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 CHAPTER 11

IMPROVEMENT ANALYSIS

—ȱ’–™˜›Š—ȱ™Š›ȱ˜ȱŽŸŽ›¢ȱŠ™™›Š’œŠ•ȱ’œȱ‘ŽȱŽœŒ›’™’˜—ȱ˜ȱ‘Žȱ¢™ŽǰȱšžŠ•’¢ǰȱŠ—ȱŒ˜—’Ȭ
’˜—ȱ˜ȱ‘Žȱ‹ž’•’—ȱ˜›ȱ‹ž’•’—œȱ˜—ȱ‘Žȱœ’ŽȱŠ—ȱ‘ŽȱŠ—Š•¢œ’œȱ˜ȱ‘Žȱœ›žŒž›ŽȇœȱŽœ’—ǯȱ
‘Žȱ™›˜ŒŽœœȱ˜ȱ’–™›˜ŸŽ–Ž—ȱŠ—Š•¢œ’œȱŽ—Œ˜–™ŠœœŽœȱ‘›ŽŽȱ’—Ž››Ž•ŠŽȱŠœ”œDZ
ŗǯȱ ›˜™Ž›¢ȱ’—œ™ŽŒ’˜—
Řǯȱ ž’•’—ȱŽœŒ›’™’˜—
řǯȱ —Š•¢œ’œȱ˜ȱŠ›Œ‘’ŽŒž›Š•ȱœ¢•ŽȱŠ—ȱž—Œ’˜—Š•ȱž’•’¢
—ȱ ‘Žȱ ŸŠ•žŠ’˜—ȱ ™›˜ŒŽœœǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ Š‘Ž›œȱ –žŒ‘ȱ ˜ȱ ‘Žȱ ’—˜›–Š’˜—ȱ —ŽŽŽȱ ˜ȱ
ŠŽšžŠŽ•¢ȱ ŽœŒ›’‹Žȱ Š—ȱ Š—Š•¢£Žȱ ‘Žȱ ’–™›˜ŸŽ–Ž—œȱ ’—ȱ ‘Žȱ ꛜ‘Š—ȱ ’—œ™ŽŒ’˜—ȱ ˜ȱ
‘Žȱ ›ŽŠ•ȱ ŽœŠŽǯȱ –™›˜™Ž›ȱ ˜›ȱ ’—ŠŽšžŠŽȱ ’—œ™ŽŒ’˜—ȱ ˜ȱ ‘Žȱ ™‘¢œ’ŒŠ•ȱ Œ‘Š›ŠŒŽ›’œ’Œœȱ
Š—ȱ ŽŠž›Žœȱ ˜ȱ ‘Žȱ œž‹“ŽŒȱ Š—ȱ Œ˜–™Š›Š‹•Žȱ ™›˜™Ž›’Žœȱ ŒŠ—ȱ Œ›ŽŠŽȱ ’ĜŒž•’Žœȱ ˜›ȱ Š—ȱ
Š™™›Š’œŽ›ȱ ’—ȱ •ŠŽ›ȱ ™‘ŠœŽœȱ ˜ȱ ‘Žȱ Š™™›Š’œŠ•ǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ Š—ȱ ˜ŸŽ›•˜˜”Žȱ œ›žŒž›Š•ȱ
™›˜‹•Ž–ȱŒ˜ž•ȱ–Š”Žȱ‘ŽȱŒ˜—Œ•žœ’˜—œȱ˜ȱ‘Žȱ‘›ŽŽȱŠ™™›˜ŠŒ‘Žœȱ˜ȱŸŠ•žŽȱ–ŽŠ—’—•Žœœǯ
ŒŒž›ŠŽȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—œȱ Š›Žȱ ŽœœŽ—’Š•ȱ ˜ȱ Š••ȱ ŸŠ•žŠ’˜—ȱ Šœœ’—–Ž—œǯȱ —ȱ ‘Žȱ
ŽœŒ›’™’˜—ȱŠ—ȱŠ—Š•¢œ’œȱ˜ȱ‘Žȱœ’ŽȱŠ—ȱ’–™›˜ŸŽ–Ž—œǰȱ‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱŠ›Žœœȱ
Š••ȱ ™Ž›’—Ž—ȱ œ›Ž—‘œȱ Š—ȱ  ŽŠ”—ŽœœŽœǰȱ Ž¡™Š—ȱ ˜—ȱ Š—¢ȱ ™›˜‹•Ž–ȱ Š›ŽŠœǰȱ Š—ȱ ’—Ž›™›Žȱ
‘Žȱœ’—’ęŒŠ—ŒŽȱ˜ȱ‘ŽȱŠŠȱ˜ȱ•Š¢ȱŠȱ˜ž—Š’˜—ȱ˜›ȱ‘Žȱ’œŒžœœ’˜—ȱ˜ȱ‘’‘ŽœȱŠ—ȱ‹Žœȱ
žœŽǯȱ‘ŽȱŠ™™›Š’œŽ›ȱ—ŽŽœȱŠȱ‘˜›˜ž‘ȱž—Ž›œŠ—’—ȱ˜ȱ‘Žȱ™‘¢œ’ŒŠ•ȱŒ‘Š›ŠŒŽ›’œ’Œœȱ˜ȱ
‘Žȱœž‹“ŽŒȱ™›˜™Ž›¢ȱ˜ȱ’Ž—’¢ȱŠ—ȱœŽ•ŽŒȱœž’Š‹•ŽȱŒ˜–™Š›Š‹•Žœǯȱȱ‘˜›˜ž‘ȱ‹ž’•’—ȱ
ŽœŒ›’™’˜—ȱ ‘Ž•™œȱ ‘Žȱ Š™™›Š’œŽ›ȱ ’Ž—’¢ȱ ‘Žȱ Ž¡Ž—ȱ Š—ȱ šžŠ•’¢ȱ ˜ȱ ‹ž’•’—ȱ ’–™›˜ŸŽȬ
–Ž—œǰȱŒŠ•Œž•ŠŽȱ‘Ž’›ȱŒ˜œǰȱŠ—ȱŽŽ›–’—Žȱ–˜œȱ˜›–œȱ˜ȱŽ™›ŽŒ’Š’˜—ǯȱ‘Ž›Ž˜›Žǰȱ‘Žȱ
ŠŒŒž›ŠŒ¢ȱ ˜ȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—œȱ ’›ŽŒ•¢ȱ ŠěŽŒœȱ ‘Žȱ ˜™’—’˜—ȱ ˜ȱ ŸŠ•žŽȱ ™›˜žŒŽȱ ‹¢ȱ
Š™™•¢’—ȱ‘Žȱ‘›ŽŽȱŠ™™›˜ŠŒ‘Žœȱ˜ȱŸŠ•žŽǯ
›Œ‘’ŽŒž›Š•ȱ œ¢•Žȱ Š—ȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ Š›Žȱ ’—Ž››Ž•ŠŽDzȱ Š™™›Š’œŽ›œȱ –žœȱ Š—Š•¢£Žȱ
‘Ž’›ȱ Œ˜–‹’—Žȱ ŽěŽŒȱ ˜—ȱ ™›˜™Ž›¢ȱ ŸŠ•žŽǯȱ ›Œ‘’ŽŒž›Š•ȱ œ¢•Žȱ ’œȱ ‘Žȱ Œ‘Š›ŠŒŽ›ȱ ˜ȱ Šȱ
‹ž’•’—ȇœȱ ˜›–ȱ Š—ȱ ˜›—Š–Ž—Š’˜—ǯȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ’œȱ ‘Žȱ Š‹’•’¢ȱ ˜ȱ Šȱ ™›˜™Ž›¢ȱ ˜›ȱ
‹ž’•’—ȱ˜ȱ‹ŽȱžœŽž•ȱŠ—ȱ˜ȱ™Ž›˜›–ȱ‘Žȱž—Œ’˜—ȱ˜›ȱ ‘’Œ‘ȱ’ȱ’œȱ’—Ž—ŽǰȱŠŒŒ˜›’—ȱ
˜ȱŒž››Ž—ȱ–Š›”ŽȱŠœŽœȱŠ—ȱœŠ—Š›œǯȱž—Œ’˜—Š•ȱž’•’¢ȱŠ•œ˜ȱ›Ž•ŠŽœȱ˜ȱ‘ŽȱŽĜŒ’Ž—Œ¢ȱ
˜ȱ Šȱ ‹ž’•’—ȇœȱ žœŽȱ ’—ȱ Ž›–œȱ ˜ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žǰȱ Žœ’—ȱ Š—ȱ •Š¢˜žǰȱ ›ŠĜŒȱ ™ŠĴŽ›—œǰȱ
Š—ȱ ‘Žȱ œ’£Žȱ Š—ȱ ¢™Žȱ ˜ȱ ›˜˜–œǯȱ ˜‘ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žȱ Š—ȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ’—ĚžȬ
Ž—ŒŽȱ‘ž–Š—ȱ•’ŸŽœȱ‹¢ȱ™›˜Ÿ’’—ȱ˜›ȱ ’‘‘˜•’—ȱ‹ŽŠž¢ǰȱŒ˜–˜›ǰȱœŽŒž›’¢ǰȱŒ˜—ŸŽ—’Ž—ŒŽǰȱ

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 11.2 The Appraisal of Real Estate – Third Canadian Edition

•’‘ǰȱ Š—ȱ Š’›ǯȱ ‘Ž¢ȱ –Š¢ȱ Š•œ˜ȱ Ž—œž›Žȱ ›ŽŠœ˜—Š‹•Žȱ –Š’—Ž—Š—ŒŽȱ Ž¡™Ž—’ž›Žœǰȱ ™›ŽœŽ›ŸŽȱ
ŸŠ•žŠ‹•Žȱ›Š’’˜—œǰȱ˜›ȱ’—’ŒŠŽȱ‘Žȱ—ŽŽȱ˜›ȱŒ‘Š—Žǯ
˜—œ’Ž›Š’˜—œȱ ˜ȱ œ¢•Žȱ Š—ȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ Š›Žȱ ’—Ž›Š•ȱ ˜ȱ Š—ȱ Š™™›Š’œŠ•ǯȱ ‘Ž¢ȱ
Š›Žȱ—˜ŽȱŠ•˜—ȱ ’‘ȱ˜‘Ž›ȱ™‘¢œ’ŒŠ•ȱŒ‘Š›ŠŒŽ›’œ’Œœȱž›’—ȱ™›˜™Ž›¢ȱ’—œ™ŽŒ’˜—ǯȱœ’—ȱ
Œ˜–™Š›Š‹•ŽȱŠŠǰȱŠ—ȱŠ™™›Š’œŽ›ȱŒŠ—ȱŠ—Š•¢£Žȱ‘˜ ȱœ¢•ŽȱŠ—ȱž—Œ’˜—ȱ’—ĚžŽ—ŒŽȱŠȱ™›˜™Ž›Ȭ
¢ȇœȱ–Š›”ŽȱŸŠ•žŽǯȱ¢•ŽȱŠ—ȱž—Œ’˜—Š•ȱž’•’¢ȱŠ›ŽȱŽ¡Š–’—Žȱ’—ȱŽ›–œȱ˜ȱ‘Žȱ˜••˜ ’—DZ
ŗǯȱ ‘ŽȱžœŽȱ˜›ȱ ‘’Œ‘ȱŠȱ™Š›’Œž•Š›ȱ’–™›˜ŸŽ–Ž—ȱ ŠœȱŽœ’—Ž
Řǯȱ œȱŠŒžŠ•ȱ˜›ȱŒ˜—Ž–™•ŠŽȱžœŽ
řǯȱ œȱ–˜œȱ™›˜žŒ’ŸŽȱžœŽ
‘ŽœŽȱ‘›ŽŽȱžœŽœȱ–Š¢ȱ˜›ȱ–Š¢ȱ—˜ȱ‹Žȱ‘ŽȱœŠ–Žǯ
‘Žȱž•’–ŠŽȱ˜Š•œȱ˜ȱ’–™›˜ŸŽ–Ž—ȱŠ—Š•¢œ’œȱŠ›Žȱ‘Žȱ˜••˜ ’—DZ
y ȱ ›˜™Ž›ȱ ’Ž—’’ŒŠ’˜—ȱ ˜ȱ ‘Žȱ ’–™˜›Š—ȱ ‹ž’•’—ȱ Œ˜–™˜—Ž—œȱ ˜›ȱ ‘Žȱ
Š™™›Š’œŠ•ȱŠ—Š•¢œ’œ
yȱ ˜ž—ȱ“ž–Ž—ȱ˜ȱ‘ŽȱšžŠ•’¢ȱŠ—ȱŒ˜—’’˜—ȱ˜ȱ’–™›˜ŸŽ–Ž—œȱŠ—ȱŒ˜–™˜—Ž—œ
yȱ ˜—Ÿ’—Œ’—ȱœž™™˜›ȱ˜›ȱŒ˜—Œ•žœ’˜—œȱ’—ȱ‘Žȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱŠ—Š•¢œ’œȱŠ—ȱ
Š™™•’ŒŠ’˜—ȱ˜ȱ‘ŽȱŠ™™›˜ŠŒ‘Žœȱ˜ȱŸŠ•žŽ
‘’œȱ Œ‘Š™Ž›ȱ ˜ŒžœŽœȱ ˜—ȱ ‘Žȱ œ›žŒž›Š•ȱ Ž•Ž–Ž—œȱ Š—ȱ ŽŠž›Žœȱ ‘Šȱ Š—ȱ Š™™›Š’œŽ›ȱ  ’••ȱ
›ŠŽȱ ’—ȱ ‘Žȱ šžŠ•’¢ȱ Š—ȱ Œ˜—’’˜—ȱ œž›ŸŽ¢ǰȱ  ‘’Œ‘ȱ ’œȱ ‘Žȱ ›˜ž— ˜›”ȱ ˜›ȱ ‘Žȱ Š—Š•¢œŽœȱ
‘Šȱ˜••˜ ȱ’–™›˜ŸŽ–Ž—ȱŠ—Š•¢œ’œȱ’—ȱ‘ŽȱŸŠ•žŠ’˜—ȱ™›˜ŒŽœœǯ

PROPERTY INSPECTION
˜–Ž’–ŽœȱŒ˜—œž–Ž›œȱŽšžŠŽȱŠ™™›Š’œŠ•ȱ ’‘ȱ‘Žȱ’—œ™ŽŒ’˜—ȱ˜ȱ‘Žȱœž‹“ŽŒȱ›ŽŠ•ȱŽœŠŽǰȱ
‹žȱ’—œ™ŽŒ’˜—ȱ’œȱ“žœȱ˜—Žȱ˜ȱ‘Žȱ–Š—¢ȱŠœ”œȱ™Ž›˜›–Žȱ’—ȱŠ—ȱŠ™™›Š’œŠ•ǯȱ›˜Žœœ’˜—Š•ȱ
™›˜™Ž›¢ȱ’—œ™ŽŒ˜›œȱŠ›Žȱœ™ŽŒ’Š•’£ŽȱŒ˜—›ŠŒ˜›œȱ ’‘ȱŽ¡™Ž›’œŽȱ’—ȱž—Œ˜ŸŽ›’—ȱŽŽŒœȱ
’—ȱ ‘Žȱ œ›žŒž›Žȱ Š—ȱ –ŠŽ›’Š•œȱ ˜ȱ ŸŠ›’˜žœȱ ¢™Žœȱ ˜ȱ ™›˜™Ž›’Žœǯȱ ™™›Š’œŽ›œȱ –žœȱ ‹Žȱ
Š–’•’Š›ȱ  ’‘ȱ ‘Žȱ ™›˜™Ž›¢ȱ ’—œ™ŽŒ’˜—ȱ ™›˜ŒŽœœǰȱ ‹žȱ ‘Žȱ Š’–ȱ ˜ȱ Š—ȱ Š™™›Š’œŽ›ȱ ’—ȱ ‘Žȱ
ꎕȱ’œȱ—˜ȱ˜ȱŒ˜–™›Ž‘Ž—œ’ŸŽ•¢ȱ›ŽœŽŠ›Œ‘ȱ‘Žȱœž‹“ŽŒȱ›ŽŠ•ȱŽœŠŽǯȱŠ‘Ž›ǰȱŠ—ȱŠ™™›Š’œŽ›ȱ
˜‹œŽ›ŸŽœȱ‘ŽȱŒ˜–™˜—Ž—œȱŠ—ȱŒ‘Š›ŠŒŽ›’œ’Œœȱ˜ȱ‘Žȱœž‹“ŽŒȱ™›˜™Ž›¢ȱ‘Šȱ ’••ȱ’—ĚžȬ
Ž—ŒŽȱŸŠ•žŽȱ’—ȱ‘Žȱ–Š›”Ž™•ŠŒŽǯ
‘Žȱ ’–™˜›Š—ŒŽȱ ˜ȱ ™›˜™Ž›¢ȱ ’—œ™ŽŒ’˜—ȱ œ‘˜ž•ȱ —˜ȱ ‹Žȱ ž—Ž›Žœ’–ŠŽǯȱ žŒ‘ȱ ˜ȱ
‘Žȱ ™›’–Š›¢ȱ ŠŠȱ Š—ȱ Š™™›Š’œŽ›ȱ Œ˜••ŽŒœȱ Œ˜–Žœȱ ›˜–ȱ ‘Žȱ ™›˜™Ž›¢ȱ ’—œ™ŽŒ’˜—ȱ ™›˜ŒŽœœǯȱ
‘Žȱ ›ŽŠ•ȱ ŽœŠŽȱ ‹Ž’—ȱ Š™™›Š’œŽȱ –žœȱ ‹Žȱ
property inspection ž—Ž›œ˜˜ȱ ’—ȱ ‘Žȱ Œ˜—Ž¡ȱ ˜ȱ ’œȱ ’––Ž’ŠŽȱ
The act or process of inspecting firsthand œž››˜ž—’—œȱ Š—ȱ ‘Žȱ ŽěŽŒȱ ˜ȱ ˜‘Ž›ȱ —ŽŠ›‹¢ȱ
the typical improvements and building ’–™›˜ŸŽ–Ž—œȱ Š—ȱ •Š—ȱ žœŽœǯȱ ˜–™Š›’œ˜—ȱ ˜ȱ
components of the real estate involved ‘Žȱ œž‹“ŽŒȱ Š—ȱ Œ˜–™Š›Š‹•Žœȱ ’œȱ Œ›žŒ’Š•ȱ ˜›ȱ ‘Žȱ
in an appraisal assignment, either the ’›ŽŒȱ Œ˜–™Š›’œ˜—ȱ Š—ȱ ’—Œ˜–Žȱ Š™™›˜ŠŒ‘Žœǰȱ Š—ȱ
subject property or comparable properties. Žœ’–Š’—ȱ‹ž’•’—ȱŒ˜œœȱ’—ȱ‘ŽȱŒ˜œȱŠ™™›˜ŠŒ‘ȱ’œȱ
Property inspection is the most visible step ’–™˜œœ’‹•Žȱ ’‘˜žȱŠ—ȱŠŒŒž›ŠŽȱ’—ŸŽ—˜›¢ȱ˜ȱ‘Žȱ
in improvement analysis.
‹ž’•’—ȱŒ˜–™˜—Ž—œȱ’—ȱ‘Žȱœž‹“ŽŒǯȱ—ȱŠ’’˜—ǰȱ

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 Chapter 11 – Improvement Analysis 11.3

Œ˜–™Š›’œ˜—ȱ ˜ȱ ‘Žȱ šžŠ•’¢ȱ Š—ȱ Œ˜—’’˜—ȱ ˜ȱ ‹ž’•’—ȱ Œ˜–™˜—Ž—œȱ ŒŠ—ȱ ‹Žȱ ŽœœŽ—’Š•ȱ ’—ȱ
–Š”’—ȱŠ“žœ–Ž—œǯ
Š—¢ȱ Š™™›Š’œŽ›œȱ •ŽŠ›—ȱ ‘˜ ȱ ˜ȱ ’—œ™ŽŒȱ Šȱ ™›˜™Ž›¢ȱ ‘›˜ž‘ȱ ˜—Ȭ‘ŽȬ“˜‹ȱ ›Š’—’—ǯȱ
—Œ›ŽŠœŽȱ œŒ›ž’—¢ȱ ›˜–ȱ Œ•’Ž—œȱ Š—ȱ Š™™›Š’œŠ•ȱ ›Žž•Š˜›œȱ ‘Šœȱ ›Ž–’—Žȱ Š™™›Š’œŽ›œȱ
˜ȱ ‘Ž’›ȱ ™›˜Žœœ’˜—Š•ȱ ˜‹•’Š’˜—ȱ ˜ȱ ž—Ž›œŠ—ȱ Œ˜—œ›žŒ’˜—ȱ –Ž‘˜œȱ Š—ȱ –ŠŽ›’Š•œǰȱ
˜ȱ “žŽȱ Œ˜—’’˜—ȱ Š—ȱ œŽ›Ÿ’ŒŽŠ‹’•’¢ȱ ˜ȱ ‹ž’•’—ȱ –ŠŽ›’Š•œȱ Š—ȱ Œ˜–™˜—Ž—œǰȱ Š—ȱ ˜ȱ
ŠœœŽœœȱ ž—Œ’˜—Š•’¢ǯȱ ‘Žȱ ™›˜™Ž›¢ȱ ’—œ™ŽŒ’˜—ȱ ŒŠ—ȱ ‹Žȱ ˜—Žȱ ˜ȱ ‘Žȱ •˜—Žœȱ ™Ž›’˜œȱ ˜ȱ
ŠŒŽȬ˜ȬŠŒŽȱ ’—Ž›ŠŒ’˜—ȱ ‹Ž ŽŽ—ȱ ‘Žȱ Š™™›Š’œŽ›ȱ Š—ȱ ‘Žȱ Œ•’Ž—Dzȱ ž—Š–Ž—Š•ȱ –’œŠ”Žœȱ
’—ȱ‘Žȱ™Ž›˜›–Š—ŒŽȱ˜ȱ‘Žȱ™›˜™Ž›¢ȱ’—œ™ŽŒ’˜—ȱŠ—ȱ’—ȱ’—Ž›ŠŒ’˜—œȱ ’‘ȱ‘ŽȱŒ•’Ž—ȱŒŠ—ȱ
‹Žȱ Ž–‹Š››Šœœ’—ȱ Š—ȱ ŽŸŽ—ȱ Œ˜œ•¢ǰȱ Š–Š’—ȱ ‘Žȱ ›Ž•Š’˜—œ‘’™ȱ ‹Ž ŽŽ—ȱ Š™™›Š’œŽ›ȱ Š—ȱ
Œ•’Ž—ȱŠ—ȱ“Ž˜™Š›’£’—ȱŠ—¢ȱžž›Žȱ‹žœ’—Žœœȱ‹Ž ŽŽ—ȱ‘Ž–ǯȱŠ’•ž›Žȱ˜ȱ’œŒ•˜œŽȱŽŽŒœȱ
’—ȱŠ—ȱ’–™›˜ŸŽ–Ž—ȱ‹ŽŒŠžœŽȱ‘˜œŽȱŽŽŒœȱ Ž›Žȱ–’œœŽȱ’—ȱ‘Žȱ™›˜™Ž›¢ȱ’—œ™ŽŒ’˜—ǰȱ˜›ȱ
Š’•ž›Žȱ˜ȱŸŽ›’¢ȱ’—˜›–Š’˜—ȱŠ‘Ž›Žȱ‘›˜ž‘ȱ˜‘Ž›ȱ–ŽŠ—œȱŠ›Žȱ̊ œȱ˜ȱŠ—ȱŠ™™›Š’œŠ•ȱ
›Ž™˜›ȱ‘ŠȱŒŠ—ȱ›Žœž•ȱ’—ȱ•’’Š’˜—ȱŠŠ’—œȱŠ—ȱŠ™™›Š’œŽ›ǯ
˜–Ž’–Žœȱ Š—ȱ Š™™›Š’œŽ›ȱ  ’••ȱ —˜ȱ ‘ŠŸŽȱ ‘Žȱ Ž¡™Ž›’œŽȱ ˜ȱ “žŽȱ ‘Žȱ šžŠ•’¢ȱ Š—ȱ
Œ˜—’’˜—ȱ ˜ȱ œ™ŽŒ’Š•’£Žȱ Žšž’™–Ž—ȱ ˜›ȱ Š¢™’ŒŠ•ȱ ‹ž’•’—ȱ –ŠŽ›’Š•œȱ Š—ȱ –Š¢ȱ ‘ŠŸŽȱ
˜ȱ ›Ž•¢ȱ ˜—ȱ ‘Žȱ “ž–Ž—ȱ ˜ȱ ˜‘Ž›ȱ ™›˜Žœœ’˜—Š•œǯŗȱ ˜›ȱ Šȱ Œ˜–™•Ž¡ȱ ™›˜™Ž›¢ǰȱ œžŒ‘ȱ Šœȱ Šȱ
–Š—žŠŒž›’—ȱ™•Š—ȱŒ˜—Š’—’—ȱœ˜™‘’œ’ŒŠŽȱŽšž’™–Ž—ȱŠ—ȱ–ŽŒ‘Š—’ŒŠ•ȱœ¢œŽ–œǰȱŠ—ȱ
Š™™›Š’œŽ›ȱ–Š¢ȱꗍȱ‹•žŽ™›’—œȱ™›˜Ÿ’Žȱ‹¢ȱ‘ŽȱŽŸŽ•˜™Ž›Ȧ˜ —Ž›ȱ˜ȱ‹Žȱ‘Ž•™ž•ǯ

BUILDING DESCRIPTION
—ȱ ‘Žȱ ŸŠ•žŠ’˜—ȱ ™›˜ŒŽœœǰȱ Š—ȱ Š™™›Š’œŽ›ȱ ŽœŒ›’‹Žœȱ ‘Žȱ Žœ’—ǰȱ •Š¢˜žǰȱ Š—ȱ Œ˜—œ›žŒ’˜—ȱ
ŽŠ’•œȱ˜ȱ‘Žȱœž‹“ŽŒȱ’–™›˜ŸŽ–Ž—œǰȱ ‘’Œ‘ȱ’—Œ•žŽȱ‘Žȱœ›žŒž›Š•ȱŒ˜–™˜—Ž—œǰȱ–ŠŽȬ
›’Š•œǰȱ Š—ȱ –ŽŒ‘Š—’ŒŠ•ȱ œ¢œŽ–œȱ ˜ȱ ŽŠŒ‘ȱ ‹ž’•’—ȱ ž—Ž›ȱ ’—ŸŽœ’Š’˜—ǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ
Š•œ˜ȱ ŽŽ›–’—Žœȱ ‹ž’•’—ȱ œ’£Žȱ Š—ȱ ‘Žȱ ž—Œ’˜—ǰȱ Œ˜—’’˜—ǰȱ Š—ȱ œŽ›Ÿ’ŒŽŠ‹’•’¢ȱ ˜ȱ ŽŠŒ‘ȱ
Ž•Ž–Ž—ȱŽœŒ›’‹Žǯ
ȱ’œȱŠ•œ˜ȱ’–™˜›Š—ȱ‘Šȱ‘ŽȱŠ™™›Š’œŽ›ȱŽœŒ›’‹Žȱ ‘Šȱ˜Žœȱ—˜ȱŒ˜—œ’žŽȱŠȱ‹ž’•’—ȱ
’–™›˜ŸŽ–Ž—ǰȱ œžŒ‘ȱ Šœȱ ™Ž›œ˜—Š•ȱ ™›˜™Ž›¢ȱ ’Ž–œȱ ‘Šȱ œ‘˜ž•ȱ ‹Žȱ Ž¡™›Žœœ•¢ȱ Ž¡Œ•žŽȱ
›˜–ȱ ‘Žȱ Š™™›Š’œŠ•ǯȱ —ȱ œ˜–Žȱ ’—œŠ—ŒŽœǰȱ ‘’œȱ
 ’••ȱ ›Žšž’›Žȱ œ™ŽŒ’Š•ȱ Š—Š•¢œ’œȱ ˜ȱ ŽŽ›–’—Žȱ
building description
 ‘Ž‘Ž›ȱ ’Ž–œȱ ˜ȱ –ŠŒ‘’—Ž›¢ȱ Š—ȱ Žšž’™–Ž—ȱ
The analysis of a building's design, layout,
Š›Žȱ ™Ž›œ˜—Š•ȱ ™›˜™Ž›¢ȱ ˜›ȱ šžŠ•’¢ȱ Šœȱ ę¡ž›Žœǯȱ
construction details, size, condition, and current
‘Žȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ȱ ™›˜Ÿ’Žœȱ ‘Žȱ
use that provides the basis for comparing
‹Šœ’œȱ ˜›ȱ Œ˜–™Š›’—ȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ȇœȱ the subject property's improvements and the
’–™›˜ŸŽ–Ž—œȱ  ’‘ȱ ’–™›˜ŸŽ–Ž—œȱ ‘Šȱ Š›Žȱ improvements typically accepted in the subject
¢™’ŒŠ••¢ȱ Œ˜—œ’Ž›Žȱ ’—ȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ȇœȱ property's market.
–Š›”Žȱ Š—ȱ  ’‘ȱ ‘Žȱ ’ŽŠ•ȱ ’–™›˜ŸŽ–Ž—œȱ Šœȱ
ŽŽ›–’—Žȱ’—ȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱŠ—Š•¢œ’œǯ
˜ȱŠ—Š•¢£Žȱ‘ŽȱšžŠ•’¢ȱŠ—ȱŒ˜—’’˜—ȱ˜ȱ’–™›˜ŸŽ–Ž—œǰȱŠ™™›Š’œŽ›œȱ—ŽŽȱŠȱŽ—Ž›Š•ȱ
ž—Ž›œŠ—’—ȱ ˜ȱ ‘Žȱ ‹ž’•’—ȱ Œ˜—œ›žŒ’˜—ȱ ™›˜ŒŽœœȱ Š—ȱ ‘Žȱ ˜™Ž›Š’˜—ȱ ˜ȱ ŽœœŽ—’Š•ȱ
1
Ethics Rule 4.2.7 of CUSPAP forbids an appraiser from undertaking an appraisal assignments if his or her inspection
skills are inadequate. CUSPAP 12.29 provides that an appraiser's inspection should, at the minimum, be thorough
enough to (a) adequately describe the real estate the appraisal report, (b) develop an opinion of highest and best
use when such an opinion is necessary and appropriate, and (c) make meaningful comparisons in the valuation of
the property.

