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Building Data: Location, Structure, and Interior Systems
Real estate appraisal is a complex process requiring a comprehensive understand❓ing of various aspects of a property, from its location to the details of its interior finishes. Data collection and analysis related to the building itself form the basis for accurate property value estimation.
This chapter, “Building Data: Location, Structure, and Interior Fittings,” aims to provide participants with the necessary knowledge and skills to effectively collect and analyze this data.
The importance of studying building data stems from several scientific and practical aspects:
- Building characteristics, from location and design to building materials and interior fittings, play a crucial role in determining market value. Understanding these characteristics and their impact on value is central to the appraisal process.
- Building data is used to create comparisons between different properties, allowing appraisers to identify subtle differences that affect value. These comparisons rely on scientific and methodological foundations to ensure accuracy and objectivity.
- Building data is essential for estimating replacement or reconstruction costs, which is a fundamental part of the cost approach in real estate appraisal. This estimation requires detailed knowledge of building specifications and materials used.
- Building data helps determine the level of physical, functional, and external obsolescence affecting the property, a significant factor in determining current value.
- Building data provides vital information for investors, developers, buyers, and sellers to make informed decisions about real estate.
This chapter aims to enable participants to:
- Identify and collect essential data related to the building (location, structure, interior finishes, fixtures, etc.) and provide them with the tools and techniques necessary to collect this data accurately and comprehensively.
- Understand the importance of the property’s location (topography, drainage, landscaping, available services) and its impact on value, and learn how to evaluate these factors and include them in the appraisal process.
- Understand the types of foundations and building materials used, and be able to assess their condition and identify any potential structural problems.
- Understand the different types of interior finishes (floors, walls, ceilings, kitchens, bathrooms) and be able to assess their quality, condition, and impact on value.
- Know the different types of fixtures (electricity, plumbing, heating, air conditioning, appliances) and be able to assess their efficiency, condition, and impact on value.
- Use the collected and analyzed data to evaluate properties in real-world scenarios.
Through achieving these goals, participants will gain a comprehensive understanding of building data and how to use it in the real estate appraisal process, enabling them to provide accurate and reliable appraisals.
Building Data: Location, Structure, and Interior Fittings
Property Location:
- Topography: Determines building and development feasibility, impacting building size and type. Assessor must determine if land is level or sloping and degree of slope. Sloping land may require additional costs for leveling and structural design.
- Drainage: Assess the efficiency of the property’s surface drainage system❓. Evidence of water damage requires investigation. Drainage system assessment is separate from whether the property is in a flood zone.
- Landscaping: Record the quality of landscaping.
- Communications & Internet: Cable TV and local internet services availability should be noted.
- Waste Collection: Record need for private service if public service is unavailable.
- Negative Aspects: Report negative site aspects, like encroachments or setback violations. Severe soil erosion indicates potential soil problems, requiring expert consultation.
Building Structure:
- General Data: Include overall size, number of units, number of floors, architectural style, building’s site location, and description of each room (function and location). Photographs of the building from front and rear, a site map, and a floor plan sketch are required.
- Building Dimensions: Measure the building’s overall size by its external dimensions. Measure each external wall and calculate the Gross living area❓ (GLA).
- GLA Definition: Habitable area above ground level. Garages, basements (finished or unfinished), and attics are excluded but can be noted separately.
- GLA Formula: GLA = Σ (Li * Wi) where Li = length of exterior wall i, Wi = width of building at wall i, and Σ = sum of areas of all habitable spaces above ground.
- Sub-Structure Data: Foundation information, including parts below ground level: foundations, basement (if any), crawl space.
- Foundation Description: Type and condition. Common types: reinforced concrete, full (basement), crawl space.
- Foundation Inspection: Look for signs of settling (cracks❓, breaks, unevenness), moisture intrusion (dampness, water accumulation, mold, rot), termite/pest infestation. Note flooring, insulation, vapor barrier condition.
- Basements: Note basement size, finish of ceilings, walls, floors in finished areas. Describe features designed to remove water. Note exterior access.
- Exterior Data: Roofing, gutters/downspouts, exterior walls/trim, windows, exterior doors.
- Roofing Materials: Note type and condition. Damaged/missing tiles, rot, or algae should be noted.
- Gutters and Downspouts: Should be in good condition, without leaks or broken connections, and drain water away from the building.
- Exterior Wall Materials: Types include masonry (brick, block, stucco, concrete), wood (plywood, siding, shingles), metal (steel, aluminum), vinyl. Look for damage, such as cracks in brick, moisture damage, cracked/broken/rotten/missing panels. Note the condition of any painted surfaces.
- Windows: Type (awning, sliding, double-hung, etc.), sash type (wood, metal, vinyl-clad), glass type (single-pane, double-pane, etc.). Note manufacturer, if known. Operable windows should function smoothly and have screens. Check wood frames for rot and ensure windows are sealed.
- Exterior Doors: Wood doors should be solid (not hollow). Glass doors should be tempered safety glass. All exterior doors should have weather stripping. Minimum door width of 2‘8” (entry doors 3‘0”).
