wingap residential imp / accessory / rural land schedules & pricing
DESCRIPTION
WinGAP Residential Imp / Accessory / Rural Land Schedules & Pricing. WinGAP Residential Pricing. Tracy Thomas DOR, Business Analyst. Contact Info. [email protected] 404/831-0158. Computers. Tight Quarters Watch Cords They Belong to You (Gap Group Inc.). Cell Phones. - PowerPoint PPT PresentationTRANSCRIPT
WinGAP Residential Imp / Accessory / Rural Land Schedules & Pricing
WinGAP Residential Pricing
Tracy Thomas DOR, Business Analyst
Contact Info
[email protected] 404/831-0158
Computers
Tight Quarters Watch Cords They Belong to You (Gap Group
Inc.)
Cell Phones
Please set yourphones to vibrate
Schedule
Start at 9:00 am Morning Break around 10:15 Lunch from 11:30 to 1:00 Afternoon Break around 2:45 Dismiss at 4:00
Successful Completion
Thursday Morning we will complete course evaluations, following evaluations we will begin the exam.
Exam is multiple choice 25 questions
Login Information
Userid = felix Password = cat
WinGAP Residential Pricing
Residential Imp Schedules Residential Imp Calculations Point Cost Study Neighborhood Adjustment Accessory Improvements
Schedules Rural Land Schedules
WinGAP Residential Pricing
Goals: Provide the appraiser with
information regarding access to the various schedules in WinGAP
Acquaint the appraiser with the use of the schedules through the manual calculation process
WinGAP Residential Pricing
Goals (cont): Provide methodology for deriving a
residential improvement point cost Demonstrate how to fine tune
schedules with neighborhood codes and adjustments.
WinGAP Residential Schedules
WinGAP Residential Schedules
Residential Improvement Point Cost Converts points to dollars Change impacts all non-overriden res
imps Locally derived and maintained Converted to multiplier with division by
100 Pt cost = 100 Multiplier = 100 / 100 = 1.00
Preferences: Res Imp Depr Year The Residential Improvement
Depreciation Year (RIDY) field contains the base year from which system generated depreciation is calculated.
The age of a Residential Improvement is determined by subtracting the year built or effective year built from the depreciation year.
This locks depreciation in until the county decides to change it.
Any houses with a year built greater than the depreciation year will be determined to have an effective age of one year.
Preferences: RIDY The RIDY is used, in lieu of the calendar year,
to stabilize depreciation and values. If the calendar year were used to calculate the
age of houses, value changes would occur each year because of the increasing amount of depreciation.
With the use of the RIDY, the appraiser has control over the timing of the application of new depreciation.
Normally, this is done when other aspects of the schedules such as Base Cost, Heating, etc., are updated.
Preferences: RIDY
Change affects “calculated” physical depreciation
Exercises 1
Depreciation Year
Appraisal Year = 2004 Res Dep Yr = 2001 Imp Yr Blt = 1988 Age = ? Age = 2001 – 1988 = 13
Depreciation Year
Appraisal Year = 2004 Res Dep Yr = 2001 Yr Blt = 1977 Eff Yr Blt = 1966 Age = ? Age = 2001 – 1966 = 35
Depreciation Year
Appraisal Year = 2004 Res Dep Yr = 2001 Yr Blt = 2003 Age = ? Age = 2001 – 2003 = -2
Age will default to 1 year old.
WinGAP Residential Schedules
Appraisal Year Among other things, used to
determine the default year built of new structures
Default Yr Built = Appraisal Year – 1 Incremented by 1 during yearend
cleanup
WinGAP Residential Schedules
Truncate Values Not rounding If calc value > 1000, drops the 100’s
digits and replaces with 00 If calc value >10 and < 1000, drops
the 10’s digit and replace with 0 Truncated value of 98,877 = 98,800
Exercises 2
Truncation
Imp Calc Value = 44,567 Trunc FMV = 44,500 Imp Cal Value = 259,988 Trunc FMV = 259,900 Imp Calc Value = 567 Trunc FMV = 560
Classroom Exercise
Truncate the following improvement values. DEPR shown is the value lossRCN DEPR VALUE
212,850 7%
212,850 17%
212,850 27%
2,150 37%
2,150 47%
2,150 57%
2,150 67%
RCN DEPR 1-DEPR RCN*(1-DEPR) 100 or 10 Product INT(Product)TRUNCATE
VALUE
212,850 7% 93%
197,950.50 100
1979.505 1979 197,900
212,850 17% 83%
176,665.50 100
1766.655 1766 176,600
212,850 27% 73%
155,380.50 100
1553.805 1553 155,300
2,150 37% 63%
1,354.50 100 13.545 13 1,300
2,150 47% 53%
1,139.50 100 11.395 11 1,100
2,150 57% 43%
924.50 10 92.45 92 920
2,150 67% 33%
709.50 10 70.95 70 700
WinGAP Residential Schedules Rnd Area Mult to 6 dec
Used to determine rounding of area multiplier
If not checked, area multiplier is rnded to 2 decimal places
“2 decimal places” has been only option until release of 3.6
2 decimal rounding generates size adj anomaly
Area Multiplier Rounding
WinGAP Residential Schedules Attic: Use Max/Min Area
Used to specify of Max/Min Area restrictions are imposed in attic calculations
If not checked, area multiplier continues to change beyond the Max/Min Area
WinGAP Residential Schedules Bsmt: Use Max/Min Area
Used to specify of Max/Min Area restrictions are imposed in attic calculations
If not checked, area multiplier continues to change beyond the Max/Min Area
Residential Imp Submenu
Tools >> Schedules/Tables >> Residential Improvements
WinGAP Residential Schedules
Base Points (Area Multiplier) Parameters Base Area Minimum Area Maximum Area Increment Base Increment Factor
WinGAP Residential Schedules
WinGAP Residential Schedules
Base Area Median size of sold homes Area multiplier is 1.00 Area mult above Base Area < 1.00 Area mult below Base Area > 1.00
WinGAP Residential Schedules
WinGAP Residential Schedules Minimum Area
Square foot level where $/SF ceases to change
All areas below Minimum Area will be priced at the same $/SF calculated for Minimum Area
$/Sq Ft @ 500 SF = 65.00 500 SF * 65.00 SF = 32,500 400 SF * 65.00/SF = 26,000
WinGAP Residential Schedules
WinGAP Residential Schedules Maximum Area
Square foot level where $/SF ceases to change
All areas above Maximum Area will be priced at the same $/SF calculated for Maximum Area
$/Sq Ft @ 3000 SF = 60.00 3000 SF * 60.00 SF = 180,000 4000 SF * 60.00/SF = 240,000
WinGAP Residential Schedules
WinGAP Residential Schedules
Increment Base Area increment where cost per SF
changes Higher increment results in less
changes @ Min Area values are less (area mult is
lower) @ Max Area values are higher (area mult
is higher)
WinGAP Residential Schedules (Inc Base w/ Inc Factor @.005)
0102030405060708090
100
50 25 100
250017501000600
$ / SF
WinGAP Residential Schedules
WinGAP Residential Schedules
Increment Factor Determines rate @ which cost/SF
changes at each Increment Base Not a dollar per square foot adjustment Factor applied in the calculation of the
area multiplier Lower factor slows down rate of
change
WinGAP Residential Schedules (Inc Factor w/ Inc Base @ 50)
0
10
20
30
40
50
60
70
80
90
0.005 0.0035
250017501000600
$ / SF
Residential Improvements
Increment Base vs Increment Factor
Impact Value inversely. Inc Base Increases, Value changes
less Inc Factor Increases, Value changes
more
Correction Notice
I gave the example that $/SF didn’t change between increment base
1500 = 40 1480 = no change 1450 = incremental adjustment Wrongo! 1480 will be adjusted also,
wingap interpolates to adjust an area not equal to the base area.