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 11.4 The Appraisal of Real Estate – Third Canadian Edition

‹ž’•’—ȱœ¢œŽ–œǯŘȱ‘Žȱ¢™’ŒŠ•ȱŒ˜—œ›žŒ’˜—ȱ–ŠŽ›’Š•œȱŠ—ȱŽŒ‘—’šžŽœȱžœŽȱ’—ȱŠȱ›Ž’˜—ȱ
ŒŠ—ȱŒ‘Š—Žȱ˜ŸŽ›ȱ’–Žȱ˜›ȱŠȱŸŠ›’Ž¢ȱ˜ȱ›ŽŠœ˜—œDZ
yȱ Ž ȱ‹ž’•’—ȱŽŒ‘—˜•˜’ŽœȱŽŸ˜•ŸŽ
yȱ ‘Žȱ™›’ŒŽœȱ˜ȱ–ŠŽ›’Š•œȱ̞ŒžŠŽȱœ’—’ęŒŠ—•¢
yȱ ’œ’—ȱ˜›ȱŠ••’—ȱŽ—Ž›¢ȱ™›’ŒŽœȱ–Š”ŽȱŠȱ™Š›’Œž•Š›ȱ‹ž’•’—ȱ–ŠŽ›’Š•ȱ–˜›ŽȱŽœ’›Š‹•Ž
yȱ ‘Žȱ’ŒŠŽœȱ˜ȱŠœ‘’˜—ȱŠěŽŒȱ‘ŽȱŽ–Š—ȱ˜›ȱŠȱŒŽ›Š’—ȱ‹ž’•’—ȱ–ŠŽ›’Š•ȱ˜›ȱ
ŽŠž›Ž
’‘ȱ Ž¡™Ž›’Ž—ŒŽȱ Š—ȱ ‘˜›˜ž‘ȱ ˜‹œŽ›ŸŠ’˜—ȱ ˜ȱ –Š›”Žȱ ›Ž—œǰȱ Š™™›Š’œŽ›œȱ  ’••ȱ Š’—ȱ
’—œ’‘ȱ’—˜ȱ‘˜ ȱ‹ž’•’—ȱŒ˜–™˜—Ž—œȱŠ›Žȱ™Ž›ŒŽ’ŸŽȱŠ—ȱŸŠ•žŽȱ’—ȱŠȱ™Š›’Œž•Š›ȱ–Š›”Žǯ

Elements of a Building Description

—ȱ Š™™›Š’œŽ›ȱ ™›Ž™Š›Žœȱ Šȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ȱ ‹¢ȱ Œ˜—œ’Ž›’—ȱ Šȱ ŸŠ›’Ž¢ȱ ˜ȱ œ™ŽŒ’ęŒȱ
’—˜›–Š’˜—ȱ’—ȱœŽšžŽ—ŒŽǯȱ›’–Š›¢ȱŒ˜—ŒŽ›—œȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—ȱ’Ž–œDZ
ŗǯȱ ‘Žȱ¢™Žȱ˜ȱžœŽȱ›Ž™›ŽœŽ—Žȱ‹¢ȱ‘ŽȱŽ¡’œ’—ȱ‹ž’•’—
Řǯȱ ‘ŽȱŒ˜ŽœȱŠ—ȱ›Žž•Š’˜—œȱŠěŽŒ’—ȱ‘’œȱžœŽ
řǯȱ ž’•’—ȱœ’£Žǰȱ™•Š—ǰȱŠ—ȱŒ˜—œ›žŒ’˜—
Śǯȱ ŽŠ’•œȱ ˜ȱ ‘Žȱ ‹ž’•’—ȇœȱ Ž¡Ž›’˜›ȱ Š—ȱ ’—Ž›’˜›ȱ Š—ȱ ’œȱ Žšž’™–Ž—ȱ Š—ȱ
–ŽŒ‘Š—’ŒŠ•ȱœ¢œŽ–œǰȱ‹˜‘ȱ‘˜œŽȱ’—Œ•žŽȱ’—ȱ‘Žȱ˜›’’—Š•ȱŒ˜—œ›žŒ’˜—ȱŠ—ȱ
œž‹œŽšžŽ—ȱ’–™›˜ŸŽ–Ž—œ
—ȱŠ™™›Š’œŽ›ȱ–žœȱŸ’Ž ȱŠȱ‹ž’•’—ȱ˜‹“ŽŒ’ŸŽ•¢ȱŠ—ȱŠ—Š•¢’ŒŠ••¢ǰȱ™Š¢’—ȱŒŠ›Žž•ȱŠĴŽ—Ȭ
’˜—ȱ ˜ȱ Š••ȱ Œ˜–™˜—Ž—œȱ ‘Šȱ ž•’–ŠŽ•¢ȱ Œ˜—›’‹žŽȱ ˜ȱ ‘Žȱ ŽŽ›–’—Š’˜—ȱ ˜ȱ ‘Žȱ ‹ž’•Ȭ
’—ȇœȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ Šœȱ ’–™›˜ŸŽȱ Š—ȱ Š—¢ȱ Š•Ž›—Š’ŸŽȱ žœŽœȱ ˜ȱ ‹Žȱ Œ˜—œ’Ž›Žȱ ’—ȱ
‘ŽȱŠœœ’—–Ž—ǯȱ‘Žȱœ‘ŽŽ›ȱ—ž–‹Ž›ȱ˜ȱŒ˜–™˜—Ž—œȱ•’œŽȱ’—ȱŠȱŒ˜–™›Ž‘Ž—œ’ŸŽȱ‹ž’•’—ȱ
ŽœŒ›’™’˜—ȱ œ‘˜ž•ȱ —˜ȱ ‹Žȱ –’œ’—Ž›™›ŽŽȱ ’—ȱ ‘Žȱ Š™™•’ŒŠ’˜—ȱ ˜ȱ ‘Žȱ Š™™›˜ŠŒ‘Žœȱ ˜ȱ
ŸŠ•žŽǯȱ ‘Žȱ –Š›”Žȇœȱ ›ŽŠŒ’˜—ȱ ˜ȱ ‘Žȱ ™›ŽœŽ—ŒŽȱ ˜›ȱ Š‹œŽ—ŒŽȱ ˜ȱ œ›žŒž›Š•ȱ Œ˜–™˜—Ž—œȱ ’—ȱ
Šȱ™›˜™Ž›¢ȱ’œȱŠȱ–˜›Žȱ’–™˜›Š—ȱŒ˜—œ’Ž›Š’˜—ȱ‘Š—ȱ‘Žȱœ’–™•ŽȱŠŒȱ‘Šȱ‘˜œŽȱŒ˜–™˜Ȭ
—Ž—œȱŽ¡’œǯ
˜–Žȱ ’–™›˜ŸŽ–Ž—œȱ ŽŠž›Žȱ œžŒ‘ȱ ž—’šžŽȱ ˜›ȱ œ™ŽŒ’Š•’£Žȱ Žœ’—ǰȱ –ŠŽ›’Š•œǰȱ ˜›ȱ
Œ˜—œ›žŒ’˜—ȱ ŽŠž›Žœȱ ‘Šȱ ’œ’—ž’œ‘ȱ ‘Ž–ȱ Š—ȱ –Š¢ȱ •’–’ȱ ‘Ž’›ȱ –Š›”ŽŠ‹’•’¢ǯȱ ˜›ȱ
Ž¡Š–™•ŽǰȱŠȱŒ‘Ž–’ŒŠ•ȱ™•Š—ȱ˜›ȱŠȱ ‘Š›ȱŠŒ’•’¢ȱ–Š¢ȱ‘ŠŸŽȱœ™ŽŒ’Š•ȱ•˜ŒŠ’˜—Š•ȱŒ‘Š›ŠŒŽ›’œȬ
’Œœȱ‘ŠȱŒ˜–™•Ž–Ž—ȱ‘Žȱž—’šžŽȱŽŠž›Žœȱ˜ȱ‘Žȱ’–™›˜ŸŽ–Ž—œǯȱ‘Žȱ’쎛Ž—ŒŽœȱ›˜–ȱ
‘ŽȱŽŠž›Žœȱ˜ȱ˜‘Ž›ȱ™›˜™Ž›’Žœȱ ’‘ȱ‹›˜ŠŽ›ȱ–Š›”ŽŠ‹’•’¢ȱ˜ȱ—˜ȱ—ŽŒŽœœŠ›’•¢ȱœžŽœȱ
‘Šȱ‘Žȱ›ŽŠ•ȱŽœŠŽȱ’œȱ ’‘˜žȱŸŠ•žŽǰȱ›Š‘Ž›ȱ‘Šȱ–˜›Žȱœ™ŽŒ’Š•’£ŽȱŠ—Š•¢œŽœȱŠ›Žȱ—ŽŒŽœȬ
œŠ›¢ǯȱ ž›‘Ž›–˜›Žǰȱ œ˜–Žȱ ™›˜™Ž›’Žœȱ –Š¢ȱ ‘ŠŸŽȱ œ™ŽŒ’Š•ȱ ’–™˜›Š—ŒŽȱ ˜ȱ ‘Ž’›ȱ ˜ —Ž›ȱ ˜›ȱ
žœŽ›ȱ ‘Šȱ ˜Žœȱ —˜ȱ ›ŽĚŽŒȱ ‘Žȱ ŸŠ•žŽȱ ‘Žȱ ™›˜™Ž›¢ȱ –Š¢ȱ ‘ŠŸŽȱ ˜ȱ ’œȱ –Š›”Žǯȱ™™›Š’œŽ›œȱ
–žœȱ Š”Žȱ ŒŠ›Žȱ ˜ȱ ŸŠ•žŽȱ ™›˜™Ž›¢ȱ ’—ȱ ŠŒŒ˜›Š—ŒŽȱ  ’‘ȱ ‘Žȱ ’œŒ•˜œŽȱ œŒ˜™Žȱ ˜ȱ  ˜›”ȱ
Š—ȱ ˜ȱ ‹Žȱ Œ˜—œ’œŽ—ȱ  ’‘ȱ ‘Žȱ Žę—’’˜—ȱ ˜ȱ ŸŠ•žŽȱ ’—ȱ ‘Žȱ Šœœ’—–Ž—ǯȱ
˜ ŽŸŽ›ǰȱ –Š—¢ȱ
Š™™›Š’œŠ•œȱ –Š¢ȱ Š•œ˜ȱ ‹Žȱ žœŽȱ ’—ȱ ꗊ—Œ’Š•ȱ ›Ž™˜›’—ȱ Œ’›Œž–œŠ—ŒŽœȱ ‘Šȱ –’‘ȱ ›Žšž’›Žȱ

2
For an up-to-date and easy-to-read guide to construction materials and techniques, see Francis D.K. Ching and
Cassandra Adams, Building Construction Illustrated, 3rd ed. (New York: John Wiley & Sons, Inc., 2000).

R1ARE10.indb 4 10/4/2010 10:35:52 AM

 Chapter 11 – Improvement Analysis 11.5

‘ŽȱžœŽ›ȇœȱŒ˜—œ’Ž›Š’˜—ȱ˜ȱ‘Žȱœ™ŽŒ’Š•ȱ›Ž•Š’˜—œ‘’™ȱ˜ȱ‘Žȱ™›˜™Ž›¢ȱ˜ȱ’œȱ˜ —Ž›ȱ˜›ȱžœŽ›ǰȱ
Š—ȱ‘ŽȱŠ™™›Š’œŠ•ȱ›Ž™˜›ȱ ’••ȱ‹Žȱ–˜›Žȱ–ŽŠ—’—ž•ȱ’ȱ‘’œȱœ™ŽŒ’Š•ȱ—Šž›Žȱ’œȱ’œŒžœœŽȱ’—ȱ
‘Žȱ›Ž™˜›ǯȱ—ȱœ˜–Žȱꗊ—Œ’Š•ȱ›Ž™˜›’—ȱŒ’›Œž–œŠ—ŒŽœǰȱ’ȱ–Š¢ȱ‹Žȱ—ŽŒŽœœŠ›¢ȱ˜ȱŽŸŽ•˜™ȱ
 ˜ȱŠ™™›Š’œŠ•œDZȱ˜—Žȱ˜ȱ–Š›”Žȱ˜›ȱŠ’›ȱŸŠ•žŽȱŠ—ȱ‘Žȱ˜‘Ž›ȱŠȱžœŽȱŸŠ•žŽȱ˜›ȱ’œȱ˜ —Ž›ǯ

Use Classification
Š—ȱžœŽœȱŒŠ—ȱ‹Žȱ’Ÿ’Žȱ’—˜ȱŠ—¢ȱ—ž–‹Ž›ȱ˜ȱ¢™ŽœǰȱŽ™Ž—’—ȱ˜—ȱ–Š›”Žȱ—˜›–œȱŠ—ȱ
™Ž›œ˜—Š•ȱ™›ŽŽ›Ž—ŒŽœǯȱ›Š’’˜—Š••¢ǰȱ–˜œȱŠ™™›Š’œŽ›œȱ‘ŠŸŽȱ’Ÿ’Žȱ•Š—ȱžœŽœȱ’—˜ȱ꟎ȱ
–Š“˜›ȱ›˜ž™œDZ
ŗǯȱ Žœ’Ž—’Š•
Řǯȱ ˜––Ž›Œ’Š•
řǯȱ —žœ›’Š•
Śǯȱ ›’Œž•ž›Š•
śǯȱ ‘Ž›ȱœ™ŽŒ’Š•’£ŽȱžœŽœ
ŠŒ‘ȱ˜ȱ‘ŽœŽȱ›˜ž™œȱŒŠ—ȱ‹Žȱ‹›˜”Ž—ȱ˜ —ȱ’—˜ȱ’—Œ›ŽŠœ’—•¢ȱœ™ŽŒ’ęŒȱœž‹›˜ž™œǯ
¢œŽ–œȱ ˜ȱ žœŽȱ Œ•Šœœ’’ŒŠ’˜—ȱ –Š¢ȱ ŸŠ›¢ȱ ›˜–ȱ –Š›”Žȱ ˜ȱ –Š›”Žǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ
’—ȱœ˜–Žȱ–Š›”Žœȱ‘˜Ž•œȱŠ—ȱ–˜Ž•œȱŠ›ŽȱŒ˜—œ’Ž›ŽȱŠȱ–Š“˜›ȱ™›˜™Ž›¢ȱŒ•Šœœ’’ŒŠ’˜—ǰȱ
 ‘Ž›ŽŠœȱ ’—ȱ ˜‘Ž›ȱ –Š›”Žœȱ ‘Ž¢ȱ Š›Žȱ Œ˜—œ’Ž›Žȱ Šȱ œž‹œŽȱ ˜ȱ Œ˜––Ž›Œ’Š•ȱ ™›˜™Ž›’Žœǯȱ
™™›Š’œŽ›œȱ œ‘˜ž•ȱ ‹Žȱ Š–’•’Š›ȱ  ’‘ȱ ‘Žȱ ¢™Žœȱ ˜ȱ ™›˜™Ž›¢ȱ Ž’—Žȱ ‹¢ȱ ‘Žȱ –Š›”Žȱ
‘Ž¢ȱ Š›Žȱ  ˜›”’—ȱ ’—ȱ Š—ȱ Ž–™•˜¢ȱ Šȱ œ¢œŽ–ȱ ˜ȱ žœŽȱ Œ•Šœœ’’ŒŠ’˜—ȱ ‘Šȱ ‘Ž’›ȱ Œ•’Ž—œȱ
 ’••ȱž—Ž›œŠ—ǯ
˜—’—ȱ ›Žž•Š’˜—œȱ ŽœŠ‹•’œ‘ȱ ‘Žȱ ™Ž›–’Žȱ žœŽœȱ ˜ȱ ›ŽŠ•ȱ ŽœŠŽǯȱ ¡’œ’—ȱ Š—ȱ
™˜Ž—’Š•ȱ •Š—ȱ žœŽœȱ –žœȱ ‹Žȱ Œ‘ŽŒ”Žȱ ŠŠ’—œȱ £˜—’—ȱ ›Žž•Š’˜—œȱ ˜ȱ ŽŽ›–’—Žȱ ’ȱ
‘Ž¢ȱ Š›Žȱ Œ˜—˜›–’—ȱ ˜›ȱ —˜—Œ˜—˜›–’—ȱ žœŽœǯȱ ‘Ž—ȱ ‘Žȱ ™›ŽœŽ—ȱ žœŽȱ ˜Žœȱ —˜ȱ
Œ˜—˜›–ȱ ˜ȱ Œž››Ž—ȱ £˜—’—ȱ ›Žž•Š’˜—œǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ Œ˜—œ’Ž›ȱ ‘˜ ȱ ‘’œȱ
ŠŒȱ–’‘ȱŠŽŒȱ™›˜™Ž›¢ȱŸŠ•žŽǯ

Building Codes and Ordinances

—ȱŠ’’˜—ȱ˜ȱŠ—¢ȱžœŽȱ›Žœ›’Œ’˜—œȱ’–™˜œŽȱ‹¢ȱ£˜—’—ǰȱ‘Žȱ™•Š——’—ȱŠ—ȱŒ˜—œ›žŒ’˜—ȱ
˜ȱ‹ž’•’—œȱŠ›Žȱ›Žœ›’ŒŽȱ‹¢ȱŸŠ›’˜žœȱ•Š œǰȱŒ˜ŽœǰȱŠ—ȱ›Žž•Š’˜—œȱŽ—ŠŒŽȱŠȱŠ••ȱ•ŽŸŽ•œȱ
˜ȱ˜ŸŽ›—–Ž—ȱ˜ȱ™›˜ŽŒȱ‘Žȱ‘ŽŠ•‘ǰȱœŠŽ¢ǰȱŠ—ȱ Ž•Š›Žȱ˜ȱ‘Žȱ™ž‹•’Œǯȱ›˜Ÿ’—ŒŽœȱŠ—ȱ
Ž››’˜›’Žœȱ ‘ŠŸŽȱ Œ˜Žœȱ ‘Šȱ Œ˜—›˜•ȱ ‘Žȱ ”’—œȱ ˜ȱ ‹ž’•’—œȱ ‘Šȱ Š›Žȱ Œ˜—œ›žŒŽȱ  ’‘’—ȱ
‘Ž’›ȱ ‹˜›Ž›œǯȱ ˜ŸŽ›—–Ž—œȱ ŽœŠ‹•’œ‘ȱ ›Žž•Š’˜—œȱ ˜ȱ Ž—œž›Žȱ ˜ŒŒž™Š’˜—Š•ȱ ‘ŽŠ•‘ȱ
Š—ȱ œŠŽ¢ǰȱ Ž—Ÿ’›˜—–Ž—Š•ȱ ™›˜ŽŒ’˜—ǰȱ ™˜••ž’˜—ȱ Œ˜—›˜•ǰȱ Š—ȱ Œ˜—œž–Ž›ȱ ™›˜ŽŒ’˜—ǯȱ
˜ŒŠ•ȱ Š—ȱ ›Ž’˜—Š•ȱ ‹ž’•’—ȱ Œ˜Žœȱ ŽœŠ‹•’œ‘ȱ ›Žšž’›Ž–Ž—œȱ ˜›ȱ ‘Žȱ Œ˜—œ›žŒ’˜—ȱ Š—ȱ
˜ŒŒž™Š—Œ¢ȱ ˜ȱ ‹ž’•’—œǰȱ Š—ȱ ‘Žȱ Œ˜Žœȱ Œ˜—Š’—ȱ œ™ŽŒ’ęŒŠ’˜—œȱ ˜›ȱ ‹ž’•’—ȱ –ŠŽ›’Š•œǰȱ
–Ž‘˜œȱ ˜ȱ Œ˜—œ›žŒ’˜—ǰȱ Š—ȱ –ŽŒ‘Š—’ŒŠ•ȱ œ¢œŽ–œǯȱ ‘ŽœŽȱ Œ˜Žœȱ Š•œ˜ȱ ŽœŠ‹•’œ‘ȱ œŠ—Ȭ
Š›œȱ ˜ȱ ™Ž›˜›–Š—ŒŽȱ Š—ȱ Š›Žœœȱ Œ˜—œ’Ž›Š’˜—œȱ œžŒ‘ȱ Šœȱ œ›žŒž›Š•ȱ œ›Ž—‘ǰȱ ꛎȱ
›Žœ’œŠ—ŒŽǰȱŠ—ȱŠŽšžŠŽȱ•’‘ȱŠ—ȱŸŽ—’•Š’˜—ǯȱ
ž’•’—ȱŒ˜ŽœȱŽœŠ‹•’œ‘ȱŠȱ˜›–ȱ˜ȱœŠ—Š›ǰȱ‹žȱ‘Žȱ˜›’—Š—ŒŽœȱŽ—ŠŒŽȱ˜›ȱ‘Ž’›ȱ
Š™™•’ŒŠ’˜—ȱ ˜Ž—ȱ ŸŠ›¢ȱ ›˜–ȱ Œ˜Žœȱ ˜›ȱ ™•ŠŒŽȱ œ™ŽŒ’Š•ȱ Ž›–œȱ ˜›ȱ Œ˜—’’˜—œȱ ˜—ȱ ‘˜ ȱ ‘Žȱ
Œ˜Žœȱ ’••ȱ‹ŽȱŠ™™•’Žȱ’—ȱŠȱ’ŸŽ—ȱ“ž›’œ’Œ’˜—ǯȱ˜Žȱ‘Šȱ—Š’˜—Š•ȱ‹ž’•’—ȱŒ˜Žœȱ˜ȱ—˜ȱ

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 11.6 The Appraisal of Real Estate – Third Canadian Edition

Š• Š¢œȱ ›Š—œ•ŠŽȱ ’—˜ȱ •˜ŒŠ•ȱ ˜›’—Š—ŒŽœDzȱ ‘˜ ŽŸŽ›ǰȱ •˜ŒŠ•ȱ Œ˜Žœȱ ŒŠ—ȱ Šȱ ˜ȱ ‹žȱ —˜ȱ Š”Žȱ
Š Š¢ȱ›˜–ȱœŠ—Š›œȱ’–™˜œŽȱ‹¢ȱ‘’‘Ž›ȱ•ŽŸŽ•œȱ˜ȱ˜ŸŽ›—–Ž—ǯ

Size
ŽŽ›–’—’—ȱ ‘Žȱ œ’£Žȱ ˜ȱ Šȱ ‹ž’•’—ȱ –Š¢ȱ œŽŽ–ȱ •’”Žȱ ‘Žȱ ŽŠœ’Žœȱ œŽ™ȱ ’—ȱ ™›Ž™Š›’—ȱ
Šȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ǰȱ ‹žȱ ’ȱ ŒŠ—ȱ ‹Žȱ Šȱ ˜›–’Š‹•Žȱ Šœ”ȱ ˜›ȱ Š—ȱ Š™™›Š’œŽ›ȱ  ‘˜ȱ ’œȱ —˜ȱ
™›Ž™Š›Žȱ˜›ȱ’œȱ’—‘Ž›Ž—ȱ’ĜŒž•’Žœǯȱ‘Žȱ–Ž‘˜œȱŠ—ȱŽŒ‘—’šžŽœȱžœŽȱ˜ȱŒŠ•Œž•ŠŽȱ
‹ž’•’—ȱœ’£ŽȱŸŠ›¢ȱ›Ž’˜—Š••¢ǰȱ’Ž›ȱŠ–˜—ȱ™›˜™Ž›¢ȱ¢™ŽœǰȱŠ—ȱ–Š¢ȱ›Ž•ŽŒȱ‹’ŠœŽœȱ
‘Šȱœ’—’ęŒŠ—•¢ȱŠěŽŒȱ˜™’—’˜—œȱ˜ȱŸŠ•žŽǯȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱ”—˜ ȱ‘Žȱ–ŽŠœž›Ž–Ž—ȱ
ŽŒ‘—’šžŽœȱ žœŽȱ ’—ȱ ‘Žȱ Š›ŽŠȱ  ‘Ž›Žȱ ‘Žȱ ‹ž’•’—ȱ ’œȱ •˜ŒŠŽȱ Šœȱ  Ž••ȱ Šœȱ ‘˜œŽȱ žœŽȱ ˜ȱ
ŽœŒ›’‹Žȱ ™›˜™Ž›’Žœȱ Ž•œŽ ‘Ž›Žǯȱ Š’•ž›Žȱ ˜ȱ Š™™•¢ȱ –ŽŠœž›Ž–Ž—ȱ ŽŒ‘—’šžŽœȱ Š—ȱ ›Ž™˜›ȱ
‹ž’•’—ȱ’–Ž—œ’˜—œȱŒ˜—œ’œŽ—•¢ȱ ’‘’—ȱŠ—ȱŠœœ’—–Ž—ȱŒŠ—ȱ’–™Š’›ȱ‘ŽȱšžŠ•’¢ȱ˜ȱ‘Žȱ
Š™™›Š’œŠ•ȱ›Ž™˜›ǯ
—ȱ Š™™›Š’œŽ›ȱ žœŽœȱ ‘Žȱ œ¢œŽ–ȱ ˜ȱ –ŽŠœž›Ž–Ž—ȱ Œ˜––˜—•¢ȱ Ž–™•˜¢Žȱ ’—ȱ ‘Žȱ Š›ŽŠȱ
Š—ȱ’—Œ•žŽœȱŠȱŽœŒ›’™’˜—ȱ˜ȱ‘Žȱœ¢œŽ–ȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ȱ›Ž™˜›ǯȱ ›˜œœȱ‹ž’•’—ȱŠ›ŽŠȱ’œȱ
žœžŠ••¢ȱŒŠ•Œž•ŠŽǯȱŽŠœž›Ž–Ž—œȱŠ”Ž—ȱ›˜–ȱ™•Š—œȱœ‘˜ž•ȱ‹ŽȱŒ‘ŽŒ”ŽȱŠŠ’—œȱŠŒžŠ•ȱ
‹ž’•’—ȱ–ŽŠœž›Ž–Ž—œȱ‹ŽŒŠžœŽȱŠ•Ž›Š’˜—œȱŠ—ȱŠ’’˜—œȱŠ›Žȱ˜Ž—ȱ–ŠŽȱŠŽ›ȱ™•Š—œȱ
Š›Žȱ ™›Ž™Š›Žǯȱ ‘Žȱ Š›ŽŠœȱ ˜ȱ ŠĴŠŒ‘Žȱ ™˜›Œ‘Žœǰȱ
›ŽŽœŠ—’—ȱŠ›ŠŽœǰȱŠ—ȱ˜‘Ž›ȱ–’—˜›ȱ‹ž’•’—œȱ
Systems for measuring residential and non- Š›ŽȱŠ• Š¢œȱŒŠ•Œž•ŠŽȱœŽ™Š›ŠŽ•¢ǯȱ
residential properties vary. Gross building ˜ȱ –Š—ŠŽȱ Š—Š’Š—ȱ œŠ—Š›œȱ Ž¡’œȱ ˜›ȱ
area is measured for all property types
‹ž’•’—ȱ–ŽŠœž›Ž–Ž—ǯȱ‘Žȱ™™›Š’œŠ•ȱ—œ’žŽȱ˜ȱ
other than one-unit residential. Gross living
Š—ŠŠȱ ‘Šœȱ ™ž‹•’œ‘Žȱ ž’Ž•’—Žœȱ ˜›ȱ –ŽŠœž›’—ȱ
area and gross leasable area are other
common measurements.
Šȱ ‘˜žœŽDzȱ ‘˜ ŽŸŽ›ǰȱ ‘ŽœŽȱ Š›Žȱ —˜ȱ –Š—Š˜›¢ǯȱ ȱ
 ’Ž•¢ȱ ŠŒŒŽ™Žȱ –ŽŠœž›Ž–Ž—ȱ œŠ—Š›ȱ ˜›ȱ ›Žœ’Ȭ
Ž—’Š•ȱ ™›˜™Ž›’Žœȱ ’œȱ šžŠ›Žȱ ˜˜ŠŽȱ Ȯȱ Ž‘˜ȱ ˜›ȱ
Š•Œž•Š’—DZȱȱŝŜśȬŘŖŖřǰȱŽŸŽ•˜™Žȱ‹¢ȱ‘ŽȱŠ’˜—Š•ȱœœ˜Œ’Š’˜—ȱ˜ȱ
˜–Žȱž’•Ž›œȱ
ǻ
ǼȱŽœŽŠ›Œ‘ȱŽ—›Žȱ ’‘ȱ‘Žȱ–Ž›’ŒŠ—ȱŠ’˜—Š•ȱŠ—Š›œȱ—œ’žŽȱǻǼǯȱ‘Žȱ
Š—Š’Š—ȱ ŽŠ•ȱ œŠŽȱ œœ˜Œ’Š’˜—ȱ ǻǼȱ ‘Šœȱ ›ŽŒ˜––Ž—Žȱ ’œȱ –Ž–‹Ž›œȱ žœŽȱ ‘’œȱ
œŠ—Š›ǯȱŠ‹•ŽȱŗŗǯŗȱŽœŒ›’‹ŽœȱŒ˜––˜—ȱ‹ž’•’—ȱ–ŽŠœž›Ž–Ž—ȱœŠ—Š›œǯ
’ŒŽȱ ‹ž’•’—œȱ ™›ŽœŽ—ȱ œ™ŽŒ’Š•ȱ ™›˜‹•Ž–œȱ ˜›ȱ Š™™›Š’œŽ›œȱ ‹ŽŒŠžœŽȱ ‘Ž¢ȱ Š›Žȱ
–ŽŠœž›Žȱ ’Ž›Ž—•¢ȱ ’—ȱ ’Ž›Ž—ȱ ›Ž’˜—œǯȱ ‘Žȱ ž’•’—ȱ  —Ž›œȱ Š—ȱ Š—ŠŽ›œȱ
œœ˜Œ’Š’˜—ȱ —Ž›—Š’˜—Š•ȱ ǻǼȱ ‘Šœȱ ŽœŠ‹•’œ‘Žȱ Šȱ –Ž‘˜ȱ ˜›ȱ –ŽŠœž›’—ȱ ˜’ŒŽȱ
‹ž’•’—ȱ •˜˜›ȱ Š›ŽŠǯȱ ‘’œȱ  ’Ž•¢ȱ žœŽȱ –Ž‘˜ȱ ’œȱ ŽœŒ›’‹Žȱ ’—ȱ ȇœȱ ™ž‹•’ŒŠȬ
’˜—ȱŠ—Š›ȱŽ‘˜ȱ˜›ȱŽŠœž›’—ȱ•˜˜›ȱ›ŽŠȱ’—ȱ’ŒŽȱž’•’—œǰȱ ‘’Œ‘ȱ’œȱž™ŠŽȱ
™Ž›’˜’ŒŠ••¢ǯȱ ‘Žȱ ŽœŒ›’™’˜—ȱ ˜ȱ Š—ȱ ˜’ŒŽȱ ‹ž’•’—ȱ œ‘˜ž•ȱ ’—Œ•žŽȱ –ŽŠœž›Ž–Ž—œȱ
˜ȱ‘Žȱ˜••˜ ’—DZ
yȱ ›˜œœȱ‹ž’•’—ȱŠ›ŽŠ
yȱ ’—’œ‘Žȱ‹ž’•’—ȱŠ›ŽŠ
yȱ ŽŠœŠ‹•Žȱ‹ž’•’—ȱŠ›ŽŠ
˜–Žȱ–Ž‘˜œȱ˜ȱ˜ĜŒŽȱ–ŽŠœž›Ž–Ž—ȱŠ••˜ŒŠŽȱŠȱ™›˜ȱ›ŠŠȱ™˜›’˜—ȱ˜ȱ‘Žȱ›Žœ›˜˜–œǰȱ
Ž•ŽŸŠ˜›ȱ •˜‹‹’Žœǰȱ Š—ȱ Œ˜››’˜›œȱ ˜ȱ ŽŠŒ‘ȱ Ž—Š—Dzȱ ˜—Žȱ ŸŠ›’Š’˜—ȱ Š•œ˜ȱ ’—Œ•žŽœȱ Šȱ ™›˜ȱ ›ŠŠȱ
™˜›’˜—ȱ ˜ȱ ‘Žȱ ›˜ž—ȱ ̘˜›ȱ –Š’—ȱ •˜‹‹¢ȱ ’—ȱ ŽŠŒ‘ȱ Ž—Š—ȇœȱ •ŽŠœŽȱ Š›ŽŠǯȱ ĜŒŽȱ ‹ž’•’—ȱ

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 Chapter 11 – Improvement Analysis 11.7

Table 11.1: Building Measurement Standards

Gross living area (GLA)
Definition Total area of finished, above-grade residential space; calculated by measuring the
outside perimeter of the structure and includes only finished, habitable, above-grade
living space. Finished basements and attic areas are not generally included in total gross
living area. Local practices, however, may differ.
Use Used by federal agencies to measure single-unit residential properties

Gross building area (GBA)

Definition Total floor area of a building, excluding unenclosed areas, measured from the exterior
of the walls; includes both the superstructure floor area and the substructure or
basement area
Use Used by federal agencies to measure multi-family properties; also the standard of
measurement for industrial buildings

Gross leasable area (GLA)

Definition Total floor area designed for the occupancy and exclusive use of tenants, including
basements and mezzanines; measured from the centre of joint partitioning to the outside
wall surfaces.
Use Commonly used to measure shopping centres.

