PREPARATION OF BUILDING APPRAISAL REPORT PREPARATION OF BUILDING APPRAISAL REPORT PREPARATION OF BUILDING APPRAISAL REPORT PREPARATION OF BUILDING APPRAISAL REPORT • Name : FAIRUZ Name : FAIRUZ Name : FAIRUZ Name : FAIRUZ • ROLL NO : BARC/8008/10 ROLL NO : BARC/8008/10 ROLL NO : BARC/8008/10 ROLL NO : BARC/8008/10 • SUBJECT : SEMINAR SUBJECT : SEMINAR SUBJECT : SEMINAR SUBJECT : SEMINAR • SEMESTER : VII SEMESTER : VII SEMESTER : VII SEMESTER : VII
Introduction Title Page Transmittal Letter Table Of Content : 1. Summary 2. Survey 3. Calculation 4. Conclusion
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PREPARATION OF BUILDING APPRAISAL REPORTPREPARATION OF BUILDING APPRAISAL REPORTPREPARATION OF BUILDING APPRAISAL REPORTPREPARATION OF BUILDING APPRAISAL REPORT
SEMESTER : VIISEMESTER : VIISEMESTER : VIISEMESTER : VII
• Name : FAIRUZName : FAIRUZName : FAIRUZName : FAIRUZ
• ROLL NO : BARC/8008/10ROLL NO : BARC/8008/10ROLL NO : BARC/8008/10ROLL NO : BARC/8008/10
• SEMESTER : VIISEMESTER : VIISEMESTER : VIISEMESTER : VII
INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION
• Documentation / Report Documentation / Report Documentation / Report Documentation / Report prepared by professional
appraiser to determine the value of building property.determine the value of building property.determine the value of building property.determine the value of building property.
• Prepared when a person wants to buy a building propertyperson wants to buy a building propertyperson wants to buy a building propertyperson wants to buy a building property
• It tells the homeowner if the purchase is a good deal or the purchase is a good deal or the purchase is a good deal or the purchase is a good deal or
not.not.not.not.not.not.not.not.
• The report is also submitted to lenders, who can use the
valuation of the home to determine whether to grant the determine whether to grant the determine whether to grant the determine whether to grant the
loan.loan.loan.loan.
•After making a careful evaluation making a careful evaluation making a careful evaluation making a careful evaluation of the specific item
being appraised and the market conditions, the appraiser appraiser appraiser appraiser
writes his appraisal report. writes his appraisal report. writes his appraisal report. writes his appraisal report.
• In it he specifies the appraised value of the item. He also
specifies his methodology used to arrive at that valuemethodology used to arrive at that valuemethodology used to arrive at that valuemethodology used to arrive at that value
TITLE PAGETITLE PAGETITLE PAGETITLE PAGE
It should include following data :
• Property name and
identification
• Address or location of the
property being appraisedproperty being appraised
• Name and address of the
client
• Name and address of the
appraiser
• Effective date of the valuation
• Date of report preparation
IntroductionIntroductionIntroductionIntroduction Letter of transmittal includes :Letter of transmittal includes :Letter of transmittal includes :Letter of transmittal includes :
• It presents the appraisal report presents the appraisal report presents the appraisal report presents the appraisal report to the
client.
• Letters of transmittal are drafted in drafted in drafted in drafted in
• Property name or identification
• Effective date of the value estimate
• Type of value estimated
LETTER OF TRANSMITTALLETTER OF TRANSMITTALLETTER OF TRANSMITTALLETTER OF TRANSMITTAL
• Letters of transmittal are drafted in drafted in drafted in drafted in
proper business styleproper business styleproper business styleproper 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 used to provide used to provide used to provide
a permanent recorda permanent recorda permanent recorda permanent record for identifying the
writer and intended reader
• 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.
LETTER OF TRANSMITTALLETTER OF TRANSMITTALLETTER OF TRANSMITTALLETTER OF TRANSMITTAL
LETTER OF TRANSMITTALLETTER OF TRANSMITTALLETTER OF TRANSMITTALLETTER OF TRANSMITTAL
SURVEY : SURVEY : SURVEY : SURVEY : Description Of ImprovementDescription Of ImprovementDescription Of ImprovementDescription Of Improvement
• It gives the detailed detailed detailed detailed
descriptiondescriptiondescriptiondescription of building
property
• It mainly gives the details details details details
of building materialof building materialof building materialof building material used by of building materialof building materialof building materialof building material used by
the building property
• Appraiser informs about
the changes needed to be changes needed to be changes needed to be changes needed to be
done in the building done in the building done in the building done in the building
property
• Appraiser estimates the estimates the estimates the estimates the
costcostcostcost for building property
• 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.
SURVEY : SURVEY : SURVEY : SURVEY : Description Of ImprovementDescription Of ImprovementDescription Of ImprovementDescription Of Improvement
• 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
SURVEY : SURVEY : SURVEY : SURVEY : Description Of ImprovementDescription Of ImprovementDescription Of ImprovementDescription Of Improvement
SURVEY: High And Best Use ConclusionSURVEY: High And Best Use ConclusionSURVEY: High And Best Use ConclusionSURVEY: 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 Therefore the eastern portion of the site would allow for retail, office and multifamily and the western portion allow for Therefore the eastern portion of the site would allow for retail, office and multifamily and the western portion allow for Therefore the eastern portion of the site would allow for retail, office and multifamily and the western portion allow for
• It is an approach in which total cost of the property is estimated by summing up the cost summing up the cost summing up the cost summing up the cost
of land and structureof land and structureof land and structureof land and structure
• Basic steps in the cost approach are :
a) Estimate land value as though vacant and available to be put to its highest and best use
b) Estimate reproduction or replacement cost of structures
c) Estimate accrued depreciation
d) Deduct depreciation from reproduction or replacement cost
e) Add depreciated reproduction or replacement cost to the value of the land