1997 - UBC Sauder School of Business



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|BUSI 330 |

|Residential |

|Appraisal Report |

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|Real Estate Division |

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|ADDRESS OF | |

|SUBJECT PROPERTY: | |

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|PREPARED BY: | |

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| |Student Name |

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| |Student Number |

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Grader

Mark %

Letter Grade

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|RESIDENTIAL APPRAISAL REPORT (BUSI 330, Project No. 2) |

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|LETTER OF TRANSMITTAL INFORMATION |

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| | |Page i |

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|PHOTOGRAPHS OF SUBJECT | | |

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|FRONT VIEW |

|(Showing Depth) |

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|REAR VIEW |

| |Page ii |

|TABLE OF CONTENTS | |

|Section |Page Number |

| Photographs of Subject Property |i |

|Table of Contents |ii |

|Summary of Salient Facts and Important Conclusions |iii |

|Part I - Preface | |

| Definition of the Appraisal Problem |1 |

|Assumptions and Limiting Conditions |2 |

|Regional and Area Analysis (optional) | |

|Neighbourhood Analysis and Trends (optional) | |

|Land Description and Analysis (optional) | |

|Description of Improvements (optional) | |

|Description of Improvements: Observed Depreciation | |

|Part II - Analysis and Conclusions | |

| Highest and Best Use Estimate | |

|Cost Approach - Land Value | |

|- Cost Analysis of Improvements | |

|- Depreciation | |

|- Summary | |

|Direct Comparison Approach | |

|Reconciliation of Value Indications and Final Estimate of Value | |

|Certification | |

|Schedules |Addenda Item/ |

| |Page No. |

| City/Regional Map |A |

|Neighbourhood Map | |

|Site/Plot Plan (optional) | |

|Floor Plan(s) (optional) | |

|Comparable Land Sales Map | |

|Cost Summary; Cost Manual/Service Excerpts and Worksheets | |

|Comparable Improved Sales Map | |

|Photographs of Improved Sales | |

|Additional Photographs of Subject (optional) | |

|Neighbourhood Photographs (optional) | |

|Transfer and Mortgage Documents for Comparables (optional) | |

|Other Materials (list) | |

|Page iii |

|SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS |

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|Type of single family dwelling: | |

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|Address of property: | |

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|Effective date of the appraisal: | |

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|Dimensions and area of site: | |

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|Dimensions and area of building(s): | |

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|Highest and best use: | |

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|Estimate of land value (as if vacant): | |

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|Estimate of value by Cost Approach: | |

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|Estimate of value by Direct Comparison Approach: | |

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|Final estimate of value: | |

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|Page 1 of pages |

|DEFINITION OF THE APPRAISAL PROBLEM |

|PURPOSE of the appraisal is to estimate the Market Value of the subject property as at the effective date of appraisal. FUNCTION of the report is for the |

|awarding of credits for completion of course BUSI 330. |

|Present registered owner | |

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|Past sales history (5 years) | |

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|Legal description |

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|Encumbrances |

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|Mortgage information |[ ] No mortgage |

|1st held by |2nd held by |

| |Principal |Monthly |Are taxes |Date |Interest |Amortization |Conditions |

| |outstanding |payments |included? |due |rate |period | |

|1st |$ |$ | | |% | | |

|2nd |$ |$ | | |% | | |

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|Rights-of-way, other encumbrances |

|[ ] none |[ ] (if any, describe) |

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|Definition of property rights appraised |

|The Fee simple estate is "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of|

|taxation, expropriation, police power and escheat." |

|Appraisal of Real Estate (3rd Canadian edition) |

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|Definition of market value |

|Market value is defined in the Appraisal of Real Estate (3rd Canadian edition) as: "The most probable price, as of a specified date, in cash, or in terms |

|equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market |

|under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither |

|is under undue duress." |

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|Effective date of appraisal |

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|Page 2 of pages |

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|ASSUMPTIONS AND LIMITING CONDITIONS |

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|This report is subject to the following assumptions and limiting conditions. |

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|1. Legal description is that which is recorded in the Registry or Land Title office and is assumed to be correct. |

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|2. Every effort has been made to verify the information received from others which is believed reliable and correct. |

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|3. Sketches, drawings, diagrams, photographs, etc., are included for the sole purpose of illustration and serve to assist the reader in visualizing the |

|property. |

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|The distribution of land and building as stated in this report, apply only under the program of utilization as identified in the report. |