Note that the acronym GLA can stand for two different area measurements. Residential appraisers use GLA for gross living area;
non-residential appraisers use it to refer to gross leasable area.

–Š—ŠŽ–Ž—ȱ–Š¢ȱ–ŽŠœž›Žȱœ’—•ŽȬŽ—Š—ȱŠ—ȱ–ž•’ȬŽ—Š—ȱ̘˜›œȱ’—ȱ‘ŽȱœŠ–Žȱ‹ž’•’—ȱ
’—ȱ’쎛Ž—ȱ Š¢œǯȱ’—ŒŽȱ‘ŽœŽȱ–ŽŠœž›Ž–Ž—œȱŸŠ›¢ȱ ’‘ȱ˜ŒŒž™Š—Œ¢ǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱ
Š™™•¢ȱŠȱŒ˜—œ’œŽ—ȱ–Ž‘˜ȱ’—ȱŒŠ•Œž•Š’—ȱ‘Žȱ̘˜›Ȭ‹¢Ȭ̘˜›ȱ›Ž—Š‹•ŽȱŠ›ŽŠȱ˜ȱŠȱ‹ž’•’—ǯ
‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ —˜ȱ ŠŒŒŽ™ȱ Šȱ œŠŽ–Ž—ȱ Š‹˜žȱ ‘Žȱ œ’£Žȱ ˜ȱ Šȱ œž‹“ŽŒȱ ˜›ȱ
Œ˜–™Š›Š‹•Žȱ ™›˜™Ž›¢ȱ  ’‘˜žȱ ”—˜ ’—ȱ ‘Žȱ ‹Šœ’œȱ ˜›ȱ ‘Žȱ ŒŠ•Œž•Š’˜—ǯȱ —ŸŽ›’ꮍȱ œ’£Žȱ
’—˜›–Š’˜—ȱŒŠ—ȱŒŠžœŽȱ‘Žȱ›Žœž•’—ȱ˜™’—’˜—ȱ˜ȱŸŠ•žŽȱ˜ȱ‹ŽȱŽ››˜—Ž˜žœȱ˜›ȱ–’œ•ŽŠ’—ǯ

Format
ȱ Œ˜–™•ŽŽȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ȱ ’—Œ•žŽœȱ ’—˜›–Š’˜—ȱ Š‹˜žȱ ‘Žȱ ŽŠ’•œȱ Š—ȱ Œ˜—’Ȭ
’˜—ȱ ˜ȱ Šȱ ‹ž’•’—ȇœȱ Ž¡Ž›’˜›ǰȱ ’—Ž›’˜›ǰȱ Š—ȱ –ŽŒ‘Š—’ŒŠ•ȱ œ¢œŽ–œǯȱ •‘˜ž‘ȱ ‘Ž›Žȱ ’œȱ —˜ȱ
™›ŽœŒ›’‹Žȱ–Ž‘˜ȱ˜›ȱŽœŒ›’‹’—ȱŠ••ȱ‹ž’•’—œǰȱ‘Žȱ˜ž•’—Žȱ’—ȱ’ž›Žȱŗŗǯŗȱ–Š¢ȱ‹ŽȱžœŽȱ
˜ȱ ŽœŠ‹•’œ‘ȱ Šȱ ˜›–Šȱ ˜›ȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—œȱ Š—ȱ ŒŠ—ȱ ‹Žȱ
ŠŠ™Žȱ˜ȱ‘Žȱœ™ŽŒ’Š•ȱ—ŽŽœȱ˜ȱ™Š›’Œž•Š›ȱŠœœ’—–Ž—œǯ
‘Ž›ȱ ˜›–Šœȱ ŒŠ—ȱ ‹Žȱ žœŽž•ȱ ’—ȱ ’쎛Ž—ȱ Œ’›Œž–œŠ—ŒŽœǰȱ A building description includes
a description of the exterior,
Ž™Ž—’—ȱ˜—ȱ‘Žȱ¢™Žȱ˜ȱ™›˜™Ž›¢ȱŒ˜—ŒŽ›—ŽȱŠ—ȱ‘Žȱ—Šž›Žȱ
the interior, and the equipment
˜ȱ ‘Žȱ Š™™›Š’œŠ•ȱ Šœœ’—–Ž—ǯȱ ‘Žȱ •ŽŸŽ•ȱ ˜ȱ ŽŠ’•ȱ ›Žšž’›Žȱ ’—ȱ
and mechanical systems.
‘Žȱ‹ž’•’—ȱŽœŒ›’™’˜—ȱŸŠ›’ŽœȱŠŒŒ˜›’—ȱ˜ȱ‘ŽȱŠœœ’—–Ž—ȇœȱ
œŒ˜™Žȱ˜ȱ ˜›”ǯ

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 11.8 The Appraisal of Real Estate – Third Canadian Edition

Figure 11.1: Elements of a Building Description

A. Substructure
1. Footings 4. Painting, decorating, and finishing
2. Slabs a. Basements
3. Piles b. Floor coverings
4. Columns c. Walls, partitions, and ceilings
5. Piers d. Molding and baseboards
6. Beams e. Fireplaces
7. Foundation Walls 5. Protection against decay and insect damage
6. Miscellaneous and special features
B. Exterior Description
1. Framing D. Equipment and mechanical systems
2. Insulation 1. Plumbing system
3. Ventilation a. Piping
4. Exterior Walls b. Fixtures
5. Exterior Doors c. Hot water system
6. Windows, storm windows and screens 2. Heating, ventilation, and air-conditioning
7. Facade systems
8. Roof and drain system a. Heating systems
9. Chimneys, stacks, and vents (1) Warm or hot air
10. Special features (2) Hot water
(3) Steam
C. Interior description (4) Electric
1. Interior walls, partitions, and doors b. Air-conditioning and ventilation systems
2. Division of space 3. Electrical systems
a. Storage areas 4. Miscellaneous equipment
b. Stairs, ramps, elevators, escalators, a. Fire protection
and hoists b. Elevators, escalators, and speed ramps
3. Interior supports c. Signals, alarms, and call systems
a. Beams, columns, and trusses d. Loading facilities
b. Flooring system (subflooring) e. Attached equipment (process-related)
c. Ceilings

DESCRIPTION OF EXTERIOR MATERIALS AND DESIGN

—ȱŽ¡Ž›’˜›ȱŽœŒ›’™’˜—ȱ™›˜Ÿ’Žœȱ’—˜›–Š’˜—ȱ˜—ȱ‘Žȱ˜••˜ ’—DZ
yȱ ž‹œ›žŒž›Žǰȱ’ǯŽǯǰȱ˜ž—Š’˜—
yȱ ›Š–’—
yȱ —œž•Š’˜—
yȱ Ž—’•Š’˜—
yȱ ¡Ž›’˜›ȱ Š••œǰȱ˜˜›œǰȱŠ—ȱ ’—˜ œ
yȱ ˜˜œȱŠ—ȱ›Š’—œ
yȱ ‘’–—Ž¢œ
yȱ ™ŽŒ’Š•ȱŽŠž›Žœ

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 Chapter 11 – Improvement Analysis 11.9

Substructure: A building's entire foundational structure, which is below grade and provides a support
base or footings on which the superstructure rests

Footings
Type Perimetric base
Materials Concrete
Characteristics/Use Most common type of footing; a concrete base rests on undisturbed
earth below the frost line and distributes the load of the walls over
the subgrade
Type Plain footing
Materials Concrete
Characteristics/Use Unreinforced and designed to carry light loads

Type Reinforced footing

Materials Concrete and steel
Characteristics/Use Contain steel to increase their strength

Type Column
Materials Concrete
Characteristics/Use Long, relatively slender pillars

Type Spread footing

Materials Concrete
Characteristics/Use Frequently used where the soil has poor load-bearing capacity

Foundations
Type Slab-on-ground
Materials Poured concrete
Characteristics/Use Concrete or cinder block walls on concrete footings
Cut stone or stone and brick (in older buildings)
Most common type of foundation

Type Mat and raft (floating foundation)

Materials Concrete slab heavily reinforced with steel
Characteristics/Use Used over soils that have poor load-bearing capacity; steel
reinforcing makes the entire foundation function as a unit
Piles
Type Columnar units
Materials Concrete, Metal, Wood
Characteristics/Use Piles serve as substitutes for footings, transmitting loads through
soil with poor load-bearing capacity to lower levels where the soil's
load bearing capacity is adequate

Columns, piers, and beams

Materials Concrete
Steel
Characteristics/Use Foundation supports that can be used separately or in combination

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 11.10 The Appraisal of Real Estate – Third Canadian Edition

Substructure
ž‹œ›žŒž›Žȱ žœžŠ••¢ȱ ›ŽŽ›œȱ ˜ȱ Šȱ ‹ž’•’—ȇœȱ Ž—’›Žȱ ˜ž—Š’˜—Š•ȱ œ›žŒž›Žǰȱ  ‘’Œ‘ȱ ’œȱ
‹Ž•˜ ȱ›ŠŽȱŠ—ȱ’—Œ•žŽœȱœžŒ‘ȱ˜ž—Š’˜—ȱœž™™˜›œȱŠœȱ˜˜’—œǰȱœ•Š‹œǰȱ™’•ŽœǰȱŒ˜•ž–—œǰȱ
™’Ž›œǰȱŠ—ȱ‹ŽŠ–œǯȱ˜ȱŽŸŠ•žŠŽȱ‘ŽȱšžŠ•’¢ȱŠ—ȱŒ˜—’’˜—ȱ˜ȱ˜˜’—œȱǻŠ—ȱ˜‘Ž›ȱ’Ž–œȱ
˜ȱ Œ˜—ŒŽŠ•Žȱ Œ˜—œ›žŒ’˜—ȱ ‘›˜ž‘˜žȱ Šȱ ‹ž’•’—Ǽǰȱ  ‘’Œ‘ȱ Š›Žȱ Ÿ’œ’‹•Žȱ ˜—•¢ȱ  ‘Ž—ȱ
Šȱ ‹ž’•’—ȱ ’œȱ ž—Ž›ȱ Œ˜—œ›žŒ’˜—ǰȱ Š—ȱ Š™™›Š’œŽ›ȱ –žœȱ •˜˜”ȱ ˜›ȱ ŽŸ’Ž—ŒŽȱ ˜ȱ œ›žŒž›Š•ȱ
™›˜‹•Ž–œǯȱ˜˜’—œȱ‘ŠȱŠ›Žȱ’–™›˜™Ž›•¢ȱŽœ’—ŽȱŠ—ȱŒ˜—œ›žŒŽȱ˜Ž—ȱŒŠžœŽȱœŽĴ•’—ȱ
Š—ȱ Š••ȱŒ›ŠŒ”œǯ

Superstructure
ž™Ž›œ›žŒž›Žȱ žœžŠ••¢ȱ ›ŽŽ›œȱ ˜ȱ ‘Žȱ ™˜›’˜—ȱ ˜ȱ ‘Žȱ ‹ž’•’—ȱ Š‹˜ŸŽȱ ›ŠŽǯȱ —ȱ –ž•’Ȭ
™ž›™˜œŽȱ ‹ž’•’—œǰȱ ‘˜ ŽŸŽ›ǰȱ Œ˜–™˜—Ž—œȱ œžŒ‘ȱ Šœȱ ™Š›”’—ȱ Š›ŠŽœȱ ‘Šȱ Š›Žȱ Š‹˜ŸŽȱ
›ŠŽȱ‹žȱ—˜ȱžœŽȱ˜›ȱ‘Š‹’Š‹•Žȱœ™ŠŒŽȱŠ›Žȱ˜Ž—ȱŒ˜—œ’Ž›Žȱ™Š›ȱ˜ȱ‘Žȱœž‹œ›žŒž›Žǯ

Framing
‘Žȱœ›žŒž›Š•ȱ›Š–Žȱ’œȱ‘Žȱ•˜ŠȬ‹ŽŠ›’—ȱœ”Ž•Ž˜—ȱ˜ȱŠȱ‹ž’•’—ȱ˜ȱ ‘’Œ‘ȱ‘ŽȱŽ¡Ž›’˜›ȱŠ—ȱ
’—Ž›’˜›ȱ Š••œȱŠ›ŽȱŠĴŠŒ‘Žǯȱ‘Žȱœ›žŒž›Š•ȱ›Š–Žœȱ˜ȱ–˜œȱ‘˜žœŽœȱ’—ȱŠ—ŠŠȱŠ›Žȱ–ŠŽȱ˜ȱ
 ˜˜ǯȱŠ—¢ȱŒ˜––Ž›Œ’Š•ȱŠ—ȱ’—žœ›’Š•ȱ‹ž’•’—œȱ‘ŠŸŽȱœŽŽ•ȱ˜›ȱŒ˜—Œ›ŽŽȱ›Š–Žœǯ
ȱ ˜˜ȱ›Š–’—ȱœ¢œŽ–ȱ‘Šȱ’œȱŽŽŒ’ŸŽȱŒŠ—ȱŒŠžœŽȱ Š••œȱ˜ȱŒ›ŠŒ”ǰȱŽ¡Ž›’˜›ȱ Š••œȱ
˜ȱ ‹ž•Žǰȱ  ’—˜ œȱ ˜ȱ œ’Œ”ǰȱ Š—ȱ ˜˜›œȱ ˜ȱ ˜™Ž—ȱ ˜›ȱ Œ•˜œŽȱ ’–™›˜™Ž›•¢ǯȱ ŽŽ•ȱ ›Š–’—ȱ ’œȱ

Superstructure: The portion of a building that is above grade

Framing
Type Platform
Materials Wood
Characteristics/Use Vertical framing members (studs) are cut to the ceiling height of one floor,
horizontal plates are laid on top, then more studs are cut for the next floor
Type Post-and-beam
Materials Wood
Characteristics/Use Heavier and larger framing members support widely spaced beams; fewer
interior load-bearing walls
Type Precast concrete
Characteristics/Use Prefabricated walls and floors are "tilted up" at the construction site
Type Steel framing
Characteristics/Use For functional, single-storey industrial plants with increasing large bays
between columns; usually less expensive that precast or reinforced concrete
and easier and faster to erect

Type Solid masonry exterior walls with steel beam or reinforced concrete interior
framing (newer buildings) or interior framing of wood beams and posts
(older buildings)

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 Chapter 11 – Improvement Analysis 11.11

žœžŠ••¢ȱ •Žœœȱ Ž¡™Ž—œ’ŸŽȱ ‘Š—ȱ ™›ŽŒŠœȱ ˜›ȱ ›Ž’—˜›ŒŽȱ Œ˜—Œ›ŽŽȱ Š—ȱ ’ȱ ’œȱ ŽŠœ’Ž›ȱ Š—ȱ ŠœŽ›ȱ
˜ȱ Ž›ŽŒǯȱ
˜ ŽŸŽ›ǰȱ œŽŽ•ȱ ›Š–’—ȱ ‘Šœȱ ˜—Žȱ –Š“˜›ȱ ’œŠŸŠ—ŠŽǯȱ —•Žœœȱ ’ȱ ’œȱ Ž—ŒŠœŽȱ
’—ȱ ‘ŽŠȬ›Žœ’œŠ—ǰȱ ꛎ™›˜˜ȱ –ŠŽ›’Š•ȱ œžŒ‘ȱ Šœȱ ™•ŠœŽ›ȱ ˜›ȱ Œ˜—Œ›ŽŽǰȱ ‘Žȱ œŽŽ•ȱ  ’••ȱ ‹žŒ”•Žȱ
Š—ȱ ‹Ž—ȱ ’—ȱ Šȱ ꛎǰȱ ™ž••’—ȱ Š“ŠŒŽ—ȱ œ›žŒž›Š•ȱ –Ž–‹Ž›œȱ ˜žȱ ˜ȱ ™˜œ’’˜—ȱ Š—ȱ ›ŽŠ•¢ȱ
’—Œ›ŽŠœ’—ȱꛎȱŠ–ŠŽȱ˜ȱ‘Žȱ‹ž’•’—ǯȱŽ’—˜›ŒŽȱŠ—ȱ™›ŽŒŠœȱŒ˜—Œ›ŽŽȱ›Š–’—ȱ’œȱ‘Žȱ
–˜œȱŽ¡™Ž—œ’ŸŽȱŠ—ȱ’ĜŒž•ȱ˜ȱŒ˜—œ›žŒǰȱ‹žȱ’ȱ’œȱ‘’‘•¢ȱ›Žœ’œŠ—ȱ˜ȱꛎȱŠ–ŠŽǯ

Insulation
—œž•Š’˜—ȱ —˜ȱ ˜—•¢ȱ ‘Ž•™œȱ ŽŒ˜—˜–’£Žȱ ˜—ȱ žŽ•ȱ Š—ȱ Ž—œž›Žȱ ‘Žȱ Œ˜–˜›ȱ ˜ȱ ˜ŒŒž™Š—œȱ ’—ȱ
‹˜‘ȱ  Š›–ȱ Š—ȱ Œ˜•ȱ Œ•’–ŠŽœǰȱ ‹žȱ ’ȱ Š•œ˜ȱ ›ŽžŒŽœȱ —˜’œŽȱ ›Š—œ–’œœ’˜—ȱ Š—ȱ ’–™ŽŽœȱ
‘Žȱ œ™›ŽŠȱ ˜ȱ ꛎǯȱ ‘Žȱ Š‹’•’¢ȱ ˜ȱ Š—ȱ ’—œž•Š’˜—ȱ –ŠŽ›’Š•ȱ ˜ȱ ›Žœ’œȱ ‘Žȱ ̘ ȱ ˜ȱ ‘ŽŠȱ ’œȱ
–ŽŠœž›Žȱ ’—ȱ ȱ ˜›ȱ ȱ ŸŠ•žŽœǯȱ ȱ ŸŠ•žŽȱ ’œȱ Ž›’ŸŽȱ ‹¢ȱ –ŽŠœž›’—ȱ ‘Žȱ ›’’œ‘ȱ ‘Ž›–Š•ȱ
ž—’œȱǻœǼȱ‘ŠȱŠ›Žȱ›Š—œ–’ĴŽȱ’—ȱ˜—Žȱ‘˜ž›ȱ‘›˜ž‘ȱ˜—Žȱ•Š¢Ž›ȱ˜ȱ‘Žȱ’—œž•Š’˜—ȱǻȱ
’œȱŠȱ–Ž›’Œȱ–ŽŠœž›Žȱ‘Šȱ’œȱ˜—ŽȬœŽŸŽ—‘ȱ˜ȱ‘ŽȱȱŸŠ•žŽǼǯȱ‘Žȱ‘’‘Ž›ȱ‘Žȱȱ˜›ȱȱŸŠ•žŽǰȱ
‘Žȱ‹ŽĴŽ›ȱ‘Žȱ’—œž•Š’˜—ǯȱ
‘Ž›Žȱ’œȱ—˜ȱž—’ŸŽ›œŠ•ȱœŠ—Š›ȱ˜›ȱ‘ŽȱŠ–˜ž—ȱ˜ȱ’—œž•Š’˜—ȱ›Žšž’›Žȱ’—ȱŠȱœ›žŒž›Žȱ
‹ŽŒŠžœŽȱ ‘Žȱ Š–˜ž—ȱ ŸŠ›’Žœȱ  ’‘ȱ ‘Žȱ Œ•’–ŠŽȱ Š—ȱ ‘Žȱ ¢™Žȱ ˜ȱ ‹ž’•’—ǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ
˜ŸŽ›ȬŒŽ’•’—ȱ˜›ȱž—Ž›Ȭ›˜˜ȱ’—œž•Š’˜—ȱ ’‘ȱŠ—ȱȱŸŠ•žŽȱ˜ȱŗřȱ–’‘ȱ‹ŽȱœŠ’œŠŒ˜›¢ȱ’—ȱŠȱ
–’•ȱŒ•’–ŠŽȱ’ȱ‘Ž›Žȱ’œȱŠœȱ˜›ȱ˜’•ȱ‘ŽŠȱŠ—ȱ—˜ȱŠ’›ȬŒ˜—’’˜—’—ǯȱ—ȱŒ˜•ȱ˜›ȱ‘˜ȱŒ•’–ŠŽœȱ
Š—ȱ’—ȱœ›žŒž›Žœȱ ’‘ȱŽ•ŽŒ›’Œȱ‘ŽŠȱ˜›ȱŠ’›ȬŒ˜—’’˜—’—ǰȱ’—œž•Š’˜—ȱ ’‘ȱŠ—ȱȱŸŠ•žŽȱ˜ȱ
ŘŚȱ –’‘ȱ ‹Žȱ —ŽŒŽœœŠ›¢ǯȱ ‘Ž›Žȱ ‘Šœȱ ‹ŽŽ—ȱ Šȱ ›˜ ’—ȱ ›Ž—ȱ ˜ȱ œž™Ž›’—œž•ŠŽȱ œ›žŒž›Žœȱ
žœ’—ȱ’—œž•Š’˜—ȱ ’‘ȱ–žŒ‘ȱ‘’‘Ž›ȱ’—œž•Š’˜—ȱŸŠ•žŽœǯ

Insulation
Type Loose-fill
Materials Mineral wool (rock, slag, or glass wool) or cellulosic fibre (recycled newsprint,
wood chips, or other organic fibres)
Characteristics/Use Poured or blown by a machine into a building's structural cavities

Type Flexible
Characteristics/Use Generally used where it is not practical to install loose-fill insulation or where
the foil or kraft paper facing is needed as a vapour barrier

Type Rigid
Characteristics/Use Structural wall insulation
Fibreboard
Structural deck insulation
Rigid board insulation
Type Reflective
Materials Foil
Characteristics/Use Used to reflect heat transferred by radiation

Type Foamed-in-place
Materials Polyurethane

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 11.12 The Appraisal of Real Estate – Third Canadian Edition

ASBESTOS IN BUILDINGS
Asbestos is a non-flammable, natural mineral material that separates into fibres. Asbestos-containing
materials (ACMs) were widely used in structures built between 1945 and 1980 as thermal and acoustical
insulation or for fireproofing and soundproofing. Other ACMs were used in siding and roofing shingles.
Asbestos has also been found in many products around the house: it has been used in clapboard;
shingles and felt for roofing; exterior siding; pipe and boiler covering; compounds and cement, such as
caulk, putty, roof patching, furnace cement, and driveway coating; wallboard; textured and latex paints;
acoustical ceiling tiles and plaster; vinyl floor tiles; appliance wiring; hair dryers; irons and ironing board
pads; flame-resistant aprons and electric blankets; and clay pottery. Loose-fill vermiculite insulation may
contain traces of "amphibole" asbestos.
Asbestos fibres pose a threat to human health when they are distributed in the air. The potential of any
ACM to release fibres depends on its degree of friability, i.e., how easily it is crumbled or pulverized.
Dry, sprayed-on thermal insulation over structural steel is highly friable. Densely packed, nonfibrous
ACMs such as vinyl asbestos floor covering and pipe insulation are not considered friable under normal
conditions. Nevertheless, these materials will become friable if they are broken, sawed, or drilled.
Encapsulation or enclosure of asbestos is effective as a short-term solution. The provincial and territorial
occupational health and safety standards exist for the removal of asbestos when a building is being
demolished or renovated.
Health Canada has encouraged provincial occupational health authorities to adopt stringent workplace
exposure limits for asbestos. The sale of pure asbestos and certain high risk consumer products that
are composed of or contain asbestos fibres is strictly regulated under the Hazardous Products Act. In
addition, the emissions of asbestos into the environment from mining and milling operations are subject
to the Canadian Environmental Protection Act.
The use of asbestos is not illegal. While alternative products are being developed to replace asbestos,
products sold today containing asbestos are regulated under the Hazardous Products Act. Asbestos
can be used safely, and public concern has led to improved product design and manufacture. Asbestos
is now better encapsulated and sealed to reduce the escape of fibres. Asbestos is valuable in many
applications because it has been difficult to find comparable substitute materials. For example, it is still
an important component of brake lining and clutch facings.
One market's reaction to the effect asbestos has on the value of income-producing properties may differ
from the reaction of other markets. There is little evidence, however, that investors are willing to sell
properties at sharp discounts, or any at all, because of the problem.
For additional discussion of the influence of asbestos on real estate value, see Jeffrey D. Fisher, George
H. Tse, and K.S. Maurice, "Effects of Asbestos on Commercial Real Estate: A Survey of MAI Appraisers",
The Appraisal Journal (October 1993): 587–599; Robert Simons, "How Clean is Clean?" The Appraisal
Journal (July 1994): 424–438; and Daniel F. Ryan, "A Lender's View of Hazardous Substances. . . And
Appraiser Responsibility", Real Estate Appraiser & Analyst (Fall 1989): 10–12.

