WinGAP Residential / Accessory / Rural Land Schedules and Pricing

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WinGAP Residential Imp / Accessory / Rural Land
Schedules Pricing
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WinGAP Residential Pricing

• Tracy Thomas
• DOR, Business Analyst

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Contact Info

• atthomas_at_wingap.net
• 404/831-0158

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Computers

• Tight Quarters
• Watch Cords
• They Belong to You (Gap Group Inc.)

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Cell Phones

• Please set yourphones to vibrate

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Schedule

• Start at 900 am
• Morning Break around 1015
• Lunch from 1130 to 100
• Afternoon Break around 245
• Dismiss at 400

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Successful Completion

• Thursday Morning we will complete course
  evaluations, following evaluations we will begin
  the exam.
• Exam is multiple choice
• 25 questions

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Login Information

• Userid felix
• Password cat

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WinGAP Residential Pricing

• Residential Imp Schedules
• Residential Imp Calculations
• Point Cost Study
• Neighborhood Adjustment
• Accessory Improvements Schedules
• Rural Land Schedules

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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

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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.

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WinGAP Residential Schedules
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(No Transcript)
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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

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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.

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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.

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Preferences RIDY

• Change affects calculated physical depreciation

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Exercises 1
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Depreciation Year

• Appraisal Year 2004
• Res Dep Yr 2001
• Imp Yr Blt 1988
• Age ?
• Age 2001 1988 13

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Depreciation Year

• Appraisal Year 2004
• Res Dep Yr 2001
• Yr Blt 1977
• Eff Yr Blt 1966
• Age ?
• Age 2001 1966 35

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Depreciation Year

• Appraisal Year 2004
• Res Dep Yr 2001
• Yr Blt 2003
• Age ?
• Age 2001 2003 -2
• Age will default to 1 year old.

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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

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WinGAP Residential Schedules

• Truncate Values
• Not rounding
• If calc value gt 1000, drops the 100s digits and
  replaces with 00
• If calc value gt10 and lt 1000, drops the 10s
  digit and replace with 0
• Truncated value of 98,877 98,800

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Exercises 2
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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

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Classroom Exercise

• Truncate the following improvement values. DEPR
  shown is the value loss

RCN DEPR VALUE
212,850 7
212,850 17
212,850 27
2,150 37
2,150 47
2,150 57
2,150 67
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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
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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

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Area Multiplier Rounding
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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

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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

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Tools gtgt Schedules/Tables gtgt Residential
Improvements
Residential Imp Submenu
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WinGAP Residential Schedules

• Base Points (Area Multiplier) Parameters
• Base Area
• Minimum Area
• Maximum Area
• Increment Base
• Increment Factor

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WinGAP Residential Schedules
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WinGAP Residential Schedules

• Base Area
• Median size of sold homes
• Area multiplier is 1.00
• Area mult above Base Area lt 1.00
• Area mult below Base Area gt 1.00

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WinGAP Residential Schedules
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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 _at_ 500 SF 65.00
• 500 SF 65.00 SF 32,500
• 400 SF 65.00/SF 26,000

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WinGAP Residential Schedules
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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 _at_ 3000 SF 60.00
• 3000 SF 60.00 SF 180,000
• 4000 SF 60.00/SF 240,000

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WinGAP Residential Schedules
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WinGAP Residential Schedules

• Increment Base
• Area increment where cost per SF changes
• Higher increment results in less changes
• _at_ Min Area values are less (area mult is lower)
• _at_ Max Area values are higher (area mult is higher)

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WinGAP Residential Schedules (Inc Base w/ Inc
Factor _at_.005)
/ SF
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WinGAP Residential Schedules
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WinGAP Residential Schedules

• Increment Factor
• Determines rate _at_ 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

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WinGAP Residential Schedules (Inc Factor w/ Inc
Base _at_ 50)
/ SF
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Residential Improvements

• Increment Base vs Increment Factor
• Impact Value inversely.
• Inc Base Increases, Value changes less
• Inc Factor Increases, Value changes more

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Correction Notice

• I gave the example that /SF didnt 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.

