Fundamentals of Site and Structural Data.

This chapter forms the cornerstone of a comprehensive real estate appraisal process, transitioning from a macro perspective of the market and economy to the specific details that distinguish each property. It focuses on a systematic examination of the physical components of a property, starting with the geographic location and its characteristics, and extending to the structural data that define the building’s structure and quality.

Information derived from site❓ analysis and structural data forms the basis for all subsequent evaluation stages. Understanding land topography, drainage quality, and site design is as important as understanding building foundations, material types, and the condition of interior and exterior finishes. This data enables the appraiser to determine the fair market value of the property, considering all factors directly affecting its value. Careful examination of the site and building helps reveal defects or problems❓ that may negatively affect value, such as soil problems, structural cracks, or non-compliant building materials.

The chapter aims to provide trainees with the knowledge and skills to: understand the importance of location and its impact on property value by evaluating site topography, drainage quality, natural features, and their impact on property appeal and value; systematically collect and analyze structural data related to the building’s structure, components, and condition, focusing on elements such as foundations, walls, roofs, and finishes; identify potential structural defects, recognize signs❓ of structural deterioration (cracks, leaks, corrosion), and assess their impact on building safety and value; use structural data to estimate repair and renovation costs, or reconstruction costs in case of severe damage; apply professional and ethical standards in data collection, emphasizing accuracy, objectivity, and transparency, and adherence to professional and ethical standards in the evaluation process.

Location Fundamentals:

• Topography: Describes the shape of the land surface, including elevations and slopes. It determines the feasibility of construction and affects building costs. Evaluation involves assessing whether the land is level or sloped, and identifying any restrictions or opportunities. A formula for estimating cut/fill volume is: Volume ≈ ∑ A_i * (FG_i - OG_i), where A_i is the area❓ of a small region i, FG_i is the finished ground elevation in region i, and OG_i is the original ground elevation in region i. Positive result indicates fill, negative indicates cut.
• Drainage: Refers to the land’s ability to drain surface and groundwater. Proper drainage affects the structure’s integrity and prevents moisture problems. Evaluation involves checking for evidence of water damage. Poor drainage may require an additional drainage system. Drainage is different from property location inside/outside flood zones.
• Landscaping: Includes trees, shrubs, grass, and decorative features. It enhances the aesthetic appeal and increases value. Evaluation involves assessing the quality and condition of the landscaping and its impact on privacy and comfort.
• Utilities: Include cable TV, high-speed internet, garbage collection, and other services. Availability and cost can affect property value. Evaluation involves verifying availability and cost and noting any restrictions or additional costs.
• Adverse Aspects: Any conditions or characteristics of the site❓ that reduce its value. These include encroachments, severe erosion, or soil problems.

Construction Data:

Collected for two main reasons:

1. Property Comparison: Used to identify and analyze comparable properties for comparison in the valuation process. Comparable properties should be similar in neighborhood, location, and building characteristics. The appraiser adjusts the values of comparable properties to account for differences in construction characteristics.
2. Cost Estimation: Used in the cost approach to estimate property value. Helps estimate the cost of reproducing or replacing improvements and in analyzing depreciation.

Categories of Construction Data:

1. General Data: Overall description of the building, including size, number of dwelling units, number of floors, architectural style, and location on the lot. Description of each room, its function (bedroom, living room, kitchen, etc.), and location (basement, first floor, second floor, etc.). Photos of the front and rear of the building and a site map and floor plan.
2. Building Dimensions: External dimensions measured for each exterior wall. Gross Living Area (GLA) is calculated by measuring the area above ground level. GLA = ∑ (Length_i * Width_i). Garage, basement, or attic space is not included in GLA.
3. Sub-Structure Data: Information about the parts below ground level: foundations, basement, and crawl space. Foundation types include slab-on-grade, full basement, and crawl space. Foundations should be inspected for signs of settling, moisture intrusion, termite or rodent infestation.
4. Exterior Data: Roofing materials (type and condition). Gutters and downspouts (must be intact without leaks). Exterior wall materials (brick, block, stucco, wood, metal, or plastic). Walls should be inspected for signs of damage. Window type (Casement, Sliding, Double-Hung, etc.), frame type (wood, metal, vinyl-clad), and glass type (Single-Panel, Double-Panel, etc.). Exterior doors should be solid wood or tempered glass.
5. Interior Data: Type and quality of interior finishes (flooring, walls, and ceilings). The quality of interior finishes has a significant impact on the building cost of the home.
6. Equipment/Appliance Data: Type and age of equipment/appliances, such as water heater and HVAC system.
7. Energy Efficiency Data: Type and level of insulation in walls and ceilings. Type of air-leakage resistant windows and doors. Efficiency of heating, ventilation, and air conditioning systems.
8. Special Feature Data: Unique features that increase property value, such as a swimming pool, sauna, or outdoor kitchen.