WinGAP Residential Schedules
Base Area, Inc Base & Inc Factor are used in the determination of Area Multiplier (((Base Area – TBA) / Inc Base) *
Inc Fact) + 1.00 {6} See chart – page 13
WinGAP Residential Schedules
WinGAP Residential Schedules
Base Dollars Represents Base Cost for Res Imps Should exclude all items that will be
added via other schedules (heat, plumbing, etc)
Function of the Res Imp Point Cost Formula for calculating actual dollars
base d/s/f * (point cost / 100) 40 * (200 / 100) = 80.00
WinGAP Residential Schedules
Effect of Area Multiplier on Base Dollars – See Chart on pg 15
Area Multiplier Rounding Comparison
res_base_cost_all.XLS
WinGAP Residential Schedules
WinGAP Residential Schedules
Attic Types 3rd item in list & assoc value is base
cost for attics (usually unfinished)
WinGAP Residential Schedules
Attic Types Formula for converting base attic cost
attic $/SF / (res imp point cost / 100) 2.53 / (100 / 100) = 2.53 / 1 = 2.53
Other attic types maybe added for Descriptive Method
WinGAP Residential Schedules
Attic Types Formula for converting Attic Type
Dollars to actual cost Attic Type $ per SF * (res imp point
cost /100)
WinGAP Residential Schedules
WinGAP Residential Schedules
Basement Coverage 4th item in list & assoc value is base
cost for basements
WinGAP Residential Schedules
Basement Coverage Formula for converting basement cost
bsmt $SF / (res imp point cost / 100) 6.20 / (100 / 100) = 6.20 / 1 = 6.20
Other basement coverages maybe added for Descriptive Method
WinGAP Residential Schedules
Basement Coverage Formula for converting Basement
Coverage Dollars to actual cost Basement Coverage $ per SF * (res
imp point cost /100)
WinGAP Residential Schedules
Heat Dollars A value of [1.00 / (pt cost / 100)]
would allow entry of actual $/SF for heating types
WinGAP Residential Schedules
WinGAP Residential Schedules
Heat Dollars Adjusted cost for base heating type Formula for converting heat cost
Base heat cost / (res imp point cost / 100)
Formula for converting Heat Dollars to actual cost
Heat Dollars * (res imp point cost /100)
WinGAP Residential Schedules
Area Multiplier Size adjustment Used to adjust value contribution for
each of the items below: Base Dollars Attic Types Basement Coverage Heat
WinGAP Residential Schedules
Area Multiplier Calculation ((((Base Area – TBA) / Inc Base) *
Inc Fact) + 1.00) {6} TBA – total base area of
House {6} Attic {3} Basement {3} Area Multiplier for House, Attic, and
Basement are independent calculations.
WinGAP Residential Schedules
Area Mult can be broken down into four basic steps: Base Area – TBA = Area Increment Area Inc / Inc Base = Area % Area % * Inc Factor = Area Adj Area Adj + 1.00 = Area Mult {6}
Exercises 3
Calculate area mult for a 1200 sq ft house using the values in the manual
(((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00 {6}
(((1500 – 1200) / 50) * .005) + 1.00
((300/50) * .005) + 1.00 (6 * .005) + 1.00 .03 + 1.00 = 1.030000
Calculate area mult for a 2600 sq ft house using the values in the manual
(((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00 {6}
(((1500 – 2600) / 50) * .005) + 1.00
((-1100/50) * .005) + 1.00 (-22 * .005) + 1.00 -.11 + 1.00 = .890000
Inc Base / Inc Fac
Base Value
50 / .005 86,480
50 / .0037 88,360
100 / .0037 91,180
Value Comparison for 2350 SF residence
Exercises 4
Calculate base cost for a 4200 square foot house
((((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00) {6}
((((1500 – 3000) / 50)*.005)+1.00 ((-1500/50)*.005) + 1.00 (-30 * .005) + 1.00 -.15 + 1.00 = .85 Area mult = .850000
Area Multiplier Example
(40 * .85) * (100 / 100) (34) * (1) = 34.00 34.00 * 4200 = 142,800
Exercises 5
Area Multiplier for House, Attic, and Basement are independent calculations.
Calculate area multiplier(s) for a 1500 sf residence w/ 750 sq ft basement
((((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00) {3}
Bsmt = ((((1500 – 750) / 50)*.005)+1.00
Bsmt Area Mult = 1.075 Res Imp Area Mult = 1.00
WinGAP Residential Schedules
Area multiplier for a 1800 sf residence ((((Base Area – TBA) / Inc Base) * Inc
Fact) + 1.00) {2} ((((1500 – 1800) / 50) * .005) + 1.00) {6} 1500 – 1800 = -300 -300 / 50 = -6 -6 * .005 = -.03 -.03 + 1.00 = .97
Area Multiplier Example Calculate an area mult for a 635
square foot residence ((((Base Area – TBA) / Inc Base) *
Inc Fact) + 1.00) {6} ((((1500 – 635) / 50) * .005) + 1.00 1500 – 635 = 865 865 / 50 = 17.3 17.3 * .005 = .0865 + 1.00 =
1.086500
Area Multiplier Example Calculate Area Mult for a 3000 SF house
but chg increment factor to .002 & calculate truncated base value
((((1500 – 3000) / 50)*.002)+1.00 Area mult = .94 (40 * .94) * (100 / 100) 37.60 * 1 = 37.60 37.60 * 3000 = 112,800 Truncate to 112,800
WinGAP Residential Schedules
Calculating Value of Base Item Determine Area Multiplier Adj $/SF = AM * Base $/SF {2 dec places} Total $ = Adj $/SF * TBA IF previous example HEAT DOLLARS=1.30
for 635 SQFT house, AM=1.0865 Total heat $
1.0865 * 1.3{2} = 1.41 1.41 * 635 = $895
Exercises 6
Use Schedules in back of the book
WinGAP Residential Schedules
Calculating Base Heat $ for a 1800 sf res imp where base heat dollars=$1.30 Area Mult{6} = ((((1500 – 1800) / 50)
* .005) + 1.00 = .97 $ / SF{2} = .97 * 1.30 = 1.26 Total Dollars = 1.26* 1800 = 2268
Exercise 7
WinGAP Residential Schedules
Exercise # 1A AM = ((((1500 – 2350) / 50) * .005) +
1.00) = .915 $ /SF = .915 * 40 = 36.60 Total Dollars = 36.60 * 2350 =
86,010
WinGAP Residential Schedules
Exercise # 1B AM = ((((1500 – 2350) / 50) * .0037)
+ 1.00) = .9371 $ /SF = .9371 * 40 = 37.48 Total Dollars = 37.48 * 2350 =
88,078
Exercises 8
What would be the base value of the imp if the inc base was change to 100?