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|Page of pages |

|DESCRIPTION OF IMPROVEMENTS |

|DESCRIPTION OF BUILDING |

|Dimensions | |Area | |Type/style | |Year Built | |

|Foundation |[ ] Poured concrete |[ ] Concrete blocks |[ ] Concrete posts |[ ] Wood posts |

|Framing |[ ] Wood |[ ] Concrete |[ ] Steel |[ ] |

|Basement |[ ] Full |[ ] Partial |[ ] None |[ ] Slab |

| |[ ] Crawl space | | | |

|Basement Finish | |

|Exterior Walls |Brick veneer |Clapboard |Stucco |Siding: |Vinyl |

|(percentage) | | | | |Wood |

| |Stone veneer |Aluminum |Solid masonry | |Aluminum |

|Roof |[ ] Asphalt shingles |[ ] Wood shingles or shake |[ ] Slate |[ ] Clay/tile |

| |[ ] Built-up tar & gravel |[ ] Gutters & down spouts |[ ] |

|Interior Walls |[ ] Dry wall |[ ] Plaster |[ ] Paneling: |type |

|Floor Coverings |Above ground |Carpet |Tile |Ceramic |Hardwood |Linoleum |

|(percentage) |Basement |Carpet |Tile |Linoleum |Other | |

|Fireplaces |Number: | | |Location: | |Type: | |

|Kitchen |[ ] Built-in dishwasher |[ ] Garburator |[ ] Built-in range |[ ] Exhaust fan |[ ] Vent hood |

| | | |and oven | | |

| |Cabinets - type and material: | |Quality | |

| |Counter material: | |Other features | |

| |Fixtures: | |Quality | |

|Electricity |No. of amps: | |[ ] Circuit breakers |[ ] Fuses |

|Plumbing |Pipes |[ ] Copper |[ ] Galvanized |[ ] Mixed | | |

| |Hot water tank |[ ] Electricity |[ ] Gas |[ ] Oil |Capacity: | |

| |Connections |[ ] Washer |[ ] Dishwasher |[ ] | | |

| |Drainage |[ ] Plastic |[ ] Galvanized |[ ] | | |

|Heating |[ ] Forced air |[ ] Hot Water |[ ] Steam |[ ] | |

| |[ ] Oil fired |[ ] Gas fired |[ ] Electric |[ ] Humidifier | |

|Air Conditioning |[ ] Yes |[ ] No |[ ] Central |Swimming pool |[ ] Yes |Type: | |

|Garage |[ ] Single |[ ] Double |[ ] Attached |[ ] Detached |[ ] None | |

| |[ ] Carport |[ ] Electricity |[ ] Heated |[ ] Interior finish| | |

| |Type of construction: | |

| |Flooring: | |Dimensions: | |Area: | |

|Porch |[ ] Open |[ ] Screened |[ ] Enclosed |Size: | |[ ] None |

|Patio/Deck |[ ] Concrete |[ ] Wood |[ ] |Size: | |[ ] None |

|Rental Equip. |[ ] Water softener |[ ] Hot water tank |[ ] Furnace |[ ] | |[ ] None |

|Page of pages |

|DESCRIPTION OF IMPROVEMENTS (continued) |

| |Please identify each room with an “X”, or if more than one, indicate with a number |

|Room List |Foyer |Living |Dining |Kitchen |Den |Family Room |

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|Energy efficiency and insulation level |[ ] |[ ] |[ ] |[ ] |

|Quality of construction (materials and finish) |[ ] |[ ] |[ ] |[ ] |

|Condition of improvements |[ ] |[ ] |[ ] |[ ] |

|Rooms size and layout |[ ] |[ ] |[ ] |[ ] |

|Plumbing – adequacy and condition |[ ] |[ ] |[ ] |[ ] |

|Electrical – adequacy and condition |[ ] |[ ] |[ ] |[ ] |

|Kitchen cabinets – adequacy and condition |[ ] |[ ] |[ ] |[ ] |

|Compatibility to neighbourhood |[ ] |[ ] |[ ] |[ ] |

|Overall livability |[ ] |[ ] |[ ] |[ ] |

|Appeal and marketability |[ ] |[ ] |[ ] |[ ] |

|Additional features | |

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|Recent modernization, renovation, and major repairs | |

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|Site improvements | |

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|[ ] Driveway |[ ] Paved |[ ] Gravel |[ ] Concrete |Area: | | |

|[ ] Fence |[ ] Wood |[ ] Chain link |[ ] |Length: | |Height: | |

|[ ] Landscaping | |Description | |

|[ ] Other | |Describe | |

|Page of pages |

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|DESCRIPTION OF IMPROVEMENTS: OBSERVED DEPRECIATION |

|Condition of Building |

|Physical Depreciation - Curable |

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|Physical Depreciation - Incurable |

|Short-lived: |

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|Long-lived: |

| |Age concept |No. of years | |

| |Chronological age | |yrs. | |

| |Effective age | |yrs. | |

| |Economic life | |yrs. | |

| |Remaining economic life | |yrs. | |

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|Justification of Effective Age and Economic Life: |

