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Information, knowledge, and awareness: resources for real estate analysts and valuers.

Abstract

This is a column about resources for appraisers and real estate market analysts--books, articles in a variety of publications, presentations, and websites. It's about current happenings, trends in, and influences on, the real estate market. It's about the psychology and sociology of the market. It's about all manner of information for appraisers.

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Let's take a look at some newly available material for valuers and users of appraisals.

The Appraisal of Real Estate, 14th ed.

(Chicago: Appraisal Institute, 2013)

847 pages

The biggest single new resource for appraisers to come along in five years has made its appearance: The Appraisal Institute's The Appraisal of Real Estate, fourteenth edition. The technical editor, Michael McKinley, previously wrote about the development process for this textbook in Fall 2013 issue of The Appraisal Journal. Here, we will take a look at the text's specific content.

This new edition is simply a must have--and must use--for real estate appraisers everywhere, for all levels and specialties. Here's four reasons why.

First, Its Broad Topic Coverage. This thirty-five chapter book includes the following:

* Ten broad topic sections

I. Real Estate and Its Appraisal

II. Identification of the Problem

III. Scope of Work Determination

IV. Data Collection and Property Description

V. Data Analysis

VI. Land Value Opinion

VII. Application of the Approaches to Value

VIII. Reconciliation of the Value Indications and Final Opinion of Value

IX. Report of Defined Value

X. Appraisal Practice Specialties

* Three addenda

A. Professional Practice and Law, with content about the AI Code of Professional Ethics, USPAP, and a summary of key federal statutes affecting the appraisal profession.

B. Regression Analysis and Statistical Applications, with material about simple and multiple linear regression, key measurements statistics, modeling, and misuse of statistics.

C. Financial Formulas, with extensive formulas, solving for rates and yields, variable interest, and compound interest tables, formulas and the six functions of a dollar at interest.

* An extensive bibliography, with thorough documentation for each of the chapters.

* A very detailed index set up to help you find topics, words, and concepts easily.

This book also includes new or expanded chapters with impressive coverage of the following.

Elements of the assignment

Identifying rights to be appraised

Scope of work

Data collection

Statistical analysis

Market analysis

Highest and best use

Building and information technology

Appraisal review

Consulting

Valuation for financial reporting

Valuation of real property with related personal property or intangible property

Professional practice and law

Second, Its Exceptional Authorship. The authorship is one of the important things that make this book stand out from other appraisal texts. The Appraisal of Real Estate is the result of an impressive collaboration by a consortium of experts. It is not written by one or two or even a dozen authors; rather, it is the result of the tremendous combined efforts of individuals and groups. The final product is an assemblage of ideas, notions, and thoughts from a variety of experienced appraisers and academicians. It is forged from debate, give-and-take, and teamwork. Like its thirteen forebearers, it is a reflection of the state-of-the-art today. Its many contributors are in the real-world frontline trenches. While recognizing evolution and change in principles and techniques, the fourteenth edition is grounded in reality and practicality, with time-tested valuation theory and principles.

Third, Its Thoughtfulness for Readers. There has been obvious sincere regard for the reader and user in researching, writing, assembling, designing, and editing. For example, a different color theme for each section in the table of contents corresponds to the color theme, page footers, and page numbering in the respective parts of the book. When you're thumbing through pages looking for something, this is a thoughtful touch, particularly with such a large text. The color doesn't detract at all from this authoritative and widely referenced work. (Thumb-indexed or tabbed pages may have been saved for the next edition?)

This edition has excellent exhibits and diagrams augmenting the text. A host of key definitions are highlighted in boxes, making definitions easy to find, with explanatory text--and often diagrams or examples--nearby. A separate glossary of these definitions would be great to have in an appendix, but this tome is already well over 800 pages and weighs in at over four pounds!

The font is easy to read, as are the exhibits. Page layouts, subheadings, and white space all were designed with the reader and ease of finding information in mind. Even multiyear cash flow tables, income and expense analysis tables, and useful checklists are comfortable to read.

