marshall & swift commercial property appraisal user guide

Marshall & Swift

Commercial Property

Appraisal User Guide

Copyright © 2016 Harris Govern All rights reserved

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Harris Govern 760 North Watters Rd, Suite 100

Allen, TX 75013 972.881.1858

Web site: http://www.trueautomation.com and www.harrisgovern.com

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9/20/2017, 10:32 AM

Marshall & Swift Commercial Property Appraisal User Guide True Automation, Inc.

Contents

Marshall & Swift Commercial Property Appraisal ........................................................................ 5

Topic Revisions: Marshall & Swift Commercial Property Appraisal (MVP) .............................. 5

Overview: M&S Commercial Property Appraisal (MVP) .......................................................... 6

Identifying Commercial Properties (MVP) ............................................................................... 7

Creating and Modifying Commercial Improvement Data Using M&S (MVP) ............................ 8

Viewing Commercial Improvement Data Entered Using M&S (MVP) .................................... 20

Reviewing Marshall & Swift Estimated Commercial Values (MVP) ........................................ 21

Generating the Marshall & Swift Data Entry Report w Appr Cards (MVP) ............................. 22

Index ........................................................................................................................................ 23

Topic Revisions: Marshall & Swift Commercial Property

Appraisal (MVP)

November 2016

Changed Topic

Harris Govern implemented the Marshall & Swift MVP Version Platform

Marshall & Swift Commercial Property

Appraisal

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Overview: M&S Commercial Property Appraisal (MVP)

With Marshall & Swift commercial property appraisal features in PACS, you can enter data that the Marshall & Swift system uses to calculate depreciation for commercial properties and determine replacement cost new (RCN) values. The results of the Marshall & Swift calculations are stored within PACS.

Activation & Licensing of the Marshall & Swift Module in PACS

To activate the Marshall & Swift module in PACS, your office must contact Harris Govern Client Services.

In order to use the Marshall & Swift features in PACS Appraisal, your CAD must purchase a license directly from Harris Govern. For more information, contact Harris Governs's Sales Department.

Annual Data Update

Harris Govern provides an annual update for its customers who use Marshall & Swift in January after Marshall & Swift has provided its first quarter data.

Supplementing Properties Containing Marshall & Swift Data

To supplement a property with Marshall & Swift data in a year layer for which the Marshall & Swift module was not activated, in the property's Improvement dialog box, you must enter either a flat value or distribute value.

Note To access the Improvement dialog box, click the Details button displayed under a property record's Improvements tab.

If you suddenly lose access to Marshall & Swift, there may be an issue with the license. In this case, contact Harris Govern Support.

See Also

For more information, see the Marshall & Swift user documentation available at http://www.swiftestimator.com/ce.asp.

Identifying Commercial Properties (MVP)

Purpose

Use this procedure to enable state codes for use in the Marshall & Swift system.

Procedure

1. In PACS, choose Tools > Comparable Property > Commercial Maintenance> Identify Commercial Property.

2. Move the state codes that will be used in the Marshall & Swift system from the Available State Codes column to the Selected State Codes column. Then click OK.

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Creating and Modifying Commercial Improvement Data

Using M&S (MVP)

Purpose

Use this procedure to make entries that the Marshall & Swift system requires to appraise replacement cost new (RCN) and depreciation values of commercial properties.

As part of this procedure, you select the depreciation type to use for the calculations (described in Area B below). The available depreciation types are:

Depreciation Type Description

Marshall & Swift Tables Uses values provided by Marshall & Swift.

Physical Determines the loss in value due to physical deterioration.

Functional Determines the loss in value due to lack of utility or desirability of part or all of the property, inherent to improvement or equipment.

Age/Life Estimates all forms of depreciation sustained by an asset. It is based on the effective age of the property or component, divided by the total economic life of the property or component.

Example The roof of an apartment building is effectively 10 years old and has a total economic life of 25 years. It is 10/25 depreciated (40%) based on the age-life method of depreciation.

Recommendation

While you work, we recommend referencing a copy of Marshall & Swift's Commercial Estimator Occupancy Reference published at http://www.swiftestimator.com/ce.asp (http://www.swiftestimator.com/ce.asp).

This reference specifies the components allowed for occupancy codes.

Prerequisites

Your office has contacted True Automation Client Services to request the activation of the Marshall & Swift module in the PACS configuration table.

In order to perform this procedure, the following user right must be assigned to your user ID:

Tools> User Administration > Rights/Groups > Marshall & Swift - Create/Edit

http://www.swiftestimator.com/ce.asp

State codes required for the commercial properties have been enabled. For more information, see Identifying Commercial Properties (page 7).