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|Functional Obsolescence |

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|External Obsolescence |

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|Page of pages |

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|HIGHEST AND BEST USE ESTIMATE |

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|Definition |

|Highest and best use is defined in the text Appraisal of Real Estate (3rd Canadian edition) as "the reasonably probable and legal use of vacant land or an |

|improved property that is physically possible, legally permissible, appropriately supported, financially feasible, and that results in the highest value". |

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|Analysis and support of highest and best use of the site, as if vacant |

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|Discussion of adequacy of the existing improvement(s) |

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|Conclusion and support of highest and best use as improved |

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|Page of pages |

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|COST APPROACH - LAND VALUE |

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|Data Comparison Chart |

|Item |Subject |Comparable no. 1 |Comparable no. 2 |Comparable no. 3 |

|Address | | | | |

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|Legal description | | | | |

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|Sale date | | | | |

|Instrument no. | | | | |

|Registration date | | | | |

|Vendor | | | | |

|Purchaser | | | | |

|Sale price | | | | |

|Right conveyed |Fee simple | | | |

|Financing | | | | |

|Conditions of sale | | | | |

|Expenses made immediately after| | | | |

|purchase | | | | |

|Time difference (mos) |0 | | | |

|Zoning | | | | |

|Location | | | | |

|Frontage/depth | | | | |

|Lot area | | | | |

|Topography | | | | |

|Utilities | | | | |

|Interior/corner lot | | | | |

|Local Improvement Charges | | | | |

|Easements/Rights of Way | | | | |

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|Other comments | | | | |

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|Page of pages |

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|COST APPROACH - LAND VALUE (continued) |

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|Adjustment Chart |

|Item |Comparable no. 1 |Comparable no. 2 |Comparable no. 3 |

|Sale price | | | |

|Real property rights conveyed adjustment | | | |

|Adjusted price | | | |

|Financing adjustment | | | |

|Conditions of sale adjustment | | | |

|Expenses made immediately after purchase adjustment | | | |

|Adjusted price | | | |

|Date of sale adjustment | | | |

|Adjusted price | | | |

|Other adjustments as required: | | | |

|- Zoning | | | |

|- Location | | | |

|- Frontage/depth | | | |

|- Lot area | | | |

|- Topography | | | |

|- Utilities | | | |

|- Interior/corner lot | | | |

|- Local Improvement Charges | | | |

|- Easements/Rights of Way | | | |

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|Total Other Adjustments | | | |

|Final Adjusted Sale Price | | | |

|Adjusted unit sale price / frontage OR | | | |

|Adjusted unit sale price / area | | | |

|For reconciliation purposes: | | | |

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|Total Adjustment | | | |

|Total adjustment as % of Sale Price | | | |

|Page of pages |

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|COST APPROACH - LAND VALUE (continued) |

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|Adjustment Analysis in Order: 1. Property Rights 2. Financing 3. Motivation 4. Expenses made immediately after purchase 5. Time 6. Other |

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|COST APPROACH - LAND VALUE (continued) |

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|Reconciliation |

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|Final Estimate of Site Value: $ |

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|COST APPROACH – COST ANALYSIS OF IMPROVEMENTS |

|Reproduction Cost New (RCN) Estimate |

|Cost Manual (name): | |[ X ] Worksheet and excerpts attached |

| | |as Schedule ___ |

| RCN estimate |$ | |

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|Contractors: |Name and Address | |RCN Estimate |

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|RCN conclusion and rationale: |

|Subtotal: |$ |

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|Extras (state source): | |

|(not included in above RCN estimate) |

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|Attached deck/patio |$ | |

| Porches |$ | |

| Attached garage/car port |$ | |

| Basement finish |$ | |

| |$ | |

| |$ | |

| |$ | |

|Subtotal: |$ |

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|Total Reproduction Cost New of Building(s) | | |$ | |

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|Site Improvements: (see BUSI 330.9) | |

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|Item | |Cost New | |Age/Life | |Depreciated Value |

| | |$ | |/ | |$ |

| | |$ | |/ | |$ |

| | |$ | |/ | |$ |

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| | |$ | |/ | |$ |

| | |$ | |/ | |$ |

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|Total Depreciated Value of Site Improvements | | |$ | |

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|Page of pages |

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|COST APPROACH – DEPRECIATION |

|Age-Life Method |

|Item |RCN |Effective Age |Economic Life |% Dep. |Accrued Depreciation |

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|Total |$ | | | |$ |

Description of process applied and justification of estimate:

|Page of pages |

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|COST APPROACH – SUMMARY |

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|REPRODUCTION COST NEW | | | | |$ |