Also noteworthy is that this is the first edition of The Appraisal of Real Estate available in an electronic format; in this case it is available as a single complete pdf. This means portability. The file of the entire book can be downloaded to your computer, laptop, notebook, tablet, or smartphone; so, it's inconspicuously convenient whenever you want to look up something or refer to it. And, being a pdf medium, the content is fully and easily searchable. That makes it extra easy to locate a word or topic. This can be a real timesaver, even though the index is excellent.

This book is, as it has always been, a multiuse, multipurpose, authoritative volume. Appraisers, appraisal students, and users of appraisal and real estate consulting services worldwide use it as a reference as well as a classroom text and make good use of its examples, explanations, definitions, and the cited sources and references. The text is in harmony with Appraisal Institute (AI) courses and educational materials for concepts, definitions, topic explanations, and examples. As with its predecessors, the new edition is not intended for reading cover-to-cover. It is to be mined for its information, and its organization, layout, index, and pdf searchable version are all set up to help you do just that.

Fourth, Its Deep Topic Coverage. Topic coverage has been enhanced in this latest edition. There is now an expanded scope of work (and scope creep) discussion and excellent information on data standards, green buildings, appraisal review, highest and best use analysis, and the separation or valuation of non-realty tangible and intangible assets. The information and examples are clear, concise, and cogent in the coverage of market analysis, data analysis (quantitative and qualitative), descriptive and inferential statistics including regression analysis as well as highest and best use analysis.

The expanded material on data collection and statistical analysis is significant. As 2013 AI president Richard L. Borges II, MAI, SRA, points out in the text foreword, "statistical applications are not just for specialists anymore."

Recommendation: It's no wonder why The Appraisal of Real Estate is the premier text of its kind. This volume has very good material, and it is a must because of the changes in the appraisal world it incorporates.

The fourteenth edition is particularly helpful because of its ample "where to find it" or "sources of information" on a practical, in-the-trenches level. The diagrams, exhibits, and checklists are the best in this series. Table 1 catalogs the helpful lists, illustrations, checklists, summaries, and step-by-step displays. Table 2 lists noteworthy numbered exhibits.

As with any new edition, there will be those readers who prefer the coverage of some topics in one or more of prior editions. (That's one of the reasons practicing appraisers generally don't discard the prior editions.), However, as the text's technical editor, Michael McKinley, points out,

The Appraisal of Real Estate is less a repository of static empirical knowledge than a social construction expressing the shared opinions and behavioral norms of a group of reflective practitioners at a particular point in time. The truth about appraisal of real estate is certainly not an immutable set of physical laws--the continuous and ongoing evolution of professional standards illustrates the inherent ephemerality of any statements about how appraisals should be performed. Rather, the truth emerges from the collective experience of the community that naturally forms around the practice and self-critique of the discipline." [The Appraisal Journal (Fall 2013): 351-352]

The bottom line is, get it now. Don't wait for the movie, get the book--and the pdf. You need it to stay current. Yes, it's expensive but considering the monumental effort, the countless hours, and all the brainpower that has gone into its content and creation, it's well worth the price (come to think of it, less than 15 cents a page--and that's before the significant AI professional discount.)

New Resources in the Lum Library

Now, let's look at three green books that are recent additions to the Appraisal Institute's Lum Library (http://www.appraisalinstitute.org/library/default .aspx).

Value Beyond Cost Savings: How to Underwrite Sustainable Properties

by Scott R. Muldavin, CRE, ERICS

(San Rafael, CA: The Green Ruilding Finance Consortium, 2010) 306 pages

Value Beyond Cost Savings: How to Underwrite Sustainable Properties is a book about evaluating sustainable property. It presents the "key findings and conclusions regarding the valuation and underwriting of sustainable properties from three years of independent research by the Green Building Finance Consortium." The consortium has done extensive research concerning green and sustainable property and has a very complete website, including a searchable research library on its website at www .greenbuildingfc.com.

The mission of the group is to "enable private investors to evaluate sustainable property investments from a financial perspective." To that end, they have recommended a number of modifications to valuation and underwriting methods. The consortium is funded independently from green building product or professional organizations. Its funding is from The Muldavin Company Inc., and consortium members include the Building Owners and Managers Association, Mortgage Bankers Association, Urban Land Institute, Pension Real Estate Association, and National Association of Realtors.

