditions pre-printed in the
formatted report are only a guide, with the
expectation that you will provide the necessary limiting
conditions.
One mandatory condition is to state that this is a project in a
course and not a “real” appraisal, and the
inherent limitations of this exercise; e.g., you likely have made
some assumptions for data rather than full
market evaluation; have not carried out a full inspection; etc.

Conditions should be added for such factors as:
• declaring if you have a personal interest in the property being
appraised; or,
• assumptions that affect the value conclusion must be stated
here and in the certification.
Description of Improvements: Observed Depreciation (BUSI
330.8-10)
Describe any defects or deficiencies found in the inspection.
You are required to describe each of the types
of depreciation in the breakdown method and provide at least
one example from the property for each.
Where there are no examples in the property, you must at least
provide hypothetical examples. Note that
at this point, you are simply describing depreciation, not
attaching dollar figures to it.
Notes on the depreciation that must be described:
• Condition of Building: describe the condition of components
of the house under the appropriate
depreciation headings. If there are no negative factors under a
certain heading, describe what
aspects of the property were considered in reaching that
conclusion.
• Long-Lived: estimate and justify effective age and economic
life. You must explain the basis for
any large discrepancy between the actual and effective age.
Provide an estimate of remaining
economic life; note that the economic life usually differs from
the physical life expectancy.
Justify the effective age you have chosen, as this will be a key
consideration in determining the
depreciation for the property.

• Physical depreciation: The distinction between curable and
incurable depreciation is not necessary
for this assignment.
• Functional obsolescence: explain this by comparing to other
similar homes in that age group, to establish
how the subject varies from the market standard. Be careful that
you always compare like to like.
• External obsolescence: ensure this is described.
•
Highest and Best Use (BUSI 330.11)
You are expected to discuss this section under the three areas
mentioned below.
a. Provide an analysis and concluding statement as to the
Highest and Best Use of the site as if
vacant. Consideration must be given to all uses permissible
under the current zoning and to the
likelihood of zoning change. Factors such as supply and demand
and other principles that might
affect the value of the subject must be taken into account.

Explain how the principle of conformity
applies – it should be possible to reach a conclusion that
describes the style(s) and area (range) of
house that would be constructed on the site if it were vacant.
b. Having reached a conclusion for the site as if vacant, discuss
the adequacy of the existing
improvements in light of that conclusion. Ideally, the subject
property will satisfy the conclusion
for the site as if vacant (with the style and area within the
parameters established for the site as if
vacant); and have sufficient remaining life to warrant retention
of the existing building. It may be
necessary to discuss the options of renovating, rehabilitating, or
adding on to the building.
c. Clearly state your conclusion as to the Highest and Best Use
of the property as improved.
Cost Approach: Land Value, Adjustment Chart, Adjustment
Analysis, and Reconciliation (BUSI 330.12-15)
You must estimate the land value of your subject property, so
that you are able to complete the cost
approach to value. This site is to be valued consistent with its
determined highest & best use as if vacant.
Students should ideally make an attempt to justify the land
value using some market data and show their
analysis as to how they arrived at the adjustments. However, in
this section of this project, you are allowed
to make some assumptions that would not be allowed in a “real”
appraisal report or demonstration report.
To estimate land value, you are to complete ONE of the
following three options. Whichever option you
choose, you are expected to describe your reasoning and
analysis, in order to demonstrate that you have

done some degree of research S it is not sufficient to simply
give a number. Also, whichever option is
completed, you must fill in the “Subject” column on the “Cost
Approach - Land Value” pages.
COMPLETE ONE OF THE FOLLOWING LAND VALUATION
OPTIONS:
1. Use the land value data for the subject property from your
local property tax assessment office,
if this information is available. Summarize your findings on the
“Cost Approach - Land Value,
Reconciliation” page. Discuss the appropriateness of using
assessed value as a proxy for the site’s
market value in an appraisal, commenting on the basis for
assessed values and how current these
assessed values are. In commenting on this, you should discuss
how assessments are carried out,
the title of local Assessment Act, what type of “value” is found,
etc.
Tip from the Tutor: Justifying Economic Life
For the purposes of this exercise, a rough estimate of economic
life is sufficient with a basic explanation of your
reasoning; market evidence makes your case stronger, but is not
a mandatory requirement. Your task in this
assignment is to determine the typical economic life cycle that
affects the single-family residential property market. In
a “real” appraisal, the estimate of economic life must be
supported by, at a minimum, of conversations with contractors
specializing in renovations, building inspectors, municipal
records, review of demolition, and renovation permits, etc.
Tip from the Tutor: Redevelopment Potential