Ventilation
••ȱ‹ž’•’—œȱ—ŽŽȱŸŽ—’•Š’˜—ȱ˜ȱ›ŽžŒŽȱ‘ŽŠȱ‹ž’•ž™ȱ‹Ž¢˜—ȱ˜•Ž›Š—ŒŽœȱ’—ȱŒ•˜œŽȬ˜ěȱ
Š›ŽŠœȱ œžŒ‘ȱ Šœȱ ŠĴ’Œœȱ Š—ȱ œ™ŠŒŽœȱ ‹Ž‘’—ȱ  Š••œǯȱ Ž—’•Š’˜—ȱ Š•œ˜ȱ ™›ŽŸŽ—œȱ ‘Žȱ Œ˜—Ž—Ȭ
œŠ’˜—ȱ ˜ȱ  ŠŽ›ǰȱ  ‘’Œ‘ȱ Œ˜••ŽŒœȱ ’—ȱ ž—ŸŽ—’•ŠŽȱ œ™ŠŒŽœȱ Š—ȱ ŒŠžœŽœȱ ‹ž’•’—ȱ –ŠŽ›’Š•œȱ
˜ȱ ›˜ȱ Š—ȱ ŽŒŠ¢ǯȱ ‘Ž—ȱ Œ˜—Ž—œŠ’˜—ȱ œŽŽ™œȱ ’—˜ȱ ’—œž•Š’˜—ǰȱ ’ȱ ›ŽžŒŽœȱ ’œȱ ȱ ›Š’—ǯȱ
Ž—’•Š’˜—ȱ ŒŠ—ȱ ‹Žȱ ŠŒŒ˜–™•’œ‘Žȱ  ’‘ȱ ‘˜•Žœȱ ‘Šȱ ›Š—Žȱ ›˜–ȱ ˜—Žȱ ’—Œ‘ȱ ˜ȱ œŽŸŽ›Š•ȱ ŽŽȱ

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 Chapter 11 – Improvement Analysis 11.13

’—ȱ’Š–ŽŽ›ǯȱ‘ŽœŽȱ‘˜•Žœȱœ‘˜ž•ȱ‹ŽȱŒ˜ŸŽ›Žȱ ’‘ȱœŒ›ŽŽ—’—ȱ˜ȱ”ŽŽ™ȱ˜žȱŸŽ›–’—ǯȱ•œ˜ǰȱ
ŸŽ—’•Š’˜—ȱŒŠ—ȱ‹Žȱ’—Œ›ŽŠœŽȱ‹¢ȱžœ’—ȱŠ—œǯ

Exterior Walls and Doors

¡Ž›’˜›ȱ  Š••œȱ Š›Žȱ Ž’‘Ž›ȱ •˜ŠȬ‹ŽŠ›’—ȱ ˜›ȱ —˜—•˜ŠȬ‹ŽŠ›’—ǯȱ ‘Ž—ȱ ‘Žȱ šžŠ•’¢ȱ ˜ȱ ‘Žȱ
Ž¡Ž›’˜›ȱ  Š••œȱ ’œȱ ‹Ž•˜ ȱ ‘Žȱ œŠ—Š›ȱ ˜›ȱ ‹ž’•’—œȱ ’—ȱ ‘Žȱ œŠ–Žȱ –Š›”Žǰȱ ‘Žȱ ™›˜™Ž›¢ȱ
–Š¢ȱ œžěŽ›ȱ Šȱ •˜œœȱ ’—ȱ ŸŠ•žŽǯȱ —ȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ —˜Žȱ ‘Žȱ ™›ŽœŽ—ŒŽȱ ˜›ȱ Š‹œŽ—ŒŽȱ ˜ȱ
Ž—Ž›¢ȬŒ˜—œŽ›Ÿ’—ȱ –ŠŽ›’Š•ȱ œžŒ‘ȱ Šœȱ  ŽŠ‘Ž›œ›’™™’—ȱ Š›˜ž—ȱ ˜˜›œǯȱ ˜˜›ȱ œ‘˜Žœǰȱ
 ŽŠ‘Ž›™›˜˜ȱ‘›Žœ‘˜•œǰȱŠ—ȱœ ŽŽ™œȱ ’••ȱ™›ŽŸŽ—ȱŠ’›ȱ›˜–ȱ•ŽŠ”’—ȱ‘›˜ž‘ȱŒ›ŠŒ”œȱŠȱ
‘Žȱ‹˜Ĵ˜–ȱ˜ȱŠȱ˜˜›ǯ

Exterior Walls
Type Load-bearing
Materials Solid masonry (cement block, brick, or a combination)
Poured concrete
Pre-stressed concrete
Steel beams covered with siding material
Wood framing

Characteristics/Use May be strengthened with masonry pilasters attached to the exterior of the wall

Type Nonload-bearing
Materials Porcelain enamel
Steel
Aluminum
Pre-cast aggregate concrete
Glass
Corrugated iron, tilt-up precast concrete asbestos board, fibreglass and metal
sandwich panels for industrial buildings

Characteristics/Use Commonly used in larger buildings; attached to the framing system

Exterior Doors
Type Standard
Materials Wood
Metal
Glass

Characteristics/Use Exterior doors are usually solid; hollow exterior doors are a sign of poor-
quality construction

Type Large truck doors (commercial and industrial buildings)

Materials Steel

Type/Components Special-purpose doors with automatic door openers

Materials Wood
Metal
Glass

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 11.14 The Appraisal of Real Estate – Third Canadian Edition

Windows, Storm Windows, and Screens

—ȱ ŽœŒ›’‹’—ȱ Šȱ ‹ž’•’—ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ —˜Žœȱ ‘Žȱ ¢™Žȱ ˜ȱ  ’—˜ ǰȱ ’œȱ –ŠŽ›’Š•ȱ ˜›ȱ
–Š—žŠŒž›Žǰȱ Š—ȱ Š—¢ȱ Ž—Ž›¢ȬœŠŸ’—ȱ ŽŠž›Žœǯȱ ’—ŒŽȱ  ’—˜ œȱ Š›Žȱ Šȱ –Š“˜›ȱ œ˜ž›ŒŽȱ ˜ȱ
‘ŽŠȱ Š—ȱ Œ˜˜•’—ȱ •˜œœǰȱ ‘Ž’›ȱ Žœ’—ȱ Š—ȱ ’—œŠ••Š’˜—ȱ ’œȱ ’–™˜›Š—ǯȱ —ȱ Œ˜––Ž›Œ’Š•ȱ Š—ȱ
’—žœ›’Š•ȱ ‹ž’•’—œǰȱ ‹ž’•Ž›œȱ Ž—Ž›Š••¢ȱ ’—œŠ••ȱ  ’—˜ œȱ ˜ȱ ˜ž‹•Žȱ ˜›ȱ ›’™•Žȱ •Š£’—ȱ
Š—ȱ˜ŒŒŠœ’˜—Š••¢ȱžœŽȱŒŠœŽ–Ž—ȱ ’—˜ œǯ

Facade
Š—¢ȱ ‘˜žœŽœǰȱ œ˜›Žœǰȱ ˜ĜŒŽȱ ‹ž’•’—œǰȱ Š—ȱ ’—žœ›’Š•ȱ ‹ž’•’—œȱ ‘ŠŸŽȱ Šȱ ŠŒŠŽǰȱ ˜›ȱ
›˜—ǰȱ‘Šȱ’쎛œȱ›˜–ȱ‘ŽȱŽœ’—ȱŠ—ȱŒ˜—œ›žŒ’˜—ȱ˜ȱ‘Žȱ›Žœȱ˜ȱ‘Žȱ‹ž’•’—ǯȱ™ŽŒ’Š•ȱ
ŠŒŠŽœȱ–Š¢ȱŒ˜œȱŽ¡›ŠȱŠ—ȱ‘žœȱŠěŽŒȱ‘Žȱ™›˜™Ž›¢ȇœȱŸŠ•žŽǯ

Windows
Types Single and double-hung
Casement
Horizontal sliding
Clerestory
Fixed
Awning
Centre pivot
Jalousie
Materials Glass with wood framing (usually for houses) or aluminum or steel framing
(often in residential, commercial, and industrial buildings)
Characteristics/Use Windows should be tightly sealed, with caulking at the joints and between the
wall and the window. The use of insulated glass, multiple glazing, and storm
sashes helps keep cold air out and heat in.
In most parts of the country, screens are needed for all windows that open. Most
screens have aluminum frames, and in residences, screens are often combined
with storm windows.

Facade

Types Multi-family
Retail
Industrial, office, etc.

Materials Masonry veneer or contrasting siding

Glass or other decorative material
More elaborate facade than exterior walls

Characteristics/Use In modern industry and commerce, public image is important. An attractive

store, warehouse, industrial plant, or office building has both advertising and
public relations value to the occupant. Ornamentation, identifying, signs,
lighting, and landscaping all contribute to a building's aesthetics.

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 Chapter 11 – Improvement Analysis 11.15

Roof and Drainage System

ȱ ›˜˜ȱ ’œȱ Žœ’—Žȱ Š—ȱ Œ˜—œ›žŒŽȱ ˜ȱ œž™™˜›ȱ ’œȱ ˜ —ȱ  Ž’‘ȱ Š—ȱ ‘Žȱ ™›Žœœž›Žȱ ˜ȱ
œ—˜ ǰȱ ’ŒŽǰȱ  ’—ǰȱ Š—ȱ ›Š’—ǯȱ ‘Žȱ ›˜˜ȱ Œ˜ŸŽ›’—ȱ ™›ŽŸŽ—œȱ –˜’œž›Žȱ ›˜–ȱ Ž—Ž›’—ȱ ‘Žȱ
œ›žŒž›Žǯȱ ‘Žȱ  ŠŽ›ȱ ‘Šȱ Š••œȱ ˜—ȱ Šȱ ›˜˜ȱ –žœȱ ‹Žȱ ’›ŽŒŽȱ ˜ȱ ‘Žȱ ›˜ž—ȱ ˜›ȱ ’—˜ȱ Šȱ
›Š’—ŠŽȱœ¢œŽ–ǯȱŸŽ—ȱœ˜ȬŒŠ••ŽȱȈ̊Ȉȱ›˜˜œȱ–Š¢ȱ‹Žȱœ•’‘•¢ȱ™’Œ‘Žȱ˜ȱ’›ŽŒȱ ŠŽ›ȱ˜ȱ
›Š’—œȱŠ—ȱžĴŽ›œǯ
˜œȱ ›˜˜œȱ —ŽŽȱ ˜ȱ ‹Žȱ ›Ž™•ŠŒŽȱ œŽŸŽ›Š•ȱ ’–Žœȱ ž›’—ȱ Šȱ ‹ž’•’—ȇœȱ •’ŽDzȱ ‘Ž›Ž˜›Žǰȱ
Š—ȱ Š™™›Š’œŽ›ȱ –žœȱ ’—ŸŽœ’ŠŽȱ Šȱ ›˜˜ȇœȱ Œ˜—’’˜—ȱ Š—ȱ ŠŽȱ ˜ȱ ŽŽ›–’—Žȱ ’œȱ ›Ž–Š’—’—ȱ
žœŽž•ȱ•’Žǯ

Roof
Types Flat
Lean-to (saltbox)
Gable
Gambrel
Hip
Mansard
Monitor
Sawtooth
Materials Wood trusses, joists or horizontal beams, joists and rafters, or posts and beams
in residential construction
Steel or wood trusses, glued wood beams, or steel or concrete frame with wood
joists or purlins or with steel bar joists in commercial and industrial construction

Characteristics/Use Flat roofs are used extensively in industrial and commercial buildings but are
less common in residences. Lean-to roofs, often called shed roofs, are used
on saltbox houses, and gambrel roofs are popular for barns and Cape Ann
and Dutch Colonial houses. Monitor and sawtooth roofs are sometimes used in
industrial construction.

Drain System

Components Gutters and downspouts

Materials Galvanized steel
Aluminum
Copper

Characteristics/Use Channel water from roofs to prevent damage and protect the appearance of
walls when roof overhangs are not provided

Components Gutters or eave troughs

Materials Galvanized steel
Aluminum
Copper

Characteristics/Use Catch rainwater at the edge of the roof and carry it to downspouts or leaders

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 11.16 The Appraisal of Real Estate – Third Canadian Edition

Drain System, continued

Components Downspouts or leaders
Materials Galvanized steel
Aluminum
Copper

Characteristics/Use Vertical pipes that carry the water to the ground or into sewers, dry wells, drain
tiles, or splash pans
Components Roof drains (in large buildings)
Materials Galvanized steel
Aluminum
Copper

Characteristics/Use Connected to storm drains by pipes in the building

Roof Covering
Materials Asphalt shingles (prevalent in residential construction)
Wood, asbestos, fiberglass, or cement shingles or shakes
Metal
Clay tile
Slate
Built-up layers of felt or composition material covered with tar and then gravel
or another surfacing material (most common on flat roofs of commercial and
industrial buildings)
Single-membrane roof assembly
Characteristics/Use Joints in roofs are created where two different roof slopes meet or where
the roof meets adjoining walls or projections such as chimneys, pipes, and
ventilation ducts. All joints must be flashed. Flashing is usually accomplished
by nailing strips of galvanized metal, aluminum, or tin across or under the
point, applying a waterproofing compound or cement, and securing the roofing
material over the edges to hold it permanently in place.
Roof sheathing
Materials Plywood
Steel roof deck
Lightweight precast concrete slabs
Reinforced concrete slabs
Insulated sheathing in large sheets

Chimneys, Stacks, and Vents

¡‘Šžœȱ œ¢œŽ–œȱ ›Š—Žȱ ›˜–ȱ œ’–™•Žȱ –ŽŠ•ȱ ŸŽ—œȱ Š—ȱ •žŽœȱ ˜ȱ Œ˜–™•Ž¡ȱ –Šœ˜—›¢ȱ
’›Ž™•ŠŒŽœǰȱ ’—žœ›’Š•ȱ Œ‘’–—Ž¢œǰȱ Š—ȱ ŸŽ—’•Š’˜—ȱ œ¢œŽ–œǯȱ ‘Žȱ Ž’Œ’Ž—Œ¢ȱ ˜ȱ Š—¢ȱ
žŽ•Ȭ‹ž›—’—ȱ‘ŽŠ’—ȱœ¢œŽ–ȱŽ™Ž—œȱ˜—ȱ’œȱŒ‘’–—Ž¢ǰȱœŠŒ”ǰȱ˜›ȱŸŽ—ǯȱ‘’–—Ž¢œȱŠ—ȱ
œŠŒ”œȱ  ’‘ȱ Œ›ŠŒ”Žȱ ‹›’Œ”œǰȱ •˜˜œŽȱ –˜›Š›ȱ “˜’—œǰȱ ˜›ȱ ˜‘Ž›ȱ •ŽŠ”œȱ –Š¢ȱ ‹Žȱ œŽ›’˜žœȱ ꛎȱ
Š—ȱ‘ŽŠ•‘ȱ‘Š£Š›œǯ

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 Chapter 11 – Improvement Analysis 11.17

Chimneys, stacks, and vents

Materials Brick
Metal
Characteristics/Use Should be structurally safe, durable, and smoketight; should also be able to
withstand the action of flue gases

Special Features
™ŽŒ’Š•ȱ ŽŠž›Žœȱ ‘Šȱ –žœȱ ‹Žȱ ŒŠ›Žž••¢ȱ ŽœŒ›’‹Žȱ Š—ȱ Œ˜—œ’Ž›Žȱ ’—ȱ ‘Žȱ ŸŠ•žŠ’˜—ȱ
™›˜ŒŽœœȱ–’‘ȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ › ˜›”ȱ‘Šȱ’œȱŠĴŠŒ‘Žȱ˜ȱ‘Žȱ›ŽŠ•ȱŽœŠŽȱŠ—ȱ’œȱ—˜ȱ™Ž›œ˜—Š•ȱ™›˜™Ž›¢
yȱ ›—Š–Ž—Š’˜—
yȱ ¡Ž›’˜›ȱŽ•ŽŸŠ˜›œ
yȱ ˜•Š›ȱŠ—ȱ ’—ȱŽšž’™–Ž—
yȱ —’šžŽȱ ’—˜ ȱ’—œŠ••Š’˜—
yȱ ™ŽŒ’Š•ȱ–Šœ˜—›¢ȱ ˜›”ȱŠ—ȱŽ¡Ž›’˜›ȱ–ŠŽ›’Š•œ
yȱ Ž–œȱ›Žšž’›Žȱ˜›ȱ‘ŽȱŒ˜––Ž›Œ’Š•ȱ˜›ȱ’—žœ›’Š•ȱžœŽȱ˜ȱ‹ž’•’—œ
—’šžŽȱ‹ž’•’—ȱŽŠž›ŽœȱŒŠ—ȱ™›ŽœŽ—ȱŠȱŸŠ•žŠ’˜—ȱ™›˜‹•Ž–ǯȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱŽŒ’Žȱ
’ȱ ‘Žȱ ’Ž–œȱ ’—Œ›ŽŠœŽȱ ‘Žȱ ™›˜™Ž›¢ȇœȱ –Š›”Žȱ ŸŠ•žŽȱ ˜›ȱ Š›Žȱ ŸŠ•žŠ‹•Žȱ ˜—•¢ȱ ˜ȱ ‘Žȱ Œž››Ž—ȱ
žœŽ›ǯȱ —ȱ ‘Žȱ •ŠĴŽ›ȱ ŒŠœŽǰȱ ‘Žȱ ’Ž–œȱ –Š¢ȱ Šȱ žœŽȱ ŸŠ•žŽȱ ‹žȱ •’Ĵ•Žȱ ˜›ȱ —˜ȱ –Š›”Žȱ ŸŠ•žŽǯȱ ȱ
œžŒ‘ȱ’Ž–œȱŠ›ŽȱŽ¡™Ž—œ’ŸŽȱ˜ȱ›Ž–˜ŸŽǰȱ‘Ž¢ȱ–Š¢ȱ—˜ȱŠ™™ŽŠ•ȱ˜ȱŠȱ™›˜œ™ŽŒ’ŸŽȱ‹ž¢Ž›ȱŠ—ȱ
‘Žȱ™›˜™Ž›¢ȱŒ˜ž•ȱ‘Ž›Ž˜›Žȱ•˜œŽȱŸŠ•žŽǯ

DESCRIPTION OF INTERIOR MATERIALS AND DESIGN

—ȱ’—Ž›’˜›ȱŽœŒ›’™’˜—ȱ™›˜Ÿ’Žœȱ’—˜›–Š’˜—ȱŠ‹˜žȱ‘Žȱ˜••˜ ’—DZ
yȱ —Ž›’˜›ȱ Š••œǰȱ™Š›’’˜—œǰȱŠ—ȱ˜˜›œȱǻ’—Œ•ž’—ȱ‘˜ ȱ‘Žȱœ™ŠŒŽȱ’œȱ’Ÿ’ŽǼ
yȱ —Ž›’˜›ȱœž™™˜›œ
yȱ Š’› Š¢œ
yȱ Š’—’—ǰȱŽŒ˜›Š’—ǰȱŠ—ȱꗒœ‘’—ȱǻ’—Œ•ž’—ȱ̘˜›ȱŠ—ȱŒŽ’•’—ȱŒ˜ŸŽ›’—œǼ
yȱ ›˜ŽŒ’˜—ȱŠŠ’—œȱŽŒŠ¢ȱŠ—ȱ™Žœœ

Interior Walls, Partitions, and Doors

’”Žȱ Ž¡Ž›’˜›ȱ  Š••œǰȱ ’—Ž›’˜›ȱ  Š••œȱ Š—ȱ ™Š›’’˜—œȱ ŒŠ—ȱ ‹Žȱ Ž’‘Ž›ȱ •˜ŠȬ‹ŽŠ›’—ȱ ˜›ȱ
—˜—•˜ŠȬ‹ŽŠ›’—ǯȱ —ȱ Ž—Ž›Š•ǰȱ ‘ŠŸ’—ȱ Ž Ž›ȱ •˜ŠȬ‹ŽŠ›’—ȱ ’—Ž›’˜›ȱ  Š••œȱ Š••˜ œȱ ˜›ȱ
›ŽŠŽ›ȱ̎¡’‹’•’¢ȱ’—ȱ‘Žȱ’Ÿ’œ’˜—ȱ˜ȱœ™ŠŒŽȱ ’‘’—ȱ‘Žȱœ›žŒž›Žǯ

Interior Supports
ȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ȱ ’—Œ•žŽœȱ Œ˜—œ’Ž›Š’˜—ȱ ˜ȱ ‘Žȱ ‹ž’•’—ȇœȱ ’—Ž›—Š•ȱ œž™™˜›œǰȱ
 ‘’Œ‘ȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ ŽŠ–œǰȱŒ˜•ž–—œǰȱŠ—ȱ›žœœŽœ
yȱ ‘Žȱ̘˜›’—ȱœ¢œŽ–
yȱ Ž’•’—œ

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 11.18 The Appraisal of Real Estate – Third Canadian Edition

GREEN BUILDING AND SUSTAINABILITY

In the 21st century, widespread public concern over environmental "climate change" and the use
of natural resources has focused attention on the built environment and the products of industry.
The concept of sustainability has different meanings for different constituencies, and has particular
resonance in the real estate industry because of the size and impact of the industry on national and
global economies. In 2007, representatives of the valuation, building, and investment communities
met at the Vancouver Valuation Accord to discuss sustainability and value using the United Nation's
definition of sustainability: "a development that meets the needs of the present without compromising
the ability of future generations to meet their own needs." Green building is the most widely recognized
method for creating and fostering sustainable real estate.
Green building encompasses a wide range of renewable construction materials and energy- and
resource-efficient building techniques along with an overriding philosophy of sustainable development.
The most significant green building practices relate to the following:
Ȋ Sustainability of land, e.g., development density, stormwater management,
brownfield redevelopment
Ȋ Water efficiency, e.g., water use reduction, landscaping
Ȋ Energy and atmosphere, e.g., renewable sources, ozone depletion
Ȋ Materials and resources, e.g., reuse, recycling, renewable materials
Ȋ Indoor environmental quality, e.g., air quality, emissions, passive heating
Ȋ Innovation and sustainable design
Measuring the effectiveness of green building efforts is difficult, and the process of creating and
evaluating benchmarks is in its early stages. Sustainability is not always readily measurable at the
property level, and many experimental materials and methods have not proven to be physically or
economically sustainable. Many local governments have created sustainability plans with incentive
programs to reward owners and developers of green buildings. A recognized professional standard is the
Leadership in Energy and Environmental Design (LEED) standard for sustainable development. A group
of real estate organizations including the National Multi Housing Council, International Code Council,
and National Association of Home Builders is developing a new National Green Building Standard
that will be certified by the American National Standards Institute. Consultants in private practice have
examined the triple bottom line* as a tool to account for social and environmental influences as well as
the traditional economic impact of industry.
Appraisers will have to gather and analyze more data on the impact of green building on cost as well as
value before a systematic methodology for dealing with these special-design properties can be tested in
the marketplace. Examples of possible impacts on the valuation process include the following:
Ȋ The financial feasibility and productivity of sustainable construction and design elements could
affect highest and best use analysis.
Ȋ The higher cost (perceived or actual) of sustainable building materials and more efficient equip-
ment and systems can add to the cost of construction indicated in the cost approach. R.S. Means
currently publishes a green building project planning and cost estimating manual (see www.
rsmeans.com/bookstore/booksearch.asp). The distinction between cost and value becomes a
critical consideration when green building materials and systems are involved because of the de-
bate over the benefit of green building, i.e., is the added expense worth the perceived additional
cost to a typical property owner or investor in the marketplace? Furthermore, an argument could
be made that a lack of sustainable features in a new building is a functionally obsolete design
in a market that expects green building features. Likewise, the perceived lifespan of sustainable
building components may need to be accounted for in cost estimates if the market participants
expect the sustainable features to last longer than traditional components.

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 Chapter 11 – Improvement Analysis 11.19

GREEN BUILDING AND SUSTAINABILITY, continued

Ȋ In the income approach, the reduced operating expenses of a building with energy-efficient, low-
maintenance features may positively affect effective gross income, and thereby value.
Ȋ As green building becomes accepted and then expected in a market, the presence or lack of
green building features in a subject or comparable property could affect the selection of compa-
rable properties, adjustment for physical characteristics, and other aspects of the application of
the direct comparison approach.
In a market value appraisal assignment, the appraiser has a professional obligation to provide an
independent and objective opinion of value and so must distinguish the social and governmental influences
on value of sustainable improvements from the value the market ascribes to those improvements.
Additional Resources
US Green Building Council (www.usgbc.org)
Green Building Initiative (www.thegbi.org)
Energy Star (www.energystar.gov)
Krisandra Guidry, "How Green is Your Building?: An Appraiser's Guide to Sustainable Design", The
Appraisal Journal (Winter 2004): 57-68.

* John Elkington, Cannibals with Forks: The Triple Bottom Line of 21st Century Business (Stony Creek, Conn.: New Society
Publishers, 1998).

Beams, Columns, and Trusses

ŽŠ–œȱ Š—ȱ Œ˜•ž–—œȱ Š›Žȱ žœŽȱ ’—ȱ –Š—¢ȱ ›Žœ’Ž—’Š•ǰȱ Œ˜––Ž›Œ’Š•ǰȱ Š—ȱ ’—žœ›’Š•ȱ ‹ž’•Ȭ
’—œȱ  ’‘ȱ ‹ŠœŽ–Ž—œȱ ˜›ȱ Œ›Š •ȱ œ™ŠŒŽœȱ ‘Šȱ Š›Žȱ ˜˜ȱ  ’Žȱ ˜›ȱ ‘Žȱ ’›œȬ•˜˜›ȱ “˜’œœȱ ˜›ȱ
œž‹Ě˜˜›ȱœ¢œŽ–œȱŠ—ȱŒŠ——˜ȱ‹Žȱœž™™˜›Žȱ‹¢ȱ‘Žȱ˜ž—Š’˜—ȱ Š••œȱŠ•˜—Žǯȱœȱ’—Ž›’˜›ȱ
œž™™˜›ȱœ¢œŽ–œǰȱ›Š’’˜—Š•ȱ“˜’œȱŒ˜—œ›žŒ’˜—ȱ’œȱ‹Ž’—ȱ›Ž™•ŠŒŽȱ‹¢ȱ‹˜‘ȱ›˜˜ȱŠ—ȱ̘˜›ȱ
›žœœȱœ¢œŽ–œǯ

Flooring System
ž‹Ě˜˜›’—ȱ ™›˜Ÿ’Žœȱ œŠŽȱ œž™™˜›ȱ ˜›ȱ ̘˜›ȱ •˜Šœȱ  ’‘˜žȱ Ž¡ŒŽœœ’ŸŽȱ ŽĚŽŒ’˜—ȱ Š—ȱ
Š—ȱ ŠŽšžŠŽȱ ‹ŠœŽȱ ˜›ȱ ‘Žȱ œž™™˜›ȱ Š—ȱ ŠĴŠŒ‘–Ž—ȱ ˜ȱ ꗒœ‘ȱ ̘˜›ȱ –ŠŽ›’Š•ǯȱ ›’’—ȱ
œ’쎗œȱ‘Žȱ“˜’œœȱŠ—ȱ™›ŽŸŽ—œȱ‘Ž–ȱ›˜–ȱŽĚŽŒ’—ǯ

Ceilings
—ȱœ˜–Žȱœ›žŒž›Žœǰȱ‘Žȱž—Ž›œ’Žȱ˜ȱ‘Žȱž™™Ž›ȱœ˜›Ž¢ȱ’œȱŠ—ȱŠŽšžŠŽȱŒŽ’•’—ǯȱ™™›Š’œŽ›œȱ
–žœȱ–ŽŠœž›ŽȱŠ—ȱŒ˜—œ’Ž›ȱŒŽ’•’—ȱ‘Ž’‘ǯ

Stairs, Ramps, Elevators, Escalators, and Hoists

Žœ’—’—ȱŠ—ȱŒ˜—œ›žŒ’—ȱŽŸŽ—ȱ‘Žȱœ’–™•ŽœȱœŠ’›ŒŠœŽȱ’œȱŒ˜–™•’ŒŠŽǯȱ˜ŒŠ•ȱ‹ž’•’—ȱ
Œ˜Žœȱ ’ŒŠŽȱ ‘Žȱ –’—’–ž–ȱ Š—ȱ –Š¡’–ž–ȱ ›ŽŠȱ Š—ȱ ›’œŽȱ ˜ȱ œŠ’›œǰȱ  ‘’Œ‘ȱ œ‘˜ž•ȱ ‹Žȱ
Œ˜—œ’œŽ—ȱ  ’‘’—ȱ Šȱ ‹ž’•’—ǯȱ ‘Žȱ Š’˜—Š•ȱ ž’•’—ȱ ˜Žȱ ˜ȱ Š—ŠŠǰȱ œž™™•Ž–Ž—Žȱ
‹¢ȱ™›˜Ÿ’—Œ’Š•ȱ‹ž’•’—ȱŒ˜Žœǰȱ‘ŠŸŽȱŽœŠ‹•’œ‘ŽȱŠŒŒŽœœ’‹’•’¢ȱž’Ž•’—ŽœǰȱŠ—ȱ™ž‹•’Œȱ
‹ž’•’—œȱ‘Šȱ˜ȱ—˜ȱ–ŽŽȱ‘˜œŽȱ›Žž•Š’˜—œȱ–Š¢ȱœžěŽ›ȱŠȱŸŠ•žŽȱ™Ž—Š•¢ȱ‹ŠœŽȱ˜—ȱ‘Žȱ
Œ˜œȱ˜ȱ—ŽŒŽœœŠ›¢ȱŒ‘Š—Žœǯ

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 11.20 The Appraisal of Real Estate – Third Canadian Edition

DIVISION OF SPACE
A building description provides a complete list of the number of rooms in the structure and their uses.
Room sizes may also be stated. The number of bedrooms and bathrooms in a residential property
usually influences the market for the property and its value. The number of units in an apartment building
and the types and sizes of the rooms within the units significantly influence the property's income-
producing potential. Similarly, the amount of office space in an industrial property and the partitioning of
office suites may affect property value.
In certain parts of the Canada, many types of buildings have basements. In these areas, buildings without
basements may have substantially less value than similar buildings with basements. If basements are
not common in the area, a basement may add little or no value to a building.
Storage Areas
Home owners often complain about a lack of adequate storage space, especially in kitchens. Ample
cabinets, closets, and other storage areas are important, particularly in homes without basements.
Storage is particularly important in multi-family residential buildings. The value of apartment and
condominium projects is often enhanced by the availability of storage space. Frequently, mini-storage
facilities are located near apartment complexes because apartment units often have inadequate storage
space. Storage problems can also exist in commercial and industrial buildings.