This book, with over 300 pages, six chapters, and nine appendices, provides extensive valuation information pertaining to evaluation of sustainable properties. This includes metrics of evaluating property sustainability and performance. After presentation of what is meant by sustainable property and the decisions that may be unique to such properties, there is in-depth discussion about this type of investment from the debt or equity side.

At the heart of the book is a discussion of an involved six-step financial analysis, including appropriate financial modeling, assessment of sustainability, cost-benefit analysis, risk analysis, and valuation sustainable properties. Of equal importance are the information resources discussed in the book along with results of research and checklists. Value Beyond Cost Savings cites a myriad of resources including websites. Its checklists are of inestimable benefit for anyone appraising, reviewing appraisals, or involved in equity or debt-side decision making.

Value Beyond Cost Savings is available for download as a pdf at www.greenbuildingfc .com/home/valuebeyondcostsavings.aspx. It is supplemented by six separately published expanded chapters, providing over 400 pages of additional research, analysis, and performance information--all available free on the Consortium's website at www .greenbuildingfc.com/home/expandedchapters.aspx. The book and its supplements cover the below topics.

Development and initial cost analysis

Green leases and split incentives

Energy use forecasting

Financial analysis alternatives

Review of property management and leasing agreements

Sustainability sub-financial analysis performance (energy use) studies

Energy-carbon reduction investment

Risk analysis and mitigation including process and feature performance

Cost-benefit analysis and checklist

Measuring sustainability

Service provider certifications and assessments

Valuing sustainable properties

In addition to the book, the Green Building Finance Consortium website itself is a cornucopia of information including special reports, articles, a research library (www.greenbuildingfc.com/home/ researchlibrary.aspx), extensive industry links, and presentations. The industry links section (www .greenbuildingfc.com/home/industrylinks.aspx) has an outstanding list of general underwriting and valuation topics--dozens of them. If you have an interest in the valuation and/or underwriting involving sustainable properties, look at the material on this website. An incredible amount of information is available via link or download.

Recommendation: If you want to keep up with what's going on in the ever-expanding sustainable properties world, if you appraise or review appraisals involving such properties, or if you are involved in underwriting, managing, or other decision making involving sustainable properties, then take a look at the website, book, and supplement available for purchase or download. There is an incredible amount of information on the subject in one place.

Also, check out other green and sustainable information at these related websites: Energy Star, www.energystar.gov; Environmental Protection Agency, www.epa.gov/greenbuilding/; Green Building Initiative, www.thegbi.org; National Institute of Building Sciences, www.nibs.org; and US Green Building Council, www.usgbc.org/.

Creating Value: Smart Development and Green Design

by Vernon D. Swaback, FAIA, FAICP

(Washington, DC: Urban Land Institute, 2007) 159 pages

In a similar vein, Creating Value: Smart Development and Green Design, published by the Urban Land Institute (ULI), addresses green building topics and issues. Appraisers perk up at creating value through development and design, as well they should.

The book is about how value can be created or enhanced by development design using green principles. It is a food-for-thought and overview book as well as one with design suggestions and case studies. The cases involve a variety of property types, including single-unit detached residences, condominiums, offices, mixed-use properties, offices, government buildings, resorts, shared use properties, and adaptable reuse.

The chapters "Creating Value," "Being Smart, Green, and Sustainable," and "Perspectives," not only have suggestions for such development and design but also point out the unintended consequences of past policies, designs, and uses. In other words, let's learn from experience, hut remember the future will be a different demographic, legal, political, and economic environment. The future will have its surprises, not only unknown but totally unknowable now. The author holds that

   During times of change, successful developments must also be
   uncommonly effective. This can pose a problem for developers,
   planners, and architects who blindly follow conventional wisdom,
   especially in an era such as the present when so many prominent
   planning and design prescriptions remain cosmetic, based more on
   ideologies about a romanticized past world than on experience--how
   our world really is today. Distinguishing between passing fashion
   and true innovation is necessary if a project is to retain value
   over years. [Prologue]


Recommendation: For some, the book Creating Value may be too alarmist; however, it does provide insight into the thinking of many market advisors, consultants, participants, and regulators about the future. Appraisers should be aware of all of these topics and issues because they influence the market for a very wide variety of property types. This book provides good background material.

