Part 9 Components in Cost analysis Flashcards
What does a climate have to do with cost?
A subject’s climate has a bearing on the cost of construction.
Climates in the United States can be broadly grouped into five categories
- Severe-cold climate
- Cold climate
- Mixed-humid climate
- Hot-humid climate
- Hot-dry/mixed dry climate
The southwest portion of the country would include states such as New Mexico, Arizona, Southern California, and parts of Texas.
Hot-dry/mixed dry climate.
Florida and the Gulf-Coast area would be included in this area. Georgia, Alabama, areas of Texas and the southern portion of South Carolina would be some examples.
Hot-humid climate.
This area would include the Mid-Atlantic States and extend to the northeast portion of Texas. Some examples would be North Carolina, Tennessee, and the northern portions of Georgia and Louisiana.
Mixed-humid climate.
This area takes a broad path across the country and includes states that experience freezing temperatures during the winter months. Some examples would be New York, Ohio, Iowa, Oregon, and northern California.
Cold climate.
The northern-most portions of states that border Canada often fall into this group—along with Alaska. Structures in this area often are super-insulated, and foundations will extend into the ground fairly deep so they are located below the frost line (i.e., the depth at which the ground freezes). Some examples would be the northern parts of Maine, Minnesota, and Montana to name a few.
Severe-cold climate.
1.68
.88
.456
Marshall & Swift-CoreLogic uses three classifications to begin the process
mild climate
, moderate climate
, and extreme climate.
is a rating that indicates resistance to heat conduction for a particular insulating material. A higher R-value for the insulation means less heat can escape through the walls and ceiling. Generally, the attic will have the insulation with the highest R-Value to prevent heat loss (since heat tends to rise).
R-value
R-11 to R-19 for the walls
R-19 to R-30 in the ceiling
For an average quality residence, the base cost assumes a wall height of 8 feet. For
each additional foot of wall height, the appraiser must add 3%.
Therefore, if your subject
residence has a 9-foot wall, the factor is 1.03.
Plumbing fixtures are added or subtracted as
lump sum adjustments
What area is included in gross living area?
- B. finished and habitable floor areas above grade
Because of the unique attributes of the cost approach, it is ideally suited for
estimating insurable value.
Condon has estimated the cost of excavation, the floor, wall, and roof components,
and the packaged costs for the electrical, heating, and plumbing. What cost
method is Condon using?
unit-in-place method
Fogarty knows that the original cost of the building three years ago was
$750,000. If the cost index was 235 when the structure was built, what is the
estimated cost now if the index is at 267.9?
$855,000 (267.9 / 235 = 1.14 × $750,000 = answer)