If there is a chance of any major zoning change, then you will
have to do extensive research to justify the changes. If
you have chosen a subject property with limited redevelopment
potential and where the zoning is not likely to change in
the near future, this section will not require much discussion
and investigation.
Projects.13
OR
2. Estimate land value based on discussions with real estate
appraisers, brokers, or developers in
your area. Summarize your findings on the “Cost Approach -
Land Value, Reconciliation” page.
You MUST explain who you talked to, their area of expertise,
and what evidence they used
to come up with this estimate, e.g., justify why their opinion is
valid and reliable. Discuss the
appropriateness (strengths and weaknesses) of estimating the
site’s market value in this manner.
OR
3. Estimate land value by finding and analyzing three land
sales comparables. If you are unable
to find sufficient land sales, then you can rely on listings or you
can assume some data based

on your local market. You are NOT expected to extract land
values from improved sales. You
should fill in the Data Chart and Adjustment Chart pages with
this real or assumed data. To
complete this section, you must develop unit(s) of comparison
for each comparable sale, using
those unit(s) appropriate to your market, e.g., $ per square
foot/metre, $ per frontage foot/metre,
etc. Where more than one unit of comparison is used, you must
reconcile these into a single
estimate of land value. You are required to discuss and justify
your adjustments to land value.
You are allowed to make assumptions as to reasonable
adjustments, rather than requiring
in-depth market evidence for all adjustments.1
OPTIONAL: you may demonstrate the process for adjustments,
using assumed data if necessary.
For example, you may wish to show how you would use paired
sales analysis to determine an
adjustment for location or size.
OPTIONAL: If you wish to carry out a simple residual analysis
to extract the land value of
improved sales, you may do so:
i. find three to five comparable improved property sales (these
can be the same comparables as
used in the Direct Comparison Approach).
ii. determine depreciated value of improvements of comparable
(a simple analysis will suffice).
iii. subtract depreciated improvement value from sale price to
obtain the residual land sale price.
Cost Approach: Cost Analysis of Improvements (BUSI 330.16)
You must analyze the costs of the improvements of the subject

property using either replacement OR
reproduction cost. BUSI 330.16 must be completed regardless of
whether you are calculating reproduc-
tion or replacement cost. Students may gather this data using
ONE of the following methods:
1. A contractor’s estimate. Include the name and address of the
contractor, as well as the cost new
estimate they provided. A written estimate is ideal, but not
required.
OR
2. The comparative method, using recently constructed
buildings similar to the subject. Include
the address and the source of the cost information. Appropriate
adjustments must be provided
to address any dissimilarities between the properties that impact
the cost estimate.
OR
3. An online cost estimating program or cost manual. You must
explain the provider of the cost
data. A cost summary sheet showing detailed calculations must
be included in the addenda of
the report. If computer services are used, include both the input
and output forms.
1 In a demonstration report or “real” appraisal, justification
must be based on an analysis of relevant market data, providing
the reader with appropriate
information leading to the reason for and magnitude of the
adjustment. Wherever possible, at least two independent market
indicators are to be
provided in support of the adjustment. In actual appraisals the