Developing Sustainable Planned Communities

edited by Jo Allen Gause

(Washington, DC: Urban Land Institute, 2007) 221 pages

Developing Sustainable Planned Communities is a book consisting of writing from eight authors, edited by Jo Allen Gause and published by ULI. It takes the underlying position that we and the ecosystem can accommodate growth, reduce human impact on the environment, and do it profitably and equitably.

This book is designed to be "a practical guide to environmentally responsible development." The foreword states, "There is a reason that this book is about development green communities, not green buildings. We are faced with systemic issues. We need to find systems-level solutions." And, indeed, that is what the book is about.

Many, if not most, appraisers involved with sustainable or green properties would consider this book of interest for its background information and broad overview of the general concept of sustainable communities rather than as a reference book offering specific help with an appraisal problem involving sustainable or green property. That said, there are a number of useful specifics helpful in evaluating a green subject as well as comparable sales and rentals.

Discussions in the text look at shades of green and converging ideologies; barriers to and benefits of sustainable development; market and product alignment; green infrastructure and sustainable communities; energy and water use strategies; cost-benefit analysis; costing methods and cost shifting; measuring success; and open-space conveyances. The book also presents case studies from a number of regions.

Recommendation: Rather than a purchase for your appraisal books collection, this book is probably more a library check-out reference to read for general understanding, background, references, and its bibliography.

Other Publications and Resources

Even if you're not doing international valuation, you'll want to read and be aware of the 2013 International Valuation Standards, published by the International Valuation Standards Council (IVSC), which is available in the Lum Library. The standards from IVSC are updated every two years; this is the most recent edition.

The IVSC is an independent, private sector, not-for-profit worldwide organization, headquartered in London, whose objective is "to build confidence and public trust in the valuation process" and to promote "standards for the conduct and competence of professional valuers."

The 2013 IVSC standards contain requirements that must be followed to have a compliant valuation, or provide information or guidance without direct mandate but to "provide assistance in better and more consistent valuation practice."

For more information see www.ivsc.org/. An instructional video is available online at www.ivsc .org/content/ivsonline-demo-video.

The International Valuation Standards (IVS) offer both guidance and food for thought. These standards are not organized in the same way as Uniform Standards of Professional Appraisal Practice (USPAP), so some shift in expectation is needed for many Appraisal Journal readers accustomed to USPAP.

In the 2013 International Valuation Standards you will find the following elements:

* Summary of Principal Changes

* IVS Definitions--Definitions of key terms; these are augmented by more definitions within the standards.

* IVS Framework--This section contains several interesting terms and concepts worthy of yonr reading and thought. It has a brief discussion of generally accepted valuation concepts underlying the standards.

* General Standards--Provides requirements for the conduct of all valuation assignments, with only a few exceptions or modifications. Each General Standard starts with a statement of general principle followed by explanations of aspects of that valuation principle; the General Standards include

IVS 101    Scope of Work
IVS 102    Implementation
IVS 103    Reporting


* Asset Standards--Provides requirements with commentary on elements of asset valuation. The requirements indicate modifications of the General Standards and have illustrations of applications. Each Asset Standard references the applicable General Standards, which ties things together nicely. The Asset Standards include

IVS 200   Business and Business Interests
IVS 210   Intangible Assets
IVS 220   Plant and Equipment
IVS 230   Real Property Interests
IVS 233   Investment Property under
          Construction
IVS 250   Financial Instruments


* Valuation Applications--Addresses common purposes for which valuations are required, with each indicating requirements and guidance. The Valuation Applications include

IVS 300   Valuations for Financial Reporting
IVS 310   Valuations of Real Property Interest
          for Secured Lending


You are correct in noticing number skipping in the IVS provisions--this is because some standards have been retired and because allowances have been made for future expansion.

The IVS has a number of sections of particular interest.

In the IVS Framework section, look for certain noteworthy points. For example, the term and concept aggregation (IVS Framework 23) notes: "The value of an individual asset [may be a real estate subject] is often dependent upon its association with other related assets." Examples are provided, including offsetting assets/liabilities in a portfolio, a portfolio of properties that complement each other by providing a buyer with critical mass, strategic location, or "interdependent land, buildings, plant and other equipment employed in a business enterprise," and others. This is a useful perspective.

