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python main.py -i /path/to/file -f 2 python main.py -i "/Users/charo/Desktop/validation_resources/20221108 - 3020 Wilshire - Newmark Appraisal.pdf" -f 2
======>Content<======
client:
Comerica Bank
intended user(s):
Comerica Bank
the intended use:
The purpose of the appraisal is **Mortgage Loan Underwriting**.
interest appraised:
The interest being appraised is the **Leased Fee interest**. The description provided defines the Leased Fee interest as the ownership interest held by the lessor (the landlord).
type and definition of value:
Based on the information provided, the definition of value is:
**Market Value** - "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus."
the date of the report:
The date of the report is November 3, 2022.
the scope of work used to develop the appraisal:
The scope of work used to develop the appraisal is:
**Extent to Which the Property is Identified:**
* Physical characteristics.
* Legal characteristics.
* Economic characteristics.
**Type and Extent of the Data Researched:**
* Exposure and marketing time;
* Neighborhood and land use trends;
* Demographic trends;
* Market trends relative to the subject property type;
* Physical characteristics of the site and applicable improvements;
* Flood zone status;
* Zoning requirements and compliance;
* Real estate tax data;
* Relevant applicable comparable data; and
* Investment rates
**Type and Extent of Analysis Applied:**
* Analyzed the property and market data gathered through the use of appropriate, relevant, and accepted market-derived methods and procedures.
* Employed the appropriate and relevant approaches to value, and correlated and reconciled the results into an estimate of market value, as demonstrated within the appraisal report.
the extent of any significant appraisal assistance:
The extent of significant real property appraisal assistance provided for this report was:
Luke Halverson conducted research on the market, subject property, and transactions involving comparable properties, performed certain appraisal analyses, and assisted in report writing, all under the supervision of the person(s) signing the report.
methods and techniques:
The information you provided describes the **Cost Approach** to appraisal. However, it doesn't explicitly list methods and techniques, but it does provide context.
Here's a breakdown of the components related to the Cost Approach, along with the methods and techniques used to implement it:
**Methods Used in the Cost Approach:**
* **Cost Approach:** This is the overall appraisal method described. It determines the value of a property by calculating the cost of the land plus the current cost to construct a new building or improvement with the same utility and then deducting for any depreciation.
**Techniques Within the Cost Approach:**
1. **Estimate the Value of the Land as if Vacant and Available to be Developed to its Highest and Best Use:**
* **Technique:** This typically involves the **Sales Comparison Approach** for vacant land, where the appraiser analyzes recent sales of comparable vacant land parcels in the area. They adjust the sales prices of the comparables to account for differences in size, shape, location, zoning, and other relevant factors to arrive at an estimate of the land's value.
2. **Estimate the Current Cost of Construction (New) for the Improvements:**
* **Techniques (for estimating the current cost of construction):**
* **Quantity Survey Method:** This involves a detailed item-by-item analysis of all materials, labor, and overhead costs to build the structure. This is the most detailed and accurate, but also the most time-consuming.
* **Unit-in-Place Method:** This involves calculating the cost of various components of the building (e.g., foundations, walls, roof) based on the cost per unit of those components (e.g., cost per square foot of wall).
* **Cost Index Method:** This uses published cost indexes (e.g., Marshall & Swift) that provide construction cost data for different building types in different locations. The appraiser applies the appropriate index to the original construction cost to estimate the current cost.
3. **Estimate Depreciation:**
* **Depreciation** is the loss in value from all causes. It is often broken down into three broad categories:
* **Physical Deterioration:**
* **Techniques:** Estimate by observing the building's condition and the cost to repair and restore items like worn roof shingles, a cracked foundation, or aged exterior. This can be categorized as Curable (easily fixable) or Incurable (too costly or impractical to fix).
* **Functional Obsolescence:**
* **Techniques:** Analyze the design, layout, or equipment to determine if it is still adequate for the intended use.
* **External Obsolescence:**
* **Techniques:** Assess the impact of factors outside the property boundaries, such as changes in the neighborhood, economic conditions, environmental issues, or government regulations, such as being impacted by an airport or being near an undesirable land use, like a landfill.
4. **Calculate the Value:**
* **Formula:**
* Value = Land Value + (Current Cost of Improvements - Depreciation)
**In summary, the key method is the Cost Approach, which uses techniques such as the Sales Comparison Approach for land valuation and different construction cost estimation methods. It also includes methods for evaluating and estimating depreciation.**
the reasons for excluding the sales comparison, cost, or income approach(es):
I have reviewed the document you provided and here is the information regarding the exclusion of the sales comparison, cost, or income approach(es):
**Exclusion of Approaches**
* **Cost Approach:** The Cost Approach was excluded because it was deemed **not applicable** and **not utilized** in the appraisal.
* **Income Capitalization Approach:** The Income Capitalization Approach was excluded because it was deemed **not applicable** and **not utilized** in the appraisal.
* **Sales Comparison Approach:** This approach **was utilized** in this appraisal. The purpose of this appraisal is to estimate the market value of the site. Therefore, only the sales comparison approach has been used.
value opinion(s) and conclusion(s):
Here's a breakdown of the value opinion(s) and conclusion(s) from the appraisal report:
**1. Value Opinion(s)**
* The report focuses on determining the **Fee Simple Land Value** due to the short-term leases.
* The value of the property is considered in its "As Is" condition (existing state).
**2. Conclusion(s)**
* **Market Value "As Is": $31,440,000** (as of October 11, 2022)
**Important Considerations**
* **Focus:** This is an appraisal of the land at 3020 Wilshire Boulevard, Los Angeles. It doesn't evaluate the *existing* commercial building itself to determine its value.