unsubstantiated opinions of others are not acceptable support
for adjustments.
If you choose to use two sources of costing, then these two
figures must be reconciled into one final cost.
Any extra items not included in the overall basic cost should be
calculated separately and added to the
above basic cost.
Site improvements: for the purposes of this course, the estimate
of the reproduction/replacement cost
new of site improvements can be a rough estimate, unsupported
by market data. You must estimate the
age/life of site improvements in order to provide their
depreciated value.
Cost Approach: Depreciation; Summary of the Cost Approach
(BUSI 330.17-18)
To estimate depreciation for the subject property, you are
required to apply the age-life method using the
table on page BUSI 330.17. You are not allowed to simply use
the estimate provided by the Residential
Estimator software or other costing services. You must describe
the process applied in the age-life procedure

and a justification for its application. Ignore any issues related
to short-lived versus long-lived items.
For the cost summary, you must summarize all previous
calculations to conclude an estimated value
by the cost approach. Ensure that your figures match the
previous sections.
Direct Comparison Approach, Adjustment Chart, and Analysis
(BUSI 330.19-23)
This is the most important section of this project; the direct
comparison approach is in most cases the
primary approach relied upon in residential appraisals.
Selecting Comparables: You are required to find at least three
independent, comparable sales
representing transactions for different properties, which provide
evidence for the market value of the
subject property. IT IS MANDATORY that students find market
evidence in this section S failure to do so
will result in a failing grade on this section.
The best source of evidence is recent sales of similar properties.
Sales comparables are best found
through access to your local Multiple Listing Service (MLS),
which will require you to make contact with
a local real estate broker or appraiser. If there are insufficient
comparable sales locally or you cannot
obtain access to sales information, then listings can instead be
used as evidence by stating your
assumption of what is the reasonable selling price (ensure you
discuss the limitations of relying on
listings instead of sales in the appropriate sections of the
appraisal report; i.e., this is NOT generally
accepted appraisal practice).

Summarizing Comparables: The data for the comparables must
be summarized in the Data Comparison
Chart. Your appendix must contain photographs of the
comparables and a neighbourhood/city map
that shows the location of these comparables and the subject
property’s location.
Adjustments: You will need to adjust the comparables to
account for differences with the subject property.
There must be at least TWO quantitative adjustments made and
justified, with at least one being time.
Tip from the Tutor: Estimating Costs
For sources of costing information, see the “Online Cost
Calculations” link in Lesson 8’s Online Readings. There is a
small fee for most online cost estimating services (e.g., $10-25
per estimate). Cost manuals may be accessed from
most appraisal offices. Note that regional/local cost providers
are acceptable for this project, but may not be acceptable
for practical appraisals or guided case study reports.
Tip from the Tutor: Researching Comparables
Reviewing sales and listings in MLS is only the starting point in
an appraisal analysis. Further research will strengthen
your analysis: e.g., you could contact the broker or other parties
involved to learn more about the circumstances and
conditions of the sale. This additional research is particularly
important if it is a listing, since a price hasn’t yet been
market-tested: confirm if it is still for sale or if it has it sold,
find out details about pricing strategy, you could visit the
property in an open house, etc.

Projects.15
You will have to provide detailed support for these adjustments
justifying why the adjustment is required
together with market evidence for the magnitude of the
adjustment, e.g., one set of paired sales, supporting
statistical data, depreciated value of component, etc. Many
students use adjustment figures or percentages
without any market support and their discussion is limited to a
few sentences - this is not sufficient.
For further adjustments beyond the two that require detailed
support, you have two options:
a. quantitative analysis: you can state your assumption as to
what you consider a reasonable amount
(“guesstimates”), describing why you chose this amount and any
market-related information
relied upon. At the very least, for these additional adjustments
you must provide explanation that
justifies the need for all adjustments, even if you do not have
market support for the magnitude of
them. Ensure you use the correct order of adjustments, as shown
on the analysis form. OR
b. qualitative analysis: analyze the differences between the
comparables and the subject using
a relative comparison grid, plus an associated explanation that
explains the similarities and