Interior Description
Walls
Type Residential buildings
Materials Wood studs covered with drywall materials, e.g., gypsum board, wood panels,
ceramic tile, plywood, hardboard
Plaster (less popular now)
Masonry (in masonry houses)

Characteristics/Use Interior walls can be painted, papered, or decorated in other ways

Type Commercial buildings

Materials Wire partitions
Glass
Wood
Plywood
Hardboard
Metals
Tile
Concrete
Solid masonry walls for fire protection

Characteristics/Use Interior walls can be painted, papered, or decorated in other ways

Partitions

Materials Various materials

Characteristics/Use Generally nonload-bearing and movable.

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 Chapter 11 – Improvement Analysis 11.21

—ȱ –ž•’Ȭœ˜›Ž¢ȱ ‹ž’•’—œǰȱ Š™™›Š’œŽ›œȱ –žœȱ ŽŸŠ•žŠŽȱ ‘˜ ȱ ŽĜŒ’Ž—•¢ȱ ‘Žȱ Ž•ŽŸŠ˜›œȱ

Š—ȱ ŽœŒŠ•Š˜›œȱ ’—ȱ Šȱ ‹ž’•’—ȱ –˜ŸŽȱ ™Ž˜™•Žȱ Š—ȱ ›Ž’‘ǯȱ ‘Žȱ Ž•ŽŸŠ˜›œȱ Š—ȱ ŽœŒŠ•Š˜›œȱ
’—ȱ–Š—¢ȱ–ž•’Ȭœ˜›Ž¢ȱ‹ž’•’—œȱŠ›Žȱ’—ŠŽšžŠŽȱŠ—ȱŠ••ȱœ‘˜›ȱ˜ȱŒž››Ž—ȱ–Š›”ŽȱœŠ—Ȭ
Š›œǯȱž›’—ȱ‘ŽœŽȱŽęŒ’Ž—Œ’Žœȱ’œȱ˜Ž—ȱŽ¡™Ž—œ’ŸŽȱ˜›ȱ’–™˜œœ’‹•ŽDzȱ‘¢›Šž•’ŒȱŽ•ŽŸŠ˜›œȱ
žœžŠ••¢ȱ ‘ŠŸŽȱ •’ȱ ™˜œœȱ  ’‘ȱ ˜’•ȱ •’—Žœȱ Š—ȱ Œ¢•’—Ž›œȱ ’—ȱ ‘Žȱ ›˜ž—ǰȱ Š—ȱ •ŽŠ”œȱ ŒŠ—ȱ ˜ȱ
ž—ŽŽŒŽȱ’—˜ȱ‘Žȱ›˜ž—ǯ
™ŽŒ’Š•ȱŽ•ŽŸŠ˜›œȱŠ—ȱ‘˜’œœȱŠ›Žȱ˜Ž—ȱŒ˜—œ’Ž›Žȱ™Š›ȱ˜ȱŠȱ‹ž’•’—ǰȱŠ•‘˜ž‘ȱ‘Ž¢ȱ
–Š¢ȱ‹Žȱœž’Žȱž—Ž›ȱ‘ŽȱŽšž’™–Ž—ȱŒŠŽ˜›¢ǯ

Painting, Decorating, and Finishing

˜œȱ ‹ž’•’—œȱ Š›Žȱ ŽŒ˜›ŠŽȱ –Š—¢ȱ ’–Žœȱ ž›’—ȱ ‘Ž’›ȱ žœŽž•ȱ •’ŸŽœǯȱ—ȱ Š™™›Š’œŽ›ȱ
›Ž™˜›œȱ ‘Žȱ Œ˜—’’˜—ȱ ˜ȱ ‘Žȱ ™Š’—’—ȱ Š—ȱ ŽŒ˜›Š’—ȱ ’—ȱ Šȱ œ›žŒž›Žȱ Š—ȱ —˜Žœȱ  ‘Ž—ȱ
‘Ž¢ȱ  ’••ȱ —ŽŽȱ ˜ȱ ‹Žȱ ›Ž˜—Žǯȱ ‘Žȱ ŠĴ›ŠŒ’ŸŽ—Žœœȱ ˜ȱ ™Š’—’—ȱ Š—ȱ ŽŒ˜›Š’—ȱ ’œȱ œž‹“ŽŒȬ
’ŸŽǯȱ Š—¢ȱ —Ž ȱ ˜ —Ž›œȱ Š—ȱ Ž—Š—œȱ  ’••ȱ ›ŽŽŒ˜›ŠŽȱ ˜ȱ œž’ȱ ‘Ž’›ȱ ™Ž›œ˜—Š•ȱ ŠœŽœǯȱ
—žœžŠ•ȱŽŒ˜›Š’˜—œȱŠ—ȱŒ˜•˜ž›œȱ–Š¢ȱ‘ŠŸŽȱ•’–’ŽȱŠ™™ŽŠ•ȱŠ—ǰȱ‘Ž›Ž˜›Žǰȱ–Š¢ȱŽ›ŠŒȱ
›˜–ȱŠȱ‹ž’•’—ȇœȱŸŠ•žŽǯȱ‘ŽȱšžŠ•’¢ȱ˜ȱŽŒ˜›Š’˜—ȱ’œȱœ˜–Ž’–ŽœȱŠ—ȱ’–™˜›Š—ȱŒ˜—œ’Ȭ
Ž›Š’˜—ȱ’—ȱŸŠ•ž’—ȱŠȱ›ŽœŠž›Š—ǰȱœ˜›Žǰȱ˜›ȱ˜‘Ž›ȱŒ˜––Ž›Œ’Š•ȱ‹ž’•’—ǯ

PEOPLE WITH DISABILITIES, AND IMPROVEMENT ANALYSIS

In Canada, regulations as diverse as the Canadian Charter of Rights and Freedoms, building codes, and
human rights legislation ensure people with disabilities have reasonable access to public facilities and
private facilities such as shopping centres that serve the public. An improvement that does not conform
to these requirements can suffer from obsolescence and thus value penalties. An appraiser cannot
assume that improvements comply with the requirements of people with disabilities. Enforcement of
these requirements can be triggered by a change in use or a title transfer. Owners of older properties
may have to add ramps, elevators, or other special equipment to comply with regulations, which can
impact value greatly.
A real estate appraiser is not required to become an expert in the field of access-for-the-disabled
requirements; however, ethical standards (CUSPAP Ethics Rule 4.2.7) require an appraiser to be able to
identify such issues and assess their significance.
For an overview of specific requirements of access and building design, see the websites for federal and
provincial Human Rights Commissions; see also Randall Bell, "Appendix 2: Americans with Disabilities
Act (ADA) Overview", Real Estate Damages: An Analysis of Detrimental Conditions (Chicago: Appraisal
Institute, 1999), 268-272. For further discussion of considerations in the valuation process, see Richard
W. Hoyt and Robert J. Aalberts, "Appraisers and the Americans with Disabilities Act", The Appraisal
Journal (July 1995): 298-309 and Robert J. Aalberts and Terrence M. Clauretie, "Commercial Real
Estate and the Americans with Disabilities Act: Implications for Appraisers", The Appraisal Journal (July
1992): 53-58.

˜–ŽȱŒ˜—œ’Ž›Š’˜—œȱ˜ȱ’—Ž›’˜›ȱꗒœ‘ŽœȱŠ—ȱŽŒ˜›Š’—ȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ ȱ ꗒœ‘Žȱ ‹ŠœŽ–Ž—œȱ Š›Žȱ žœŽȱ ˜›ȱ ™ž›™˜œŽœȱ ˜‘Ž›ȱ ‘Š—ȱ œ˜›ŠŽȱ Š—ȱ ‘ŽœŽȱ
žœŽœȱŠ›ŽȱŠŒŒŽ™ŽȱŠ—ȱ¢™’ŒŠ•ȱ’—ȱ‘ŽȱŠ›ŽŠǰȱ‘Ž¢ȱŒŠ—ȱŠȱœ’—’ęŒŠ—•¢ȱ˜ȱ‘Žȱ
™›˜™Ž›¢ȇœȱŸŠ•žŽǯ

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 11.22 The Appraisal of Real Estate – Third Canadian Edition

Doors
Types Simple hollow-core doors in most residential construction
Solid-core doors in older buildings and office buildings
Complex, self-closing, fire-resistant doors in commercial and industrial buildings
Specialty, self-opening and self-closing doors in offices and commercial
buildings
Special-purpose doors, e.g., doors to bank vaults

Characteristics/Use Hanging a door is complicated and often done improperly. Most poorly hung
doors close improperly or fail to touch an edge of the frame when closed.

Interior Supports
Types Beams
Columns
Trusses

Materials Wood, masonry, concrete, or steel

Characteristics/Use Designed to support heavy loads. Cracked or sagging beams may be an early
indication of more serious problems in the future.

Type Flooring system

Materials Generally wood or concrete
Characteristics/Use Serves as a base for floor covering
Type Ceiling
Materials Same material as interior walls (e.g., gypsum), tile, or underside of upper floor
Characteristics/Use Ceilings that are too high or low for the property's current highest and best use
as improved may be considered items of functional obsolescence and decrease
the property's value.

Stairs and Ramps

Type Residential buildings
Characteristics Provides for safe ascent and descent, with adequate headroom and space for
moving furniture and equipment. Railings should be installed on the sides of all
interior stairways, including stairways in attics and basements, where they are
often omitted.

Type Public buildings

Characteristics Codes often regulate where stairs are located, how they are designed and
constructed, and how they are enclosed for fire protection. Public buildings
may also have to be barrier-free to provide access for handicapped people as
mandated by Human Rights legislation and applicable building codes, such as
requiring that ramps be installed both inside and outside the structure.

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 Chapter 11 – Improvement Analysis 11.23

yȱ ‘Žȱ¢™ŽœȱŠ—ȱ’—’œ‘Žœȱ˜ȱŸŠ›’˜žœȱ Š••ȱŠ—ȱŒŽ’•’—ȱŒ˜–™˜—Ž—œȱœ‘˜ž•ȱ
‹Žȱ’Ž›Ž—’ŠŽǯ
yȱ ȱ  ’Žȱ ŸŠ›’Ž¢ȱ ˜ȱ ̘˜›’—ȱ ’œȱ ŠŸŠ’•Š‹•Žǰȱ Š—ȱ œ˜–Žȱ ̘˜›’—ȱ –ŠŽ›’Š•œȱ Š›Žȱ
œŽ•ŽŒŽȱ ™›’–Š›’•¢ȱ ˜›ȱ ‘Ž’›ȱ •˜ ȱ Œ˜œȱ Š—ȱ ž›Š‹’•’¢ǯȱ —ȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ
Œ˜—œ’Ž›ȱ  ‘Ž‘Ž›ȱ ̘˜›ȱ Œ˜ŸŽ›’—œȱ ŒŠ—ȱ Ž—ž›Žȱ  ŽŠ›ȱ Š—ȱ ŽŠ›ȱ Š—ȱ ‘˜ ȱ ‘Ž¢ȱ
Œ˜—˜›–ȱ˜ȱŠȱ‹ž’•’—ȇœȱŽœ’—ȱŠ—ȱŽŒ˜›Š’˜—ǯ
yȱ —’šžŽǰȱ ›Žœ˜›Žȱ –˜ž•’—ȱ ŒŠ—ȱ Šȱ ŸŠ•žŽȱ ˜ȱ ˜•Ž›ȱ ‘˜žœŽœǰȱ ‹žȱ ‘Žȱ žœŽȱ ˜ȱ
–˜ž•’—œȱ’œȱŽŒ›ŽŠœ’—ǯ
˜œȱ ꛎ™•ŠŒŽœȱ ’—ȱ ‘˜–Žœȱ Š—ȱ Œ˜––Ž›Œ’Š•ȱ ‹ž’•’—œȱ œžŒ‘ȱ Šœȱ ›ŽœŠž›Š—œǰȱ ’——œǰȱ Š—ȱ
œ™ŽŒ’Š•¢ȱœ˜›Žœȱ˜ȱ—˜ȱ™›˜Ÿ’Žȱ‘Žȱ‹ž’•’—ȇœȱ™›’–Š›¢ȱœ˜ž›ŒŽȱ˜ȱ‘ŽŠǯȱ—ȱŠŒǰȱ‹ŽŒŠžœŽȱ
˜ȱ ‘Ž’›ȱ Žœ’—ǰȱ –Š—¢ȱ ‘ŠŸŽȱ •’Ĵ•Žȱ ‘ŽŠ’—ȱ ™˜ Ž›ǯȱ ŽŒŠžœŽȱ ꛎ™•ŠŒŽœȱ Š›Žȱ ’ĜŒž•ȱ ˜ȱ
Œ˜—œ›žŒǰȱ –Š—¢ȱ Š›Žȱ ‹Š•¢ȱ –ŠŽȱ Š—ȱ ž—Œ’˜—ȱ ™˜˜›•¢ǯȱ —Žȱ Œ˜––˜—ȱ ™›˜‹•Ž–ȱ ’œȱ
˜ —›Šǰȱ ‘Ž›Ž‹¢ȱœ–˜”Žȱ’œȱ‹•˜ —ȱ’—˜ȱ‘Žȱ‹ž’•’—ȱ‹¢ȱ‘Žȱ ’—ȱ˜žœ’Žǯȱ‘’œȱŒŠ—ȱ
‘Š™™Ž—ȱ ’ȱ ‘Žȱ Œ‘’–—Ž¢ȱ ˜Žœȱ —˜ȱ Ž¡Ž—ȱ Šȱ •ŽŠœȱ  ˜ȱ ŽŽȱ Š‹˜ŸŽȱ Š—¢ȱ ™Š›ȱ ˜ȱ ‘Žȱ ›˜˜ȱ
 ’‘’—ȱŗŖȱŽŽȱ˜ȱ‘ŽȱŒ‘’–—Ž¢ǯ

Protection Against Decay and Insect Damage

••ȱ  ˜˜ȱ ’œȱ œžœŒŽ™’‹•Žȱ ˜ȱ ŽŒŠ¢ȱ Š—ȱ ’—œŽŒȱ Š–ŠŽǯȱ ‘Ž—ȱ  ˜˜ȱ ’œȱ Œ˜—œ’œŽ—•¢ȱ
Ž¡™˜œŽȱ ˜ȱ –˜’œž›Žȱ Š—ȱ  ŠŽ›ǰȱ Žœ›žŒ’ŸŽȱ ˜›Š—’œ–œȱ ™›˜™ŠŠŽȱ ˜—ȱ ˜›ȱ ‹Ž—ŽŠ‘ȱ ’œȱ
œž›ŠŒŽǯȱ —œŽŒœȱ Š–ŠŽȱ  ˜˜ȱ –˜›Žȱ ›Š™’•¢ȱ Š—ȱ Ÿ’œ’‹•¢ȱ ‘Š—ȱ ŽŒŠ¢ȱ ˜Žœǯȱ •‘˜ž‘ȱ
œŽŸŽ›Š•ȱ œ™ŽŒ’Žœȱ ˜ȱ ’—œŽŒœȱ Žœ›˜¢ȱ  ˜˜ǰȱ Ž›–’Žœȱ Š›Žȱ ‹¢ȱ Š›ȱ ‘Žȱ –˜œȱ Žœ›žŒ’ŸŽȱ ˜ȱ
‹˜‘ȱ Š–™ȱ Š—ȱ ›¢ȱ  ˜˜ǯȱ ‘Ž¢ȱ Œ˜•˜—’£Žȱ ’—ȱ –˜’œȱ œ˜’•ȱ ˜›ȱ ’—ȱ ›¢ȱ  ˜˜ȱ Š—ȱ Œ›ŽŠŽȱ
’—ŽœŠ’˜—œȱ‘ŠȱŠ›ŽȱŽ¡›Ž–Ž•¢ȱ’ĜŒž•ȱ˜ȱŽ›Š’ŒŠŽǯ
ž’•Ž›œȱŽ–™•˜¢ȱŸŠ›’˜žœȱŽŒ‘—’šžŽœȱ˜ȱ™›˜ŽŒȱŠŠ’—œȱŽŒŠ¢ȱŠ—ȱ’—œŽŒȱŠ–ŠŽDZ
yȱ •˜™’—ȱ‘Žȱ›˜ž—ȱŠ Š¢ȱ›˜–ȱ˜ž—Š’˜—œȱ˜›ȱ˜˜ȱ›Š’—ŠŽȱŠ—ȱ™žĴ’—ȱ
ŸŠ™˜ž›ȱ‹Š››’Ž›œȱ˜—ȱ‘Žȱ’—Ž›’˜›ȱœ’Žœȱ˜ȱŽ¡™˜œŽȱ Š••œ
yȱ œ’—ȱ™˜•¢Ž‘¢•Ž—ŽȱŠœȱŠȱœ˜’•ȱŒ˜ŸŽ›ȱ’—ȱŒ›Š •ȱœ™ŠŒŽœ
yȱ •Šœ‘’—ȱžĴŽ›œǰȱ˜ —œ™˜žœǰȱŠ—ȱœ™•Šœ‘ȱ‹•˜Œ”œȱ˜ȱŒŠ››¢ȱ ŠŽ›ȱŠ Š¢ȱ›˜–ȱ
˜ž—Š’˜—ȱ Š••œ
yȱ œ’—ȱ™˜ž›ŽȱŒ˜—Œ›ŽŽȱ˜ž—Š’˜—ȱ Š••œǰȱŒ˜—Œ›ŽŽȱŒŠ™œȱ˜ŸŽ›ȱž—’ȱ–Šœ˜—›¢ȱ
˜ž—Š’˜—œǰȱ ˜˜ȱ›ŽŠ–Ž—œǰȱœ˜’•ȱ›ŽŠ–Ž—œǰȱ˜›ȱ–ŽŠ•ȱŽ›–’Žȱœ‘’Ž•œ
ž’•’—ȱ  ’‘ȱ ›¢ǰȱ —Šž›Š••¢ȱ ž›Š‹•Žȱ  ˜˜œȱ Š—ȱ Œ˜—žŒ’—ȱ ›Žž•Š›ȱ –Š’—Ž—Š—ŒŽȱ
’—œ™ŽŒ’˜—œȱ ŒŠ—ȱ Š•œ˜ȱ ‘Ž•™ȱ ™›ŽŸŽ—ȱ ’—œŽŒȱ ’—ŽœŠ’˜—ȱ Š—ȱ Š–ŠŽǯȱ ˜˜›•¢ȱ Š’–Žȱ •Š —ȱ
’››’Š’˜—ȱ œ¢œŽ–œȱ ŒŠ—ȱ ‹Žȱ Šȱ œŽ›’˜žœȱ ™›˜‹•Ž–ȱ ˜›ȱ ’–™›˜ŸŽ–Ž—œȱ ’ȱ ‘Žȱ  ŠŽ›ȱ Œ˜••ŽŒœȱ
ŠŠ’—œȱ ‘Žȱ ˜ž—Š’˜—ȱ ˜›ȱ ’œȱ ’›ŽŒŽȱ Šȱ Ž¡Ž›’˜›ȱ  Š••œȱ ˜›ȱ  ’—˜ œǯȱ —ȱ ’–™›˜™Ž›•¢ȱ
’—œŠ••Žȱ ’››’Š’˜—ȱ œ¢œŽ–ȱ ŒŠ—ȱ ›˜ȱ Šȱ  ’—˜ ȱ ŠœœŽ–‹•¢ȱ ˜›ȱ ŒŠžœŽȱ Šȱ –˜ž•ȱ ™›˜‹•Ž–ȱ ’—ȱ
˜—•¢ȱŠȱŽ ȱ¢ŽŠ›œǯ

Miscellaneous and Special Features

—ȱ ŸŠ•ž’—ȱ ’—žœ›’Š•ȱ Š—ȱ Œ˜––Ž›Œ’Š•ȱ ™›˜™Ž›’Žœǰȱ Š—ȱ Š™™›Š’œŽ›ȱ –Š¢ȱ ꗍȱ ’ȱ ‘Ž•™ž•ȱ ˜ȱ
’œ’—ž’œ‘ȱ‹Ž ŽŽ—ȱ ˜ȱŒŠŽ˜›’Žœȱ˜ȱŽšž’™–Ž—DZ

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 11.24 The Appraisal of Real Estate – Third Canadian Edition

Interior Painting, Decorating, and Finishing

Basement Finishes
Types Unfinished, used for storage
Finished (in residences and some commercial buildings), used for storage and
other purposes
Characteristics Dampness, which is often a problem in basements, may be caused by poor
foundation wall construction, excess groundwater that is not properly drained
by ground tiles, poorly fitted windows or hatches, poor venting of equipment, or
poorly constructed or operating roof drains that allow water to enter. Signs that
may indicate a wet basement include a powdery white mineral deposit a few
inches off the floor, stains near the bottom of walls and columns or equipment
that rests close to the floor, and the smell of mildew.

Flooring and Floor Coverings

Components Sand, compressed dirt, bituminous paving, brick, stone gravel, concrete, and
similar products
Characteristics Suitable for many industrial buildings, warehouses, garages, and basements.
In many commercial and industrial buildings, floors must be especially thick or
reinforced to support heavy equipment.

Components Terrazzo flooring

Characteristics Made of coloured marble chips that are mixed into cement and ground smooth;
used for high traffic areas such as the lobbies of public buildings.
Components Wood in various forms
Characteristics Continues to be a popular material for floors. Planks and blocks are used for
industrial floors, and many commercial buildings use wood floors to conform to
the design and overall decoration. Wood planks and hardwood strips are found
in many residences, although other types of flooring have become more popular.

Components Resilient, ceramic, and quarry tiles

Characteristics Used in all types of buildings.

Components Resilient flooring

Characteristics Usually a combination of vinyl and asphalt; produced as sheet goods

Components Carpeting
Characteristics Once considered a luxury in residences, offices, stores, and commercial
buildings, but today is widely used in all types of buildings

Interior Wall Coverings and Ceilings

Types Walls and partitions

Characteristics May be painted, papered, or panelled; supplemental finishings include ceramic
tile and wainscot panelling.
Types Ceilings
Characteristics Can be drywall, plaster, or suspended panel (drop ceilings)

Types Partitions
Characteristics Can be wood or metal

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 Chapter 11 – Improvement Analysis 11.25

yȱ šž’™–Ž—ȱ Š—ȱ –ŽŒ‘Š—’ŒŠ•ȱ œ¢œŽ–œȱ ‘Šȱ ™›˜Ÿ’Žȱ ˜›ȱ ‘ž–Š—ȱ Œ˜–˜›ǰȱ Žǯǯǰȱ
™•ž–‹’—ǰȱ‘ŽŠ’—ǰȱŠ’›ȬŒ˜—’’˜—’—ǰȱŠ—ȱ•’‘’—
yȱ ’¡Žȱ ‹ž’•’—ȱ Žšž’™–Ž—ȱ ‘Šȱ ’œȱ ™›˜ŒŽœœȬ›Ž•ŠŽǰȱ Žǯǯǰȱ Š’›ȱ ‘˜œŽœǰȱ ™›˜ŒŽœœȱ
™’™’—ǰȱŒ›Š—Ž Š¢œǰȱ‹žœȱžŒœǰȱ‘ŽŠŸ¢ȱŽ•ŽŒ›’ŒŠ•ȱ•’—ŽœǰȱŠ—ȱ›ŽŽ£Ž›ȱŽšž’™–Ž—řȱ
’—ŒŽȱ ’쎛Ž—ȱ žœŽ›œȱ ˜ȱ œ›žŒž›Žœȱ Š—ȱ ›Ž•ŠŽȱ ’–™›˜ŸŽ–Ž—œȱ ›ŽšžŽ—•¢ȱ ŠŠ™ȱ ‘Ž–ȱ
˜›ȱ‘Ž’›ȱ˜ —ȱ™Š›’Œž•Š›ȱ—ŽŽœǰȱœ˜–ŽȱŽ•Ž–Ž—œȱ–Š¢ȱ—˜ȱ‹Žȱœž’Žȱ˜›ȱ˜‘Ž›ȱžœŽ›œȱŠ—ȱ
‘Ž›Ž˜›Žȱ ’••ȱ—˜ȱŒ˜—›’‹žŽȱ˜ȱ–Š›”ŽȱŸŠ•žŽǯȱ’–’ŽȬ–Š›”Žȱ™›˜™Ž›’Žœȱ–Š¢ȱ›Žšž’›Žȱ
Š’’˜—Š•ȱ ›ŽœŽŠ›Œ‘ȱ ‹ŽŒŠžœŽȱ ‘Ž›Žȱ ’œȱ •Žœœȱ ŠŠȱ ˜ȱ œž™™˜›ȱ ‘Žȱ Žœ’–ŠŽȱ ˜ȱ ž’•’¢ȱ Š—ȱ
–Š›”ŽȱŠŒŒŽ™Š—ŒŽȱ˜ȱŽ¡›Šȱ˜›ȱž—žœžŠ•ȱŽ•Ž–Ž—œȱ˜ȱ‘Žȱ’–™›˜ŸŽ–Ž—œǯ
˜–Žȱ™›˜™Ž›’Žœȱ ’‘ȱœ™ŽŒ’Š•’£Žȱž—Œ’˜—œȱŠ—ȱŽœ’—ȱŽŠž›Žœȱ‘Šȱ–Š¢ȱ›Žšž’›Žȱ
Š’’˜—Š•ȱ›ŽœŽŠ›Œ‘ȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ ŽŽ•ȱ–’••œ
yȱ ’•ȱ›Žę—Ž›’ŽœȱŠ—ȱŽ‘Š—˜•ȱ™•Š—œ
yȱ ‘Ž–’ŒŠ•ȱ™•Š—œ
yȱ ˜—Œ›ŽŽȱŠŒ˜›’Žœ
yȱ ’—Žœ
yȱ ˜––Ž›Œ’Š•ȱ ŽœŠ‹•’œ‘–Ž—œȱ  ’‘ȱ ž—’šžŽȱ Žœ’—ȱ ŽŠž›Žœȱ ǻŽǯǯǰȱ ›’ŸŽȬ’—ȱ
›ŽœŠž›Š—œǼȱ˜›ȱœ™ŽŒ’Š•ȱŠŒ’•’’ŽœȱǻŽǯǯǰȱ‘ŽȱŒ˜˜•’—ȱ›˜˜–ȱ’—ȱŠȱž››’Ž›ȇœȱœ‘˜™Ǽ
yȱ –žœŽ–Ž—ȱ™Š›”œ
yȱ ™˜›œȱŒ˜–™•Ž¡Žœ
yȱ ‘Š›ŸŽœȱŠ—ȱ˜Œ”œ
yȱ ›Š—œ™˜›Š’˜—ȱŽ›–’—Š•œ
yȱ Ž•ŽŸ’œ’˜—ȱŠ—ȱȽ›Š’˜ȱ›Š—œ–’œœ’˜—ȱ˜ Ž›œǰȱœž’˜œǰȱŠ—ȱ‘ŽŠ›Žœ

EQUIPMENT AND MECHANICAL SYSTEMS

˜œȱ ‹ž’•’—œȱ ŒŠ——˜ȱ ™Ž›˜›–ȱ ‘Žȱ ž—Œ’˜—œȱ ˜›ȱ  ‘’Œ‘ȱ ‘Ž¢ȱ  Ž›Žȱ Žœ’—Žȱ Š—ȱ
Œ˜—œ›žŒŽȱ ž—•Žœœȱ ‘Ž’›ȱ Žšž’™–Ž—ȱ Š—ȱ –ŽŒ‘Š—’ŒŠ•ȱ œ¢œŽ–œȱ Š›Žȱ ’—ȱ  ˜›”’—ȱ ˜›Ž›ǯȱ
Š“˜›ȱŽšž’™–Ž—ȱŠ—ȱ–ŽŒ‘Š—’ŒŠ•ȱœ¢œŽ–œȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ ‘Žȱ™•ž–‹’—ȱœ¢œŽ–
yȱ ‘Žȱ‘ŽŠ’—ǰȱŸŽ—’•Š’˜—ǰȱŠ—ȱŠ’›ȬŒ˜—’’˜—’—ȱ
ǻ
Ǽȱœ¢œŽ–
yȱ ‘ŽȱŽ•ŽŒ›’ŒŠ•ȱœ¢œŽ–

Plumbing System
•ž–‹’—ȱ ’œȱ Š—ȱ ’—Ž›Š•ȱ ™Š›ȱ ˜ȱ –˜œȱ ‹ž’•’—œǯȱ ȱ Œ˜—œ’œœȱ ˜ȱ Equipment and mechanical
œž™™•¢ǰȱ  ŠœŽǰȱ Š—ȱ ŸŽ—ȱ ™’™’—ȱ ǻ ‘’Œ‘ȱ ’œȱ žœžŠ••¢ȱ Œ˜ŸŽ›Žȱ ˜›ȱ systems provide for human
‘’Ž—ȱŽ¡ŒŽ™ȱ’—ȱ’—žœ›’Š•ȱ‹ž’•’—œǼȱŠ—ȱę¡ž›ŽœȱŠ—ȱęĴ’—œȱ comfort; industrial build-
ings also contain process-
ǻ ‘’Œ‘ȱ Š›Žȱ Ÿ’œ’‹•ŽǼǯȱ Šž—›’Žœǰȱ •Šž—›˜–Šœǰȱ Š—ȱ ŒŽ›Š’—ȱ
related equipment.
’—žœ›’Š•ȱ‹ž’•’—œȱ‘ŠŸŽȱŽ•Š‹˜›ŠŽȱ™•ž–‹’—ȱœ¢œŽ–œǯ

3
For discussion of the distinction between fixtures, personal property, and real estate, see Tables 1.1 and 1.2 in Chapter 1.

