Building Components, Style, and Functional Utility

Chapter Title: Building Components, Style, and Functional Utility

Introduction

This chapter delves into the crucial aspects of real estate appraisal: building components, architectural style, and functional utility. A comprehensive understanding of these elements is essential for accurate property valuation and green building assessment. We will explore the science behind building construction, the principles of architectural design, and how these factors influence a property’s market value and sustainability.

1. Building Components: A Systems Approach

A building is a complex system comprised of interconnected components working together to provide shelter, comfort, and functionality. Understanding these components and their interactions is fundamental to property appraisal.

1. Foundations:

   • Purpose: To transfer the building’s load to the underlying soil, ensuring stability and preventing settlement.
   • Types:
     • Shallow Foundations: Suitable for stable soil conditions. Examples include:
       • Slab-on-Grade: A concrete slab poured directly on the ground.
       • Spread Footings: Individual footings supporting columns or walls.
       • Strip Footings: Continuous footings supporting walls.
     • Deep Foundations: Used when soil conditions are unstable or when heavy loads are present. Examples include:
       • Piles: Driven or drilled into the ground to reach a load-bearing stratum.
       • Caissons: Large, hollow cylinders sunk into the ground and filled with concrete.
   • Scientific Principles: Soil mechanics plays a crucial role in foundation design. Key concepts include:
     • Bearing Capacity: The maximum load a soil can withstand without failure.
       • Equation: q_ult = cN_c + qN_q + 0.5γBN_γ (where q_ult is ultimate bearing capacity, c is soil cohesion, q is overburden pressure, γ is soil unit weight, B is footing width, and N_c, N_q, N_γ are bearing capacity factors).
     • Settlement: The vertical movement of a foundation under load.
       • Types: Immediate settlement, consolidation settlement, and secondary compression.
   • Practical Applications: Regular inspection of foundations for cracks, settlement, and water damage is essential for maintaining structural integrity.

2. Structure:

   • Purpose: To provide a skeletal framework for the building, supporting walls, floors, and roofs.
   • Materials:
     • Wood: Commonly used in residential construction due to its affordability and ease of use.
     • Steel: High strength-to-weight ratio, suitable for large spans and high-rise buildings.
     • Concrete: Versatile material with good compressive strength, used in foundations, walls, and floors.
     • Masonry: Durable material made from brick, stone, or concrete blocks.
   • Structural Systems:
     • Load-Bearing Walls: Walls that support the weight of the floors and roof above.
     • Framed Structures: Structures where the load is transferred to columns and beams.
     • Trusses: Triangular structures used to span long distances.
     • Arches: Curved structures that can support heavy loads.
   • Scientific Principles: Structural engineering principles are applied to ensure stability and safety.
     • Stress: The force acting on a unit area of a material.
       • Equation: σ = F/A (where σ is stress, F is force, and A is area).
     • Strain: The deformation of a material under stress.
       • Equation: ε = ΔL/L_0 (where ε is strain, ΔL is change in length, and L_0 is original length).
     • Modulus of Elasticity: A measure of a material’s stiffness.
       • Equation: E = σ/ε (where E is modulus of elasticity).
   • Practical Applications: Proper structural design and construction are critical to prevent structural failure. Regular inspections for signs of damage, such as cracks, deflection, and corrosion, are necessary.

3. Exterior Walls:

   • Purpose: To provide weather protection, insulation, and structural support.
   • Materials:
     • Wood Siding: Affordable and aesthetically pleasing.
     • Brick Veneer: Durable and low-maintenance.
     • Stucco: Cement-based plaster that provides a textured finish.
     • Vinyl Siding: Low-maintenance and weather-resistant.
     • Metal Cladding: Durable and energy-efficient.
   • Wall Systems:
     • Single-Wythe Walls: Walls constructed from a single layer of material.
     • Cavity Walls: Walls with an air space between the inner and outer layers, improving insulation and preventing moisture penetration.
     • Curtain Walls: Non-load-bearing walls that are attached to the building’s structural frame.
   • Scientific Principles: Heat transfer and moisture control are important considerations in exterior wall design.
     • Thermal Resistance (R-value): A measure of a material’s resistance to heat flow. Higher R-value indicates better insulation.
     • Thermal Transmittance (U-value): The rate of heat transfer through a material or assembly. Lower U-value indicates better insulation.
       • Equation: U = 1/R (where U is U-value and R is R-value).
   • Practical Applications: Proper insulation and sealing of exterior walls are crucial for energy efficiency and preventing moisture damage.