Also, take a look the Framework discussion of entity specific factors and the definitions, concepts, and explanations of market value, investment value, special value, and synergistic value. These items in particular have attention-grabbing and thought-provoking explanations and concepts you may be able to use in your appraisal practice.

In the IVS Definitions section, you will find definitions of twenty terms and concepts; each is very brief. The Asset Standards section also has more definitions applicable to each particular standard. A more extensive glossary from the IVSC can be found at www.ivsc.org/glossary. It is worth your time to take a look at it for some different angles, views, and perspectives related to valuation.

You'll find some familiar territory in the IVS General Standards section: IVS 101, Scope of Work; IVS 102, Implementation; and IVS 103, Reporting--but again with different views and perspectives.

The fourteenth edition of The Appraisal of Real Estate contains considerable new material dealing with intangibles and separation of intangibles from real estate--topics and concerns that have been around for years but are now expanding and taking on increasing importance. With that in mind, look at the IVS Asset Standards section, especially IVS 200, Business and Business Interests; IVS 210, Intangible Assets; and IVS 230, Real Property Interests. IVS 200 and IVS 210 deal with enterprise value, business enterprise, and intangibles, even intellectual property, and provide definitions, concepts, valuation methods, and excellent food for thought.

The IVSC Website

The International Valuation Standards may be downloaded by going to www.ivsc.org/library/ download. Further, the IVSC has several Technical Information Papers (TIPs) available online (www .pagebros.co.uk/ivs/) intended to help professional valuers and informed users by providing information on characteristics of different types of assets, information about applicable valuation methods, and detailed suggestions for application of the standards, and enhancing foundations for valuer judgments. Topics covered by TIPs include "Discounted Cash Flows," "The Cost Approach for Tangible Assets," "Valuation of Intangible Assets," and "Valuation Uncertainty."

The IVSC website also has a library (www.ivsc .org/library), a section on materials available through "IVSonline" (www.ivsc.org/products), a projects section, copies of articles and speeches, discussion papers, and IVSC submissions. In addition to the standards, there is the Code of Ethical Principles for Professional Valuers and A Competency Framework for Professional Valuer. Take a look at this website for interesting takes on a variety of topics.

Recommendation: Even if you don't have clients asking for appraisals developed to meet the International Valuation Standards, take a look at them. You'll find them, and the IVSC website, interesting and informative. Be prepared for a few distinctive terms such as premium profits, relief from royalty, and excess earnings methods for intangibles, and profits method for real property valuation. (And since there is apparently a shortage of z's in UR, you'll also find organisation, specialisation, amortisation, and capitalisation).

Take a few minutes to look at the IVSC website and explore. Be sure to look around while you're there--click on tabs: "The IVSC," "Projects," "Publications," "News," "Library," and "Glossary." Go ahead, broaden your perspectives!

by Dan Swango, PhD, MAI, SRA

Dan Swango, PhD, MAI, SRA, is president of Swango Real Estate Counseling and Valuation International in Tucson, Arizona. He is experienced in valuation and consulting involving equity investment, debt security, risk reduction, profit optimization, estate planning and settlement, buy/sell opportunities, and eminent domain. Swango is an instructor and communicator with domestic and international experience. He is namesake of The Appraisal Journal's Swango Award, past Editorial Board chair and editor-in-chief of The Appraisal Journal and a current member of the Journal's Review Panel.

Contact: danswango@yahoo.com

Table 1 Sampling of Useful Lists, Steps, Checklists, and Summaries in
The Appraisal of Real Estate, 14th Edition

Page       Topic

Identification of the Problem

49         Elements of the assignment

60         Types of value

75         Types of easements

Data Collection and Property Description

120        Sources of competitive supply and demand data

125        Verification of sales

142        Central banking systems and credit regulation explanation

147        Inflation, explanation with formulas for real interest
           rates

154        Principal operators in the secondary mortgage market,
           explanation of GSEs

158-159    Types of risk, definitions and influences

171-188    Characteristics of real estate districts

213-215    Environmental contamination, relevant terms and
           methodologies