(((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00 {2}
(((1500 – 2350) / 100) * .0037) + 1.00 ((-850/100) * .0037) + 1.00 (-8.5 * .0037) + 1.00 -.03145 + 1.00 = .96855 .96855 * 40.00 = 38.74 38.74 * 2350 = 91,039
Adjustments to Base ValuesPg. 20 In arriving at Replacement Cost New (RCN),
adjustments for exterior wall types, story height , attic/basement finish and coverage, and heating types will be applied to the base values
Adjustments to Base Dollars Area Multiplier Exterior Wall Story Height Occupancy Grade
WinGAP Residential Schedules
Adjustments to Attic Dollars Area Multiplier Finish Quality Grade
WinGAP Residential Schedules
Adjustments to Basement Dollars Area Multiplier Finish Quality Grade
WinGAP Residential Schedules
Adjustment to Heat Dollars Area Multiplier Story Height Heating Type Grade
Adj to Base Dollar Amounts
Ext Wall
Sty Hght
Finish/Coverage
Heat Type
Quality Occupancy
Grade
Base $
X X X X
Attic X X X
Bsmt X X X
Heat X X X
1
2
3
4
5
6
7
Adjustments to Base Values The menu options
Exterior Wall (# 1), Occupancy (# 2), and Improvement Labels (# 11)
contain factors that are used in the adjustment of Base Dollars.
Most of the above mentioned schedules can be customized according to the needs of the county.
Exterior Walls
The Exterior Wall option on the Residential Improvements menu provides the user with access to the exterior wall schedule.
The schedule contains the various exterior wall types and their associated adjustments which are applied to the base dollars.
Exterior Walls
Exterior Walls Contains factors used to adjust base cost Base ext wall type should be set to 1.00 $/SF of house / base $/SF See example Pg 21 38 / 40 = .95 As many items as needed can be added
Calculate Ext Wall Factor for (1) Plywood, (2) Vinyl & (3) Wood Shingles using Wood as base @1500 SF
Exterior Wall Factors
Plywood = 41.85 / 42.43 = .99 Vinyl = 42.47 / 42.43 = 1.00 Wood = 42.43 / 42.43 = 1.00 Wood Shing = 42.63 / 42.43 =
1.00
Occupancy
The Occupancy schedule provides a listing of the current Occupancy types.
Occupancy cost multipliers, or factors, can be used to adjust Residential Improvement values for types of Occupancy.
Occupancy
Attic Finish Adjustment
The Attic Finish Adjustment is a dollar per square foot amount that is used to add value for attic finish when an attic is being valued under the Square Footage method.
Attic Finish Adjustment
Attic Finish Adjustment
Dollar contribution used to add value for attic finish
$ / Square Feet value is converted before saving using the following formula Attic finish Adj ÷ res imp pt cost 12 ÷ 100 = .12
Attic Finish Adjustment
$ / Square Feet value converted to actual dollars by Attic Finish Adj * res imp pt cost .12 * 100 = 12.00 / sf
Attic Quality
The Attic Quality factors are used to adjust the value of attics based on the quality of construction and finish.
The factors entered in the field Cost Multiplier are used in the Square Foot method of calculating attics.
Attic Quality
Attic Quality
Multiplier used to adjust attic values for construction and materials that are above or below the primary structure
Unlimited quality types can be added
Attic Quality
Multiplier is applied in the following manner to arrive at an Attic Value: (((attic fin % * Fin Adj) + attic $psf) *
attic area) * attic qual mult {0 dec} Attic $psf = attic base $ * area mult
Exercise 9
Calculate Attic Example
Calculate the value of an attic with the following characteristics 800 square feet 100% finished Excellent quality – 1.50 factor
Attic Value
Area multiplier (AM) ((((1500 – 800) / 50) * .005) + 1.00) =
1.07
Attic Value
(((attic fin % * fin adj) + (attic $psf * AM) * attic area) * attic qm
(((1.00 * 12.00) + (1.00 *1.07) * 800) * 1.50
15,684
WinGAP Residential Schedules
Basement Finish Adjustment Dollar contribution used to add value
for basement finish $ / Square Feet value is converted
before saving using the following formula
Basement finish Adj ÷ res imp pt cost 12 ÷ 100 = .12
Basement Finish Adj
Basement Finish Adjustment
$ / Square Feet value converted to actual dollars by Basement Finish Adj * res imp pt cost .12 * 100 = 12.00 / sf
Basement Quality
Basement Finish Adj - Fox
Basement Quality
Multiplier used to adjust basement values for construction and materials that are above or below the primary structure
Unlimited quality types can be added
Basement Quality
Multiplier is applied in the following manner:
(((bsmt fin % * Fin Adj) + bsmt $psf) * bsmt area) * bsmt qual mult {0 dec}
Exercise 10
WinGAP Residential Schedules
Basement Coverage 4th item in list & assoc value is base
cost for basements
Basement Calculation Example
Calculate the value of a basement with the following characteristics 650 square feet 75% finished Excellent quality – 1.50 factor
Basement Value
Am = ((((1500 – 650) / 50) * .005) + 1.00) = 1.085
Basement Value
bsmt $ = (((bsmt fin % * bsmt adj) + (bsmt $psf * AM) * bsmt area) * bsmt qm
bsmt $ = (((.75 * 12.00) + (6.20 * 1.085)) * 650) * 1.50
bsmt $ = 15,334
Heat
The Heat schedule contains the various heating types and associated cost multipliers which are applied to the heat dollars.
Heat
Heat
Multiplier used to adjust Heat Dollars for the particular type of heat/ac source
Unlimited quality types can be added
Heat Cost Multiplier Calcs
$psf for heat type / heat dollars
What is the cost multiplier when our new Heating Type is $.50/sf and the base Heat Dollars is $1.30 CM = .50 / 1.30 CM = .38
Heat Multiplier Application
Base Heat $ * Heat Cost Mult Heating Type is Cent Heat/AC with
a CM of 1.90 & base Heat Dollars is $1.30 Heat $psf = 1.90 * 1.30 Heat $psf = 2.47
Miscellaneous Items
The Miscellaneous Items schedule is designed to accommodate lump sum value items for residential improvements.
Examples of miscellaneous items are fireplaces, extraordinary plumbing such as whirlpools, saunas, etc, bay windows, etc.
Miscellaneous Items
Misc Items (Fireplace)
Lump Sum dollar for each miscellaneous item
Unlimited quality types can be added
Plumbing
The Plumbing schedule in WinGAP contains just two items Standard Complement and Extra Fixtures.
Plumbing
Plumbing
The Standard Complement would include the number of fixtures that are associated with the standard plumbing complement found in the base house.
Generally, represents one 3-fixture bath, kitchen fixtures, and washer hookup.
Plumbing
A Standard Complement may be defined as any set of plumbing fixtures with the value contribution reflecting the definition.
Any plumbing beyond the Standard Complement in the Residential Improvement is valued on a per fixture basis using the Extra Fixtures item.
Plumbing
Plumbing is valued using the Lump Sum method based upon the Residential Improvement Point Cost.
The Plumbing Schedule shown uses a Lump Sum value of $5000 for a Standard Complement and $900 for each Extra Fixture
Plumbing
The value of the Lump Sum $ would reflect the total cost of the fixtures.
Extra Fixtures would add value for any fixtures above the number included in the Standard Complement.