The Marshall/Swift Type attribute in PACS.ADMIN (Tools > Code File Maintenance >

Improvements > Type Code Maintenance) has been set to C (Commercial).

Procedure

1. In PACS, do one of the following:

Create a new improvement segment using Marshall & Swift

a) Open the property and expand the Improvements panel. Then, in the Improvements section, click New

b) In the Improvements dialog box, enter data for the new improvement as required. Then, in the Improvement Details section, click New

c) Proceed to Step 2.

Modify an existing improvement segment using Marshall & Swift

a. Open the property and expand the Improvements panel.

b. In the Improvement Details section, do one of the following:

If Marshall & Swift data has not been entered already for the improvement, select the improvement and then click Details. Then proceed to Step 2.

If Marshall & Swift data has been entered for the improvement, open the improvement detail, click the M&S Details button, and then proceed to Step 3 below.

In the Values section of the Improvement Detail dialog box, select Marshall & Swift.

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2. In the Estimate Information section of the Marshall & Swift Commercial Details Dialog box, complete the following fields:

Zip Code

Quality

A value from 1 through 6 that represents the quality of the building. (The quality can be between two numbers, such as 3.5)

1 = Low (single family only) 3= Average 5 = Very Good

2 = Fair 4 = Good 6 = Excellent

The quality determines the cost level in the report, and so you should exercise extreme care in choosing it. For detailed descriptions of residential quality levels, see the detailed quality descriptions in Marshall & Swift's Residential Estimator

Program Worksheet Reference (http://www.swiftestimator.com/pdf/SE_RE_Worksheet_Reference.pdf).

You should examine both materials and workmanship when determining the overall quality of construction. The quality of materials and workmanship of individual building components may vary. However, the overall quality tends to be consistent for the entire residence. Furthermore, the quality of materials and of workmanship tend to influence each other.

Workmanship

Workmanship is often superficial, allowing you to easily observe its quality. Following are some of the indicators of better quality workmanship:

• Solid and level floor structures

• Plumb walls

• Smooth finish on concrete and plastered surfaces

• Mitered joints in both exterior and interior woodwork

• Proper fitting doors and windows

Quality of Materials

As with workmanship, the quality of materials is usually apparent during the

inspection of the residence or commercial building. The following are some of the indicators of quality

materials:

• Quantity, grade and type of floor coverings.

• Quantity and grade of cabinetry (standard or custom).

• Quantity and grade of windows.

• Quantity and grade of wood, paneling, moldings, trim, etc.

EffAge Adj

The adjustment value is the number of years to change the effective age for each year between the base date and the report date. It has an effect only if these two dates are different.

Local Multiplier

The value in this field comes from the Marshall & Swift engine. Values from .10 - 3.00 are considered valid.

Base Date

The date on which the Marshall & Swift data was entered in the system.

Total Area

Square footage of the improvement detail segment.

Report Date

(A read-only field) Allows the improvement to use the most current data tables.

1. Review the information in the Depreciation Information section and complete the following fields as required:

Dep Type

http://www.swiftestimator.com/pdf/SE_RE_Worksheet_Reference.pdf

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Choose one of the following depreciation types. The depreciation type you select is automatically applied to all components that you do not individually depreciate (with

the exception of the option None).

o Marshall & Swift Tables –Uses the Marshall & Swift depreciation tables.

o Combined Phys and Func – Enables the Phys + Func field so that you can enter your

own combined physical and functional depreciation percentages.

o Separate Phys and Func – Enables the Physical field and the Functional field so that

you can enter separate percentages for physical and functional depreciation.

o Age/Life – Enables the age/life depreciation method.

o None – Does not set an overall depreciation percentage; does not automatically

depreciate any components.

Eff. Yr. Built

Represents the effective age of the property, a result of routine maintenance or lack thereof. You can enter the year that the site was most recently renovated. This entry is copied to improvement details unless it is overidden on the detail record.

If you selected the depreciation type Separate Phys and Func, complete the

following fields:

o Physical

o Functional

In these fields, you can enter 0-100 to calculate the combined physical and

functional depreciation of the property. If you enter 0, no depreciation is applied.

Typical Life

The typical life of the structure based on the occupancy entered in the Occupancy Information section.

Age

If you selected the depreciation type Combined Phys and Func, complete the field

Phys + Func.