differences compared to the subject. The grid on BUSI330.20
may be used for this and the
associated explanation provided on BUSI 330.22-23.
Direct Comparison Reconciliation: This is the final step in the
direct comparison approach. You are
required to review the adjusted values found in the previous
steps and reconcile these to come up with a
market value estimate under the direct comparison approach. In
doing so, you will need to discuss which
comparables were the best indications of market value, how
reliable your adjustments are, and so on. DO
NOT simply take an average of the adjusted sales prices!
Reconciliation of Value Indications and Final Estimate of Value
(BUSI 330.24)
This is the final step in the appraisal process - do not confuse
this with the reconciliation in the direct
comparison approach. The final reconciliation examines the
values found in the cost and direct
comparison approaches, and comes up with one final market
value estimate. This is the place that you
critically evaluate the strengths and weaknesses of the
approaches, both in general terms and specific
to the analysis you have just carried out. This is a key section of
the appraisal report, as the analysis
described will highlight to the reader how well you grasp the
principles of appraisal. It is NOT acceptable
to simply provide a number without justification or analysis.
This page requires you to summarize, review, and explain the
relative importance of the estimates
developed by each of the applicable approaches. Any wide
discrepancies must be explained. For
example, if the two approaches have a wide range, then you

should rationalize this in your discussion.
Are there inherent flaws in the approach? Are the limitations of
data and analysis in this particular
project limiting the approach’s capability to come up with an
accurate value? At this point, if you come
up with dramatically different value estimates in the two
approaches, then you may want to review your
calculations and assumptions to ensure that you do not have
errors. A professional report should be
thoroughly reviewed by the student/appraiser, and any wide
divergence in values should be explained
such that the reader knows why this is the case.
If the subject has sold recently (e.g., in the last year), then you
should discuss here any implications
this might have regarding the value estimate you have come up
with. Furthermore, any current listing of
the subject property must also be considered and analyzed.
Tips from the Tutor: Adjustments
Traditionally, adjustments are an area of weakness for students.
Ideally, you should try to prove all of your adjustments
with market evidence, showing how you arrived at the adjusted
figure – this is much stronger analysis than simply
saying “I talked to a real estate agent”. An appraiser must
represent themselves as the most knowledgeable person
regarding this property and be able to back up and support all
findings. At minimum, the reader must be convinced as
to the need for the adjustment and as to its magnitude.

End of Project 2
If applicable, consider any impact of the highest and best use
analysis, i.e., if the subject improvements
represent an over-or under-improvement of the highest and best
use of the site as if vacant.
This section should demonstrate by sound logical reasoning the
facts and steps leading to the final
conclusion of value, discussing the findings of the approaches,
concentrating on the strengths and
weaknesses of each approach and the general validity thereof in
light of the value estimates from the
appraisal approaches.
State the final estimate of value, the effective date of the
appraisal, and the estimated exposure time
that it would take to market the property at the estimated value.
Certification (BUSI 330.25)
State the date of inspection (if any), effective date of appraisal,
value conclusion, signature, and date of
signature. Make sure not to state any accreditation you do not
yet have!
You should modify this page as required. For example, if you,
as a student, have an interest in the
subject property, you must declare that interest here.
Addenda
Addenda pages must be numbered or lettered, e.g., A, B, C, etc.

If you have addenda pages, you MUST
refer to them in the body of the report, to explain to the reader
what they are for. Otherwise these pages
will appear to be “filler”, with no apparent purpose.
The report must include the following schedules, either in the
Addenda or in the body of the report.
All maps and plot plans must show north direction.
a. City or regional map showing subject property.
b. Neighbourhood map showing boundaries, subject and other
pertinent points of interest such as
schools, shopping areas, churches, and playgrounds.
c. A site sketch showing location of improvements on lot,
dimensions, setbacks, sideyards,
easements, major site improvements, etc. OPTIONAL
d. A sketch of floor plans showing dimensions, variations, etc.
If the subject basement is partially or
fully finished, a basement floor plan must also be included.
OPTIONAL
e. Cost calculations details. If a computerized costing service is
used, include both the input and
output forms. If you used a cost manual, present a summary
sheet showing details of the cost
manual calculations. If you have a written estimate from a
contractor, include that instead.
f. Map showing the location of the comparables in relation to
the subject property; it is preferred to
use the neighbourhood map for this purpose.
g. Photographs of the comparables used.