4. Roofing:

   • Purpose: To protect the building from the elements, including rain, snow, wind, and sun.
   • Types:
     • Asphalt Shingles: Affordable and widely used.
     • Tile Roofing: Durable and aesthetically pleasing.
     • Metal Roofing: Long-lasting and energy-efficient.
     • Wood Shingles/Shakes: Natural and aesthetically pleasing.
     • Flat Roofing: Commonly used on commercial buildings, with materials like built-up roofing (BUR), modified bitumen, or single-ply membranes.
   • Roof Slope: The angle of the roof, which affects water runoff and snow load capacity.
   • Scientific Principles: Waterproofing and structural integrity are critical for roof performance.
     • Hydrostatic Pressure: The pressure exerted by a fluid at rest. Proper drainage is essential to prevent hydrostatic pressure from damaging the roof.
     • Wind Uplift: The force of wind that can lift the roof off the building. Proper anchoring and design are essential to resist wind uplift.
   • Practical Applications: Regular inspection and maintenance of the roof are essential to prevent leaks and structural damage.

5. Interior Finishes:

   • Purpose: To provide a comfortable and aesthetically pleasing interior environment.
   • Materials:
     • Drywall: Commonly used for walls and ceilings.
     • Plaster: Traditional wall finish that provides a smooth surface.
     • Wood Paneling: Aesthetically pleasing and durable.
     • Tile: Commonly used in bathrooms and kitchens.
     • Carpet: Soft and comfortable flooring.
     • Hardwood Flooring: Durable and aesthetically pleasing.
   • Scientific Principles: Acoustics and indoor air quality are important considerations.
     • Sound Absorption Coefficient: A measure of a material’s ability to absorb sound.
     • Volatile Organic Compounds (VOCs): Chemicals emitted from building materials that can affect indoor air quality.
   • Practical Applications: Choosing low-VOC materials and ensuring proper ventilation can improve indoor air quality.

6. Mechanical Systems:

   • HVAC (Heating, Ventilation, and Air Conditioning):

     • Purpose: To maintain comfortable temperature, humidity, and air quality.
     • Components: Furnaces, air conditioners, heat pumps, ventilation systems, and ductwork.
     • Scientific Principles: Thermodynamics and fluid mechanics are applied to design efficient HVAC systems.
       • Heat Transfer: Conduction, convection, and radiation.
       • Refrigeration Cycle: Evaporation, compression, condensation, and expansion.
     • Practical Applications: Regular maintenance of HVAC systems can improve energy efficiency and extend their lifespan.

   • Plumbing:

     • Purpose: To provide potable water and remove wastewater.
     • Components: Pipes, fixtures, and drainage systems.
     • Scientific Principles: Fluid mechanics and sanitation are important considerations.
     • Practical Applications: Proper installation and maintenance of plumbing systems are essential to prevent leaks and water damage.

   • Electrical:

     • Purpose: To provide power for lighting, appliances, and other electrical equipment.
     • Components: Wiring, circuit breakers, outlets, and lighting fixtures.
     • Scientific Principles: Electrical engineering principles are applied to design safe and efficient electrical systems.
       *Older buildings often suffer from inadequate electrical capacity. A 300-amp service may be insufficient to meet modern needs, potentially requiring costly upgrades.
     • Practical Applications: Ensuring that electrical systems meet current codes and standards is essential for safety.
     • Smart grids and demand response (DR) systems can automatically determine a building’s power needs or automatically reduce power use if needed.

2. Architectural Style: Form and Function

Architectural style refers to the distinctive characteristics of a building’s design, encompassing its form, materials, and ornamentation.

1. Formal Architecture:

   • Follows established historical patterns and is easily identifiable by those with architectural training.
   • Examples:
     • Victorian: Characterized by ornate details, asymmetrical shapes, and elaborate trim.
     • Georgian: Symmetrical design, classical proportions, and brick or stone facades.
     • Art Deco: Geometric shapes, bold colors, and luxurious materials.
     • Modern: Clean lines, minimalist design, and emphasis on functionality.

2. Vernacular Architecture:

   • Local in style and emphasizes function over form.
   • Often utilizes locally available materials and construction techniques.
   • Reflects the cultural and environmental context of a specific region.
   • Examples:
     • Log Cabins: Simple structures made from logs, common in forested areas.
     • Adobe Houses: Structures made from sun-dried bricks, common in arid regions.
     • Shotgun Houses: Narrow, rectangular houses with rooms arranged in a line, common in the Southern United States.