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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

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WinGAP Residential Schedules
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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

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WinGAP Residential Schedules

• Effect of Area Multiplier on Base Dollars See
  Chart on pg 15

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Area Multiplier Rounding Comparison

• res_base_cost_all.XLS

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WinGAP Residential Schedules
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WinGAP Residential Schedules

• Attic Types
• 3rd item in list assoc value is base cost for
  attics (usually unfinished)

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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

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WinGAP Residential Schedules

• Attic Types
• Formula for converting Attic Type Dollars to
  actual cost
• Attic Type per SF (res imp point cost /100)

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WinGAP Residential Schedules
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WinGAP Residential Schedules

• Basement Coverage
• 4th item in list assoc value is base cost for
  basements

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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

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WinGAP Residential Schedules

• Basement Coverage
• Formula for converting Basement Coverage Dollars
  to actual cost
• Basement Coverage per SF (res imp point cost
  /100)

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WinGAP Residential Schedules

• Heat Dollars
• A value of 1.00 / (pt cost / 100) would allow
  entry of actual /SF for heating types

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WinGAP Residential Schedules
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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)

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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

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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.

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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

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Exercises 3
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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

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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

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Value Comparison for 2350 SF residence
Inc Base / Inc Fac Base Value
50 / .005 86,480
50 / .0037 88,360
100 / .0037 91,180
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Exercises 4
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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

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Area Multiplier Example

• (40 .85) (100 / 100)
• (34) (1) 34.00
• 34.00 4200 142,800

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Exercises 5

• Area Multiplier for House, Attic, and Basement
  are independent calculations.

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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

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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

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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

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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

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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 DOLLARS1.30 for 635
  SQFT house, AM1.0865
• Total heat
• 1.0865 1.32 1.41
• 1.41 635 895

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Exercises 6

• Use Schedules in back of the book

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WinGAP Residential Schedules

• Calculating Base Heat for a 1800 sf res imp
  where base heat dollars1.30
• Area Mult6 ((((1500 1800) / 50) .005)
  1.00 .97
• / SF2 .97 1.30 1.26
• Total Dollars 1.26 1800 2268

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Exercise 7
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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

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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

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Exercises 8
86
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

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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

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WinGAP Residential Schedules

• Adjustments to Attic Dollars
• Area Multiplier
• Finish
• Quality
• Grade

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WinGAP Residential Schedules

• Adjustments to Basement Dollars
• Area Multiplier
• Finish
• Quality
• Grade

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WinGAP Residential Schedules

• Adjustment to Heat Dollars
• Area Multiplier
• Story Height
• Heating Type
• Grade

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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
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6
1
7
3
2
4
5
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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.

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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.

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Exterior Walls
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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

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Calculate Ext Wall Factor for (1) Plywood, (2)
Vinyl (3) Wood Shingles using Wood as base
_at_1500 SF
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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

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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.

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Occupancy
101
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.

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Attic Finish Adjustment
103
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

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Attic Finish Adjustment

• / Square Feet value converted to actual dollars
  by
• Attic Finish Adj res imp pt cost
• .12 100 12.00 / sf

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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.

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Attic Quality
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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

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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

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Exercise 9
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Calculate Attic Example

• Calculate the value of an attic with the
  following characteristics
• 800 square feet
• 100 finished
• Excellent quality 1.50 factor

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Attic Value

• Area multiplier (AM)
• ((((1500 800) / 50) .005) 1.00) 1.07

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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

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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

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Basement Finish Adj
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Basement Finish Adjustment

• / Square Feet value converted to actual dollars
  by
• Basement Finish Adj res imp pt cost
• .12 100 12.00 / sf

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Basement Quality
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Basement Finish Adj - Fox
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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

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Basement Quality

• Multiplier is applied in the following manner
• (((bsmt fin Fin Adj) bsmt psf) bsmt
  area) bsmt qual mult 0 dec

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Exercise 10
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WinGAP Residential Schedules

• Basement Coverage
• 4th item in list assoc value is base cost for
  basements

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Basement Calculation Example

• Calculate the value of a basement with the
  following characteristics
• 650 square feet
• 75 finished
• Excellent quality 1.50 factor

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Basement Value

• Am ((((1500 650) / 50) .005) 1.00) 1.085

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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

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Heat

• The Heat schedule contains the various heating
  types and associated cost multipliers which are
  applied to the heat dollars.

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Heat
127
Heat

• Multiplier used to adjust Heat Dollars for the
  particular type of heat/ac source
• Unlimited quality types can be added

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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

129
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

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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.

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Miscellaneous Items
132
Misc Items (Fireplace)

• Lump Sum dollar for each miscellaneous item
• Unlimited quality types can be added

133
Plumbing

• The Plumbing schedule in WinGAP contains just two
  items
• Standard Complement and
• Extra Fixtures.

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Plumbing
135
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.

136
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.

137
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

138
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.

139
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

140
WinGAP Residential Schedules Other Items
Ceiling /SF Floor Const /SF
Floor Finish /SF Foundation /SF
Interior Wall /SF Occupancy Multiplier
Roof Shape /SF Roofing /SF
141
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

142
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.