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 11.26 The Appraisal of Real Estate – Third Canadian Edition

Plumbing System
Piping
Types Supply pipes
Waste pipes
Vent pipes
Materials Copper, cast iron, or plastic
Characteristics/Use Galvanized steel, lead, or brass pipes in older buildings may need to be replaced.

Bathroom Fixtures
Types Lavatories (or washbasins)
Bathtubs
Showers
Toilets (or water closets)
Bidets
Urinals
Materials Cast iron covered with acid-resistant vitreous enamel or porcelain; fiberglass or
other materials are also used in lower-quality fixtures

Types Sinks (or double sinks)

Materials Monel® metal, stainless steel, enamelled steel, or cast iron covered with acid-
resistant enamel
Kitchen Fixtures
Types Sinks (or double sinks)
Garbage disposals
Dishwashers
Materials Monel® metal, stainless steel, enamelled steel, or cast iron covered with acid-
resistant enamel
Other Fixtures
Types Instant hot water units
Laundry tubs
Wet bars
Swimming pools or saunas
Janitor sinks
Drinking fountains
Handwashing and eyewashing fountains
Fittings
Types Faucets
Spigots
Drains
Shower heads
Spray tubes
Floor drains in industrial buildings
Characteristics/Use The water in an area may be hard, i.e., it contains minerals that react unfavorably
with soap and make it difficult to rinse from clothing, hair, and skin. Often hard
water cannot be used until it is treated, either with simple equipment or with
automatic, complex, multi-stage systems.

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 Chapter 11 – Improvement Analysis 11.27

Plumbing System, continued

Hot Water System
Types Self-standing heater (in residential buildings)
Large cast iron or steel boiler and storage tanks (in commercial and industrial buildings)
Characteristics/Use Generally powered by electricity, gas, or oil.

Piping
žŒ‘ȱ˜ȱ‘ŽȱŒ˜œȱ˜ȱŠȱ™•ž–‹’—ȱœ¢œŽ–ȱ–Š¢ȱ‹ŽȱžŽȱ˜ȱ™’™’—ǯȱ‘ŽȱšžŠ•’¢ȱ˜ȱ‘Žȱ–ŠŽȬ
›’Š•œȱžœŽǰȱ‘Žȱ Š¢ȱ‘Žȱ™’™Žœȱ Ž›Žȱ’—œŠ••ŽǰȱŠ—ȱ‘˜ ȱŽŠœ’•¢ȱ‘Ž¢ȱŒŠ—ȱ‹ŽȱœŽ›Ÿ’ŒŽȱŠ›Žȱ
œ’—’ęŒŠ—ȱ Œ˜—œ’Ž›Š’˜—œȱ ’—ȱ Žœ’–Š’—ȱ ‘˜ ȱ •˜—ȱ ‘Žȱ ™’™Žœȱ  ’••ȱ •Šœȱ Š—ȱ ‘˜ ȱ –žŒ‘ȱ
‘Ž¢ȱ ’••ȱŒ˜œȱ˜ȱ–Š’—Š’—ǯȱ—ȱ–Š—¢ȱŠ›ŽŠœȱŠ—ȱ˜›ȱ–Š—¢ȱ‹ž’•’—ȱ¢™ŽœǰȱŠȱ‘’‘ȬšžŠ•’¢ȱ
™’™’—ȱœ¢œŽ–ȱ ’••ȱ•ŠœȱŠœȱ•˜—ȱŠœȱ‘Žȱ‹ž’•’—ǯ

Fixtures and Fittings

‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ ŽŒ’Žȱ  ‘’Œ‘ȱ ‹ž’•’—ȱ ę¡ž›Žœȱ Š›Žȱ ™Š›ȱ ˜ȱ ‘Žȱ ›ŽŠ•ȱ ŽœŠŽȱ Š—ȱ
 ‘’Œ‘ȱ Š›Žȱ ™Ž›œ˜—Š•ȱ ™›˜™Ž›¢ǯȱ ‘Žȱ Žœ’—ȱ ˜ȱ ‹Š‘›˜˜–ȱ ę¡ž›Žœȱ ŒŠ—ȱ Œ‘Š—Žȱ œž‹œŠ—Ȭ
’Š••¢ȱ˜ŸŽ›ȱ’–ŽǰȱŠ—ȱ˜•ȱę¡ž›Žœȱ–Š¢ȱ‹ŽŒ˜–Žȱ˜‹œ˜•ŽŽȱž›’—ȱŠȱ‹ž’•’—ȇœȱŽŒ˜—˜–’Œȱ
•’Žǯȱ—ȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱ›Ž™˜›ȱ‘Žȱ—ŽŽȱ˜›ȱ–˜Ž›—’£Š’˜—ǰȱ‹žȱ˜•ȱę¡ž›Žœȱ˜ȱ˜˜ȱ
šžŠ•’¢ǰȱ œžŒ‘ȱ Šœȱ ™˜›ŒŽ•Š’—ȱ ™ŽŽœŠ•ȱ ‹Šœ’—œȱ Š—ȱ ˜˜Žȱ ž‹œǰȱ Š›Žȱ ˜Ž—ȱ ›Ž‘Š‹’•’ŠŽȱ
Š—ȱŸŠ•žŠ‹•Žǯ

Hot Water System

••ȱ‘˜–ŽœȱŠ—ȱ–Š—¢ȱŒ˜––Ž›Œ’Š•ȱŠ—ȱ’—žœ›’Š•ȱ‹ž’•’—œȱ—ŽŽȱŠ—ȱŠŽšžŠŽȱœž™™•¢ȱ˜ȱ
‘˜ȱ ŠŽ›ǯȱž’•’—œȱ ’‘ȱ’—ŠŽšžŠŽȱ‘˜ȱ ŠŽ›ȱœ¢œŽ–œȱœžěŽ›ȱ›˜–ȱž—Œ’˜—Š•ȱ˜‹œ˜Ȭ
•ŽœŒŽ—ŒŽǰȱŽǯǯǰȱ ‘Ž—ȱ˜—˜’—ȱŒ‘Š—ŽǰȱŒŠžœŽȱ‹¢ȱŽŒ‘—˜•˜’ŒŠ•ȱŠŸŠ—ŒŽœȱŠ—ȱŽŒ˜—˜–’Œȱ
Š—ȱ ŠŽœ‘Ž’Œȱ ›Ž—œǰȱ ›Ž—Ž›œȱ ‹ž’•’—ȱ •Š¢˜žœȱ Š—ȱ ŽŠž›Žœȱ ˜‹œ˜•ŽŽǯȱ ‘Žȱ œ’£Žȱ ˜ȱ ‘Žȱ
‘˜ȱ  ŠŽ›ȱ œ˜›ŠŽȱ Š—”ȱ —ŽŽŽȱ ’œȱ ŽŽ›–’—Žȱ ‹¢ȱ ‘Žȱ —ž–‹Ž›ȱ ˜ȱ ˜ŒŒž™Š—œȱ Š—ȱ ‘Ž’›ȱ
 ŠŽ›Ȭžœ’—ȱ ‘Š‹’œȱ Š—ȱ ‹¢ȱ ‘Žȱ ›ŽŒ˜ŸŽ›¢ȱ ›ŠŽȱ ˜ȱ ‘Žȱ Š—”ǯȱ ‘Žȱ œ’£Žȱ Š—ȱ ›ŽŒ˜ŸŽ›¢ȱ ›ŠŽȱ
˜ȱ Šȱ œ˜›ŠŽȱ Š—”ȱ –Š¢ȱ ‹Žȱ •’–’Žȱ ˜ȱ  ‘Šȱ ‘Žȱ –Š›”Žȱ  ’••ȱ ™Š¢ȱ ˜›ǯȱ ˜––Ž›Œ’Š•ȱ Š—ȱ
’—žœ›’Š•ȱ‹ž’•’—œȱ˜Ž—ȱ›Žšž’›Žȱ–žŒ‘ȱ–˜›Žȱ‘˜ȱ ŠŽ›ȱ‘Š—ȱ‘˜–Žœǯ

Heating Systems
˜œȱ ‘ŽŠ’—ȱ œ¢œŽ–œȱ žœŽȱ  Š›–ȱ ˜›ȱ ‘˜ȱ Š’›ǰȱ ‘˜ȱ  ŠŽ›ǰȱ œŽŠ–ǰȱ ˜›ȱ Ž•ŽŒ›’Œ’¢ȱ Š—ȱ Š›Žȱ
™˜ Ž›Žȱ ‹¢ȱ žŽ•ȱ ˜’•ǰȱ —Šž›Š•ȱ Šœǰȱ Ž•ŽŒ›’Œ’¢ǰȱ ˜›ȱ Œ˜Š•ǯȱ ‘Žȱ ‘ŽŠ’—ȱ ŒŠ™ŠŒ’¢ȱ ›Žšž’›Žȱ
›Ž•ŠŽœȱ˜ȱ‘ŽȱŒž‹’ŒȱŒ˜—Ž—ǰȱŽ¡™˜œž›ŽǰȱŽœ’—ǰȱŠ—ȱ’—œž•Š’˜—ȱ•ŽŸŽ•ȱ˜ȱ‘Žȱœ›žŒž›Žȱ˜ȱ
‹Žȱ‘ŽŠŽȱŠ—ȱŠ™™›˜™›’ŠŽȱœŠ—Š›œȱ˜›ȱ‘Žȱ•˜ŒŠ•ȱ–Š›”ŽȱŠ›ŽŠǯȱ‘ŽȱŠ™™›Š’œŽ›ȱŒŠ——˜ȱ
Šœœž–Žȱ‘ŠȱŠȱ‹ž’•’—ȇœȱ‘ŽŠ’—ȱœ¢œŽ–ȱŒ˜—›’‹žŽœȱ–Š¡’–ž–ȱŸŠ•žŽȱ˜ȱŠȱ™›˜™Ž›¢ǯȱȱ
‘ŽŠ’—ȱœ¢œŽ–ȱ’—œŠ••ŽȱŠȱ‘Žȱ’–Žȱ˜ȱŒ˜—œ›žŒ’˜—ȱ–Š¢ȱ—˜ȱ‹ŽȱŠŒŒŽ™Š‹•Žȱ˜ȱ™˜Ž—’Š•ȱ
‹ž¢Ž›œȱ ˜Š¢ǯȱ Ž ȱ ŽŒ‘—˜•˜¢ȱ Œ˜—’—žŽœȱ ˜ȱ ›ŽžŒŽȱ Ž—Ž›¢ȱ Œ˜—œž–™’˜—ȱ ˜›ȱ •Š›Žȱ
‘ŽŠ’—ȱœ¢œŽ–œǯȱŠ—¢ȱ’—žœ›’Š•ȱžœŽ›œȱ ‘˜ȱ˜—ŒŽȱŽ™Ž—Žȱ˜—ȱŠœȱŠ•˜—Žȱ—˜ ȱ’—œŠ••ȱ
–˜›ŽȱŽĜŒ’Ž—ȱ˜’•ȱ˜›ȱŽ•ŽŒ›’Œȱœ¢œŽ–œȱ˜ȱ™›˜Ÿ’Žȱ‘ŽŠȱ ‘Ž—ȱ‘ŽȱŠœȱœž™™•¢ȱ’œȱŒž›Š’•Žǯȱ
•ŽŒ›’Œȱ ‘ŽŠȱ ‘Šœȱ ‹ŽŒ˜–Žȱ œ˜ȱ Ž¡™Ž—œ’ŸŽȱ ’—ȱ œ˜–Žȱ Š›ŽŠœȱ ‘Šȱ ‹ž’•’—œȱ žœ’—ȱ ’ȱ œŽ••ȱ ˜›ȱ

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 11.28 The Appraisal of Real Estate – Third Canadian Edition

œž‹œŠ—’Š••¢ȱ •Žœœȱ ‘Š—ȱ œ’–’•Š›ȱ ™›˜™Ž›’Žœȱ žœ’—ȱ ˜‘Ž›ȱ

cogeneration
¢™Žœȱ˜ȱžŽ•ǯȱ˜Ž—Ž›Š’˜—ǰȱ‘Žȱœ’–ž•Š—Ž˜žœȱ™›˜žŒ’˜—ȱ
The simultaneous production of
electrical energy and low-grade
˜ȱ Ž•ŽŒ›’ŒŠ•ȱ Ž—Ž›¢ȱ Š—ȱ •˜ Ȭ›ŠŽȱ ‘ŽŠȱ ›˜–ȱ ‘Žȱ œŠ–Žȱ
heat from the same fuel. žŽ•ǰȱ’œȱŠ•œ˜ȱ‹Ž’—ȱžœŽȱ’—ȱœ˜–Žȱ™Š›œȱ˜ȱ‘ŽȱŒ˜ž—›¢ǯ
ž¢Ž›œȱŠ›ŽȱœŽ—œ’’ŸŽȱ˜ȱŽ—Ž›¢ȱŒ˜œœǯȱ—ȱœ˜–Žȱ–Š›”Žœǰȱ
Š™Š›–Ž—œȱ ’—ȱ  ‘’Œ‘ȱ ‘Žȱ ˜ —Ž›ȱ œž™™•’Žœȱ ‘ŽŠȱ Š—ȱ ‘˜ȱ
 ŠŽ›ȱ  ’••ȱ œŽ••ȱ ˜›ȱ •Žœœȱ ‘Š—ȱ œ’–’•Š›ȱ ™›˜™Ž›’Žœȱ ’—ȱ  ‘’Œ‘ȱ Ž—Š—œȱ ™Š¢ȱ ˜›ȱ ž’•’’Žœǯȱ
ž’•’—œȱ ‘Šȱ ‘ŠŸŽȱ ‘’‘ȱ ŒŽ’•’—œǰȱ –Š—¢ȱ ˜™Ž—’—œǰȱ Š—ȱ ™˜˜›ȱ ’—œž•Š’˜—ȱ –Š¢ȱ ‹Žȱ Šȱ Šȱ
’œŠŸŠ—ŠŽȱ’—ȱ‘Žȱ–Š›”Žǯ

Air-Conditioning and Ventilation Systems

‘Žȱ–˜œȱŒ˜––˜—ȱ¢™Žȱ˜ȱŠ’›ȬŒ˜—’’˜—’—ȱœ¢œŽ–ȱŒ˜—œ’œœȱ˜ȱŠ—ȱŽ•ŽŒ›’ŒŠ••¢ȱ™˜ Ž›Žȱ
Œ˜–™›Žœœ˜›ȱ ‘Šȱ Œ˜–™›ŽœœŽœȱ Šȱ Œ˜˜•Š—ȱ ›˜–ȱ Šœȱ ’—˜ȱ •’šž’ȱ ˜žœ’Žȱ ‘Žȱ Š›ŽŠȱ ‹Ž’—ȱ
Œ˜˜•Žǯȱ ‘Žȱ ‘ŽŠȱ ›Ž•ŽŠœŽȱ ’—ȱ ‘’œȱ ™›˜ŒŽœœȱ ’œȱ Ž’‘Ž›ȱ ‹•˜ —ȱ Š Š¢ȱ ˜›ȱ ŒŠ››’Žȱ Š Š¢ȱ ‹¢ȱ
 ŠŽ›ǯȱ’›ȬŒ˜—’’˜—Ž›œȱ ›Š—Žȱ ›˜–ȱ œ–Š••ǰȱ ™˜›Š‹•Žȱ ž—’œȱ ˜ȱ ž—’œȱ ‘Šȱ ™›˜Ÿ’Žȱ –Š—¢ȱ
˜—œȱ˜ȱŒ˜˜•’—ȱŒŠ™ŠŒ’¢ǯ
˜––Ž›Œ’Š•ȱ Š—ȱ ’—žœ›’Š•ȱ Š’›ȬŒ˜—’’˜—’—ȱ Š—ȱ ŸŽ—’•Š’˜—ȱ œ¢œŽ–œȱ Š›Žȱ –˜›Žȱ
Œ˜–™•Ž¡ǯȱ˜–Žȱœ’–™•¢ȱ‹›’—ȱ’—ȱ›Žœ‘ȱŠ’›ȱ›˜–ȱ‘Žȱ˜žœ’ŽȱŠ—ȱ’œ›’‹žŽȱ’ȱ‘›˜ž‘˜žȱ
‘Žȱ‹ž’•’—Dzȱ˜‘Ž›œȱ–Ž›Ž•¢ȱ›Ž–˜ŸŽȱ˜ž•ȱŠ’›ǯȱ’••ȱ˜‘Ž›œȱŒ˜–‹’—Žȱ‘ŽœŽȱ ˜ȱž—Œ’˜—œǰȱ
‹žȱ˜ȱ—˜ȱ‘ŠŸŽȱŠ—¢ȱŒ˜˜•’—ȱ˜›ȱ‘ŽŠ’—ȱŒŠ™ŠŒ’¢ǯȱ˜›ŽȱŒ˜–™•Ž¡ȱœ¢œŽ–œȱ Šœ‘ǰȱꕝŽ›ǰȱ
Š—ȱŠȱ˜›ȱ›Ž–˜ŸŽȱ‘ž–’’¢ȱ›˜–ȱ‘ŽȱŠ’›ǯȱ‘Žȱ–˜œȱŒ˜–™•Ž¡ȱœ¢œŽ–œȱ™Ž›˜›–ȱŠ••ȱ˜ȱ

Heating Fuels: The type of fuel used in a building's heating system should be explained in the building
description. Depending on the area and the type of building, one type of fuel may be more desirable
than another. Nevertheless, many building heating systems do not use the most economical fuel. For any
specific use, different fuels have different advantages and disadvantages, which are subject to change.
Type Characteristics
Fuel oil In spite of its high cost, fuel oil is a popular energy source that is easy to
transport and store. On-site, 275-gallon tanks are used in millions of houses,
and tanks that hold thousands of gallons of fuel oil are buried on industrial and
commercial sites.

Natural gas Natural gas is a convenient type of fuel because it is continuously delivered by
pipelines; no storage tank is needed. In many parts of Canada, natural gas is
the most economical fuel. Liquid petroleum gas, such as butane and propane, is
used in many rural areas. It requires on-site storage tanks and is usually more
expensive, but in other respects it is similar to natural gas.

Electricity Like oil, gas, or coal, electricity can be used to produce heat in a furnace or to
heat water in a boiler. In most areas electrical heating costs are high, but good
insulation and control can eliminate waste.

Coal In the past, coal was the most popular fuel for heating; it is still used in electrical
generating plants and to generate power for some industrial and commercial
uses. Coal is also used in residences for stoves and fireplaces, but the burning
of certain types of coal creates environmental pollution.

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 Chapter 11 – Improvement Analysis 11.29

‘ŽœŽȱ ž—Œ’˜—œȱ Š—ȱ Š•œ˜ȱ ‘ŽŠȱ Š—ȱ Œ˜˜•ȱ Š’›ȱ ‘›˜ž‘ȱ Šȱ Œ˜–™•Ž¡ȱ œ¢œŽ–ȱ ˜ȱ žŒœȱ Š—ȱ
Š—œǯȱ—ȱ•Š›Ž›ȱœ¢œŽ–œȱ‘ŠȱžœŽȱ•ŽœœȱŽ•ŽŒ›’Œ’¢ǰȱ ŠŽ›ȱŒ˜˜•œȱ‘Žȱ™’™Žœȱ’—ȱ ‘’Œ‘ȱ‘ŽȱŠœȱ
‘Šœȱ‹ŽŽ—ȱŒ˜–™›ŽœœŽǯȱ‘Žȱ ŠŽ›ȱ’œȱ‘Ž—ȱŒ˜—œŽ›ŸŽȱ’—ȱ˜ Ž›œȱ‘ŠȱŒ˜˜•ȱ’ȱ˜›ȱ›ŽžœŽǯ

HVAC System
Heating System Heating is rated in British thermal units (BTUs).
Types Warm or hot air
Characteristics/Use Air heated in a furnace and circulated by a pressure blower or relying on the
force of gravity. May include thermostats, filters, humidifiers, air cleaners, and air
purification devices.

Types Hot water (or hydronic systems)

Characteristics/Use Hot water pumped by a circulator through pipes to radiators and cold water is
returned to the boiler to be reheated. In radiant heating systems, hot water is
pumped through narrow pipes embedded in floors, walls, and ceilings rather
than through radiators.

Types Steam
Characteristics/Use Produced by a boiler, distributed through a one-pipe gravity system (identical
to the piping used in hot water systems), and transferred through radiators.
More complex and expensive two-pipe systems are found in larger, high-quality
structures. In many provinces, licenses are required for certain classes of steam
boilers; appraisers must be familiar with local boiler license laws and ascertain
whether boilers have current, valid licenses.

Types Electric
Characteristics/Use Includes heat pumps, wall heaters, baseboard units, duct heating units, heating
units installed in air-conditioning ducts, and radiant heat produced by electric
heating elements embedded in floors, walls, and ceilings. The automatic
regulation of a heating system helps it operate efficiently. A multiple-zone
system with separate thermostats is more efficient than a single zone system
with one thermostat. Complex systems provide an individual temperature
control for each room. The efficiency of certain systems can be increased by
putting a thermostat on the outside of the building. This helps building operators
anticipate how much heat the system will need to produce.

Air-Conditioning and Ventilation System

Types Electrically powered compressor and non-ozone-depleting refrigerant
Gas-powered compressor and ammonia as coolant
Combination with water-cooled pipes in which gas is compressed
Characteristics/Use Standards depend on climate. Capacity is rated in tons of refrigeration. In some
buildings the central air-conditioning equipment uses the same ducts as the
hot air heating system. This is not always possible, however, because the air-
conditioning may require ducts of a different size. Furthermore, heating registers
should be placed low on the walls, while air-conditioning registers should be
higher up or in the ceiling.

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 11.30 The Appraisal of Real Estate – Third Canadian Edition

Electrical Systems
—ȱŠ—ȱŽ•ŽŒ›’ŒŠ•ȱœ¢œŽ–ǰȱ™˜ Ž›ȱ’œȱ’œ›’‹žŽȱ›˜–ȱ‘ŽȱŽ•ŽŒ›’ŒŠ•ȱœŽ›Ÿ’ŒŽȱœŠ’˜—ȱ‘›˜ž‘ȱ
‹›Š—Œ‘ȱŒ’›Œž’œǰȱ ‘’Œ‘ȱŠ›Žȱ ’›Žœȱ•˜ŒŠŽȱ‘›˜ž‘˜žȱ‘Žȱ‹ž’•’—ǰȱ˜ȱŽ•ŽŒ›’ŒŠ•ȱ˜ž•Žœǯȱ
ŠŒ‘ȱ ‹›Š—Œ‘ȱ Œ’›Œž’ȱ œŠ›œȱ Šȱ Šȱ ’œ›’‹ž’˜—ȱ ‹˜¡ǰȱ  ‘Ž›Žȱ ’ȱ ’œȱ œŽ™Š›ŠŽȱ ›˜–ȱ ‘Žȱ –Š’—ȱ
œŽ›Ÿ’ŒŽȱ‹¢ȱŠȱ™›˜ŽŒ’˜—ȱŽŸ’ŒŽȱœžŒ‘ȱŠœȱŠȱžœŽȱ˜›ȱŒ’›Œž’ȱ‹›ŽŠ”Ž›ǯ
—ȱ Œ˜––Ž›Œ’Š•ȱ Š—ȱ ’—žœ›’Š•ȱ ‹ž’•’—œǰȱ ‘Žȱ  ’›’—ȱ ‹Ž ŽŽ—ȱ ‘Žȱ ’œ›’‹ž’˜—ȱ
‹˜¡Žœȱ Š—ȱ ‘Žȱ ˜ž•Žœȱ ’œȱ žœžŠ••¢ȱ Šȱ ›’’ȱ ˜›ȱ ̎¡’‹•Žȱ Œ˜—ž’ǯȱ —ȱ –˜œȱ ‘˜žœŽœǰȱ ȱ ˜›ȱ
Š›–˜ž›ŽȱŒŠ‹•Žȱ’œȱžœŽǯȱ•Šœ’ŒȬŒ˜ŠŽȱ ’›Žȱ’œȱžœŽȱ’—ȱŒŽ›Š’—ȱŠ›ŽŠœǰȱŠ—ȱ‘Žȱ˜•ȱ
”—˜‹ȬŠ—Ȭž‹Žȱ ’›’—ȱ’œȱœ’••ȱ˜ž—ȱ’—ȱ›ž›Š•ȱŠ›ŽŠœȱŠ—ȱ˜•Ž›ȱ‹ž’•’—œǰȱŠ•‘˜ž‘ȱ’ȱ’œȱ
Œ˜—œ’Ž›Žȱ˜‹œ˜•ŽŽǯ

Electrical System
Components Rigid or flexible conduit
BX or armored cable
Characteristics/Use Most electrical wire is copper. A typical residential electrical system is a single-
phase, three-wire system that provides a minimum of 100 amperes of electricity.
Ampere services of 150, 200, 300, and 400 are needed when electric heating
and air-conditioning are used. Most of these services can provide up to 220 volts
by connecting three wires to the outlet.

Components Power wiring

Characteristics/Use Used in commercial and industrial buildings to operate utility systems,
appliances, and machinery. The electrical power is generally carried at higher
voltages (e.g., 240, 480, 600 volts or more) and higher amperages (e.g., 400,
800, 1,200 amperes or more). Power wiring is usually three-phase or three-
phase-four-wire, which allows both lighting and three-phase power loads to be
delivered by the same supply. It is carried in conduit or by means of plug-in bus
ducts. Overhead bus ducts are frequently found in manufacturing plants where
flexible service is needed.
Components Switches and lighting fixtures
Characteristics/Use Since lighting fixtures are stylized and styles change, they are often obsolete
before they wear out. Fluorescent lighting, which may be suspended, surface-
mounted, or recessed, is used extensively in commercial and industrial buildings.
Often continuous rows are used in large spaces. Incandescent fixtures may be
used for smaller rooms, accents, or special purposes. Sodium, mercury vapor,
halogen, and halide lights are often installed in industrial buildings.
Components Outside, yard, and parking lot lighting
Characteristics/Use Usually downlighting of some kind; often mercury vapor, halogen, or halide lights

Components Floor outlets or floor duct systems

Characteristics/Use Used extensively in commercial and office buildings; provide convenient
electrical outlets for office machines and telephone outlets at desks using a
minimum number of cords
Components Low-voltage switching systems
Characteristics/Use In some houses and commercial buildings; allow many outlets and lights to be
controlled from one place

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 Chapter 11 – Improvement Analysis 11.31

Š›ŽȬŒŠ™ŠŒ’¢ȱ ™˜ Ž›ȱ  ’›’—ȱ –Š¢ȱ Œ˜—›’‹žŽȱ ˜ȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ Š—ȱ ’—žœ›’Š•ȱ ’–™›˜ŸŽȬ
–Ž—ǯȱ
˜ ŽŸŽ›ǰȱ ’ȱ ‘Žȱ  ’›’—ȱ ’œȱ Š—ȱ ž—Œ˜––˜—ȱ ¢™Žȱ Š—ȱ Šœȱ ˜ȱ Šȱ ‹ž’•’—ȇœȱ ˜™Ž›Ȭ
Š’—ȱ Œ˜œœȱ ˜›ȱ  ’••ȱ ‹Žȱ Ž¡™Ž—œ’ŸŽȱ ˜ȱ ›Ž–˜ŸŽǰȱ ’ȱ –Š¢ȱ ›Žœž•ȱ ’—ȱ ž—Œ’˜—Š•ȱ ˜‹œ˜•ŽœŒŽ—ŒŽǯȱ
’–’•Š›•¢ǰȱ Š—¢ȱ ‹ž’•’—ȱ  ’‘ȱ ’—œžĜŒ’Ž—ȱ Ž•ŽŒ›’ŒŠ•ȱ œŽ›Ÿ’ŒŽȱ ˜›ȱ  ’›’—ȱ œžěŽ›œȱ ›˜–ȱ
ž—Œ’˜—Š•ȱ˜‹œ˜•ŽœŒŽ—ŒŽǯ

Miscellaneous Equipment
—ȱ ‘Žȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ Š•œ˜ȱ Œ˜—œ’Ž›ȱ –’œŒŽ••Š—Ž˜žœȱ Žšž’™Ȭ
–Ž—ǰȱœžŒ‘ȱŠœȱ‘Žȱ˜••˜ ’—DZ
yȱ ’›Žȱ™›˜ŽŒ’˜—
yȱ •ŽŸŠ˜›œǰȱŽœŒŠ•Š˜›œǰȱŠ—ȱœ™ŽŽȱ›Š–™œ
yȱ ’—Š•œǰȱŠ•Š›–œǰȱŠ—ȱŒŠ••ȱœ¢œŽ–œ
yȱ ˜Š’—ȱŠŒ’•’’Žœ
yȱ ĴŠŒ‘ŽȱŽšž’™–Ž—

ANALYSIS OF ARCHITECTURAL STYLE AND

FUNCTIONAL UTILITY
ȱ ‹ž’•’—ȱ –Š¢ȱ ‘ŠŸŽȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ‹žȱ •ŠŒ”ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žǰȱ œžŒ‘ȱ Šœȱ Šȱ –ž•’Ȭ
™ž›™˜œŽȱ ™›ŽŒŠœȱ Œ˜—Œ›ŽŽȱ  Š›Ž‘˜žœŽȱ —ŽŠ›ȱ Šȱ ‘’‘ Š¢ȱ ’—Ž›Œ‘Š—Žǰȱ ˜›ȱ ’ȱ –Š¢ȱ ‘ŠŸŽȱ
Š–’›Š‹•Žȱ œ¢•Žȱ ‹žȱ •’Ĵ•Žȱ ž’•’¢ǰȱ œžŒ‘ȱ Šœȱ Šȱ ŒŠŸŽ›—˜žœȱ ŗşŘŖœȱ Ÿ’—ŠŽȱ –˜Ÿ’Žȱ ™Š•ŠŒŽȱ ’—ȱ Šȱ
ŽŒ•’—’—ȱ ž›‹Š—ȱ —Ž’‘‹˜ž›‘˜˜ǯȱ ˜›–ȱ Š—ȱ ž—Œ’˜—ȱ  ˜›”ȱ ˜Ž‘Ž›ȱ ˜ȱ Œ›ŽŠŽȱ œžŒŒŽœœž•ȱ

Miscellaneous Equipment

Fire Protection
Components Fire escapes
Standpipes and hose cabinets
Alarm services
Automatic sprinklers
Characteristics/Use A wet sprinkler system must have adequate water pressure to ensure that the
pipes are always filled. A dry system has pressurized air in the pipes. When a
sprinkler head opens, the pressure is relieved and water enters. Dry systems
are used on loading docks, in un-heated buildings where there is a danger of
water freezing, and in areas where there is no city water (usually because a well
cannot supply sufficient pressure to operate a wet system).