3. Style Considerations for Appraisal:

   • Market Appeal: An appraiser needs to be aware that designs considered attractive today might not be tomorrow.
   • Buildability: Attractive designs are not always buildable in practice. Architects must design buildings that are attractive, space-efficient, and have reasonable construction costs.

3. Functional Utility: Meeting Market Demands

Functional utility refers to a building’s ability to fulfill its intended purpose and meet the needs of its occupants. It is a critical factor in determining a property’s market value.

1. Definition: The ability of a building to be used for its intended purpose.
2. Market Acceptability: The use must be acceptable to the market for the property to be functionally efficient.

3. Residential Properties:

   • Functional utility is a moving target; preferences change over time. What is popular today may not be popular in a decade.
   • Examples:
     • Garage size: A one-car garage might have been acceptable in the past but is often insufficient today.
     • Air Conditioning: A house without air conditioning would be less marketable in the southern US.
   • Features that are generally popular in new housing: abundant closet space, appliances, larger kitchens and baths, and master bedrooms with spa tubs. Multiple bathrooms are also popular.

4. Commercial Properties:

   • Functional utility is best measured against new construction designs.

   • Efficiency of commercial construction has increased over time, with new building materials, structural improvements, and increased total enclosed areas.

   • Shopping Centers:

     • Functional utility includes parking adequacy and design, common area design, support by anchor stores, access points, and common area draw.
     • Visibility, access, and attractiveness are important considerations.
     • Trends include retail centers anchored by big-box stores with a larger number of smaller anchors and lifestyle centers aimed at attracting high-income customers.

   • Office Buildings:

     • Visibility and access are less important than office efficiency issues such as elevators, security, parking, and the amount of bathrooms and windows.
     • HVAC issues may arise because of increasing heat load created by computers and electronic equipment.
     • Flexibility has generally become an important factor. Older buildings must accommodate updates in heating, cooling, and wiring.

   • Hotels:

     • Sensitive to changes in the market standards of both commercial and residential properties.
     • ADA compliance and room size are significant issues for older hotels.
     • A hotel must be oriented to the needs of its particular set of patrons (resort vs motel).

5. Industrial Properties:

   • Manufacturing plants have significant issues with building designs because different operations require different building configurations.

   • Warehousing, storage, and distribution facilities focus on the movement of finished goods in and out of the facility.

   • Newer one-story, square-shaped buildings with high ceilings are the most flexible, efficient, cost-effective, and therefore most desirable type of industrial building.

6. Agricultural Properties:

   • Buildings can require special design features and have significant functional utility issues when their specialized equipment is not marketable.
   • The trend is moving toward smaller numbers of larger, business-owned farms with increasingly specialized operations and equipment needs.

7. Special-Purpose Buildings:

   • Examples: car dealerships, funeral homes, schools, churches, breweries, and bowling alleys.
   • These have specialized designs and limited markets.
   • Appraisers must consider if there is still demand for the use for which the property was originally constructed, and if so, whether the property can compete with other properties designed for that same use.

8. Mixed-Use Buildings:

   • Combination of two or more uses on one site or in one building.
   • Examples: apartments above a retail store or a branch bank inside an office building.
   • These properties also beg the question, “Will there be a market for this property with this combination of uses?”

4. Quality and Condition Assessment

Quality and condition are crucial factors in property valuation.
1. Quality:
* Describes the cost, durability, and efficiency of an element of construction or the entire property.
* Applied in comparisons of properties that compete with the subject property.

2. Condition:
   • Describes the amount of wear and tear a property has endured.
   • Condition is a relative term. It is quite possible for a good-quality home to be in fair or poor condition or a fair-quality home to be in good condition.

5. Green Building Documentation
Appraisers may want to include special documentation of the quality of green construction from sources such as
* third-party ratings and certifications (from ,%%$, %.%2G9STAR, the EPA, etc.)
* commissioning reports
* indoor air quality assessments
* site evaluations of ecosystem health, functionality, and services
* lease agreements and other documentation of income adjustments
* incentives, including tax abatements, that may offset additional “green” costs
* modeled operating data (for proposed buildings)
* post-occupancy evaluations (for properties that are at least one year old)
* technical specifications of the benefits of particular systems and their cost estimates (for existing or proposed buildings)

Conclusion

Understanding building components, architectural style, and functional utility is paramount for accurate real estate appraisal. By applying scientific principles, considering market demands, and incorporating green building assessments, appraisers can provide valuable insights into a property’s worth and sustainability.