230-238    Building components, types, materials, characteristics

238-240    Green and sustainable buildings background

242-243    Interior materials descriptions

245        Interior painting, decorating, and finishing descriptions

249        Plumbing system descriptions

250-251    HVAC system descriptions

252        Electrical system descriptions

253        Intelligent buildings descriptions

254        Miscellaneous equipment descriptions

260        Trends in residential design

263-269    Trends in designs and layout, commercial buildings

272        Green building documentation

Data Analysis

311        Economic base analysis and NAICS information

281-293    Statistical measures, definitions, calculations, and
           diagrams

318-319    Property productivity analysis by property types

320        Market delineation by property type

323        Competitive supply analysis, by property types

324-325    Property productivity analysis by attributes

327        Fundamental demand forecast by property types

Land Value Opinion

370-371    Site value by direct capitalization, land residual method

Applications of the Approaches to Value

383        Sales comparison approach, data sources

390        Quantitative analysis and elements of comparison

394        Sales comparison approach, reconciliation checklist

401-405    Comparative analysis, statistical and qualitative

409        Financing terms adjustment example

410        Conditions of sale adjustment

416        Evidence of shifting market conditions

444-445    Lease types, expenses, terminology

447-450    Rent terminology

466        Income capitalization approach, elements of comparison in
           rental analysis

487        Exclusions from reconstructed operating expenses

468-469    Income capitalization approach, lease data checklist

512        Projection period and holding period

531        Forecasting

573        Entrepreneurial incentive and entrepreneurial profit

577        Depreciation in appraising and accounting

583        Common construction-related costs typically not included
           in cost manuals

585        Estimating entrepreneurial incentive or entrepreneurial
           profit

599        Curable or incurable maintenance?

606-607    Patterns of depreciation, analysis and value change over
           time graphs

612-613    Variations of economic age-life method, example

625        Curability and incurability of functional issues

628-630    Examples of a deficiency [functional obsolescence]

630-632    Examples of a superadequacy [functional obsolescence]

636-637    Equilibrium rent examples

Report of Defined Value

657        Letter of transmittal checklist

661-662    Summary of conclusions checklist

665        Non-single-unit residence, recent changes in operating
           profile

660        Appraisal Institute reporting certification standard

670        Report addenda possible content

Appraisal Practice Specialties

679-680    Appraisal review report content checklist

684-687    Consulting services examples

690-691    Financial reporting explanation

696        Appraiser possible services in financial reporting

697        Information commonly needed in financial reports provided
           by real property valuation specialists

699        IVS 300 valuation for financial reporting [IVS 2011]

707        Appraiser competence in valuation for real property with
           related personal or intangible property

Addenda

718        Code of Professional Ethics of the Appraisal Institute

720        USPAP major item content list

721        International Valuation Standards, major item content list

722-724    Federal statutes affecting the appraisal profession

725-731    Federal regulations affecting the appraisal profession

735-738    Simple linear regression example

739-740    Multiple linear regression example

754-756    Reverse polish notation financial calculator example

757-768    Financial formulas

769-785    Application of financial formulas examples

786-788+   Compound interest and reversion (present value of one)
           Examples

Table 2 Noteworthy Exhibits in The Appraisal of Real Estate, 14th
Edition

Exhibit No.           Topic

Real Estate and Its Appraisal

Table 1.2             Typical uses of appraisals

Figure 1.1            Estates in land

Figure 4.1            The valuation process

Identification of the Problem

Figure 7.1            Interests created by real property ownership

Figure 7.2            Lease positions, including sandwich position in
                      sublease transaction

Data Collection and Property Description

Table 9.1             Economic trends and useful economic indicators

Table 9.2             Commonly used sources of macro-level data

Table 10.2            Comparison of efficient markets and real estate
                      markets

Table 10.3            Repayment characteristics of mortgages by
                      mortgage type

Table 10.4            Money market instruments' characteristics

Figures 10.1, 10.2    Real estate and economic cycles

Figure 10.3           Normal yield curve, high- and low-inflation
                      periods

Figure 10.4           Key rate trends, earnings of traded instruments

Figure 10.6           Comparison of performance of REITS and other
                      investments