143
Improvement Labels
144
Improvement Labels

• Label ids
• Cost/SF for appendages additions
• Cost Factor for sketching labels
• Area Factor for heated area
• Unlimited labels can be added

145
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.

146
Improvement Labels

• Label Type
• Drop down list (combo box) w/ 5 options
• Addition
• Appendage
• Interior
• Primary
• Upper

147
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.

148
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.

149
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.

150
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.

151
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)

152
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)

153
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 polygons base area (Sketch area without
  Area Factor adjustment) contributes to TBA

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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

155
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

156
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

157
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

158
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

159
Improvement Labels

• Cost factor residual improvement sales price
  per sf / base dollars
• Cost factor 40 / 40
• Cost factor 1.00

160
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

161
Improvement Labels

• Cost factor 72 / 40
• Cost factor 1.80

162
Improvement Labels

• Cost Factor
• Primary, Upper Interior Labels
• CF /sf Base Dollars
• Addition Appendage Labels
• CF /sf Cost / SQFT

163
Improvement Labels

• Area Factor
• Applies to Additions, Interior, Upper and Primary
  areas
• Adjusts sketch sq ft to account for upper level
  or restricted use

164
Exercise 11
165
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

166
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

167
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

168
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

169
Exercise 12
170
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

171
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

172
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

173
Exercise Heated Area

• 1st 2675
• 2nd 750
• Add 650
• Ht Area 4075

174
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.

175
Observed Condition
176
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.

177
Story Height
178
Physical Depreciation
179
Physical Depreciation
180
Physical Depreciation

• Depreciation based on
• Age
• Grade
• Observed Condition
• Excellent
• Good
• Average
• Fair
• Poor

181
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

182
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.

183
Physical Depreciation

• Table Sample Page 41

184
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

185
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

186
Exercise 13
187
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
188
Exercise 14
189
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

190
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

191
Depreciation Exercise

• Calc Depr depr from lower age depr adj
• Calc Depr .85 - .03 .82

192
Depreciation

• Complete exercise 2 on page 92
• Same as handout exercise 15

193
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

194
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

195
Depreciation Exercise

• Calc Depr depr from lower age depr adj
• Calc Depr .74 - .05 .69

196
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

197
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

198

• 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

199
Manual Calculation

• Exercise 3 Pg 93 (handout 16)
• Screen_Dollars Calc-Class Exercise 3.xls

200
Manual Calculation

• Exercise 3 Pg 93
• Screen Dollars Calc - worked by hand.xls

201
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.

202
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.

203
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

204
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

205
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.

206
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.

207
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.

208
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

209
Point Cost Study

• Adjusted Points...The adjusted points for a
  residential improvement can be found on the
  Improvement Calculation Summary screen

210
Point Cost Study
211
Point Cost Study

• Res Imp Pt CostThe residential improvement point
  cost is generated by taking the average of the
  point costs that have been calculated via the
  procedures described.

212
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.

213
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 ??????

214
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.

215
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.

216
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.

217
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

218
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.

219
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.

220
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.

221
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

222
Neighborhood Adjustments

• The neighborhood will be established and the
  associated adjustment will be entered through the
  Tools gtgtSchedules / Tables gtgt Neighborhoods

223
Exercise 5 in book page 95
224
(No Transcript)
225
Neighborhood Adjustments
226
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.
  

227
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.

228
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.

229
Neighborhood Adjustment

• To assign the neighborhood code, the user will
  edit each parcels 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.

230
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.

231
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.

232
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 gtgt Preferences menu option.
• Page 66

233
(No Transcript)
234
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.

235
Accessory Improvements

• The Accessory Depreciation Year found in the
  Depreciation Years section of Preferences is used
  in the calculation of an accessorys 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.

236
Accessory Improvements

• The accessory improvement schedules can be
  accessed through Tools gtgt Schedules / Tables gtgt
  Accessories
• Page 67

237
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

238
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.

239
Accessory Improvements
240
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.

241
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.

242
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.

243
Accessory Improvements

• Pricing Method - defines the manner in which the
  accessory will be valued. Three different pricing
  methods are available.

244
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.

245
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.

246
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.

247
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.

248
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

249
Accessory Improvements

• Page 70

250
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.

251
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

252
Accessory Improvements

• Size Adjustment
• The Accessory Size Adjustment schedule can be
  accessed through Tools gtgt Schedules / Tables gtgt
  Accessories gtgt Size Adjustment Table.

253
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.

254
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

255
Accessory Improvements

• Lump Sum Tables
• accessed from Tools gtgt Schedules / Tables gtgt
  Accessories gtgt 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