OverviewUse the Cost Adjustments screen to enter or select the following optional items for the estimate: Effective Age Adjustment Value Depreciation % Adjustment Value |
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Note: All of the items on this screen are optional. If you do not make an entry for the option, Segregated Estimator uses the default listed on the right side of the screen.
The local multiplier adjusts the calculated costs to the location of the building. Segregated Estimator automatically uses a local multiplier based on the ZIP or Postal Code entered on the General Information screen (using the local multipliers in Section 99 of the Marshall Valuation Service). To override the automatic local multiplier for an estimate, enter the desired multiplier in this field (using a number between 0.1 and 6.00).
Example: To set the Local Multiplier to 1.15, enter 1.15 in this field.
Use the Local Multiplier Adjustment to increase or decrease the costs for unusual situations, such as remote locations, resort locations, shortages, surpluses, etc. Enter a positive percentage to increase the local multiplier, or a negative percentage to decrease the local multiplier.
Example: To increase all costs by 7.5%, enter 7.5 in this field. If the local multiplier is 1.10, the adjusted local multiplier used in the cost calculations is 1.1825, which is 1.10 increased by 7.5% (1.10 times 1.075)
Example: To decrease all costs by 7.5%, enter –7.5 in this field. If the local multiplier is 1.10, the adjusted local multiplier used in the cost calculations is 1.0175, which is 1.10 decreased by 7.5% (1.10 times 0.925).
The following are rough percentage ranges to apply for certain unusual conditions:
Add for the Following:
Abnormal material shortage: 2% to 10%
Hillside buildings: 5% to 20%
Remote areas: 5% to 15%
Resort locations: 15% to 30%
Subtract for the Following:
Quantity or development construction: 1% to 3%
Abnormal labor surplus: 1% to 5%
Amateur workmanship: 15% to 30%
Special Local Conditions: Smaller cities and suburbs near larger cities generally fall under the same cost influences as the larger cities; however, local inspection practices, licenses, codes and fees may vary, you should consider these possible deviations. Within a large city, costs will often vary by distance from sources of materials, such as ready–mix plants, and the Local Multipliers apply only to typical conditions prevailing.
Natural Disasters: Major natural disasters can create isolated material and/or labor shortages requiring some upward adjustment to the multipliers. Some specific materials, such as roofing, can increase 30% to 50% or more above normal repair estimates.
Abnormal Material Shortages: Abnormal material shortages can occur because of temporary supply/demand imbalances caused by major natural disasters, factory closures, strikes, environmental legislation, trade embargoes, commodities speculation, etc. Some upward adjustment to the multipliers may be required. Note: Even though a particular material may increase 30% to 50% in a short span of time, you should use caution since it may only be a small part of an entire structure.
Remote/Resort Locations: If a building or other structure is far removed from supplies of labor and materials or if its location is accessible with difficulty, requiring higher freight charges on materials, noncompetitive conditions for labor or materials, labor per diem charges or unusual climatic conditions, some upward modification of the multipliers is appropriate. Examples are mountain, desert, island or resort locations and others not enjoying reasonable and adequate transportation facilities.
Quantity or Development Construction: There are usually cost savings in quantity construction, which may or may not be passed on to the prospective owner. Usually, only part of the saving is passed on, and since costs in Residential Estimator are for the types of buildings typically built in this manner will be based to some extent on such construction, the costs may require only small percentage reductions or none to reflect actual sales conditions in the area. This is particularly true in tract development, where a large number of identical or similar dwellings are built at one time, which may effect savings in construction costs. However, in evaluating a single residence in a tract, you must use your own judgment as to whether there was a saving that is pertinent to a specific estimate.
Amateur Workmanship: All costs in Residential Estimator are based on professional labor supervised by a contractor or his job foreman. For amateur workmanship, costs should be decreased to reflect the proper wage rate and lack of supervision relative to the quality of the work.
Repair and Remodel: All costs in Residential Estimator are based on new construction. Typical repair work will run 10% to 20% higher because of restricted area, movement of materials, temporary supports, shoring, etc., and other contingencies not encountered in new construction, not including demolition and removal. For detailed costs we would recommend using our repair and claims products.
Segregated Estimator automatically includes an appropriate amount of architect's fees in the calculated costs, based on the building’s occupancy, class and quality. To override this for an estimate, enter the architect's fee percentage in this field (as a number between 0 and 99.9). To eliminate architect's fees from the calculations, set the architect's fee percentage to 0.