Elevators
Type Passenger
Characteristics/Use Generally electric; most modern elevators are high-speed and completely
automatic
Type Freight
Characteristics/Use Electric or hydraulic; hydraulic elevators are suitable for low-speed, low-
rise operations

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 11.32 The Appraisal of Real Estate – Third Canadian Edition

Miscellaneous Equipment, continued

Escalators and Speed Ramps
Type Passenger
Characteristics/Use Used to move large numbers of people up and down or along horizontal or
gradual slopes; must be adequate to accommodate those who use the building

Signals, Alarms, and Call Systems

Components Smoke detectors

Characteristics/Use Required by law in many areas

Components Security alarm systems

Characteristics/Use Available for residential, commercial, and industrial use to warn occupants of
forced entry, fire, or both
Components Clocks, pneumatic tube systems, mail chutes, and incinerators
Components Telephone wiring
Characteristics/Use In small buildings the telephone company supplies the wiring and equipment.
Larger buildings may have extensive systems of built-in cabinets, conduits, and
floor ducts for telephone service. The telephone service in a building may be
suitable for the current occupant but unsuitable for a potential buyer.
Loading Facilities
Type Open loading docks
Characteristics/Use May be important in commercial and industrial buildings. Off-street loading docks
are usually required by zoning regulations. Many older buildings have loading
doors only or substandard loading facilities. The floor of an efficient, one-storey
industrial building may be built above grade at freight car or truck-bed level.
Type Covered loading docks
Characteristics/Use In some buildings, docks are enclosed for trucks and freight cars, and levelling
devices are provided to assist in loading or unloading. A properly designed
industrial building has space in front of truck docks so that vehicles can
manoeuvre.
Attached Equipment
Components Air hoses
Process piping
Industrial wiring for heavy electrical capacity
Bus ducts
Freezer equipment
Characteristics/Use Often considered in terms of use value

Š›Œ‘’ŽŒž›Žǯȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ’œȱ —˜ȱ —ŽŒŽœœŠ›’•¢ȱ Ž¡Ž–™•’ꮍȱ ‹¢ȱ –’—’–Š•ȱ œ™ŠŒŽȱ ˜›ȱ
˜›–Dzȱ ™Ž˜™•Žȇœȱ —ŽŽȱ ˜›ȱ Œ˜–˜›ȱ Š—ȱ ™•ŽŠœž›Žȱ –žœȱ Š•œ˜ȱ ‹Žȱ Œ˜—œ’Ž›Žȱ ’—ȱ ‘Žȱ Žœ’—ȱ
˜ȱ˜ĜŒŽœǰȱœ˜›Žœǰȱ‘˜œ™’Š•œǰȱŠ—ȱ‘˜žœŽœǯȱ—ȱŠ™™›Š’œŽ›ȱ–žœȱ›ŽŒ˜—’£ŽȱŠ—ȱ›Š—”ȱ–Š›”Žȱ
™›ŽŽ›Ž—ŒŽœȱ›ŽŠ›’—ȱœ¢•ŽȱŠ—ȱž—Œ’˜—Š•ȱž’•’¢ȱŠ—ȱ‘Ž—ȱ›Ž•ŠŽȱ‘ŽœŽȱ™›ŽŽ›Ž—ŒŽœȱ˜ȱ
–Š›”ŽȱŸŠ•žŽǯ

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 Chapter 11 – Improvement Analysis 11.33

˜˜ȱŽœ’—ȱ–ŽŽœȱ‘Žȱ˜••˜ ’—ȱŒ›’Ž›’ŠDZ
yȱ ž—Œ’˜—œȱ Ž••ȱȮȱꝗŽœœȱ˜ȱ’—Ž—ŽȱžœŽ
yȱ ˜˜”œȱ˜˜ȱȮȱŠ™™ŽŠ•œȱ˜ȱŠŽœ‘Ž’ŒȱœŽ—œŽ
yȱ ŽŽ•œȱ˜˜ȱȮȱŒŠ››’Žœȱ–ŽŠ—’—ǰȱ›ŽŒ›ŽŠŽœȱŽŽ•’—ȱ›˜–ȱŠ—˜‘Ž›ȱ’–Žȱ˜›ȱ™•ŠŒŽ
yȱ Š•Š—ŒŽȱȮȱœŽ—œŽȱ˜ȱŒ˜››ŽŒȱ™›˜™˜›’˜—ǰȱŒ˜–™Š’‹’•’¢
yȱ 옛Š‹•ŽȱȮȱŒ˜—œ’œŽ—ȱ ’‘ȱ–Š›”ŽȱŽ¡™ŽŒŠ’˜—œȱ˜›ȱ™›’ŒŽȱ›Š—Ž
˜Œ’Š•ȱ Š—ȱ ŽŒ˜—˜–’Œȱ ’œœžŽœȱ ‘ŠŸŽȱ ‘Žȱ ›ŽŠŽœȱ ’–™ŠŒȱ ˜—ȱ ›Žœ’Ž—’Š•ȱ Žœ’—ǯȱ
˜ŸŽ›—–Ž—Š•ȱ’œœžŽœȱ‘ŠŸŽȱŠȱ›ŽŠŽ›ȱ’–™ŠŒȱ˜—ȱ—˜—Ȭ›Žœ’Ž—’Š•ȱŽœ’—ȱ‘›˜ž‘ȱ£˜—’—ȱ
Š—ȱ‹ž’•’—ȱŒ˜Žœǯȱ—Ÿ’›˜—–Ž—Š•ȱ’œœžŽœȱŠěŽŒȱ‘Žȱœ’Žȱ–˜›Žȱ‘Š—ȱ‘Žȱ’–™›˜ŸŽ–Ž—œǰȱ
Š•‘˜ž‘ȱ ˜™˜›Š™‘¢ȱ Š—ȱ ˜‘Ž›ȱ ŠŒ˜›œȱ –Š¢ȱ ’–™ŠŒȱ ‘Žȱ ™•ŠŒŽ–Ž—ȱ ˜ȱ ‘Žȱ ’–™›˜ŸŽȬ
–Ž—œȱ˜—ȱ‘Žȱœ’Žǯ

Architectural Style
›Œ‘’ŽŒž›Žȱ’œȱ‘ŽȱŠ›ȱŠ—ȱœŒ’Ž—ŒŽȱ˜ȱ‹ž’•’—ȱŽœ’—ȱŠ—ȱŒ˜—œ›žŒ’˜—ǯȱ›Œ‘’ŽŒž›Š•ȱ
œ¢•ŽȱŠěŽŒœȱ‘Žȱ–Š›”ŽȱŸŠ•žŽȱ˜ȱ™›˜™Ž›¢ǰȱœ˜ȱ’ȱ’œȱ’–™˜›Š—ȱ˜›ȱŠ™™›Š’œŽ›œȱ˜ȱž—Ž›Ȭ
œŠ—ȱ’œȱ—Šž›Žǯȱ ˜ȱ‹Šœ’Œȱ¢™Žœȱ˜ȱœ¢•ŽœȱŠ›Žȱ’œ’—ž’œ‘Žȱ’—ȱ–Ž›’ŒŠ—ȱŠ›Œ‘’ŽŒȬ
ž›ŽDZȱ˜›–Š•ȱŠ›Œ‘’ŽŒž›ŽȱŠ—ȱŸŽ›—ŠŒž•Š›ȱŠ›Œ‘’ŽŒž›Žǯȱ’ž›ŽœȱŗŗǯŘȱŠ—ȱŗŗǯřȱ’••žœ›ŠŽȱ
˜›–Š•ȱŠ—ȱŸŽ›—ŠŒž•Š›ȱŠ›Œ‘’ŽŒž›Š•ȱœ¢•Žœǯ
˜›–Š•ȱ Š›Œ‘’ŽŒž›Žȱ ›ŽŽ›œȱ ˜ȱ ‘Žȱ Š›ȱ Š—ȱ œŒ’Ž—ŒŽȱ ˜ȱ Žœ’—’—ȱ Š—ȱ ‹ž’•’—ȱ
œ›žŒž›Žœȱ ‘Šȱ –ŽŽȱ ‘Žȱ ŠŽœ‘Ž’Œȱ Š—ȱ ž—Œ’˜—Š•ȱ Œ›’Ž›’Šȱ ˜ȱ ‘˜œŽȱ ›Š’—Žȱ ’—ȱ Š›Œ‘’Ȭ
ŽŒž›Š•ȱ ‘’œ˜›¢ǯȱ ˜›–Š•ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žœȱ Š›Žȱ ’Ž—’ꮍȱ ‹¢ȱ Œ˜––˜—ȱ ŠĴ›’‹žŽœȱ ˜ȱ
Ž¡™›Žœœ’˜—ȱ Š—ȱ Š›Žȱ ›ŽšžŽ—•¢ȱ —Š–Žȱ ’—ȱ ›ŽŽ›Ž—ŒŽȱ
˜ȱ Šȱ Ž˜›Š™‘’Œȱ ›Ž’˜—ǰȱ Œž•ž›Š•ȱ ›˜ž™ǰȱ ˜›ȱ ’–Žȱ architectural style
™Ž›’˜ǰȱ Žǯǯǰȱ ‘Žȱ Š•’Š—ŠŽǰȱ ŽŒ˜—ȱ –™’›Žǰȱ Š—ȱ The character of a building'ts form
›Š’›’ŽȱŒ‘˜˜•ȱœ¢•ŽœǯŚȱ and ornamentation.
˜ȱŠȱŽ›ŽŽǰȱ‘Žȱ’œ’—Œ’˜—ȱ‹Ž ŽŽ—ȱ˜›–Š•ȱŠ—ȱ formal architecture
ŸŽ›—ŠŒž•Š›ȱŠ›Œ‘’ŽŒž›Žȱ’œȱŠ—Š•˜˜žœȱ˜ȱ‘Žȱ’쎛Ž—ŒŽȱ Architecture identified by its conformity
‹Ž ŽŽ—ȱꗎȱŠ›ȱŠ—ȱ˜•”ȱŠ›ǯȱŽ›—ŠŒž•Š›ȱŠ›Œ‘’ŽŒž›Žȱ to aesthetic and functional criteria
recognized by persons trained in
’Ž—’’Žœȱ œ›žŒž›Žœȱ Žœ’—Žȱ Š—ȱ ‹ž’•ȱ  ’‘˜žȱ
architectural history.
›ŽŽ›Ž—ŒŽȱ ˜ȱ ‘Žȱ ŠŽœ‘Ž’Œȱ Š—ȱ ž—Œ’˜—Š•ȱ Œ›’Ž›’Šȱ
vernacular architecture
˜ȱ Š›Œ‘’ŽŒž›Š•ȱ ‘’œ˜›¢ǰȱ ˜Ž—ȱ ‹ž’•’—œȱ  ’‘ȱ Š—ȱ
Architecture designed and built by
Ž–™‘Šœ’œȱ˜—ȱž—Œ’˜—ȱ˜ŸŽ›ȱ˜›–ǯȱŽ›—ŠŒž•Š›ȱŠ›Œ‘’ŽŒȬ
individuals according to custom and for
ž›Žȱ›ŽĚŽŒœȱŒžœ˜–ȱŠ—ȱ›Žœ™˜—œȱ˜ȱ‘ŽȱŽ—Ÿ’›˜—–Ž—ȱ its adaptive response to the environment
Š—ȱ Œ˜—Ž–™˜›Š›¢ȱ •’Žœ¢•Žœǯȱ Ž›—ŠŒž•Š›ȱ œ¢•Žœȱ œ‘Š›Žȱ and contemporary lifestyles, without
Œ˜––˜—ȱ ŠĴ›’‹žŽœȱ Š—ȱ –Š¢ȱ ‹Žȱ ŽŒ‘—˜•˜’ŒŠ••¢ȱ reference to the aesthetic and functional
œ’–™•Žȱ ˜›ȱ œ˜™‘’œ’ŒŠŽǯȱ ‘ŽœŽȱ œ¢•Žœȱ Š›Žȱ žœžŠ••¢ȱ criteria of architectural history.
ž——Š–Žȱ ‹ŽŒŠžœŽȱ ‘Ž¢ȱ Š›Žȱ —˜ȱ ˜›–Š••¢ȱ œž’Žȱ
‹¢ȱ Š›Œ‘’ŽŒž›Š•ȱ ‘’œ˜›’Š—œǯȱ ‘Žȱ ›Š’’˜—Š•ȱ ‹Š›—ǰȱ ‘Žȱ
–ŠœœȬ™›˜žŒŽȱ ‘˜–Žœȱ Œ˜—œ›žŒŽȱ ’—ȱ –˜Ž›—ȱ œž‹’Ȭ Market preferences are influenced both
Ÿ’œ’˜—œǰȱŠ—ȱ–ž•’ȬŽ—Š—ȱ’—žœ›’Š•ȱ™Š›”ȱ‹ž’•’—œȱŠ›Žȱ by the desire to maintain tradition and
by an expectancy of innovation.
Ž¡Š–™•Žœȱ˜ȱŸŽ›—ŠŒž•Š›ȱœ¢•Žœǯ

4
Literature on American architectural history is abundant. For a description of architectural styles in a real estate
appraisal context, see Judith Reynolds, Historic Properties: Preservation and the Valuation Process, 3rd ed. (Chicago:
Appraisal Institute, 2006) and Carole Rifkind, A Field Guide to American Architecture, rev. ed. (New York: Dutton, 1998).
Additional sources are cited in the bibiliography.

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 11.34 The Appraisal of Real Estate – Third Canadian Edition

Figure 11.2: Formal Architecture

Figure 11.3: Vernacular Architecture

›Œ‘’ŽŒž›Š•ȱ œ¢•Žȱ ’œȱ ’—ĚžŽ—ŒŽȱ ‹¢ȱ –Š›”Žȱ œŠ—Š›œȱ Š—ȱ ŠœŽœǰȱ  ‘’Œ‘ȱ Š›Žȱ ’—ĚžȬ
Ž—ŒŽȱ ‹˜‘ȱ ‹¢ȱ ‘Žȱ Žœ’›Žȱ ˜ȱ ™›ŽœŽ›ŸŽȱ ›Š’’˜—ȱ Š—ȱ ‹¢ȱ ‘Žȱ Žœ’›Žȱ ˜›ȱ Œ‘Š—Žǰȱ ŸŠ›’Ž¢ǰȱ
Š—ȱ ŽĜŒ’Ž—Œ¢ǯȱ ‘Žȱ –Š›”Žȇœȱ Žœ’›Žȱ ˜›ȱ Œ‘Š—Žȱ ™›˜Ÿ’Žœȱ ‘Žȱ ’–™Žžœȱ ˜›ȱ ŽŸŽ•˜™’—ȱ
—Ž ȱŽ•Ž–Ž—œȱ˜ȱŠ›Œ‘’ŽŒž›Š•ȱŽœ’—ǯȱ‘Š—Žœȱ’—ȱŠ›Œ‘’ŽŒž›Š•ȱ›Ž—œȱŠ›ŽȱŒŠžœŽȱ‹¢ȱ‘Žȱ
–Š›”Žȇœȱ›ŽŠŒ’˜—ȱ˜ȱŒž››Ž—ȱœ¢•Žœǯȱ‘Ž—ȱŠȱœ¢•Žȱ‹ŽŒ˜–Žœȱ˜˜ȱŽ¡›Ž–ŽǰȱŠȱœ‘’ȱ˜ȱŽ•Ž–Ž—œȱ
˜ȱ™Šœȱœ¢•Žœȱ›ŽšžŽ—•¢ȱ˜ŒŒž›œǯȱȱ›ŽŠŒ’ŸŽȱœ‘’ǰȱ‘Ž—ǰȱ™›˜Ÿ’ŽœȱŒ˜—›Šœȱ˜ȱ‘Žȱ™›ŽŒŽ’—ǰȱ
˜–’—Š—ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žǯȱ žŒ‘ȱ Œ‘Š—Žœȱ Š•œ˜ȱ ™›˜žŒŽȱ ŠŸŠ—ȬŠ›Žȱ ˜›ȱ Ž¡™Ž›’–Ž—Š•ȱ
‹ž’•’—ȱœ¢•Žœǰȱ ‘’Œ‘ȱŠ›ŽȱŽœŽȱ’—ȱ‘Žȱ–Š›”ŽȱŠ—ȱž•’–ŠŽ•¢ȱŠŒŒŽ™Žȱ˜›ȱ’œŒŠ›Žǯ
‘Š—Žœȱ’—ȱŠ›Œ‘’ŽŒž›ŽȱŒŠ—ȱŠ•œ˜ȱ‹ŽȱŽ—Ž›ŠŽȱ‹¢ȱŽ¡Ž›—Š•ȱ˜›ŒŽœǯȱ˜›ȱŽ¡Š–™•Žǰȱ’—ȱ
‘ŽȱŗşŝŖœǰȱ›’œ’—ȱŽ—Ž›¢ȱŒ˜œœȱ™›˜–™Žȱ—Ž ȱŽŸŽ•˜™–Ž—œȱ’—ȱ‘Žȱ‘ŽŠ’—ǰȱŸŽ—’•Š’˜—ǰȱ
Š—ȱ Š’›ȬŒ˜—’’˜—’—ȱ œ¢œŽ–œȱ žœŽȱ ’—ȱ ˜ĜŒŽȱ ‹ž’•’—œǯȱ ‘ŽœŽȱ ŽŸŽ•˜™–Ž—œȱ ’—Œ•žŽȱ
‘Žȱ ›Ž—ȱ ˜ Š›ȱ œŠ—ȬŠ•˜—Žȱ
ȱ œ¢œŽ–œȱ Š—ȱ ‘Žȱ žœŽȱ ˜ȱ —Ž ȱ Ž¡Ž›’˜›ȱ –ŠŽ›’Š•œȱ
‘ŠȱŒ˜—œŽ›ŸŽȱŽ—Ž›¢ǯ
›Œ‘’ŽŒž›Š•ȱ œ¢•Žœȱ Š›Žȱ –˜’ꮍȱ ˜ŸŽ›ȱ ™Ž›’˜œȱ ‘Šȱ Š›Žȱ •˜˜œŽ•¢ȱ ›Ž•ŠŽȱ ˜ȱ ‘Žȱ
ŽŒ˜—˜–’Œȱ •’Žȱ Œ¢Œ•Žœȱ ˜ȱ ‹ž’•’—œǯȱ Ž •¢ȱ Œ˜—œ›žŒŽȱ ‹ž’•’—œȱ žœžŠ••¢ȱ Œ˜—›Šœȱ ’—ȱ
œ¢•Žȱ ’‘ȱ‹ž’•’—œȱ˜ȱ‘Žȱ™›ŽŸ’˜žœȱ™Ž›’˜ǯȱŽ •¢ȱŒ˜—œ›žŒŽȱ‹ž’•’—œȱ˜ȱŠ••ȱŠ›Œ‘’Ȭ
ŽŒž›Š•ȱ œ¢•Žœȱ Ž—“˜¢ȱ ‹›˜Šȱ –Š›”Žȱ Š™™ŽŠ•ǰȱ  ‘Ž‘Ž›ȱ ‘Ž¢ȱ Š›Žȱ ™›˜Žœœ’˜—Š••¢ȱ Žœ’—Žȱ
˜›ȱ —˜ǯȱ
˜ ŽŸŽ›ǰȱ  ‘Ž—ȱ Šȱ ‹ž’•’—ȱ ’œȱ —˜ȱ •˜—Ž›ȱ —Ž ȱ ’ȱ ’œȱ Œ˜–™Š›Žȱ  ’‘ȱ ˜‘Ž›ȱ
‹ž’•’—œȱ ’—ȱ Ž›–œȱ ˜ȱ ‘Žȱ šžŠ•’¢ȱ Š—ȱ žœŽž•—Žœœȱ ˜ȱ ’œȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žǯȱ ˜›–ȱ Š—ȱ

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 Chapter 11 – Improvement Analysis 11.35

œ›žŒž›Žǰȱ ‘Žȱ –˜œȱ ‹Šœ’Œȱ Œ˜–™˜—Ž—œȱ ˜ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žǰȱ •’–’ȱ Š—ȱ Žę—Žȱ Šȱ ‹ž’•Ȭ
’—ȇœȱ ™˜Ž—’Š•ȱ žœŽœȱ ǻŠ—ȱ Œ‘Š—Žœȱ ’—ȱ žœŽǼǯȱ ‘ŽœŽȱ ŠŒ˜›œȱ ‹ŽŒ˜–Žȱ –˜›Žȱ ’—ĚžŽ—’Š•ȱ Šœȱ
’–Žȱ™ŠœœŽœǯ

Functional Utility
˜ȱ‹Žȱž—Œ’˜—Š•ǰȱŠ—ȱ’Ž–ȱ–žœȱ ˜›”ȱŠ—ȱ‹ŽȱžœŽž•ǯȱ
˜ ŽŸŽ›ǰȱ‘ŽȱŽę—’’˜—ȱ˜ȱž—ŒȬ
’˜—Š•ȱ ž’•’¢ȱ ’œȱ œž‹“ŽŒȱ ˜ȱ Œ‘Š—’—ȱ Ž¡™ŽŒŠ’˜—œȱ Š—ȱ œŠ—Š›œǯȱ ™’–Š•ȱ ž—Œ’˜—Š•ȱ
ž’•’¢ȱ ’–™•’Žœȱ ‘Šȱ ‘Žȱ Žœ’—ȱ Š—ȱ Ž—’—ŽŽ›’—ȱ ˜ȱ
Šȱ ‹ž’•’—ȱ Š›Žȱ Œ˜—œ’Ž›Žȱ ˜ȱ ‹Žœȱ –ŽŽȱ ™Ž›ŒŽ’ŸŽȱ functional utility
—ŽŽœȱŠȱŠȱ’ŸŽ—ȱ’–Žǯ The ability of a property or building to
ž—Œ’˜—Š•ȱ ’—ž’•’¢ȱ ’œȱ Š—ȱ ’–™Š’›–Ž—ȱ ˜ȱ ‘Žȱ be useful and to perform the function
ž—Œ’˜—Š•ȱ ŒŠ™ŠŒ’¢ȱ ˜ȱ Šȱ ™›˜™Ž›¢ȱ ˜›ȱ ‹ž’•’—ȱ for which it is intended according to
ŠŒŒ˜›’—ȱ ˜ȱ –Š›”Žȱ ŠœŽœȱ Š—ȱ œŠ—Š›œǯȱ ȱ current market tastes and standards;
šžŠ•’ęŽœȱ Šœȱ ž—Œ’˜—Š•ȱ ˜‹œ˜•ŽœŒŽ—ŒŽȱ  ‘Ž—ȱ ˜—˜’—ȱ the efficiency of a building's use in
Œ‘Š—Žǰȱ ŒŠžœŽȱ ‹¢ȱ ŽŒ‘—˜•˜’ŒŠ•ȱ ŠŸŠ—ŒŽœȱ Š—ȱ terms of architectural style, design and
ŽŒ˜—˜–’Œȱ Š—ȱ ŠŽœ‘Ž’Œȱ ›Ž—œǰȱ ›Ž—Ž›œȱ ‹ž’•’—ȱ layout, traffic patterns, and the size
and type of rooms.
•Š¢˜žœȱ Š—ȱ ŽŠž›Žœȱ ˜‹œ˜•ŽŽǯȱ ‘Š™Ž›ȱ ŗşȱ
’œŒžœœŽœȱ ‘Žȱ Œ˜—ŒŽ™ȱ ˜ȱ ž—Œ’˜—Š•ȱ ˜‹œ˜•ŽœŒŽ—ŒŽȱ functional inutility
’—ȱ ŽŠ’•ǯȱ ž—Œ’˜—Š•ȱ ’—ž’•’¢ȱ –žœȱ ‹Žȱ “žŽȱ Impairment of the functional capacity
of a property or building according to
’—ȱ Ž›–œȱ ˜ȱ –Š›”Žȱ œŠ—Š›œȱ ˜ȱ ŠŒŒŽ™Š‹’•’¢ǰȱ
market tastes and standards; equivalent
œ™ŽŒ’’ŒŠ••¢ȱ‘ŽȱœŠ—Š›œȱ˜ȱ‹ž¢Ž›œȱ ‘˜ȱ–Š”Žȱž™ȱ
to functional obsolescence because
‘Žȱ –Š›”Žȱ ˜›ȱ Šȱ ™Š›’Œž•Š›ȱ ¢™Žȱ ˜ȱ ‹ž’•’—ȱ  ’‘’—ȱ ongoing change makes layouts and
Šȱ™Š›’Œž•Š›ȱ™Ž›’˜ȱ˜ȱ’–ŽǯȱŽ›Š’—ȱŽœ’—ȱŽ•Ž–Ž—œȱ features obsolete.
˜ȱ Ȉœ–Š›ȱ ˜ĜŒŽȱ ‹ž’•’—œȈǰȱ œžŒ‘ȱ Šœȱ Ž¡›Šȱ Œ˜˜•’—ȱ
ŒŠ™Š‹’•’¢ǰȱ–˜›Žȱ̎¡’‹•ŽȱŒŠ‹•’—ȱœ¢œŽ–œǰȱŠ—ȱŠ’Ȭ
’˜—Š•ȱ ™˜ Ž›ȱ ˜ȱ ›ž—ȱ –˜›Žȱ œ˜™‘’œ’ŒŠŽȱ Œ˜–™žŽ›ȱ In architecture, style and functional
œ¢œŽ–œǰȱ –Š¢ȱ ‘ŠŸŽȱ ‹ŽŽ—ȱ œž™Ž›ŠŽšžŠŽȱ  ‘Ž—ȱ utility are necessarily interrelated
‘Ž¢ȱ  Ž›Žȱ ˜›’’—Š••¢ȱ Œ˜—œ›žŒŽǰȱ ‹žȱ Œ‘Š—’—ȱ because form and function work with
design and construction to create a
–Š›”Žȱ Žœ’›Žœȱ ‘ŠŸŽȱ –ŠŽȱ œ˜–Žȱ ˜ȱ ‘˜œŽȱ ’Ž–œȱ
successful product.
œŠ—Š›ǯ
Š—Š›œȱ ˜ȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ŸŠ›¢ȱ  ’‘ȱ ‘Žȱ
¢™Žȱ Š—ȱ žœŽȱ ˜ȱ ™›˜™Ž›¢ǯȱ ™ŽŒ’ęŒȱ Œ˜—œ’Ž›Š’˜—œȱ ˜›ȱ ’쎛Ž—ȱ ¢™Žœȱ ˜ȱ ™›˜™Ž›¢ȱ Š›Žȱ
’œŒžœœŽȱ ’—ȱ ‘Žȱ ›Ž–Š’—Ž›ȱ ˜ȱ ‘’œȱ Œ‘Š™Ž›ǯȱ ˜–Žȱ Ž—Ž›Š•ȱ œŠ—Š›œȱ ˜ȱ ž—Œ’˜—Š•ȱ
ž’•’¢ȱŒ˜—œ’Ž›Žȱ‹¢ȱŠ™™›Š’œŽ›œȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZȱ
yȱ ˜–™Š’‹’•’¢
yȱ ž’Š‹’•’¢ȱ˜›ȱŠ™™›˜™›’ŠŽ—Žœœ
yȱ ˜–˜›
yȱ ĜŒ’Ž—Œ¢
yȱ ŠŽ¢
yȱ ŽŒž›’¢
yȱ ŒŒŽœœ’‹’•’¢
yȱ ŠœŽȱŠ—ȱŒ˜œȱ˜ȱ–Š’—Ž—Š—ŒŽ
yȱ Š›”ŽȱœŠ—Š›œ
yȱ Ĵ›ŠŒ’ŸŽ—Žœœ
yȱ Œ˜—˜–’Œȱ™›˜žŒ’Ÿ’¢

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 11.36 The Appraisal of Real Estate – Third Canadian Edition