WinGAP Residential Schedules
Plumbing Lump Sum dollar for std complement
and extra fixtures Std Comp = 6 fixtures
3 kitchen fixtures 1 3-fixture bat
No additional items can be added to plumbing schedule
WinGAP Residential Schedules – Other Items
Ceiling $/SF
Floor Const$/SF
Floor Finish$/SF
Foundation$/SF
Interior Wall$/SF
OccupancyMultiplier
Roof Shape $/SF
Roofing$/SF
WinGAP Residential Schedules – Other Items
Accessed and maintained in the same manner as previously discussed items
All items except Occupancy are $ per Square Foot entries
Occupancy is a cost multiplier 4th item in Occupancy MUST be Mobile
Home Pages 33-38
Improvement Labels Cost Factors / Story Height Adjustments The Improvement Labels schedule
contains adjustments for user defined story height labels.
In addition to story height adjustments, the appraiser can also key factors that are used in the process of calculating total heated area.
Improvement Labels
Improvement Labels
Label id’s Cost/SF for appendages &
additions Cost Factor for sketching labels Area Factor for heated area Unlimited labels can be added
Improvement Labels
Label 4 positions Letters and numbers NO commas or semicolons
Description Definition of label
The description should be clear and precise enabling the user to clearly identify which label is appropriate to assign to a polygon when sketching takes place.
Improvement Labels
Label Type Drop down list (combo box) w/ 5
options Addition Appendage Interior Primary Upper
Improvement Labels Interior, Primary, and Upper are the
three label types that are assigned story height (cost) factors which are used in the adjustment of the base dollars.
Interior and Upper label types are often referred to as “upper level” labels since they are normally used to define sketches that represent an upper level footprint.
Improvement Labels
Primary labels are generally assigned to lower level footprints.
Primary, Interior, and Upper labels contribute to the accumulation of heated area.
The label type Addition, also, contributes to the sum of the heated area.
Improvement Labels
However, only Primary and Upper label types contribute square footage to the Total Base Area of the improvement which in turn is used in the calculation of the area multiplier.
Improvement Labels
Addition Label Type Identified as double black lines Story height factors (Cost Factor) Contributes to heated area (Area
Factor) Does not contribute to Total Base Area
(TBA) Best used for unfinished regions or
regions without heat/air.
Improvement Labels
Appendage Label Type Identified as solid blue lines Story height factors (Cost Factor) Does not contribute to heated area
(Area Factor should be 1.00) Does not contribute to Total Base
Area (TBA)
Improvement Labels
Interior Label Type Identified as broken green lines Story height factors (Cost Factor) Contributes to heated area (Area
Factor) Does not contribute to Total Base
Area (TBA)
Improvement Labels
Primary Label Type Identified as solid red lines Story height factors (Cost Factor) Contributes to heated area (Area
Factor) Contributes to Total Base Area (TBA)
Only the polygon’s base area (Sketch area without Area Factor adjustment) contributes to TBA
Improvement Labels
Upper Label Type Identified as broken violet lines Story height factors (Cost Factor) Contributes to heated area (Area
Factor) Contributes to Total Base Area (TBA)
Area Factor * sketch area
Improvement Labels
40 x 25 = 1000 (primary label 2.0st) Area factor = 2.0 TBA = 1000
Upper level label (2.0st) Area factor = 2.00 TBA = 2000
Improvement Labels
Cost / SQFT Used only with Addition and
Appendage label types Enter $/SF value Value saved with following formula Item cost ÷ res imp pt cost Wood Deck cost is 12.00 / sf
12 ÷ 100 = .12
Improvement Labels
Cost Factor Applies to all label types
Interior & Primary types can have any number Other types should be assigned cost factor of
1.00 Story height adjustment Used to adjust
Base Dollars Cost / SQFT
Improvement Labels The cost factor should depict the
difference in value that is attributable to the label and associated construction.
For example, if a study of the residential improvement market indicates that 1500 sq ft one story homes are selling for $40 per square foot, the calculation of the cost factor would be as follows:
Improvement Labels
Cost factor = residual improvement sales price per sf / base dollars
Cost factor = 40 / 40 Cost factor = 1.00
Improvement Labels
Should a comparable two story house with 1500 sq ft on the ground floor sell for $72 / sf of ground floor area (108,000 residual imp sales price) with a Primary label type of 2st, the cost factor for the 2st label would be calculated as follows:
Improvement Labels
Cost factor = 72 / 40 Cost factor = 1.80
Improvement Labels
Cost Factor Primary, Upper & Interior Labels
CF = $/sf ÷ Base Dollars Addition & Appendage Labels
CF = $/sf ÷ Cost / SQFT
Improvement Labels
Area Factor Applies to Additions, Interior, Upper
and Primary areas Adjusts sketch sq ft to account for
upper level or restricted use
Exercise 11
Exercise
Calculate the value difference using a 2 Story primary label versus a 2 Story upper label for a residence with 1200 square foot on the ground floor. Area factor is 2.00 Cost factor is 2.00 Use base values from schedules in
manual
Primary Label Type
(((1500 – 1200)/50)*.005) + 1.00 ((300/50)*.005) + 1.00 (6*.005) + 1.00 .03 + 1.00 = 1.03 40.00 * 1.03 * 2.00 * 1200 =
98,880
Primary Label Type w/ Schedule
(((1500 – 1200)/50)*.005) + 1.00 ((300/50)*.005) + 1.00 (6*.005) + 1.00 .03 + 1.00 = 1.03 40.00 * 1.03 * 1.80 * 1200 =
88,992
Upper Label Type
(((1500 – 2400)/50)*.005) + 1.00 ((-900/50)*.005) + 1.00 (-18*.005) + 1.00 -.09 + 1.00 = .91 40.00 * .91 * 2.00 * 1200 = 87,360 Value Diff = 98,880 – 87,360 = 11,520 Value Diff = 88,992 – 87,360 = 1,632
Exercise 12
Exercise
Calculate the “base” value of a structure with the following info. Also, calculate heated area. Use schedules in manual. 1 Story area of 2675 sq ft 2nd Story area of 750 sq ft Garage with 400 sq ft Addition of 650 sq ft
Exercise – Area Mult
(((1500 – 2675)/50)*.005) + 1.00 ((-1175/50)*.005) + 1.00 (-23.5*.005) + 1.00 -.1175 + 1.00 = .8825 40.00 * .8825 * 1.00 * 2675 =
94,428
Exercise – Base Value 1st = 40.00 * .8825 * 1.00 * 2675 = 94,428 2nd = 40.00 * .8825 * 1.00 * 750 = 26,475 Gar = 11.55 * 400 = 4,620 Add = 37.95 * 650 = 24,668 Total Base =150,191
Exercise – Heated Area 1st = 2675 2nd = 750 Add = 650 Ht Area = 4075
Observed Condition The Observed Condition schedule
provides a listing of available Observed Condition types.
Observed Condition types are descriptive only and add no value to the Residential Improvement.
Observed Condition types are hard-coded within WinGAP and cannot be changed by the user.
Observed Condition
Story Height
The Story Height schedule provides a listing of the current Story Height types. Story Height types are descriptive only, and add no value to the Residential Improvement.
Story Height
Physical Depreciation
Physical Depreciation
Physical Depreciation Depreciation based on
Age Grade Observed Condition
Excellent Good Average Fair Poor
Physical Depreciation
Depreciation table can be setup with as many combinations of age and grade as necessary
Grade and/or age ranges can be used to decrease entries in table
Physical Depreciation The schedules are set up with grade
ranges of: 60 to 84, 85 to 109, 110 to 134, 135 to 159, 160 to 184, 185 to 999,
age increments beginning at 1 extending to 100, and
using all five conditions: Ex, Gd, Av, Fr, Pr.