h. Additional photographs of subject as necessary (but do not
include excessive photographs).
i. Neighbourhood photographs, if necessary.
j. Other material such as tables, graphs, easement agreements,
lengthy legal descriptions, and
lengthy zoning bylaws that you consider necessary or helpful to
assist the reader in visualizing
the property and/or understanding your conclusions.
BUSI 330: Project No. 2
Name:
Student Number:
BUSI 330
Residential
Appraisal Report
Real Estate Division

ADDRESS OF
SUBJECT PROPERTY:
PREPARED BY:
Student Name
Student Number
Grader
Mark
%
Letter Grade
RESIDENTIAL APPRAISAL REPORT (BUSI 330, Project No.
2)
LETTER OF TRANSMITTAL INFORMATION

PHOTOGRAPHS OF SUBJECT
FRONT VIEW
(Showing Depth)
REAR VIEW
Page ii
TABLE OF CONTENTS
Section
Page Number
Photographs of Subject Property
Table of Contents
Summary of Salient Facts and Important Conclusions
i
ii
iiiPart I - Preface

Definition of the Appraisal Problem
Assumptions and Limiting Conditions
Regional and Area Analysis (optional)
Neighbourhood Analysis and Trends (optional)
Land Description and Analysis (optional)
Description of Improvements (optional)
Description of Improvements: Observed Depreciation
1
2Part II - Analysis and Conclusions
Highest and Best Use Estimate
Cost Approach
- Land Value
- Cost Analysis of Improvements

- Depreciation
- Summary
Direct Comparison Approach
Reconciliation of Value Indications and Final Estimate of Value
Certification
SchedulesAddenda Item/
Page No.
City/Regional Map
Neighbourhood Map
Site/Plot Plan (optional)
Floor Plan(s) (optional)
Comparable Land Sales Map
Cost Summary; Cost Manual/Service Excerpts and Worksheets

Comparable Improved Sales Map
Photographs of Improved Sales
Additional Photographs of Subject (optional)
Neighbourhood Photographs (optional)
Transfer and Mortgage Documents for Comparables (optional)
Other Materials (list)
A
Page iii
SUMMARY OF SALIENT FACTS AND IMPORTANT
CONCLUSIONS
Type of single family dwelling:
Address of property:
Effective date of the appraisal:

Dimensions and area of site:
Dimensions and area of building(s):
Highest and best use:
Estimate of land value (as if vacant):
Estimate of value by Cost Approach:
Estimate of value by Direct Comparison Approach:
Final estimate of value:
Page 1 of pages
DEFINITION OF THE APPRAISAL PROBLEM
PURPOSE of the appraisal is to estimate the Market Value of
the subject property as at the effective date of appraisal.
FUNCTION of the report is for the awarding of credits for
completion of course BUSI 330.
Present registered owner

Past sales history (5 years)
Legal description
Encumbrances
Mortgage information
[ ] No mortgage
1st held by
2nd held by
Principal
outstanding
Monthly
payments
Are taxes
included?
Date
due
Interest
rate
Amortization
period
Conditions
1st
$
$

%
2nd
$
$
%
Rights-of-way, other encumbrances
[ ] none
[ ] (if any, describe)
Definition of property rights appraised
The Fee simple estate is "Absolute ownership unencumbered by
any other interest or estate, subject only to the limitations
imposed by the governmental powers of taxation, expropriation,
police power and escheat."
Appraisal of Real Estate (3rd Canadian edition)
Definition of market value
Market value is defined in the Appraisal of Real Estate (3rd
Canadian edition) as: "The most probable price, as of a
specified date, in cash, or in terms equivalent to cash, or in
other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive
market under all conditions requisite to a fair sale, with the
buyer and seller each acting prudently, knowledgeably, and for
self-interest, and assuming that neither is under undue duress."