Additional Functional

If you need to depreciate the property value in addition to the depreciation calculated by Marshall & Swift, enter a percentage in this field.

External

A percentage indicating loss in value due to outside forces independent of the property.

Note To review descriptions of the depreciation types, see the Purpose section above.

2. To create or modify section information for the commercial estimate, click Details or Add and do the following in the Marshall & Swift Commercial Section Detail Dialog box:

o ID

o Type - If choosing Basement type, proceed to the next step. If choosing Building type, then enter the following information as required and then click OK or Apply:

Note A Building type section must be created before a Basement type section can be created.

Description

Required field. The default value is a description of the section type.

Either choose Perimeter and enter the numerical value of the perimeter, or choose Shape and select the shape of the improvement.

Eff. Yr. Built

Represents the effective age of the property, a result of routine maintenance or lack thereof. You can enter the year that the site was most recently renovated. This entry is copied to improvement details unless it is overidden on the detail record.

# of Stories

Area

Square footage of the improvement detail segment.

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Eff. Age

The difference between the year built and the base date. If there has been an enhancement that causes the effective age to be less than the actual age of the building, you can override the value in this field.

Review the Depreciation Information section. If you wish to enter value different from the values entered in the estimate, select Override Depreciation Information.

3. If you chose Basement type, enter the following information as required and then click OK or Apply:

Description

Required field. The default value is a description of the section type.

Either choose Perimeter and enter the numerical value of the perimeter, or choose Shape and select the shape of the improvement.

# of Levels

Associated Building Section

This list is populated with all building sections for the commercial estimate.

4. In the Occupancy Information section of the Marshall & Swift Commercial Details Dialog box, complete the following fields as required:

Type/Code

Marshall & Swift occupancy codes.

Note To review the Marshall & Swift occupancy codes that you can choose from, see Marshall & Swift's Commercial Estimator Occupancy Reference published at http://www.swiftestimator.com/ce.asp (http://www.swiftestimator.com/ce.asp).

%

The percentage of the occupancy for the improvement detail segment.

Note While Marshall & Swift does allow for dual occupancies, the total percentage of all

occupancies must total 100%.

Class

The construction class of the segment.

Height

Story height. For a single story, the vertical distance from the surface to the roof eave. For multiple stories, the vertical distance from the top of one floor to the top of the next floor.

Override Quality/Rank


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Select to enter a value different from the default Quality/Rank value entered in the estimate.

Quality/Rank

The overall quality of the building.

Desc

Description of the Quality/Rank value.

Area w/ %

The system automatically completes this field after the property is calculated. The system calculates the value for this field by multiplying the area by the occupancy percentage.

Note If the corresponding Section Type is Basement, columns in the Occupancy Information grid will change accordingly.

5. In the Component Information section, complete the following fields as required.

Note Some components require a value in the % field while others require a value in the Units fields described below. See the Values for Component Fields table below as a reference for completing these fields.

System

Represents a component, such as an HVAC system or exterior walls.

Code

Further defines the component, such as "wall furnace" for an HVAC system.

%

The percentage of the area served by the attribute.

Quality/Rank

The rank that grades the quality of the component.

Units

Either the number of units or the square feet of floor area served by the component.

Deprec. %

If required, you can enter a value in this field to manually depreciate the components. If you do not enter a value in this field, Marshall & Swift automatically uses the depreciation percentage for the segment.

# of Stops

For use with an elevator component; indicates the number of stops that the elevator makes.

Climate

For use with the HVAC component.

Total Cost New

Read only.

Unit Cost

Calculated unit cost of the component.

Depr. Amt

Depreciation amount of the addition. This field is read-only.

Depr. Cost

Depreciation Cost. This field is read-only.

Values for Component Fields

Component Value Required in Unit field

Value Required in % field

Other Optional Fields for Completion

Wall None % of total wall None

HVAC Sq. feet of floor area served

% of total area served

Climate field

Elevator (by sq. foot)

Sq. feet of area served

% of area served None

Elevator (by count)

Number of elevators

None # Stops field

Sprinklers Sq. feet of floor area served

% of total area served

None

Mezzanines Sq. feet of mezzanines

None None

Balconies Sq. feet of balconies

None None

Mall Sq. feet of mall None None

Fire Alarm Systems

Sq. feet of area served

% of area served None

6. To modify or create additions, enter the following information in the Additions grid as required:

System

Required. Select the system for the addition from the options available provided by the M&S Commercial engine.

Description

This description of the addition will appear on reports.

Units

Number of units for the addition.

Unit Cost Unit Cost of the addition.