Physical Depreciation
Table Sample: Page 41
Physical Depreciation Interpolation is performed if grade/age
combination is not found in table If grade not found, next lower grade level is
used. For example: Grades of 60 and 85 are in table & a grade of 70 is
assigned to the imp. Grade of 60 is used for depreciation
Imp has grade = 40, 60 grade level is used Imp has grade above maximum grade found in
schedule, the max grade in table is used. If age not found, the following formula is used
Physical Depreciation If age not found, the following
formulae are used: Dep Inc = abs(Dep from Lower Age
Level – Depr from Higher Age Level) Inc Factor = Dep Inc / abs(Higher Age
Level – Lower Age Level) {rnd to 2 dec)
Dep Adj = (Act Age – Lower Age Level) * Inc Factor {rnd to 2 dec)
Calc Dep = Depr from Lower Age Level – Depr Adj
Exercise 13
Depreciation for 7 yr old imp
Age Dep Factor
5 .95
10 .82
Dep Increment = .95 – .82 = .13
Inc Factor = .13 / abs(10 – 5) = .13 / 5 = .03 {2 dec}
Depr Adj = (7 – 5) * .03 = 2 * .03 = .06 {2 dec}
Calc Dep = .95 – .06 = .89
Exercise 14
Depreciation Exercise
Dep Yr = 2001, Yr Blt = 1988 age 10 = .85, age 15 = .78 Depr Inc = abs(dep from lower age
– depr from higher age) Depr Inc = abs(.85 - .78) = .07
Depreciation Exercise
Inc Fact = Depr Inc / abs(higher age – lower age) {2}
Inc Fact = .07 / abs(15 – 10) Inc Fact = .07 / 5 = .01 Depr Adj = (act age – lower age) *
inc fact {2} Depr Adj = (13 – 10) * .01 = .03
Depreciation Exercise
Calc Depr = depr from lower age – depr adj
Calc Depr = .85 - .03 = .82
Depreciation
Complete exercise #2 on page 92 Same as handout exercise 15
Depreciation Exercise – Pg 92
Dep Yr = 2001, Yr Blt = 1976 age 20 = .74, age 30 = .62 Depr Inc = abs(dep from lower age
– depr from higher age) Depr Inc = abs(.74 - .62) = .12
Depreciation Exercise
Inc Fact = Depr Inc / abs(higher age – lower age) {2}
Inc Fact = .12 / abs(30 – 20) Inc Fact = .12 / 10 = .01 Depr Adj = (act age – lower age) *
inc fact {2} Depr Adj = (25 – 20) * .01 = .05
Depreciation Exercise
Calc Depr = depr from lower age – depr adj
Calc Depr = .74 - .05 = .69
Manual Calculations – Pg. 49 Adj DSF1 = Area Mult * Base Dollars
[6 d] Adj DSF2 = Adj DSF1 * Ext Wall Fact *
Occupancy Fact [6 d] Sum Adds = (AM * Foundation) + (AM
* Roof) + (AM * RoofShape) + (AM * FlrCons) + (AM * FlrFin) + (AM * IntWall) + (AM * Ceiling)
Total DSF = Adj DSF2 + SumAdds Base Value = TotalDSF * Area *
StoryHeightAdj [100]
Manual Calculations Heat Value = Heat DSF * AM * Heat
Adj * StoryHeightAdj * Area [100] Bsmt Value = (((Bsmt Fin % * Fin Adj)
+ (Bsmt $/SF * AM)) * Bsmt Area) * Bsmt Qual Mult [100]
Attic Value = (((Attic Fin % * Fin Adj) + (Attic $/SF * AM)) * Attic Area) * Attic Qual Mult [100]
Appendage Value = Appen DSF * Area * Story Height Adj [100] {sum value of all appendages}
Misc Items Value = Misc Lump Sum Value * # of Items [100] {sum value of all misc items}
Plumbing Value = (Std Comp Value * # of Std Complements) [100] + (Extra Fix Value * # of Extra Fixtures) [100]
RCN = (Base Value + Heat Value + Bsmt Value + Attic Value + Appendage Value + Misc Item Value + Plumbing Value) * Grade [1]
FMV = RCN * Phy Dep * Func * Neighborhood * Econ * Per Comp * CDU
Manual Calculation
Exercise #3 Pg 93 (handout #16) Screen_Dollars Calc-Class Exercise
3.xls
Manual Calculation
Exercise #3 Pg 93 Screen Dollars Calc - worked by ha
nd.xls
Point Cost Study
The point cost is derived from the market analysis of qualified residential improvement sales.
The sales should be no more than 2 to 3 years old with an optimum age of 1 year and if possible, only sales with houses within a grade range of 80 to 120 should be used.
Point Cost Study
The minimum number of sales for a valid point cost study is 10.
No maximum number of sales exists.
It is imperative that accurate land values have been established for the parcels that are being used in the study.
Point Cost Study
A point cost is determined for each sale and then averaged.
Any existing outlying point costs should be disregarded.
The steps that should be used to calculate a point cost for a qualified residential improved sale are as follows:
Point Cost Study 1. RESIDUAL IMPROVEMENT VALUE (RIV)
SALES PRICE - (LAND VALUE + OTHER VALUE)
2. ADJ RIV RIV / DEPRECIATION
3. POINT COST ADJ RIV / ADJUSTED POINTS
4. RES IMP PT COST SUM OF POINT COSTS / NUMBER OF SALES
Point Cost Study
Sales Price The sales price is the dollar amount
listed on the PT-61 for the property. This amount should be validated and
include all items that were part of the sale.
Point Cost Study
Land Value The land value should be the fair
market value of the land that is associated with the property sale.
If a revaluation is under way or a county sees a need to change land values, the land value should reflect the anticipated land value for the property.
Point Cost Study
Other Value Other value includes all items, such
as, pools, utility buildings, timber, etc., which are not part of the primary residential improvement value.
Point Cost Study
Depreciation The percent good that has been assigned
or calculated for the residential improvement.
If any economic, functional, or percent complete exists, those items must become part of the depreciation by using the following formula:
Physical Dep x Economic Obs x Functional Obs x Percent Complete
Point Cost Study
Adjusted Points...The adjusted points for a residential improvement can be found on the Improvement Calculation Summary screen
Point Cost Study
Point Cost Study
Res Imp Pt Cost…The residential improvement point cost is generated by taking the average of the point costs that have been calculated via the procedures described.
Point Cost Study
CAUTION should be observed when averaging the point costs.
The appraiser must use judgment in discarding outlying point costs.
At times, it may be more appropriate to use other measures of central tendency, such as the median, rather than the arithmetic average or mean.
Point Cost Study
After the residential improvement point cost is calculated it can be entered into the field for the Residential Impr. Point Cost on the Preferences screen.
However, the appraiser should be certain to ??????
Point Cost Study
The point cost can then be applied across the board by running the Reappraise.
However, the appraiser should be certain to run the appropriate ratio studies to confirm that the newly generated point cost study is producing statistics that are acceptable.
Neighborhood Adjustments
At times, the calculation of the residential improvement point cost will not produce satisfactory results with regard to ratio studies and the subsequent statistical information.
The statistics could possibly be the result of unaccounted for influences that are being exerted on properties placed on the market.
Neighborhood Adjustments
The appraiser may find that similar properties in different parts of the county are bringing distinctly different prices on the market.
If all other value components, structure size, quality, land, etc., are the same, the primary reason for the difference is that one location is preferred over the other.