Effective date of appraisal
Page 2 of pages
ASSUMPTIONS AND LIMITING CONDITIONS
This report is subject to the following assumptions and limiting
conditions.
1.
Legal description is that which is recorded in the Registry or
Land Title office and is assumed to be correct.
2.
Every effort has been made to verify the information received
from others which is believed reliable and correct.
3.
Sketches, drawings, diagrams, photographs, etc., are included
for the sole purpose of illustration and serve to assist the reader
in visualizing the property.
4. The distribution of land and building as stated in this report,
apply only under the program of utilization as identified in the
report.
5.
6.
7.
Page of pages

DESCRIPTION OF IMPROVEMENTS
DESCRIPTION OF BUILDING
Dimensions
Area
Type/style
Year Built
Foundation
[ ] Poured concrete
[ ] Concrete blocks
[ ] Concrete posts
[ ] Wood posts
Framing
[ ] Wood
[ ] Concrete
[ ] Steel
[ ]
Basement
[ ] Full
[ ] Partial
[ ] None
[ ] Slab
[ ] Crawl space
Basement Finish
Exterior Walls
Brick veneer
Clapboard
Stucco

Siding:
Vinyl
(percentage)
Wood
Stone veneer
Aluminum
Solid masonry
Aluminum
Roof
[ ] Asphalt shingles
[ ] Wood shingles or shake
[ ] Slate
[ ] Clay/tile
[ ] Built-up tar & gravel
[ ] Gutters & down spouts
[ ]
Interior Walls
[ ] Dry wall
[ ] Plaster
[ ] Paneling:
type
Floor Coverings
Above ground
Carpet
Tile
Ceramic
Hardwood
Linoleum
(percentage)

Basement
Carpet
Tile
Linoleum
Other
Fireplaces
Number:
Location:
Type:
Kitchen
[ ] Built-in dishwasher
[ ] Garburator
[ ] Built-in range
and oven
[ ] Exhaust fan
[ ] Vent hood
Cabinets - type and material:
Quality
Counter material:
Other features
Fixtures:
Quality

Electricity
No. of amps:
[ ] Circuit breakers
[ ] Fuses
Plumbing
Pipes
[ ] Copper
[ ] Galvanized
[ ] Mixed
Hot water tank
[ ] Electricity
[ ] Gas
[ ] Oil
Capacity:
Connections
[ ] Washer
[ ] Dishwasher
[ ]
Drainage
[ ] Plastic
[ ] Galvanized
[ ]
Heating
[ ] Forced air

[ ] Hot Water
[ ] Steam
[ ]
[ ] Oil fired
[ ] Gas fired
[ ] Electric
[ ] Humidifier
Air Conditioning
[ ] Yes
[ ] No
[ ] Central
Swimming pool
[ ] Yes
Type:
Garage
[ ] Single
[ ] Double
[ ] Attached
[ ] Detached
[ ] None
[ ] Carport
[ ] Electricity
[ ] Heated
[ ] Interior finish
Type of construction:

Flooring:
Dimensions:
Area:
Porch
[ ] Open
[ ] Screened
[ ] Enclosed
Size:
[ ] None
Patio/Deck
[ ] Concrete
[ ] Wood
[ ]
Size:
[ ] None
Rental Equip.
[ ] Water softener
[ ] Hot water tank
[ ] Furnace
[ ]
[ ] None
Page of pages
DESCRIPTION OF IMPROVEMENTS (continued)
Please identify each room with an “X”, or if more than one,
indicate with a number
Room List
Foyer
Living

Dining
Kitchen
Den
Family Room
Bedrooms
No. Baths
Laundry
Other
Basement
1st Level
2nd Level

Finished area above grade contains a total area of
rooms
bedrooms
baths

Finished basement area contains a total area of
rooms
bedrooms
baths
Bathroom location
Description of fixtures installed

*Comments required
Good
Average
Fair
Poor*
Energy efficiency and insulation level
[ ]
[ ]
[ ]
[ ]
Quality of construction (materials and finish)
[ ]
[ ]
[ ]
[ ]
Condition of improvements
[ ]
[ ]