Table 11.1            Shopping center types and characteristics

Figure 11.1           Market delineation process

Figures 12.1, 12.3    Legal descriptions of land, diagrams

Figures 12.6, 12.7    Soils triangle diagram and soil profile

Figures 12.8, 12.10   Floodplain components and maps

Table 13.1            Building measurement standards

Table 13.2            Residential layout considerations

Table 13.4            Functional utility of industrial improvements

Table 13.6            Quality and condition survey items

Figure 13.1           Elements of a building description

Data Analysis

Table 15.2            Demand-side factors

Table 15.3            Market indicators of demand

Tables 15.4, 15.6     Types and levels of market analysis

Figure 15.3           Supply-side factors

Figure 15.5           Questions a marketability study should answer

Figure 15.7           Six-step market analysis process

Table 16.1            Comparison of real estate market analysis by
                      types

Table 16.2            Highest and best use statements in appraisal
                      reports

Figure 16.1           Testing alternative use options for highest and
                      best use

Figure 16.4           When a use is not financially feasible

Land Value Opinion

Table 17.1            Applicability and limitations of land valuation
                      methods

Tables 17.2, 17.3     Market extraction, comparable sales and site
                      value example

Figure 17.1           Site value; income capitalization approach
                      timeline diagram

Figure 17.2           Typical value pattern of a proposed project

Applications of the Approaches to Value

Table 18.1            Typical unit of comparison (improved property)

Figure 18.1           Sample adjustment grid

Tables 18.2, 18.3     Types and sequence of adjustments

Figures 19.1, 19.3    Scatter diagram examples, sales and resales
                      data

Tables 20.1, 20.3     Sales comparison market data grid examples

Tables 20.4, 20.8     Relative comparisons examples

Tables 21.1, 21.2     Income capitalization approach rates, ratios,
                      relationships, terms, and synonyms

Table 22.1            Characteristic income and expenses of principal
                      property types

Tables 22.2, 22.3     Operating expense statement, example, subject
                      and comparables

Figure 22.1           Income capitalization approach, office space
                      rental worksheet

Table 23.2            Residual techniques: known and unknown
                      variables in residual calculations comparables

Figure 23.1           Positive and negative leasehold interests,
                      excess vs. deficit rent

Tables 25.1, 25.2     Internal rate of return, net cash flow and net
                      present values

Tables 26.1, 26.2     Reconstructed operating statement, income and
                      expense analysis examples

Tables 26.3-26.8      DCF analysis examples

Table 26.13           Forecasting cash flows example

Table 27.1            Examples of direct costs and indirect costs

Figure 27.1           Cost approach analysis example calculation
                      layout

Table 28.1            Comparative-unit method, cost calculations
                      example

Table 28.2            Unit-in-place method, cost calculations example

Table 28.3            Contractor's breakdown method, cost
                      calculations example

Figure 28.1           Unit costs of buildings with different shapes

Tables 29.1, 29.2     Depreciation extraction, examples

Table 29.3            Cost approach, procedures for applying the
                      breakdown [depreciation] method

Table 29.4            Types of functional obsolescence

Figure 29.1           Various depreciation trends

Figure 29.2           Components of depreciation, diagram

Figure 29.3           Cost approach, age-life procedure for
                      estimating all items of physical deterioration

Figure 29.5           Cost approach, analyzing a functional problem

Figure 29.6           Cost approach, procedure for estimating all
                      forms of functional obsolescence

Figure 29.7           Value loss due to external factors allocated
                      between land and building

Table 30.1            Questions asked in reconciling value
                      indications

Table 31.1            Preparing a narrative appraisal report
                      [effective report checklist]

Figure 31.5           General assumptions and limiting conditions
                      example

Figure 31.6           Descriptions of the approaches to value example

Appraisal Practice Specialties

Figure 32.1           Reviewer's checklist

Table 34.1            Hierarchy of inputs ["assumptions"] for FASB
                      accounting standards

Table 34.2            Organizations involved in accounting, auditing,
                      and valuation standards

Figure 34.1           Comparison of definitions of value

Figure 34.2           Fair value framework

Figure 35.1           Components of the total assets of a business in
                      an asset-based transaction diagram
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Title Annotation:RESOURCE CENTER
Author:Swango, Dan L.
Publication:Appraisal Journal
Date:Mar 22, 2014
Words:5138
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