Neighborhood Adjustments
The appraiser should account for this value difference with location or neighborhood adjustments.
it is imperative that accurate land values be established and the accuracy of all other data be confirmed.
Incorrect land values as well as bad data can greatly distort the influences
Neighborhood Adjustments
Table on page 63 sales produce a residential point cost
of 217.73 which would probably be accepted as $215.00.
looking at the sales in a map id array, the appraiser should readily see a market trend that indicates a need for an adjustment due to location or neighborhood.
Neighborhood Adjustment The properties outside of the 056A and
056B maps have a point cost around $200.00.
Those sales in the 056A and 056B have a point cost averaging about $235.00.
The difference of 17.5%, ((235-200)/200), indicates that one of the areas will be setup as a base area with the other area delineated as a market neighborhood.
Neighborhood Adjustments
If the area outside of the 056A and 056B neighborhood is chosen as the base, then a residential improvement point cost of $200.00 will be entered in the appropriate place in the schedules.
Neighborhood Adjustments
A neighborhood for 056A and 056B will be established with a neighborhood adjustment calculated using the following formula: Neighborhood Adj = Pt Cost in Area
outside of Base / Pt Cost in Base Area Neigh Adj = 235 / 200 = 117.50 1.17% or 1.15% would both be
reasonable N/H adjustments
Neighborhood Adjustments
The neighborhood will be established and the associated adjustment will be entered through the Tools >>Schedules / Tables >> Neighborhoods
Exercise 5 in book page 95
Neighborhood Adjustments
Neighborhood Adjustments
Code The code is a six position
alpha/numeric field that is user defined. The code must be unique.
Description A definition of the code that is precise
and informative should be entered in the description.
Neighborhood Adjustments
Adjustments Adjustment factors can be entered for
each of the five property components. The factors can be different for each component. A maximum value of 99.99 maybe entered for any factor. An adjustment factor of 0.00 will be interpreted as 1.00 in the calculation process.
Neighborhood Adjustments
At the conclusion of the entry of a neighborhood into the schedules, the user must assign the code to all parcels that are affected.
Neighborhood Adjustment
To assign the neighborhood code, the user will edit each parcel’s Real Property General Information field Neighborhood and choose the proper code from the drop-down list that appears when enter is pressed on a blank Neighborhood.
Neighborhood Adjustment
After the codes are assigned to all affected parcels, reappraise must be run before any values are adjusted.
The residential buildings on each affected parcel can be edited individually to cause the neighborhood adjustment to take effect.
Accessory Improvements
Accessory improvements are generally regarded as property components that are detached from the primary structure(s).
Pools, utility buildings, detached garages, barns, and poultry houses are examples of structures that would normally be considered as accessory improvements.
Accessory Improvements
As is the case with residential improvements, some base schedule items are found on the Preferences screen which can be accessed from the Tools >> Preferences menu option.
Page 66
Accessory Improvements
The Accessory Point Cost located in the Point/Base Costs section of Preferences is a local index that can be used to update accessory values across the board.
If the Accessory Point Cost were doubled, the total value of all calculated accessories would also double.
Accessory Improvements The Accessory Depreciation Year found in the
Depreciation Years section of Preferences is used in the calculation of an accessory’s age.
The year built of the accessory is subtracted from the Accessory Depreciation Year producing the age which is used in the calculation of physical depreciation.
A Year Built that is greater than the Accessory Depreciation Year will result in an age of 1 year.
The Appraisal Year is used to determine the default year built for all accessories. The default year built will be one year less than the Appraisal Year.
Accessory Improvements
The accessory improvement schedules can be accessed through Tools >> Schedules / Tables >> Accessories
Page 67
Accessory Improvements The Accessories schedule is comprised of 3
submenu options: Building Schedule
list of all accessory improvements including pricing information
Size Adjustment Table factors used to adjust accessory values with
specified size ranges Lump Sum Tables
tables used to value accessories that are not valued by area
Accessory Improvements
The Building Schedule menu option provides the user access to the listing of all accessory improvement types that are available for the purpose of adding such to a parcel.
Accessory Improvements
Accessory Improvement
the Description of the item, the Comp # (Component Number), the Method (Calculation Method), the Table (used for Lump Sum
items only), the Cost (the Base Cost) are
displayed.
Accessory Improvements Comp #
a four character user defined code that is used to identify the accessory item.
The code MUST be unique. Any mix of letters and numbers is acceptable.
All four positions do not need to be used. An Edit button is located to the right of the Comp # field.
The button is placed there to prevent inadvertent chances to an existing component number.
If a component number is to be modified, the user must first click the Edit button.
Accessory Improvements
Description definition of the accessory schedule item. The definition should be clear and precise. The user may access the accessory item
with the description. This applies to the schedule item and also
to data entry at the parcel level. Careful consideration should be given to
the descriptions to facilitate data entry.
Accessory Improvements
Pricing Method - defines the manner in which the accessory will be valued. Three different pricing methods are available.
Accessory Improvements
Pricing Method - Lump Sum used for accessories that will not be
valued on a square foot or area basis. The valuation of these accessories is
table driven. Consequently, any accessory with a
Lump Sum pricing method must also be assigned a Table Code.
No Base Cost is needed.
Accessory Improvements
Pricing Method - Non-Value Item used for accessories where value
generation is not desired. Most often used for items such as
garbage collection or street lights where a user-fee system is established by the County.
Accessory Improvements
Pricing Method - Square Foot used for accessories that will be
valued by the square foot or area. No Table Code should be assigned for
these accessories. A Base Cost is required.
Accessory Improvement Table Code – used to tie the accessory
item to the lump sum table entries. Clicking on the Table Code field
description will provide the user access to the accessory lump sum tables.
Accessory items that have been assigned a pricing method of Lump Sum must have a table code.
Accessory Improvement
Base Cost The displayed base cost is a result of
the following formula being applied to information stored in acc_ctrl.dbf:
Base Cost = acc_ctrl.base_cost * Acc Base DSF {round to 2 dec}
The Acc Base Dollars PSF is found in the Accessory Size Adjustment table
Accessory Improvements
Page 70
Accessory Improvements One of the entries in this table must be
marked as the base accessory size This is used to inform WinGAP as to
which Dollar PSF is the basis for the calculation of accessory values when stored in the tables.
The Base Size is designated by placing a check mark in the box to the left of Base Size.
Accessory Valuation
Values entered on Base Schedule screen are saved in the following fashion:
Base Cost / Acc Base DSF Attached Garage Base Cost =
48.00 48.00 / 1 = 48.00
Accessory Improvements
Size Adjustment The Accessory Size Adjustment
schedule can be accessed through Tools >> Schedules / Tables >> Accessories >> Size Adjustment Table.
Accessory Improvements The Size Adjustment Table allows the user to
enter as many square foot ranges as deemed necessary to accurately value accessory improvements.
Each square foot range will be assigned a dollar per square foot cost which will form the basis for valuing Square Foot method accessories.
This table would normally be used to create a reduction in unit cost as size increases.
Accessory Size Adjustment
Acc Base Cost * Dollars PSF from Size Adj Table * area
Attached Garage w/ 800 sq ft 48 * 1.00 * 800 = 38,400
Attached Garage w/ 1500 sq ft 48 * .90 * 1500 = 64,800
Accessory Improvements Lump Sum Tables accessed from Tools >> Schedules /
Tables >> Accessories >> Lump Sum Tables
provides the appraiser with the ability to enter schedule items that will be used to value accessories which are not typically valued by the square foot grain bins, silos, fences, etc
Accessory Improvements
Before an entry is made in the Lump Sum Tables, the appraiser should have established an accessory schedule item in the Building Schedule and provided the item with a Table Code as discussed in Building Schedules.