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|Less Total Depreciation | | | | |$ |

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|DEPRECIATED COST OF BUILDING(S) | | | | |$ |

|Plus Depreciated Site Improvements | | | | |$ |

|Plus Site Value | | | | |$ |

|VALUE INDICATED BY COST APPROACH | | | | |$ |

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| | | |Rounded to: | |$ |

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|Cost Approach Conclusion: Market Value = |$ | |

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|Page of pages |

|DIRECT COMPARISON APPROACH |

|Data Comparison Chart |

|Item |Subject Property |Comparable No. 4 |Comparable No. 5 |Comparable No. 6 |

|Address | | | | |

|Legal description | | | | |

|Sale date | | | | |

|Instrument no. | | | | |

|Registration date | | | | |

|Vendor | | | | |

|Purchaser | | | | |

|Sale Price | | | | |

|Rights conveyed |Fee Simple | | | |

|Financing | | | | |

|Conditions of sale | | | | |

|Expenses made immediately after| | | | |

|purchase | | | | |

|Time difference (mos.) |0 | | | |

|Distance from subject (blocks) |0 | | | |

|Location | | | | |

|Bldg size (above grade) | | | | |

|Type/Quality Construction | | | | |

|Energy efficiency | | | | |

|Design and appeal | | | | |

|Age | | | | |

|Condition | | | | |

|Room Count |Ttl |Bds |Bth |Ttl |

|Basement/finished below grade | | | | |

|area | | | | |

|Air conditioning | | | | |

|Heating | | | | |

|Fireplace | | | | |

|Appliances | | | | |

|Lot size | | | | |

|Zoning | | | | |

|Garage/carport | | | | |

|Local Improvement Charges | | | | |

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|Other comments: | | | | |

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|Page of pages |

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|DIRECT COMPARISON APPROACH (continued) |

|Adjustment Chart |

|Item |Comparable no. 4 |Comparable no. 5 |Comparable no. 6 |

|Sale price | | | |

|Real property rights conveyed adjustment | | | |

|Adjusted price | | | |

|Financing adjustment | | | |

|Conditions of sale adjustment | | | |

|Expenses made immediately after purchase adjustment | | | |

|Adjusted price | | | |

|Date of sale adjustment | | | |

|Adjusted price | | | |

|Other adjustments as required: | | | |

|- Location | | | |

|- Building size | | | |

|- Construction | | | |

|- Energy efficiency | | | |

|- Design and appeal | | | |

|- Age | | | |

|- Condition | | | |

|- Room count | | | |

|- Basement unfinished area | | | |

|- Basement/finished below grade area | | | |

|- Air conditioning | | | |

|- Heating | | | |

|- Fireplace | | | |

|- Appliances | | | |

|- Lot size | | | |

|- Zoning | | | |

|- Garage/carport | | | |

|- Local Improvement Charges | | | |

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|Total Other Adjustments | | | |

|Final Adjusted Sale Price | | | |

|For reconciliation purposes: | | | |

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|Total Adjustment | | | |

|Total adjustment as % of Sale Price | | | |

|Page of pages |

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|DIRECT COMPARISON APPROACH (continued) |

|Adjustment Analysis in Order: 1. Property Rights 2. Financing 3. Motivation 4. Expenses made immediately after purchase 5. Time 6. Other |

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|DIRECT COMPARISON APPROACH (continued) |

|Adjustment Analysis (continued) |

|Other adjustments |

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|DIRECT COMPARISON APPROACH (continued) |

|Reconciliation |

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|Direct Comparison Approach Conclusion: $ |

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|RECONCILIATION OF VALUE INDICATIONS AND FINAL ESTIMATE OF VALUE |

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|Indicated value by Cost Approach |$ | |

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|Indicated value by Direct Comparison Approach |$ | |

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|The Market Value, as defined, for the subject property as of | | | |

| |(Date) | | |

|is estimated to be |$ | | | |

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|The exposure time for the subject property has been estimated at . |

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|Page of pages |

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|CERTIFICATION |

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|I certify that, to the best of my knowledge and belief: |

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|the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the code of |

|Professional Ethics and the Standards of Professional Appraisal Practice. |

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|the statements of fact contained in this report are true and correct. |

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|the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased |

|professional analyses, opinions, and conclusions. |

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|I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the |

|parties involved. |

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|my compensation is not contingent upon the reporting of a predetermined value or direction in value that favours the cause of the client, the amount of the |

|value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. |

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|I have made a personal inspection of the property that is the subject of this report, located at , on |

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|no one provided significant professional assistance to the person signing this report. |

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|the final estimate of market value, as of is estimated to be: |

|(Date) |

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| |($ ) | |

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|Signature of Student | |Date Signed |

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