WinGAP Residential Imp / Accessory / Rural Land Schedules & Pricing

1. WinGAP Residential Imp / Accessory / Rural Land Schedules & Pricing

2. WinGAP Residential Pricing • Tracy Thomas • DOR, Business Analyst

3. Contact Info • atthomas@wingap.net • 404/831-0158

4. Computers • Tight Quarters • Watch Cords • They Belong to You (Gap Group Inc.)

5. Cell Phones • Please set yourphones to vibrate

6. Schedule • Start at 9:00 am • Morning Break around 10:15 • Lunch from 11:30 to 1:00 • Afternoon Break around 2:45 • Dismiss at 4:00

7. Successful Completion • Thursday Morning we will complete course evaluations, following evaluations we will begin the exam. • Exam is multiple choice • 25 questions

8. Login Information • Userid = felix • Password = cat

9. WinGAP Residential Pricing • Residential Imp Schedules • Residential Imp Calculations • Point Cost Study • Neighborhood Adjustment • Accessory Improvements Schedules • Rural Land Schedules

10. WinGAP Residential Pricing • Goals: • Provide the appraiser with information regarding access to the various schedules in WinGAP • Acquaint the appraiser with the use of the schedules through the manual calculation process

11. WinGAP Residential Pricing • Goals (cont): • Provide methodology for deriving a residential improvement point cost • Demonstrate how to fine tune schedules with neighborhood codes and adjustments.

12. WinGAP Residential Schedules

14. WinGAP Residential Schedules • Residential Improvement Point Cost • Converts points to dollars • Change impacts all non-overriden res imps • Locally derived and maintained • Converted to multiplier with division by 100 • Pt cost = 100 • Multiplier = 100 / 100 = 1.00

15. Preferences: Res Imp Depr Year • The Residential Improvement Depreciation Year (RIDY) field contains the base year from which system generated depreciation is calculated. • The age of a Residential Improvement is determined by subtracting the year built or effective year built from the depreciation year. • This locks depreciation in until the county decides to change it. • Any houses with a year built greater than the depreciation year will be determined to have an effective age of one year.

16. Preferences: RIDY • The RIDY is used, in lieu of the calendar year, to stabilize depreciation and values. • If the calendar year were used to calculate the age of houses, value changes would occur each year because of the increasing amount of depreciation. • With the use of the RIDY, the appraiser has control over the timing of the application of new depreciation. • Normally, this is done when other aspects of the schedules such as Base Cost, Heating, etc., are updated.

17. Preferences: RIDY • Change affects “calculated” physical depreciation

18. Exercises 1

19. Depreciation Year • Appraisal Year = 2004 • Res Dep Yr = 2001 • Imp Yr Blt = 1988 • Age = ? • Age = 2001 – 1988 = 13

20. Depreciation Year • Appraisal Year = 2004 • Res Dep Yr = 2001 • Yr Blt = 1977 • Eff Yr Blt = 1966 • Age = ? • Age = 2001 – 1966 = 35

21. Depreciation Year • Appraisal Year = 2004 • Res Dep Yr = 2001 • Yr Blt = 2003 • Age = ? • Age = 2001 – 2003 = -2 • Age will default to 1 year old.

22. WinGAP Residential Schedules • Appraisal Year • Among other things, used to determine the default year built of new structures • Default Yr Built = Appraisal Year – 1 • Incremented by 1 during yearend cleanup

23. WinGAP Residential Schedules • Truncate Values • Not rounding • If calc value > 1000, drops the 100’s digits and replaces with 00 • If calc value >10 and < 1000, drops the 10’s digit and replace with 0 • Truncated value of 98,877 = 98,800

24. Exercises 2

25. Truncation • Imp Calc Value = 44,567 • Trunc FMV = 44,500 • Imp Cal Value = 259,988 • Trunc FMV = 259,900 • Imp Calc Value = 567 • Trunc FMV = 560

26. Classroom Exercise • Truncate the following improvement values. DEPR shown is the value loss

28. WinGAP Residential Schedules • Rnd Area Mult to 6 dec • Used to determine rounding of area multiplier • If not checked, area multiplier is rnded to 2 decimal places • “2 decimal places” has been only option until release of 3.6 • 2 decimal rounding generates size adj anomaly

29. Area Multiplier Rounding

30. WinGAP Residential Schedules • Attic: Use Max/Min Area • Used to specify of Max/Min Area restrictions are imposed in attic calculations • If not checked, area multiplier continues to change beyond the Max/Min Area

31. WinGAP Residential Schedules • Bsmt: Use Max/Min Area • Used to specify of Max/Min Area restrictions are imposed in attic calculations • If not checked, area multiplier continues to change beyond the Max/Min Area

32. Tools >> Schedules/Tables >> Residential Improvements Residential Imp Submenu

33. WinGAP Residential Schedules • Base Points (Area Multiplier) Parameters • Base Area • Minimum Area • Maximum Area • Increment Base • Increment Factor

34. WinGAP Residential Schedules

35. WinGAP Residential Schedules • Base Area • Median size of sold homes • Area multiplier is 1.00 • Area mult above Base Area < 1.00 • Area mult below Base Area > 1.00

36. WinGAP Residential Schedules

37. WinGAP Residential Schedules • Minimum Area • Square foot level where $/SF ceases to change • All areas below Minimum Area will be priced at the same $/SF calculated for Minimum Area • $/Sq Ft @ 500 SF = 65.00 • 500 SF * 65.00 SF = 32,500 • 400 SF * 65.00/SF = 26,000

38. WinGAP Residential Schedules

39. WinGAP Residential Schedules • Maximum Area • Square foot level where $/SF ceases to change • All areas above Maximum Area will be priced at the same $/SF calculated for Maximum Area • $/Sq Ft @ 3000 SF = 60.00 • 3000 SF * 60.00 SF = 180,000 • 4000 SF * 60.00/SF = 240,000

40. WinGAP Residential Schedules

41. WinGAP Residential Schedules • Increment Base • Area increment where cost per SF changes • Higher increment results in less changes • @ Min Area values are less (area mult is lower) • @ Max Area values are higher (area mult is higher)

42. WinGAP Residential Schedules (Inc Base w/ Inc Factor @.005) $ / SF

43. WinGAP Residential Schedules

44. WinGAP Residential Schedules • Increment Factor • Determines rate @ which cost/SF changes at each Increment Base • Not a dollar per square foot adjustment • Factor applied in the calculation of the area multiplier • Lower factor slows down rate of change

45. WinGAP Residential Schedules (Inc Factor w/ Inc Base @ 50) $ / SF

46. Residential Improvements • Increment Base vs Increment Factor • Impact Value inversely. • Inc Base Increases, Value changes less • Inc Factor Increases, Value changes more

47. Correction Notice • I gave the example that $/SF didn’t change between increment base • 1500 = 40 • 1480 = no change • 1450 = incremental adjustment • Wrongo! 1480 will be adjusted also, wingap interpolates to adjust an area not equal to the base area.

48. WinGAP Residential Schedules • Base Area, Inc Base & Inc Factor are used in the determination of Area Multiplier • (((Base Area – TBA) / Inc Base) * Inc Fact) + 1.00 {6} • See chart – page 13

49. WinGAP Residential Schedules

50. WinGAP Residential Schedules • Base Dollars • Represents Base Cost for Res Imps • Should exclude all items that will be added via other schedules (heat, plumbing, etc) • Function of the Res Imp Point Cost • Formula for calculating actual dollars • base d/s/f * (point cost / 100) • 40 * (200 / 100) = 80.00