Interior Fittings:
- Interior Finish Quality: Relates to the quality of interior finishes. Gives a good indication of the overall quality of the building and significantly affects the cost of building the house.
- Elements to Check:
- Flooring type and material (ceramic, parquet, carpet, etc.) and condition.
- Wall quality and material (paint, wallpaper, tile, etc.) and condition.
- Ceiling type and quality (gypsum, suspended ceilings, etc.) and condition.
- Interior and exterior door/window quality and material and condition.
- Cabinet quality and material and condition.
- Lighting fixture quality and material and condition.
- Plumbing fixture (sinks, toilets, bathtubs, etc.) quality and material and condition.
- Quality Assessment: Assess interior finish quality (standard, above average, below average). Note and record any damage or defects.
Equipment/Appliance Data:
- Includes heating/cooling systems, water heaters, kitchen appliances (stoves, ovens, dishwashers, refrigerators), and security systems.
- Data to Collect: Type, brand, model, age, condition, and energy efficiency❓ (if available).
- Importance: Determines building value and potential operating costs. Old/inefficient appliances impact property value.
Energy Efficiency Data:
- Important factor in property evaluation.
- Elements to Check: Insulation in walls/ceilings, window type (double-pane, energy-efficient), heating/cooling system efficiency, energy-efficient water heaters, solar panels/renewable energy sources.
- Importance: Affects monthly operating costs and can increase value.
Special Feature Data:
- Unique/additional features that increase value.
- Examples: Swimming pools, Jacuzzis, fireplaces, large balconies/terraces, home theaters, surround sound systems, smart home systems.
Chapter Summary
The chapter focuses on building data❓: site, structure, and interior fittings, crucial for property valuation. It aims to equip the assessor with the knowledge to collect and analyze site and building data, essential for accurate property assessment. This data is used to identify comparable properties, make necessary adjustments for differences, estimate replacement or reconstruction costs, and analyze depreciation.
Site Data:
- Topography, drainage❓, and Landscaping: Site topography impacts building size and type, affecting property value. Assessors should note land slope and drainage adequacy. Water damage requires inquiry and documentation. Landscaping quality contributes to value.
- Utilities and Services: Assessors should note the availability of utilities such as electricity, water, and sewage. Cable and internet services should be considered in some areas. The need for private waste collection should be noted if public services are unavailable.
- Negative Site Aspects: Any negative aspects should be reported, such as structures encroaching from other sites or violating setback regulations. Severe hill erosion may indicate soil problems, potentially requiring expert advice from surveyors or soil experts.
Building Data:
Building data is collected for two main reasons:
- Comparable Property Analysis: Data is used to identify and analyze comparable properties using the sales comparison approach. Data helps in adjusting comparable property prices to reflect differences in building characteristics such as total area, age, or construction quality.
- Cost Estimation: Data is used to estimate replacement or reconstruction costs using the cost approach. Data helps in analyzing depreciation.
Building Data Categories:
Building data is divided into eight main categories:
- General Data: Includes a general description of the building, overall size, number of residential units, number of floors, architectural style, and location on the land. It includes a general description of each room, including function and location. Photos of the front and rear views of the building, along with a street view, are also taken. The building’s location is identified on a site map, and a floor plan is drawn.
- Building Dimensions: The overall building size is measured by its external dimensions. The assessor measures each exterior wall of the structure and calculates the total living area❓. Only above-ground living space is included; garage, finished or unfinished basement, or attic space is not considered part of the total living area but can be indicated separately.
- Sub-Structure Data: Includes information about the foundation, basement, or crawl space. The foundation should be described in terms of type and condition. Common foundation types include concrete foundations, full basements, and crawl space foundations. Signs of settling, moisture leakage, or pest infestation should be checked.
- Exterior Data: Includes the type and condition of roofing materials, gutters, exterior surfaces, exterior doors, windows, and accessories. Any damage or loss of panels, as well as any evidence of rot or algae accumulation, should be noted. Gutters and drains should be in good condition, with no leaks or broken connections. Wooden windows should be checked for rot or decay, and all windows should be tightly sealed around their edges to prevent air leakage. Exterior wooden doors should be solid (not hollow), and glass doors should be made of tempered safety glass.
- Interior Data: Relates to the type and quality of interior finishes. Interior finish quality significantly impacts construction cost.
- Equipment/Appliances Data: Includes information about HVAC systems, plumbing, electricity, and appliances.
- Energy Efficiency Data: Includes information about insulation, energy-efficient windows, and high-efficiency heating and cooling systems.
- Special Features Data: Includes information about special features such as swimming pools, jacuzzis, fireplaces, balconies, and patios.
Site and building data collection requires knowledge of construction basics and the ability to assess quality and condition. Accurate assessment aids informed decisions about property transactions and financing. Understanding this data enables the assessor to identify potential property problems affecting value. All collected data, including photos and illustrations, should be accurately documented.