[ ]
[ ]
Rooms size and layout
[ ]
[ ]
[ ]
[ ]
Plumbing – adequacy and condition
[ ]
[ ]
[ ]
[ ]
Electrical – adequacy and condition
[ ]
[ ]
[ ]
[ ]
Kitchen cabinets – adequacy and condition
[ ]
[ ]
[ ]
[ ]
Compatibility to neighbourhood
[ ]
[ ]
[ ]
[ ]
Overall livability
[ ]
[ ]
[ ]
[ ]
Appeal and marketability
[ ]
[ ]
[ ]

[ ]
Additional features
Recent modernization, renovation, and major repairs
Site improvements
[ ] Driveway
[ ] Paved
[ ] Gravel
[ ] Concrete
Area:
[ ] Fence
[ ] Wood
[ ] Chain link
[ ]
Length:
Height:
[ ] Landscaping
Description
[ ] Other
Describe
Page of pages
DESCRIPTION OF IMPROVEMENTS: OBSERVED
DEPRECIATION

Condition of Building
Physical Depreciation - Curable
Physical Depreciation - Incurable
Short-lived:
Long-lived:
Age concept
No. of years
Chronological age
yrs.
Effective age
yrs.
Economic life
yrs.
Remaining economic life
yrs.
Justification of Effective Age and Economic Life:
Functional Obsolescence

External Obsolescence
Page of pages
HIGHEST AND BEST USE ESTIMATE
Definition
Highest and best use is defined in the text Appraisal of Real
Estate (3rd Canadian edition) as "the reasonably probable and
legal use of vacant land or an improved property that is
physically possible, legally permissible, appropriately
supported, financially feasible, and that results in the highest
value".
Analysis and support of highest and best use of the site, as if
vacant
Discussion of adequacy of the existing improvement(s)
Conclusion and support of highest and best use as improved
Page of pages
COST APPROACH - LAND VALUE
Data Comparison Chart
Item
Subject
Comparable no. 1
Comparable no. 2
Comparable no. 3
Address
Legal description

Sale date
Instrument no.
Registration date
Vendor
Purchaser
Sale price
Right conveyed
Fee simple

Financing
Conditions of sale
Expenses made immediately after purchase
Time difference (mos)
0
Zoning
Location
Frontage/depth

Lot area
Topography
Utilities
Interior/corner lot
Local Improvement Charges
Easements/Rights of Way

Other comments
Page of pages
COST APPROACH - LAND VALUE (continued)
Adjustment Chart
Item
Comparable no. 1
Comparable no. 2
Comparable no. 3
Sale price
Real property rights conveyed adjustment
Adjusted price

Financing adjustment
Conditions of sale adjustment
Expenses made immediately after purchase adjustment
Adjusted price
Date of sale adjustment
Adjusted price
Other adjustments as required:
- Zoning
- Location

- Frontage/depth
- Lot area
- Topography
- Utilities
- Interior/corner lot
- Local Improvement Charges
- Easements/Rights of Way

Total Other Adjustments
Final Adjusted Sale Price
Adjusted unit sale price / frontage OR
Adjusted unit sale price / area
For reconciliation purposes:
Total Adjustment
Total adjustment as % of Sale Price

Page of pages
Adjustment Analysis in Order: 1. Property Rights 2.
Financing 3. Motivation 4. Expenses made immediately after
purchase 5. Time 6. Other
Page of pages
Reconciliation
Final Estimate of Site Value: $
Page of pages
COST APPROACH – COST ANALYSIS OF IMPROVEMENTS
Reproduction Cost New (RCN) Estimate
Cost Manual (name):
[ X ] Worksheet and excerpts attached
as Schedule ___
RCN estimate
$
Contractors:
Name and Address
RCN Estimate

$
RCN conclusion and rationale:
Subtotal:
$
Extras (state source):
(not included in above RCN estimate)
Attached deck/patio
$
Porches
$
Attached garage/car port
$

Basement finish
$
$
$
$
Subtotal:
$
Total Reproduction Cost New of Building(s)
$
Site Improvements: (see BUSI 330.9)
Item
Cost New

Age/Life
Depreciated Value
$
/
$
$
/
$
$
/
$
$
/
$
$

/
$
$
/
$
$
/
$
Total Depreciated Value of Site Improvements
$
Page of pages
COST APPROACH – DEPRECIATION