Accessory Improvements
Accessory Improvements
The column headings refer to the DESCRIPTION, TABLEREF code number, the DIM1 and DIM2 pointers, and the POINTS assigned to this type of Accessory Building
Accessory Improvements
Table Reference – table code that was assigned to accessory on the Building Schedule.
Dimension 1 & 2 – a numeric code that is user defined.
Unit Dollars – The entry in unit dollars should be the actual cost of the item.
Accessory Improvements
Accessory improvements can be depreciated with an override depreciation or through a depreciation table lookup.
The depreciation table for accessories can be access by going to Tools >> Depreciation >> Accessory Tables
Accessory Improvements
Accessory Improvements Number of Grade and Age combinations is
virtually unlimited. However, the only category under the
Depreciation Factors section of the schedule that need be completed is the Av column.
Accessory items are not assigned a condition.
Consequently, all accessory conditions default to average.
Accessory Improvements
If the grade of the improvement does not match a grade in the table, the next lowest grade is chosen.
If no lower/higher grade level exits in the table, the factors associated with the lowest/highest grade level are used.
Accessory Improvements Calculation Steps
1. the accessory item is found in the Building Schedule and the Base Cost is obtained
2. Calculate the square footage of the accessory 3. Lookup Dollars PSF in the Size Adjustment table 4. Calculate depreciation 5. Lookup Neighborhood adjustment if applicable 6. The internal WinGAP formula below is applied:
Value = (Base Cost * Dollars PSF) * Sq Ft * Grade (exp as decimal value) * Depr * Neighborhood Adj * Percent Complete * Func Obs
Accessory Improvements
If the appraiser wishes to use the actual dollars that are displayed on the schedule screens, the following formula should be used: Value = (Base Cost * (Dollars
PSF / 10)) * Sq Ft * Grade (exp as decimal value) * Depr * Neighborhood Adj * Percent Complete * Func Obs
Accessory Improvements
Using Wingap, enter these accessory improvements on G01-00 -011
Verify value via manual calculations
Item Grade
Year Built
Width Length N/H
Barn 75 2000 50 45 1.00
Barn w/ Loft 105 1998 60 75 1.00
Batting Cage 100 1996 30 60 1.00
Accessory Improvements
Base Cost = 7.2 SQFT = 50*45=2250 Dollars PSF from Size Adj = 1.00 Depr
2001-2000=1 Depr = .98
Value = (7.20*1.0)*2250*.75*.98=11907
Item Grade
Year Built
Width Length N/H
Barn 75 2000 50 45 1.00
Accessory Improvements
Base Cost = 9.36 SQFT = 60*75=4500 Size Adj = 1.00 Depr
2001-1998=3 Depr Inc = abs(.98-.70)=.28 Inc Factor = .28/abs(10-1)=.28/9=.03 Depr Adj = (3-1) * .03 = 2*.03 = .06 Calc Depr = .98 - .06 = .92
Value = (9.36*1.0)*4500*1.05*.92=40,688
Item Grade
Year Built
Width Length N/H
Barn w/ Loft 105 1998 60 75 1.00
Accessory Improvements
Base Cost = 12.00 SQFT = 1800 Size Adj = 1.00 Depr
2001-1996=5 Depr Inc = abs(.98-.70)=.28 Inc Factor = .28/abs(10-1)=.28/9=.03 Depr Adj = (5-1) * .03 = 4 * .03 = .12 Calc Depr = .98 - .12 = .86
Value = (12*1.0)*1800*1.00*.86=18,576
Item Grade
Year Built
Width Length N/H
Batting Cage 100 1996 30 60 1.00
Exercise 6 in book
Page 96
Accessory Improvements
Lump Sum item The Table Code is acquired from the
Building Schedule Schedule items with the Table Code
are located in the Lump Sum Table Dimension 1 and Dimension 2 values
from the accessory record are used to isolate entry in Lump Sum Table
Accessory ImprovementsDimension 1 Dimension 2 Points
15 11 18.94
15 15 24.06
18 8 12.14
Accessory Improvements
If an exact match of the Dimension1 and Dimension 2 values is found, the points associated with that record used
If an exact match is not found but a match for Dimension 1 is located, the next higher match is taken and the points assigned to that record are used.
Accessory Improvements
For example, if the following two records existed in the Lump Sum table and the accessory Dimension 1 was 15 and Dimension 2 was 13, the Points value of 24.06 would be used. Dimension 1 Dimension 2 Points
15 11 18.94
15 15 24.06
18 8 12.14
Accessory Improvements
If no match for Dimension 1 is found, the lookup will default to the highest entry of the next lowest Dimension 1 entry in the Lump Sum table.
Accessory Improvements
For example, as shown below, if the following three records existed in the Lump Sum table and the accessory Dimension was 17 and Dimension 2 was 13, the Points value would be taken from the 18 x 8 row. Dimension 1 Dimension 2 Points
15 11 18.94
15 15 24.06
18 8 12.14
Accessory Improvements
The number of units from the accessory record is obtained
The following internal WinGAP formula is applied: Value = Grade from Acc * # of
Units * Points * Acc Pt Cost * Neigh Factor * Depr * Percent Comp * Func Obs {round to 0 dec}
Accessory Improvements
To calculate the value based on information from the Accessory Tables / Lump Sum Schedule screen, the following formula would be used: Value = Grade from Acc * # of
Units * Unit Dollars * Neigh Factor * Depr * Percent Comp * Func Obs {round to 0 dec}
Accessory Improvements
Grade 1.00
Dim1 15
Dim2 16
Units 2
Phy Dep Ovr
.75
% Comp 1.00
Func 1.00
NH 1.00
Point Cost 200
Dimension 1 Dimension 2 Points
15 11 18.94
15 15 24.06
18 8 12.14
Value = 1.00 * 2 * 24.06 * 200 * 1.00 * .75 * 1.00 * 1.00 = 7218
Exercise 7 in book
Page 97
Rural Land
Rural land pricing in WinGAP is developed using the valuation methodology prescribed in the Appraisal Procedures Manual (APM).
Rural land is broken down into two categories, large tracts and small parcels.
Rural Land
Large tracts are valued based on use and production capabilities with adjustments for location and size.
Small parcels are valued on a tract basis or with the use of a base value.
Both small parcel methods incorporate adjustments for size and location into the valuation process.
Rural Land
One of the first steps in the valuation of rural land is to establish a small acre break.
The small acre break is the acreage level at which buyers and sellers of rural land begin to consider the capability of the land to produce crops more so than considering its potential for residential purposes.
Rural Land
The small acre break in WinGAP is found on the Preferences screen which is accessed through the Tools menu.
Rural Land
As shown on the Preferences form above, the Rural Acre Break is set to 30.00 acres indicating that entries in the accessibility/desirability (size/location) table will be tract values from 0.01 to 29.99.
Tract values represent the total land value of the parcel.
Rural Land
No multiplication of acres times a base land rate tables place.
Entries in the accessibility/ desirability table from 30.00 acres and above will represent factors that adjust base land values according to location, desirability and size.
Rural Land
The appraiser may opt to set the Rural Acre Break at 0.00 acres allowing the entry of only land adjustment factors in the accessibility/desirability table.
