BUSI 330: Project No. 2

BUSI 330: Project No. 2

Name:

Student Number:

BUSI 330
Residential
Appraisal Report

Real Estate Division
ADDRESS OF
SUBJECT PROPERTY:
PREPARED BY: / Student Name
Student Number

Grader

Mark %

Letter Grade

BUSI 330.1

BUSI 330: Project No. 2

Name:

Student Number:

RESIDENTIAL APPRAISAL REPORT (BUSI 330, Project No. 2)
LETTER OF TRANSMITTAL INFORMATION

BUSI 330.1

BUSI 330: Project No. 2

Name:

Student Number:

Page i
PHOTOGRAPHS OF SUBJECT
FRONT VIEW
(Showing Depth)
REAR VIEW

BUSI 330.1

BUSI 330: Project No. 2

Name:

Student Number:

Page ii
TABLE OF CONTENTS

Section

/

Page Number

Photographs of Subject Property
Table of Contents
Summary of Salient Facts and Important Conclusions / i
ii
iii

Part I - Preface

Definition of the Appraisal Problem
Assumptions and Limiting Conditions
Regional and Area Analysis (optional)
Neighbourhood Analysis and Trends (optional)
Land Description and Analysis (optional)
Description of Improvements (optional)
Description of Improvements: Observed Depreciation / 1
2

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
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) / A
Page iii
SUMMARY OF SALIENT FACTS AND IMPORTANT CONCLUSIONS
Type of single family dwelling:
Address of property:
Effective date of the appraisal:
Dimensions and area of site:
Dimensions and area of building(s):
Highest and best use:
Estimate of land value (as if vacant):
Estimate of value by Cost Approach:
Estimate of value by Direct Comparison Approach:
Final estimate of value:
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
Past sales history (5 years)
Legal description
Encumbrances
Mortgage information / [ ] No mortgage
1st held by / 2nd held by
Principal
outstanding / Monthly
payments / Are taxes
included? / Date
due / Interest
rate / Amortization
period / Conditions
1st / $ / $ / %
2nd / $ / $ / %
Rights-of-way, other encumbrances
[ ] none / [ ] (if any, describe)
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)
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."
Effective date of appraisal
Page 2 of pages
ASSUMPTIONS AND LIMITING CONDITIONS
This report is subject to the following assumptions and limiting conditions.
1.Legal description is that which is recorded in the Registry or Land Title office and is assumed to be correct.
2.Every effort has been made to verify the information received from others which is believed reliable and correct.
3.Sketches, drawings, diagrams, photographs, etc., are included for the sole purpose of illustration and serve to assist the reader in visualizing the property.

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

5.
6.
7.

BUSI 330.1

BUSI 330: Project No. 2

Name:

Student Number:

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
and oven / [ ] Exhaust fan / [ ] Vent hood
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 / Bedrooms / No. Baths / Laundry / Other
Basement
1st Level
2nd Level
Finished area above grade contains a total area of / rooms / bedrooms / baths
Finished basement area contains a total area of / rooms / bedrooms / baths
Bathroom location / Description of fixtures installed
*Comments required / Good / Average / Fair / Poor*
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
Recent modernization, renovation, and major repairs
Site improvements
[ ] Driveway / [ ] Paved / [ ] Gravel / [ ] Concrete / Area:
[ ] Fence / [ ] Wood / [ ] Chain link / [ ] / Length: / Height:
[ ] Landscaping / Description
[ ] Other / Describe
Page of pages
DESCRIPTION OF IMPROVEMENTS: OBSERVED DEPRECIATION
Condition of Building
Physical Depreciation - Curable
Physical Depreciation - Incurable
Short-lived:
Long-lived:
Age concept / No. of years
Chronological age / yrs.
Effective age / yrs.
Economic life / yrs.
Remaining economic life / yrs.
Justification of Effective Age and Economic Life:
Functional Obsolescence
External Obsolescence

BUSI 330.1

BUSI 330: Project No. 2

Name:

Student Number:

Page of pages
HIGHEST AND BEST USE ESTIMATE
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".
Analysis and support of highest and best use of the site, as if vacant
Discussion of adequacy of the existing improvement(s)
Conclusion and support of highest and best use as improved
Page of pages
COST APPROACH - LAND VALUE
Data Comparison Chart
Item / Subject / Comparable no. 1 / Comparable no. 2 / Comparable no. 3
Address
Legal description
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
Other comments
Page of pages
COST APPROACH - LAND VALUE (continued)
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
Total Other Adjustments
Final Adjusted Sale Price
Adjusted unit sale price / frontage OR
Adjusted unit sale price / area
For reconciliation purposes:
Total Adjustment
Total adjustment as % of Sale Price
Page of pages
COST APPROACH - LAND VALUE (continued)
Adjustment Analysis in Order: 1. Property Rights 2. Financing 3. Motivation 4. Expenses made immediately after purchase 5. Time 6. Other
Page of pages
COST APPROACH - LAND VALUE (continued)
Reconciliation
Final Estimate of Site Value: $
Page of pages
COST APPROACH – COST ANALYSIS OF IMPROVEMENTS
Reproduction Cost New (RCN) Estimate
Cost Manual (name): / [ X ] Worksheet and excerpts attached
as Schedule ___
RCN estimate / $
Contractors: / Name and Address / RCN Estimate
$
RCN conclusion and rationale:
Subtotal: / $
Extras (state source):
(not included in above RCN estimate)
Attached deck/patio / $
Porches / $
Attached garage/car port / $
Basement finish / $
$
$
$
Subtotal: / $
Total Reproduction Cost New of Building(s) / $
Site Improvements: (see BUSI 330.9)
Item / Cost New / Age/Life / Depreciated Value
$ / / / $
$ / / / $
$ / / / $
$ / / / $
$ / / / $
$ / / / $
$ / / / $
Total Depreciated Value of Site Improvements / $
Page of pages
COST APPROACH – DEPRECIATION
Age-Life Method
Item / RCN / Effective Age / Economic Life / % Dep. / Accrued Depreciation
Total / $ / $

BUSI 330.1

BUSI 330: Project No. 2

Name:

Student Number:

Description of process applied and justification of estimate:

Page of pages
COST APPROACH – SUMMARY
REPRODUCTION COST NEW / $
Less Total Depreciation / $
DEPRECIATED COST OF BUILDING(S) / $
Plus Depreciated Site Improvements / $
Plus Site Value / $
VALUE INDICATED BY COST APPROACH / $
Rounded to: / $
Cost Approach Conclusion: Market Value = / $
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 / Bds / Bth / Ttl / Bds / Bth / Ttl / Bds / Bth
Basement unfinished area
Basement/finished below grade area
Air conditioning
Heating
Fireplace
Appliances
Lot size
Zoning
Garage/carport
Local Improvement Charges
Other comments:
Page of pages
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
-
-
-
Total Other Adjustments
Final Adjusted Sale Price
For reconciliation purposes:
Total Adjustment
Total adjustment as % of Sale Price
Page of pages
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
Page of pages
DIRECT COMPARISON APPROACH (continued)
Adjustment Analysis (continued)
Other adjustments
Page of pages
DIRECT COMPARISON APPROACH (continued)
Reconciliation

Direct Comparison Approach Conclusion: $

Page of pages
RECONCILIATION OF VALUE INDICATIONS AND FINAL ESTIMATE OF VALUE
Indicated value by Cost Approach / $
Indicated value by Direct Comparison Approach / $
The Market Value, as defined, for the subject property as of
(Date)
is estimated to be / $
The exposure time for the subject property has been estimated at .
Page of pages
CERTIFICATION
I certify that, to the best of my knowledge and belief:
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.
the statements of fact contained in this report are true and correct.
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.
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.
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.
I have made a personal inspection of the property that is the subject of this report, located at , on .
no one provided significant professional assistance to the person signing this report.
the final estimate of market value, as of is estimated to be:
(Date)
($ )
Signature of Student / Date Signed

BUSI 330.1