Age-Life Method
Item
RCN
Effective Age
Economic Life
% Dep.
Accrued Depreciation
Total
$
$
Description of process applied and justification of estimate:
Page of pages
COST APPROACH – SUMMARY
REPRODUCTION COST NEW
$

Less Total Depreciation
$
DEPRECIATED COST OF BUILDING(S)
$
Plus Depreciated Site Improvements
$
Plus Site Value
$
VALUE INDICATED BY COST APPROACH

$
Rounded to:
$
Cost Approach Conclusion: Market Value =
$
Page of pages
DIRECT COMPARISON APPROACH
Data Comparison Chart
Item
Subject Property
Comparable No. 4
Comparable No. 5
Comparable No. 6
Address
Legal description

Sale date
Instrument no.
Registration date
Vendor
Purchaser
Sale Price
Rights conveyed
Fee Simple

Financing
Conditions of sale
Expenses made immediately after purchase
Time difference (mos.)
0
Distance from subject (blocks)
0
Location
Bldg size (above grade)
Type/Quality Construction

Energy efficiency
Design and appeal
Age
Condition
Room Count
Ttl
Bds
Bth
Ttl
Bds
Bth
Ttl
Bds
Bth
Ttl
Bds

Bth
Basement unfinished area
Basement/finished below grade area
Air conditioning
Heating
Fireplace

Appliances
Lot size
Zoning
Garage/carport
Local Improvement Charges

Other comments:
Page of pages
DIRECT COMPARISON APPROACH (continued)
Adjustment Chart
Item
Comparable no. 4
Comparable no. 5
Comparable no. 6
Sale price
Real property rights conveyed adjustment
Adjusted price
Financing adjustment
Conditions of sale adjustment

Expenses made immediately after purchase adjustment
Adjusted price
Date of sale adjustment
Adjusted price
Other adjustments as required:
- Location
- Building size
- Construction
- Energy efficiency

- Design and appeal
- Age
- Condition
- Room count
- Basement unfinished area
- Basement/finished below grade area
- Air conditioning
- Heating
- Fireplace

- Appliances
- Lot size
- Zoning
- Garage/carport
- Local Improvement Charges
-
-
-
Total Other Adjustments

Final Adjusted Sale Price
For reconciliation purposes:
Total Adjustment
Total adjustment as % of Sale Price
Page of pages
Adjustment Analysis in Order: 1. Property Rights 2.
Financing 3. Motivation 4. Expenses made immediately after
purchase 5. Time 6. Other
Page of pages
Adjustment Analysis (continued)
Other adjustments

Page of pages
Reconciliation
Direct Comparison Approach Conclusion: $
Page of pages
RECONCILIATION OF VALUE INDICATIONS AND FINAL
ESTIMATE OF VALUE
Indicated value by Cost Approach
$
Indicated value by Direct Comparison Approach
$
The Market Value, as defined, for the subject property as of

(Date)
is estimated to be
$
The exposure time for the subject property has been estimated
at .
Page of pages
CERTIFICATION
I certify that, to the best of my knowledge and belief:
· the reported analyses, opinions, and conclusions were
developed, and this report has been prepared, in conformity
with the requirements of the code of Professional Ethics and the
Standards of Professional Appraisal Practice.
· the statements of fact contained in this report are true and
correct.
· the reported analyses, opinions, and conclusions are limited
only by the reported assumptions and limiting conditions, and
are my personal, unbiased professional analyses, opinions, and
conclusions.
· I have no present or prospective interest in the property that is
the subject of this report, and I have no personal interest or bias
with respect to the parties involved.

· my compensation is not contingent upon the reporting of a
predetermined value or direction in value that favours the cause
of the client, the amount of the value estimate, the attainment of
a stipulated result, or the occurrence of a subsequent event.
· I have made a personal inspection of the property that is the
subject of this report, located at , on .
· no one provided significant professional assistance to the
person signing this report.
· the final estimate of market value, as of is estimated to be:
(Date)
($ )
Signature of Student
Date Signed
BUSI 330.1

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