Rural Land
Other than the items discussed in Preferences for rural land, the other schedules can be accessed through Tools >> Schedules / Tables
Rural Land
Rural Land The Accessibility / Desirability table is
designed to accommodate tract values for small parcels and factors to adjust large parcel values.
The tract values and factors are assigned to acre increments and up to 45 accessibility / desirability code combinations at the acre increment.
As many acre increments as needed can be added to the table.
Rural Land
Rural Land
The table above shows tract values for the 7.00 acre increment using 5 accessibility and all 5 desirability categories.
The table is loaded with tract values due to the 30.00 Rural Acre Break in Preferences.
Rural Land The tract values of the Accessibility /
Desirability table can be converted to factors by keying a base small parcel value in the Rural
Land table (recommend keying 1000) Changing the Rural Acre Break in Preferences
0.00 Converting the tract values in the table to
factors by dividing the tract value by the acre level and then by the base small parcel value
Rural Land
The tract value of 38,486 for the 7.0 acre 1A entry would be converted to a factor of 5.498. ( 38,486 / 7 / 1000) {round to 4 dec)
Exercise 11 in book
Page 101
Rural Land
The next screen shows an Accessibility / Desirability table with factors for large tracts, those parcels that have acreage equal to or greater than the Rural Acre Break.
Rural Land
Rural Land
It is not necessary to add an acre increment for each acre.
An interpolation routine is used to calculate tract values and factors for acre increments that are not part of the table.
Rural Land Note: For WinGAP’s interpolation routines
to operate correctly, an additional acre increment must be inserted immediately below the primary Acre Break, which is 30.00 acres in our example above.
This acre increment must be .01 less than the primary Acre Break, as shown below in the Accessibility / Desirability table
.01 – 29.99
Rural Land
Calculation of a rural land tract with acreage less than the Rural Acre Break is as follows
(1) Tract value is obtained from the Accessibility / Desirability table based on the parcels acreage and accessibility / desirability code.
Rural Land
(2) If the exact acreage is not found in the table, the tract value is interpolated with the formula below: Int Value = ((( parcel acres – lower
acre level ) / ( higher acre level – lower acre level )) * ( value @ higher acre level – value @ lower acre level )) + value @ lower acre level
Rural Land
(3) The value or interpolated value is then multiplied by the total influences and then the neighborhood influence.
Rural Land
Page 84 Example ((( parcel acres – lower acre level ) / ( higher acre
level – lower acre level )) * ( value @ higher acre level – value @ lower acre level )) + value @ lower
acre level ((( 7.75 – 7.0 ) / ( 8.0 – 7.0 )) * ( 19064 – 17738 )) +
17738 ((.75 / 1.00) * 1326) + 17738 (.75 * 1326) + 17738 995 + 17738 = 18733 FMV = 18,733 * 1.00 (other infl) = 18,733
Exercise 9 in book
Page 99
Rural Land
The steps and formula for calculating a rural land parcel with acreage equal to or greater than the Rural Acre Break are as follows:
Rural Land
(1) Base per acre values are obtained from the Rural Land schedule for each land category and productivity rating, also referred to as a land subrecord, comprising the parcel.
Rural Land
(2) Accessibility / Desirability factor is obtained or interpolated from the Accessibility / Desirability Table based on the parcel’s acreage and accessibility /desirability code. A code of 0A always is assigned a
factor of 1.00.
Rural Land
(3) Raw land value is calculated by multiplying the acres assigned to each land subrecord by the category / rating base rate.
(4) The individual calculations from step 3 are summed.
Rural Land
(5) The sum of the raw land is multiplied by the acc / des factor.
(6) The result of step #5 is then multiplied by neighborhood adjustment and then by the total influence from the Land Influences section of the Land Info screen
Rural Land
Page 85 Example ((( 155 – 100 ) / ( 200 – 100 )) * ( 1.1170 – 1.4336 )) +
1.4336 (( 55 / 100 ) * -.3166 ) + 1.4336 ( .55 * -.3166 ) + 1.4336 -.1741 + 1.4336 1.2595 Raw Land
Open3 = $1200 * 85 acres = 102,000 Wood4 = $800 * 70 acres = 56,000 Total = 158,000
FMV = 158,000 * 1.2595 * 1.00 * 1.00 = 199,001
Rural Land
The exception to the calculation process above is in a situation where a land subrecord (category / rating) has been assigned a per acre override.
The acc / des factor is calculated in the same manner but is not applied to the overridden subrecord.
Rural Land
For example, if the Wood 4 subrecord would have been assigned a per acre override of $500, the calculation would have proceeded as shown below: Open3 = $1200 * 85 = 102,000 Wood4 = $500 * 70 = 35,000 FMV = ((102,000*1.2595) + 35,000 FMV = 128,469 + 35,000 FMV = 163,469
Exercise 10 in book
Page 100
Rural Land Interpolation ExerciseLand Type Prod Acres $/Ac Value
Open 2 10.00 1,168 11,680
Wood 1 15.00 1,520 22,800
Wood 4 10.35 442 4,575
Total Base 39,055
Interpolation Exercise
Int Value = (((acres – low ac)/(high ac – low ac)) * (value @ high ac – value @ low ac)) + value @ low ac
IV = (((35.35 – 34)/(36 – 34)) * (2.33 – 2.34)) + 2.34
IV = ((1.35/2) * -.01) + 2.34 IV = (.675 * -.01) + 2.34 = 2.3333
Rural Land Interpolation ExerciseOpen 2 10.00 1168 11,680
Wood 1 15.00 1520 22,800
Wood 4 10.35 442 4,575
Total Base 39,055
Acc/Des Adjustment 2.3333
FMV 91,127
Land Influences
The Land Influences table is reached from the Tools >> Schedules / Tables >> Land Influences menu option
These options will appear in the combo boxes in the Land Influence section of the Land Information screen
Land Influences
Land Influences
How these Land Influences are applied depends on which Land Influences option is selected on the Preferences Form
Land Influences
The Land Influences combo box on the Preferences Form offers two selections for applying land influences: Additive Compound
Land Influences The Additive method allows the
appraiser to apply land influences in the following manner: 1. If an influence is greater than 0, 1.00 is
subtracted from the influence 2. The results of step #1 are added together 3. The sum in step #2 is added to 1.00 4. The result of step #3 is then multiplied
times the raw land value
Land Influences
The Compound method of applying influences takes all of the influences that are greater than 0.00 and multiplies them together, rounding to two decimal places.
The product of the multiplication is then applied to the raw land value.
Land Influences Page 89 Example: Additive v.
Compound Raw Land Value = 10,000 Corner Influence = 1.25 Topo Influence = .90 Water Influence = 1.30 Corner 1.25 – 1.00 .25
Topo .90 – 1.00 -.10
Water 1.30 – 1.00 .30
Total .45
Additive Infl
Total + 1.00 1.45
FMV Raw Land * Infl
14,500
1.25 * .90 * 1.30 = 1.46
10,000 * 1.46 = 14,600
Land Influences
The method of applying land influences is strictly a call made by the appraiser. Once selected, the method will be applied globally to all land.
Rural Land Schedule
The Rural Land menu option on the Tools >> Schedules / Tables menu
Rural Land Schedule
Up to 99 categories of rural land can be added
Printing Schedules
Printing Schedules
Web Address
ftp://ftp.wingap.com/courses/res_schedules/