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Unit Cost of the addition.

Deprec %

The depreciation percentage to apply to the Total Cost New of the addition. If Effective Year Built and Typical Life values are entered, this field will reset to 0. Conversely, editing this field will reset the Effective Year Built and Typical Life fields.

Effective Year Built

Select Effective Year Built Override to modify this field. If entering a value other than the default, a value must be entered in the Typical Life field. Editing the Effective Year Built field will reset the Depreciation Percentage to 0.

Typical Life

Select Typical Life Override to modify the default value. The default value comes from the Depreciation Information paragraph. This field is required if a value has been entered for Effective Year Built. Also, modifying the Typical Life and Effective Year Built will reset Deprec. % to 0. Conversely, editing Deprec. % will reset Typical Life and Effective Year Built fields.

LM

Select to have the default Local Multiplier applied to the cost of the addition.

Trend

The trend to apply to the Addition's cost.

Base Date

Edit this field to override the Base Date entered in the Estimate Information section. This value works in conjunction with Trend.

Total Cost New

Read only.

Unit Cost

The Calculated Unit Cost of the addition. This field is read-only.

Depr. Amt

Depreciation amount of the addition. This field is read-only.

Depr. Cost

Depreciation Cost. This field is read-only.

7. Enter any remarks as required in the Remarks field.

8. Use the following options as required:

To generate the Estimate Report, which gives a breakdown of the values used in Marshall & Swift to value the occupancy and shows the depreciation taken, click Preview, Print or Print All.

Note While Print prints the Estimate Report for the single improvement segment that is selected, Print All prints the Estimate Report for all of the improvement segments on the

property that use Marshall & Swift data.

To carry out a recalculation of the property that includes the Marshall & Swift values you have entered, click Recalculate.

9. To save your entries, either click Apply to save the data and leave the dialog box open, or click OK to save the data and close the dialog box.

Result

The Marshall & Swift system automatically calculates the value of the improvement based on your entries.

Troubleshooting

If you receive an error while carrying out this procedure, check Marshall & Swift's Commercial Estimator Occupancy Reference published at http://www.swiftestimator.com/ce.asp (http://www.swiftestimator.com/ce.asp) to determine if the components selected are allowed for an occupancy code.


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Viewing Commercial Improvement Data Entered Using M&S

(MVP)

Purpose

Use this procedure to view improvement segments on a property that contain Marshall & Swift values.

Prerequisites

In order to perform this procedure, the following user right must be assigned to your user ID:

Property > Edit Property > Improvements > Edit Marshall/Swift Commercial Improvements

Procedure

1. Open the property and expand the Improvements panel. Then, in the Improvement Details section,open the improvement detail and click the M&S Details button.

The Marshall and Swift dialog box is displayed.

2. Review the Marshall & Swift values.

Reviewing Marshall & Swift Estimated Commercial Values

(MVP)

Purpose

Use this report to review:

A breakdown of the values used in Marshall & Swift to value the occupancy.

The depreciation taken.

Procedure

1. In PACS Appraisal, open a property and click the Improvements panel. Then, in the Improvements section, click M&S.

The Marshall and Swift dialog box is displayed.

2. Click Print or Print All.

Note While Print prints the Estimate Report for the improvement segment that is selected, Print All prints the Estimate Report for all of the improvement segments on the property that use Marshall & Swift data.

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Generating the Marshall & Swift Data Entry Report w Appr

Cards (MVP)

Purpose

Use this report to generate the Marshall & Swift Data Entry Report when generating appraisal cards for field work.

The report includes the Marshall & Swift data entered on improvement segments.

Prerequisites

In order to perform this procedure, the following user right must be assigned to your ID:

Activities > Print Appraisal Card

Procedure

1. In PACS, choose Activities > Appraisal Cards. Then choose your printing option (Print All Properties, Print User Defined, etc.).

2. In the Card Type drop-down list in the Print Appraisal Cards dialog box, select Field

Review Card.

3. In the Options section, select the print Marshall & Swift report options, and other options as required.

4. Select either Preview or Print.

9/20/2017, 10:32 AM Marshall & Swift Commercial Property Appraisal User Guide True Automation, Inc.

9/20/2017 10:31

Harris Govern 760 North Watters Rd, Suite 100 Allen, TX 75013

Phone: 972.881.1858 Fax: 972.633.0533

C

comparable properties, commercial state codes, for commercial properties • 7

S

state codes, for commercial properties • 7

Index

marshall & swift commercial property appraisal user guide

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