Building Description Wayne Foss, MBA, MAI Wayne Foss Appraisals, Inc.
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Building Description Wayne Foss, MBA, MAI Wayne Foss Appraisals, Inc. Email: firstname.lastname@example.org
Purpose of Building Description Basis for: l describing the Improvements l determination of the Highest and Best Use of the property l the Cost Approach cost new and depreciation l the Sales Comparison Approach l the Income Approach
Types of Information Needed l Materials of construction and quality l Size of the Improvements l Age, Condition l Style, design, layout - functional utility all relates to market standards l Positive and Negative features materials and/or design
Use Classification General Classifications: l Residential l Commercial l Industrial l Agricultural l Special Purpose
Building Measurement l Gross Building Area (GBA) The total floor area of a building, including below-grade space but excluding unenclosed areas, measured from the exterior of the walls. l Gross Living Area (GLA) The total area of finished, above-grade residential space, excluding unheated areas such as porches and balconies. The standard measure for determining the amount of space in residential properties
Building Measurement l Gross Leasable Area (GLA) The total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines, and measured from the center of interior partitioning to outside wall surfaces. l Net Leasable (Useable) Area (NLA) The total area actually occupied by the tenant, excluding common areas.
Architecture l Style: The character of a building’s form and ornamentation. Construction materials Type of structure (frame) Equipment (heating, plumbing, HVAC, etc) Siting (solar, underground houses) Design (colonial, ranch, contemporary)
Functional Utility l The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards. General Standards: l Comfort l Efficiency l Safety l Security l Accessibility l Ease and Cost of Maintenance
Building Types and Features Residential: l Housing Standards vary for different income levels and in different regions l Layout traffic patterns, baths near/in bedrooms, etc. l Accommodation for specific activities separate rooms for living, eating and sleeping
Building Types and Features Residential: l Adequacy size, ceiling height, insulation, mechanical systems, number of bedrooms and baths l Ease and cost of maintenance low-maintenance items, energy efficient improvements
Building Types and Features Commercial: l Physical column spacing, bay depth, ceiling height, elevators, HVAC adequacy l Energy efficiency l Work letter part of a lease that specifies the level of interior finish and equipment that the landlord provides the tenant.
Building Types and Features Commercial: l Public amenities in retail space ground, lobbies, restrooms, parking areas, escalators, and food facilities l Parking ratios different types of retail uses require different amounts of parking. l Hotels fireproofing and soundproofing, security, support facilities
Building Types and Features Industrial: l Flexibility of design permits multiple uses l Land to Building Ratio high ratios allow for truck parking and/or turnaround, and expansion l Transportation Access l Layout for efficient operation
Building Types and Features Storage buildings and warehouses: l Access l Open areas l Ceiling Height l Floor load capacity l Humidity and temperature controls l Shipping and receiving facilities l Fire protection
Building Types and Features Agricultural: l Machinery and equipment sheds l Barns Animal shelters Crop or feed storage l Irrigation systems
Physical Inspection Exterior description Footings and Foundation Floor structure Framing Exterior walls Windows Doors Roof cover and drain systems Chimneys, stacks and/or vents Special features
Physical Inspection Interior description Interior walls, ceiling and doors Division of space (floor plan layout) Painting, decorating and finishing fireplaces heating and air condition system plumbing systems kitchen equipment special features
Physical Inspection Interior description Miscellaneous equipment Fire Protection Elevators Escalators Signals, alarms and/or call systems Unloading facilities Attached equipment related to processes
Quality and Condition l Comparability of the property to sales found in the market area l Basis for estimates of cost new and depreciation l Basis of the property to produce rental income in the income capitalization approach
Deferred Maintenance Items l Must point out deferred maintenance items or items that need immediate attention and repair. Examples: painting, broken windows or torn screens, loose gutters, cracked sidewalks. l Short-lived items Have an expected remaining life that is shorter than the remaining physical life of the entire structure. Example: a roof cover with a physical age of 10 years and an expected life of 20 years.
Other Improvements l Outbuildings Garages (attached or detached) Barns, stables, coops, and kennels Sheds or storage buildings l Site Improvements Swimming pools patio covers or enclosures fences, walls, landscaping driveways, walkways and parking areas
Improvement Analysis l Considers the ideal improvement or the building that would maximize the value in terms of: Physical Functional External l Provides information for consideration of alternative uses for renovation, conversion or demolition
So That’s Improvement Description Wayne Foss, MBA, MAI, Fullerton, CA USA Phone: (714) 871-3585 Fax: (714) 871-8123 Email: email@example.com