Information, knowledge, and awareness: resources for real estate analysts and valuers.
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.
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)
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
Highest and best use
Building and information technology
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
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.
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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