* **Short-term leases** were a factor in the appraisal.
* **Potential for Development**: The report notes the property's potential for a 262-unit mixed-use apartment building.
* **Value Considerations**: The report highlights "Strengths" (positive factors) and "Risk Factors" that influenced the valuation.
Let me know if you want me to elaborate on any specific aspect!
signed certification:
True
======>Start checking fields<======
missed fields:
the subject sales and other transfers, agreements of sale, options, and listings
======>Start checking inconsistencies<======
python main.py -i /path/to/file -f 1 python main.py -i "/Users/charo/Desktop/validation_resources/20220614 - 3020 Wilshire - CBRE Land Appraisal - Valuation.pdf" -f 1
======>Content<======
client:
Jamison Services, Inc.
intended user(s):
Jamison Services, Inc.
the intended use:
The purpose of the appraisal is for **internal decision-making purposes**.
interest appraised:
Based on the provided information, the interest being valued is the **Fee Simple Estate**. The definition provided at the beginning of the excerpt directly defines the Fee Simple Estate. Additionally, the excerpt includes characteristics that support this conclusion:
* **Absolute ownership unencumbered by any other interest or estate:** This aligns with the core of the Fee Simple definition.
* **References to a lease:** While it mentions the lessor's interest and the tenant's interest, the valuation aims for the comprehensive Fee Simple, encompassing all rights of ownership. The mention of the lease is to provide context for the potential interests that exist within the property.
* **Property Identification:** The identification by postal address, assessor's records, and legal description all point to valuation of the property.
type and definition of value:
Based on the provided definition, the definition of value (specifically, market value) is:
**The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.**
the date of the report:
The date of the report is April 6, 2022.
the scope of work used to develop the appraisal:
I am unable to provide the scope of work as it was not specifically stated.
the extent of any significant appraisal assistance:
According to the certification, "**No one provided significant real property appraisal assistance to the persons signing this report.**"
methods and techniques:
Based on the provided text, the methods and techniques discussed are:
**Methods:**
* **Cost Approach:** This method estimates value based on the cost to produce a substitute property of equivalent utility.
* **Sales Comparison Approach (also known as the Market Approach):** This method estimates value by comparing the subject property to recent sales of similar properties (comparables).
**Techniques:**
* **For the Cost Approach:**
* Determining the cost to produce the substitute property.
* **For the Sales Comparison Approach:**
* **Units of Comparison:**
* **Physical Units:** Price per square foot, price per unit, price per floor, etc.
* **Economic Units:** Gross Rent Multiplier (GRM)
* **Adjustment of Comparables:** Making adjustments to the sale prices of comparable properties to account for differences between them and the subject property. This is specifically done when using physical units of comparison.
* **Analysis and Comparison:** Analyzing differences, particularly when using economic units of comparison.
the reasons for excluding the sales comparison, cost, or income approach(es):
I am not able to give you the answer. However, I can tell you that the Cost Approach is excluded because this is a land valuation, as stated on the first page. As a result, the Cost approach is not applicable, as stated on page 12. The Sales Comparison Approach is the approach to value that is used in this appraisal, as stated on page 14. The Income Approach is not used because the primary purpose is to value land.
value opinion(s) and conclusion(s):
Here's a breakdown of the opinions, conclusions, and value related to the appraisal report:
**Value Opinion(s):**
* **Opinion of Value:** The report provides an opinion of the market value of the subject property (land only).
* **Valuation Premise:** The valuation is based on the "As Is" condition of the fee simple estate in the land, meaning the land is valued without consideration for the existing improvements or lease encumbrances.
**Conclusion(s):**
* **Market Value Conclusion:** The concluded market value of the fee simple estate of the land is $24,600,000.
* **Date of Value:** The date of the value conclusion is March 26, 2022.
* **Impact of COVID-19:** The report acknowledges the ongoing impact of the COVID-19 pandemic on the market and that it may affect macroeconomic conditions. It stated the impact on real estate is uncertain and depends on factors such as asset class, use, tenancy, and location.
**Supporting Information and Context:**
* **Property Description:** The report describes the subject property as a 1.19-acre corner parcel located at 3020 Wilshire Boulevard in Los Angeles, CA. It is zoned C4-2 (Commercial).
* **Scope of Appraisal:** The appraisal is specifically for the fee simple estate of the land only, based on the client's instructions.
* **Intended User and Use:** The intended user is Mr. Phillip Lee of Jamison Services, Inc., and the intended use is the appraisal of the market value of the land.
* **Appraisal Standards:** The appraisal was prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and the requirements of the Appraisal Institute's Code of Professional Ethics and Standards of Professional Appraisal Practice.
* **Certifications:** The report includes a certification that the appraiser has no interest in or bias toward the property or the parties involved and that the appraisal was not contingent upon predetermined results.
In summary, the key takeaway is the concluded market value of the land, which the appraiser determined to be $24,600,000 as of March 26, 2022, for the fee simple estate. The report also provides the context of the appraisal and its adherence to professional standards.
signed certification:
True
======>Start checking fields<======
missed fields:
the subject sales and other transfers, agreements of sale, options, and listings
======>Start checking inconsistencies<======
the reasons for excluding the sales comparison, cost, or income approach(es):
The reasons for excluding the sales comparison, cost, or income approach(es) are partially correct.
* **Cost Approach**: The statement that the Cost Approach is excluded because this is a land valuation and not applicable is correct. (Page 1, 12).
* **Sales Comparison Approach**: The statement that the Sales Comparison Approach is used (Page 14) is correct.
* **Income Approach**: The statement that the Income Approach is not used because the primary purpose is to value land is correct. (Page 1).