Example: To set the architect's fee percentage to 7.5%, enter 7.5 in this field.
Enter a rounding value to print an additional line in the report with the total cost rounded to the value entered.
Example: To round the total cost to the nearest $1000, enter 1000 in this field.
The report date is the date of the costs in the report. To get costs for a different date, enter the date of the report for the cost data you want to use (in the format of mm/yyyy).
Costs are available for current or prior dates only. The earliest date available is October 1975, and the latest date is the current month and year.
Example: To calculate the costs as of March, 1997, enter 3/1997 in this field.
Note: When you enter a Report Date, all costs in the report will be as of this date. To have all the costs in the report be as of one date, and also have an additional line in the report with the total cost indexed to a different date, use the Single Line Backdate field on this screen.
The Base Date indicates when the data values in the estimate were collected. Segregated Estimator uses this date as follows when the Base Date differs from the Report Date:
To adjust all Effective Ages from the Base Date to the Report Date, when you have entered an Effective Age Adjustment Value.
To adjust the following depreciation percentages from the Base Date to the Report Date, when you have entered a Depreciation Percentage Adjustment Value.
Each section's Combined Physical and Functional Depreciation Percentage, or Separate Physical Depreciation Percentage.
Each component's depreciation percentage, if entered.
Each addition's depreciation percentage, if entered (and if you have not entered a separate Base Date for the addition)
To trend addition costs from the Base Date to the Report Date for each addition for which you have set the Trend option to Yes and have not entered a separate addition Base Date.
The earliest date available is October 1975, and the latest date is the current month and year.
Example: To set the Base Date to April, 1995, enter 4/1995 in this field.
Enter a date in this field to print an additional line in the cost report containing the total cost of the building indexed to the date entered. Enter this date in the format mm/yyyy.
The earliest date available is October 1975, and the latest date is the current month and year.
Example: To set the Base Date to April, 1995, enter 4/1995 in this field.
Note: To have all the costs in the report be a given date, use the Report Date field on this screen.
Enter the number of years to adjust each effective age in the section for each year between the base date and the report date.
Example: To set the effective age adjustment value to 1½ years, enter 1.5 in this field.
Enter the number of years to adjust the combined physical and functional or physical depreciation percentage on the Building Data screen, and the depreciation percentages entered for components and additions, for each year between the base date and the report date.
Example: To set the depreciation percentage adjustment value to 1% per year, enter 1 in this field.
Enter the maximum allowable depreciation percentage. When you enter a depreciation percentage adjustment value, Segregated Estimator adjusts the depreciation percentages, then checks the adjusted percentages against this value. If the adjusted percentage is greater than the maximum percentage, Segregated Estimator sets the adjusted percentage to the maximum.
Example: To set the maximum depreciation percentage to 80%, enter 80 in this field:
Use the check box labeled “Check here to apply all depreciation % to Replacement Cost New” on the Cost Adjustments screen to indicate how to apply the depreciation percentages as follows:
Checked: Check this box if you want all depreciation percentages applied to the Replacement Cost New.
Unchecked: If you do not check this box, Segregated Estimator subtracts physical depreciation from the Replacement Cost New, then multiplies functional depreciation percentage by the result. It then subtracts the functional depreciation from this value and multiplies the external depreciation percentage by that result.
Example: The following illustrates the calculations with and without this box checked, assuming each depreciation percentage is 10%:
Checked Not Checked
Replacement Cost New $100,000 $100,000
Physical & Functional Depreciation (10%) 10,000 10,000
Subtotal 90,000 90,000
Additional Functional Depreciation (10%) 10,000 9,000
Subtotal 80,000 81,000
External Depreciation (10%) 10,000 8,100
Depreciated Cost 70,000 72,900
Segregated Estimator has the following assessment items:
Overall Assessment (%): Prints an additional line in the report with the overall assessed value, calculated as the total cost times this percentage.
Assessed Value Rounding Value ($): Prints an additional line in the report with the assessed value rounded to the value entered.
Example: If the overall building percentage is 10% and the assessed value rounding value is $1000, the report would contain the following:
Units Cost Total
Total Cost 1,399,275
Total Assessed Value 10.0% 139,927
Rounded to Nearest $1,000 140,000
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