Design and Functional Utility by Property Type

Š›”ŽŠ‹’•’¢ȱ ’œȱ ‘Žȱ ž•’–ŠŽȱ Žœȱ ˜ȱ ž—Œ’˜—Š•ȱ ž’•’¢ǯȱ Ž—Ž›Š••¢ǰȱ Šȱ ‹ž’•’—ȱ ’œȱ ž—ŒȬ
’˜—Š•ȱ ’ȱ ’ȱ œžŒŒŽœœž••¢ȱ œŽ›ŸŽœȱ ‘Žȱ ™ž›™˜œŽȱ ˜›ȱ  ‘’Œ‘ȱ ’ȱ  Šœȱ Žœ’—Žȱ ˜›ȱ ŠŠ™Žǯȱ
™ŽŒ’ęŒȱŽœ’—ȱŒ˜—œ’Ž›Š’˜—œȱ‘ŠȱŠěŽŒȱ‘Žȱž—Œ’˜—Š•ȱž’•’¢ȱ˜ȱ›Žœ’Ž—’Š•ǰȱŒ˜––Ž›Ȭ
Œ’Š•ǰȱ’—žœ›’Š•ǰȱŠ›’Œž•ž›Š•ǰȱŠ—ȱœ™ŽŒ’Š•Ȭ™ž›™˜œŽȱ‹ž’•’—œȱŠ›Žȱ’œŒžœœŽȱ‹Ž•˜ ǯ

Residential
›Ž—œȱ ’—ȱ œ’—•ŽȬž—’ȱ Š—ȱ Š™Š›–Ž—ȱ Žœ’—ȱ Œ‘Š—Žǰȱ Š—ȱ ‹ž’•’—ȱ Œ˜–™˜—Ž—œȱ œžŒ‘ȱ
Šœȱ™˜›Œ‘Žœǰȱ‹Š•Œ˜—’Žœǰȱꛎ™•ŠŒŽœǰȱ’—’—ȱ›˜˜–œǰȱ•Š›Žȱ”’Œ‘Ž—œǰȱŽ—›¢ȱ‘Š••œǰȱŠ—ȱŠ–’•¢ȱ
›˜˜–œȱ –Š¢ȱ ‹Žȱ ’—Œ•žŽȱ ˜›ȱ Ž¡Œ•žŽǯȱ
˜žœ’—ȱ œŠ—Š›œȱ ŸŠ›¢ȱ  ’Ž•¢ȱ ˜›ȱ ’쎛Ž—ȱ
’—Œ˜–Žȱ •ŽŸŽ•œȱ Š—ȱ ’—ȱ ’쎛Ž—ȱ ›Ž’˜—œǯȱ
’œ˜›’Œȱ ‘˜žœŽœȱ Š›Žȱ ˜Ž—ȱ •Žœœȱ ž—Œ’˜—Š•ǰȱ ‹žȱ
‘Ž¢ȱ –Š¢ȱ ‹Žȱ ’—ȱ ›ŽŠȱ Ž–Š—ȱ žŽȱ ˜ȱ ‘Ž’›ȱ ™›ŽœŽ›ŸŠ’˜—’œȱ Š™™ŽŠ•ǯȱ ˜ȱ ŽŸŠ•žŠŽȱ ‘Žȱ
ž—Œ’˜—Š•ȱž’•’¢ȱ˜ȱ›Žœ’Ž—’Š•ȱ‹ž’•’—œǰȱŠ™™›Š’œŽ›œȱœ‘˜ž•ȱŠ—Š•¢£ŽȱœŠ—Š›ȱ–Š›”Žȱ
Ž¡™ŽŒŠ’˜—œǯȱ ‘Žȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ˜ȱ Šȱ œ’—•ŽȬž—’ȱ ˜›ȱ –ž•’ȬŠ–’•¢ȱ  Ž••’—ȱ ›Žœž•œȱ
™›’–Š›’•¢ȱ ›˜–ȱ ’œȱ •Š¢˜žǰȱ ŠŒŒ˜––˜Š’˜—ȱ ˜ȱ œ™ŽŒ’ęŒȱ ŠŒ’Ÿ’’Žœǰȱ ŠŽšžŠŒ¢ǰȱ Š—ȱ ŽŠœŽȱ
Š—ȱŒ˜œȱ˜ȱ–Š’—Ž—Š—ŒŽǯś
—ȱ Ž—Ž›Š•ǰȱ –˜›Žȱ ™Ž˜™•Žȱ ‘ŠŸŽȱ ‹ŽĴŽ›ȱ ‘˜žœ’—ȱ ˜Š¢ȱ ‘Š—ȱ ‘Ž¢ȱ ‘Šȱ ’—ȱ ‘Žȱ ™Šœǯȱ
Š—¢ȱ Š–Ž—’’Žœȱ Š›Žȱ —˜ ȱ Œ˜—œ’Ž›Žȱ —ŽŒŽœœ’’Žœȱ Š—ȱ ‘Ž’›ȱ ’—Œ•žœ’˜—ȱ ’œȱ Š”Ž—ȱ ˜›ȱ
›Š—Žǯȱ ŸŽ—ȱ ’—ȱ ™Ž›’˜œȱ ˜ȱ ‘’‘ȱ Œ˜—œ›žŒ’˜—ȱ Š—ȱ ꗊ—Œ’—ȱ Œ˜œœȱ  ‘Ž—ȱ ŠŸŽ›ŠŽȱ
‘˜žœŽœȱŠ›Žȱœ–Š••Ž›ǰȱ‘ŽȱŽ—Ž—Œ¢ȱ’œȱ˜ȱ›ŽŠ’—ȱŽ¡›Šȱ‹Š‘›˜˜–œǰȱ•Š‹˜ž›ȬœŠŸ’—ȱŽŸ’ŒŽœǰȱ
Š—ȱꛎ™•ŠŒŽœǯ
—ȱ Š™Š›–Ž—ȱ ‹ž’•’—œǰȱ Š–Ž—’’Žœȱ Ž—ȱ ˜ȱ ‹Žȱ –˜›Žȱ ’–™˜›Š—ȱ ‘Š—ȱ œ™ŠŒŽǯȱ
ŒŒž™Š—œȱ ˜Ž—ȱ ™›ŽŽ›ȱ Šȱ ꛎ™•ŠŒŽȱ ˜›ȱ Š—ȱ Ž¡›Šȱ ‹Š‘›˜˜–ȱ ˜ȱ Š—ȱ Š’’˜—Š•ȱ ŘŖŖȱ œšžŠ›Žȱ

EMERGING TRENDS IN RESIDENTIAL DESIGN

Remodelling: Becoming as common as new construction

Great room: Importance to the functions of the residence increasing
Floors: Wood or wood-look floors gaining popularity
Tile counters: Tile is a typical material; Corian® countertops may be an overimprovement in all but
the highest-priced residences
Windows: Often retrofitted with vinyl coverings on frames for ease of maintenance.
Recessed ceiling lights: High ceilings are currently popular despite the energy costs, and recessed
lighting increases the feeling of space
Electrical, plumbing, and heating systems: Often replaced with more efficient systems in
resale homes
Cabinet finishes: Subject to the whims of fashion
Doors: Heavy, solid-core doors are replacing standard, hollow-core doors

5
For further discussion of single-unit home design and functional utility, see Henry S. Harrison, Houses – The Illustrated
Guide to Construction, Design & Systems, 3rd ed. (Chicago: Real Estate Education Company, a division of Dearborn
Financial, 1998) and Appraisal Institute, Appraising Residential Properties, 4th ed. (Chicago: Appraisal Institute, 2007).
For discussion of apartment analysis, see Arlen C. Mills, Richard L. Parli, and Anthony Reynolds, The Valuation of
Apartment Properties, 2nd ed. (Chicago: Appraisal Institute, 2007) and Daniel J. O'Connell, The Appraisal of Apartment
Buildings (New York: John Wiley & Sons, Inc., 1990).

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 Chapter 11 – Improvement Analysis 11.37

ŽŽȱ˜ȱŠ›ŽŠǯȱ–Š••Ž›ȱ”’Œ‘Ž—œȱŠ—ȱ‹Š‘›˜˜–œȱŽ—ȱ˜ȱ‹Žȱ–˜›ŽȱŠŒŒŽ™Š‹•Žȱ˜ȱ‘Žȱ–Š›”Žȱ
˜›ȱ Š™Š›–Ž—œȱ ‘Š—ȱ ‘Žȱ –Š›”Žȱ ˜›ȱ ‘˜žœŽœǯȱȱ ’—’—ȱ Š›ŽŠȱ ‘Šȱ ’œȱ Šȱ ™Š›ȱ ˜ȱ ‘Žȱ •’Ÿ’—ȱ
›˜˜–ȱ ˜›ȱ ”’Œ‘Ž—ȱ ’œȱ Ž—Ž›Š••¢ȱ ŠŒŒŽ™Š‹•Žǯȱ Š–’•¢ȱ ›˜˜–œȱ Š—ȱ •’Ÿ’—ȱ ›˜˜–œȱ –Š¢ȱ ‹Žȱ
œ™ŠŒ’˜žœȱ˜ȱ˜ěœŽȱ‘Žȱœ–Š••—Žœœȱ˜ȱ˜‘Ž›ȱ›˜˜–œǰȱŠ—ȱŒ•˜œŽȱœ™ŠŒŽȱ–žœȱ‹Žȱ™•Ž—’ž•ǯ
‘Žȱ •Š¢˜žȱ ˜ȱ Šȱ ›Žœ’Ž—’Š•ȱ ™›˜™Ž›¢ȱ ›Ž•ŠŽœȱ ˜ȱ ›ŠĜŒȱ ™ŠĴŽ›—œǰȱ ’ǯŽǯǰȱ  ‘Ž›Žȱ ”’Œ‘Ž—œȱ
Š—ȱ ‹Š‘›˜˜–œȱ œ‘˜ž•ȱ ‹Žȱ •˜ŒŠŽȱ ˜›ȱ Œ˜—ŸŽ—’Ž—ŒŽȱ Š—ȱ ‘˜ ȱ ™›’ŸŠŽȱ Š—ȱ —˜—Ȭ™›’ŸŠŽȱ
Š›ŽŠœȱœ‘˜ž•ȱ‹ŽȱœŽ™Š›ŠŽȱǻœŽŽȱŠ‹•ŽȱŗŗǯŘǼǯȱȱ•Š¢˜žȱ‘Šœȱž—Œ’˜—Š•ȱ’—ž’•’¢ȱ’ȱ’ȱŒŠžœŽœȱ
Š ” Š›ȱ›ŠĜŒȱ™ŠĴŽ›—œǯȱ˜›ȱŽ¡Š–™•Žǰȱ’—ž’•’¢ȱ–Š¢ȱ›Žœž•ȱ’ȱ™Ž˜™•Žȱ‘ŠŸŽȱ˜ȱŒ›˜œœȱ‘Žȱ
•’Ÿ’—ȱ ›˜˜–ȱ ˜ȱ Žȱ ˜ȱ Šȱ ‹Ž›˜˜–ǰȱ ’ȱ ‘Žȱ ’—’—ȱ Š›ŽŠȱ ’œȱ —˜ȱ —Ž¡ȱ ˜ȱ ‘Žȱ ”’Œ‘Ž—ǰȱ ˜›ȱ ’ȱ
›˜ŒŽ›’Žœȱ‘ŠŸŽȱ˜ȱ‹Žȱ‹›˜ž‘ȱ‘›˜ž‘ȱ‘Žȱ•’Ÿ’—ȱ›˜˜–ȱ˜ȱ‘Žȱ”’Œ‘Ž—ǯ
Š—Š›œȱ˜ȱŠŽšžŠŒ¢ȱŸŠ›¢ǯȱ˜›ȱ‘Žȱ–˜œȱ™Š›ǰȱ‘Žȱ–Š›”Žȱ ’••ȱ—˜ȱŠŒŒŽ™ȱŠȱ˜—ŽȬ
‹Š‘›˜˜–ȱ‘˜žœŽǰȱŠ•‘˜ž‘ȱ˜—ŽȬ‹Ž›˜˜–ȱŠ™Š›–Ž—œȱŠ—ȱŒ˜—˜–’—’ž–ȱž—’œȱ›Ž–Š’—ȱ
™˜™ž•Š›ǯȱ Ž ȱ ”’Œ‘Ž—œȱ Š—ȱ ‹Š‘œȱ Š›Žȱ •Š›Ž›ǰȱ ‹ŽĴŽ›ȱ Žšž’™™Žǰȱ Š—ȱ –˜›Žȱ Ž¡™Ž—œ’ŸŽ•¢ȱ
ꗒœ‘Žȱ‘Š—ȱ‘Žȱœ–Š••ǰȱž’•’Š›’Š—ȱ”’Œ‘Ž—œȱŠ—ȱ‹Š‘œȱ˜ȱ‘Žȱ›ŽŒŽ—ȱ™Šœǯȱ’œ‘ Šœ‘Ž›œǰȱ
Š›‹ŠŽȱ’œ™˜œŠ•œǰȱŠ—ȱ Š••ȱ˜ŸŽ—œȱŠ›ŽȱžœžŠ••¢ȱœŠ—Š›ȱ’—ȱ—Ž ȱŒ˜—œ›žŒ’˜—ȱŠ—ȱ‘Ž’›ȱ
Š‹œŽ—ŒŽȱ –Š¢ȱ Œ›ŽŠŽȱ Šȱ ŸŠ•žŽȱ ™Ž—Š•¢ǯȱ Ž›Š–’Œȱ ’•Žȱ ’—ȱ ‹Š‘œȱ Š—ȱ –˜›Žȱ Ž•ŽŠ—ȱ ę¡ž›Žœȱ
Š›Žȱ ‹ŽŒ˜–’—ȱ Œ˜––˜—™•ŠŒŽǯȱ ‘Žȱ –ŠœŽ›ȱ ‹Ž›˜˜–ȱ ›ŽšžŽ—•¢ȱ ‘Šœȱ ’œȱ ˜ —ȱ Œ˜–™Š›Ȭ
–Ž—Š•’£Žȱ‹Š‘ȱ ’‘ȱŠȱœ™Šȱž‹ȱŠ—ȱŠȱœŽ™Š›ŠŽȱ›Žœœ’—ȱŠ›ŽŠǯȱ•˜œŽœȱŠ›ŽȱŠ‹ž—Š—ȱ’—ȱ
—Ž ȱŠ™Š›–Ž—œȱŠ—ȱ‘˜žœŽœǯȱ˜–ŽȱŽ¡Š–™•Žœȱ˜ȱž—Œ’˜—Š•ȱ˜‹œ˜•ŽœŒŽ—ŒŽȱ’—ȱ›Žœ’Ž—’Š•ȱ
™›˜™Ž›¢ȱŠ›Žȱ•’œŽȱ’—ȱŠ‹•Žȱŗŗǯřǯ

Table 11.2: Residential Layout Considerations

Poor floor plans are easily recognized by those who make up the market for houses, but standards often
vary with current trends in a region and neighborhood. The location of various rooms in relation to the site
can increase or diminish a dwelling's privacy and comfort.
Single-Unit Homes
• Bedrooms and living rooms are increasingly found in the rear of residences, often accessible
to the garden or backyard. Formerly it was considered desirable for the living room and largest
bedroom to be at the front of the house, oriented to the street.
• Kitchens, which were once relegated to the rear, are now just as likely to be on one side of a
hall in the middle or at the front of a residence.
• Full bathrooms are most convenient, accessible, and private when they are near the bedrooms.
They should be accessed directly or through a hall, not through a bedroom. Powder rooms
should be located off a hall and near, but not too near, the living room or dining room.
Multi-Family Units
• Two-storey, two-unit residences with vertical access from within the unit, rather than from
public space, have strong market appeal.
• Multi-unit housing is also built in stacked configurations with access on more than one level to
minimize stair climbing.
• Low-rise, multi-family housing projects can be designed in a great many ways.
• Elevator apartment buildings tend to have more standardized, predictable floor plans to make
the best use of space within a simple rectangular configuration.
• Structures designed for other uses are now being converted to apartments. Silos, breweries,
warehouses, and schools have been successfully converted into multi-unit projects.
• As housing costs increase, multi-unit floor plans have become more compact, with smaller
rooms and more efficient layouts

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 11.38 The Appraisal of Real Estate – Third Canadian Edition

Table 11.3: Examples of Functional Obsolescence in Residential Improvements

• Interior and exterior finishes that require extensive maintenance can make a structure less competitive.
• In most markets a house that wastes fuel and electricity suffers major functional obsolescence.
Energy-conserving features are particularly important in multi-family dwellings and often make the
difference between a profitable operation and an unprofitable one.
• The mix of units in an apartment project (e.g., two-bedroom units and three-bedroom units) should
meet market demands. An improper unit mix may indicate functional inutility.

Commercial
˜––Ž›Œ’Š•ȱ‹ž’•’—œȱŠ›ŽȱžœŽȱ˜›ȱ˜ĜŒŽœǰȱœ˜›Žœǰȱ‘˜Ž•œǰȱ‹Š—”œǰȱ›ŽœŠž›Š—œǰȱŠ—ȱœŽ›Ÿ’ŒŽȱ
˜ž•Žœǯȱ ›ŽšžŽ—•¢ǰȱ  ˜ȱ ˜›ȱ –˜›Žȱ Œ˜––Ž›Œ’Š•ȱ žœŽœȱ Š›Žȱ Œ˜–‹’—Žȱ ’—ȱ Šȱ œ’—•Žȱ ‹ž’•’—ǰȱ
Žǯǯǰȱ Šȱ ‘’‘Ȭ›’œŽȱ ˜ĜŒŽȱ ‹ž’•’—ȱ  ’‘ȱ ›˜ž—Ȭ•ŽŸŽ•ȱ ›ŽŠ’•ȱ œ™ŠŒŽȱ ˜›ȱ Šȱ ‘˜Ž•ȱ  ’‘ȱ Šȱ ›ŽŠ’•ȱ
Š›ŒŠŽȱ ˜ěȱ ‘Žȱ •˜‹‹¢ǯȱ ‘Žȱ œ›žŒž›Š•ȱ Š—ȱ Žœ’—ȱ ŽŠž›Žœȱ ˜ȱ Œ˜––Ž›Œ’Š•ȱ ‹ž’•’—œȱ Š›Žȱ
Œ˜—œŠ—•¢ȱ Œ‘Š—’—ǯȱ ŽŸŽ•˜™Ž›œȱ  Š—ȱ ‘Žȱ –˜œȱ Œ˜–™Ž’’ŸŽȱ ‹ž’•’—ȱ ™˜œœ’‹•Žǰȱ  ’‘’—ȱ
‘Žȱ Œ˜œȱ Œ˜—œ›Š’—œȱ ’–™˜œŽȱ ‹¢ȱ ŽŒ˜—˜–’Œȱ ™›Žœœž›Žœǯȱ ‘Ž›Ž˜›Žǰȱ ‘Ž¢ȱ ’—Œ˜›™˜›ŠŽȱ ŽŒ‘Ȭ
—˜•˜’ŒŠ•ȱŒ‘Š—Žœȱ˜ȱ–ŽŽȱ‘ŽȱŽ–Š—ȱ˜›ȱ’——˜ŸŠ’˜—ȱ ‘Ž—ŽŸŽ›ȱ™˜œœ’‹•Žǯ
‘ŽȱŽĜŒ’Ž—Œ¢ȱ˜ȱŒ˜––Ž›Œ’Š•ȱŒ˜—œ›žŒ’˜—ȱ˜Š¢ȱ’œȱ–žŒ‘ȱ›ŽŠŽ›ȱ‘Š—ȱ’ȱ Šœȱ’—ȱ‘Žȱ
™Šœǯȱ ›ŽŠŽ›ȱž’•’¢ȱŒŠ—ȱ‹Žȱ˜‹œŽ›ŸŽȱ‹˜‘ȱ’—ȱ‘Žȱ™˜›’˜—ȱ˜ȱ‘Žȱ˜Š•ȱŠ›ŽŠȱŽ—Œ•˜œŽȱ‹¢ȱ
‘Žȱœ›žŒž›Žǰȱ ‘’Œ‘ȱ™›˜žŒŽœȱ’›ŽŒȱ’—Œ˜–Žȱ’—ȱ‘Žȱ˜›–ȱ˜ȱ›Ž—ǰȱŠ—ȱ’—ȱ‘Žȱœ›žŒž›Š•ȱ
ŠŒ’•’Š’˜—ȱ‘Šȱ‘ŠœȱŽŸ˜•ŸŽȱ›˜–ȱ—Ž ȱ–ŠŽ›’Š•œȱŠ—ȱŒ˜—œ›žŒ’˜—ȱ–Ž‘˜œǯȱ˜ȱœ’—•Žȱ
–Ž‘˜ȱ ˜ȱ Œ˜––Ž›Œ’Š•ȱ ‹ž’•’—ȱ Œ˜—œ›žŒ’˜—ȱ ™›Ž˜–’—ŠŽœǯȱ Ž‘˜œȱ Ÿ’Žȱ  ’‘ȱ ˜—Žȱ
Š—˜‘Ž›ǰȱŠ—ȱ˜—Žȱ–Š¢ȱœž›™Šœœȱ˜‘Ž›œȱ’—ȱŠȱ’ŸŽ—ȱŠ›ŽŠȱŠȱŠȱ™Š›’Œž•Š›ȱ’–Žǯ
–™˜›Š—ȱ Œ˜—œ’Ž›Š’˜—œȱ ˜ȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ’—ȱ Œ˜––Ž›Œ’Š•ȱ ™›˜™Ž›’Žœȱ ’—Œ•žŽȱ
‘Žȱ˜••˜ ’—DZ
yȱ ˜•ž–—ȱœ™ŠŒ’—
yȱ Š¢ȱŽ™‘
yȱ ’ŸŽȬ•˜Šȱ̘˜›ȱŒŠ™ŠŒ’¢
yȱ Ž’•’—ȱ‘Ž’‘
yȱ ˜ž•Žȱ ’‘
yȱ •ŽŸŠ˜›ȱœ™ŽŽǰȱŒŠ™ŠŒ’¢ǰȱ—ž–‹Ž›ǰȱŠ—ȱœŠŽ¢
yȱ ŽŸŽ•ȱ˜ȱꗒœ‘
yȱ —Ž›¢ȱŽĜŒ’Ž—Œ¢
yȱ Š›”’—

Functional Utility in Shopping Centres

ž—Œ’˜—Š•ȱž’•’¢ȱŒŠ—ȱ‹ŽȱŽ¡›Ž–Ž•¢ȱœ’—’ęŒŠ—ȱ’—ȱœ‘˜™™’—ȱŒŽ—›Žœǯȱ›Ž—œȱ’—ȱœ‘˜™™’—ȱ
ŒŽ—›Žœȱ Œ‘Š—Žȱ œ˜ȱ ›Š™’•¢ȱ ‘Šȱ –Š—¢ȱ œ›žŒž›Žœȱ ‹ŽŒ˜–Žȱ ž—Œ’˜—Š••¢ȱ ˜‹œ˜•ŽŽȱ ‹Ž˜›Žȱ
‘Ž¢ȱ ŽŽ›’˜›ŠŽȱ ™‘¢œ’ŒŠ••¢ǯȱ ’—ŒŽȱ ›ŽŠ’•ȱ œ™ŠŒŽȱ ’œȱ ›Ž•Š’ŸŽ•¢ȱ ŽŠœ¢ȱ ˜ȱ ›Ž—˜ŸŠŽǰȱ –Š—¢ȱ
ŒŽ—›Žœȱ Š›Žȱ œ›ŽŠ–•’—Žȱ Š—ȱ –˜Ž›—’£Žȱ  ‘Ž—ȱ ‘Ž¢ȱ •˜œŽȱ ‘Ž’›ȱ –Š›”Žȱ Š™™ŽŠ•ǯȱ ˜–Žȱ
Ž—Œ•˜œŽȱ –Š••œȱ ŽŸŽ•˜™Žȱ ’—ȱ ‘Žȱ ŗşŞŖœȱ ‘ŠŸŽȱ ‹ŽŽ—ȱ ŠŠ™Žȱ ˜ȱ ˜‘Ž›ȱ žœŽœȱ ˜›ȱ ‘ŠŸŽȱ ‹ŽŽ—ȱ
•ŽŸŽ••Žȱ Š—ȱ ›ŽŽŸŽ•˜™Žȱ Šœȱ ‹’Ȭ‹˜¡ȱ ™˜ Ž›ȱ ŒŽ—›Žœȱ ˜›ȱ ŸŠ•žŽȬ˜›’Ž—Žȱ œ‘˜™™Ž›œȱ ˜›ȱ
•’Žœ¢•ŽȬ˜›’Ž—ŽȱŒŽ—›Žœȱ˜›ȱ‘’‘ȬŽ—ȱŒ˜—œž–Ž›œǯȱŠ—¢ȱ–˜Ž›—ȱŒ˜––ž—’¢ȱœ‘˜™™’—ȱ

R1ARE10.indb 38 10/4/2010 10:35:57 AM

 Chapter 11 – Improvement Analysis 11.39

ŒŽ—›ŽœȱŠ›ŽȱŽœ’—Žȱ ’‘ȱ‘Žȱ™˜ Ž›ȱŒŽ—›ŽȱŒ˜—ŒŽ™ǰȱ’—Œ˜›™˜›Š’—ȱŠȱ•Š›Ž›ȱ—ž–‹Ž›ȱ˜ȱ
œ–Š••Ž›ȱŠ—Œ‘˜›œȱŠ—ȱŠȱ‘’‘Ž›ȱ›Š’˜ȱ˜ȱŠ—Œ‘˜›ȱœ™ŠŒŽȱ˜ȱ–’—’–’£Žȱ›’œ”ǯŜȱ
’œ’‹’•’¢ȱ Š—ȱ ŠŒŒŽœœȱ Š›Žȱ ‘Žȱ ™›’–Š›¢ȱ Œ˜—œ’Ž›Š’˜—œȱ ’—ȱ ‘Žȱ Š—Š•¢œ’œȱ ˜ȱ ›ŽŠ’•ȱ
’–™›˜ŸŽ–Ž—œǯȱ ‘Ž›ȱ ‹ž’•’—ȱ Š–Ž—’’Žœȱ ‘Šȱ ŒŠ—ȱ Œ˜—›’‹žŽȱ ˜ȱ ‘Žȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ
˜ȱœ‘˜™™’—ȱŒŽ—›Žœȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ Ĵ›ŠŒ’ŸŽȱ™ž‹•’ŒȱŠ›ŽŠœ
yȱ Ž••Ȭ”Ž™ȱ›˜ž—œ
yȱ ŽšžŠŽǰȱ Ž••Ȭ•˜ŒŠŽȱ›Žœ›˜˜–ȱŠŒ’•’’Žœ
yȱ ž’Š‹•Žȱ›ŠĜŒȱ™ŠĴŽ›—œȱ˜›ȱœ‘˜™™Ž›œ
yȱ ŽšžŠŽȱŒ˜•ž–—ȱœ™ŠŒ’—
yȱ žĜŒ’Ž—ȱ—ž–‹Ž›ȱ˜ȱŽœŒŠ•Š˜›œ
yȱ ž›Š‹•ŽȱŠ—ȱŽŠœ’•¢ȱ–Š’—Š’—Žȱœž›ŠŒŽȱŠ—ȱꗒœ‘ȱŽ•Ž–Ž—œ
yȱ ›ŽŠœȱ˜›ȱœ‘˜™™Ž›œȱŠ—ȱ ˜›”Ž›œȱ˜ȱ›Žœ
yȱ ›˜—ȱ•’‘’—ȱŠ—ȱŠĴ›ŠŒ’ŸŽǰȱŒ˜˜›’—ŠŽȱœ’—œ

EMERGING TRENDS IN SHOPPING CENTRE DESIGN

Individuality: In contrast to the trend of branding a product to promote consumer loyalty, shopping
centre developers are emphasizing regional differences in architectural style to avoid homogeneity.
Strong brand names within a shopping centre are still desirable, but the shopping centre itself
should not be seen as a carbon copy of another property in a chain.
Entertainment retailing: Entertainment functions such as movie theatres, restaurants, and
themed retailers are becoming increasingly common in "destination" shopping centres. Research
has yet to demonstrate conclusively that the presence of movie theatres increases overall sales
within a shopping centre, but properties that lack entertainment options may be at a competitive
disadvantage in the investment market.
Themed districts within a shopping centre: In the past, the tenant mix was often adjusted so
that competitors would be in different areas of a shopping centre. To foster convenience, comfort,
and control for consumers with limited time, shopping centre owners are starting to cluster related
retailers, e.g., wings of a mall focusing on fashion boutiques, sports-oriented retailers, and family-
oriented stores. The effectiveness of the tenant mix of a shopping centre remains a good indicator
of the competency of leasing and management.

Functional Utility in Office Buildings

˜Ž›—ȱ˜ĜŒŽȱ‹ž’•’—œȱŠ›Žȱ˜Ž—ȱŠ‹•Žȱ˜ȱž•ę••ȱ‘Ž’›ȱ™›’–Š›¢ȱž—Œ’˜—ȱȮȱŠŒŒ˜––˜ŠȬ
’—ȱ ‘Žȱ ŠŒ’Ÿ’’Žœȱ ˜ȱ ˜ĜŒŽȱ  ˜›”Ž›œȱ Ȯȱ •˜—Ž›ȱ ‘Š—ȱ Š—¢ȱ ˜‘Ž›ȱ ™›˜™Ž›¢ȱ ¢™Žǰȱ  ’‘ȱ ‘Žȱ
™˜œœ’‹•Žȱ Ž¡ŒŽ™’˜—ȱ ˜ȱ ›Žœ’Ž—’Š•ȱ ™›˜™Ž›¢ǯȱ •‘˜ž‘ȱ ›Ž—œȱ ’—ȱ ˜ĜŒŽȱ Œ˜—œ›žŒ’˜—ȱ
–˜ŸŽȱ–˜›Žȱœ•˜ •¢ȱ‘Š—ȱ›Ž—œȱ’—ȱ›ŽŠ’•ȱŠ—ȱ‘˜Ž•ȱŽœ’—ǰȱ‘Žȱ̎¡’‹’•’¢ȱ˜ȱ˜ĜŒŽȱœ™ŠŒŽȱ
’œȱ ’—Œ›ŽŠœ’—•¢ȱ ’–™˜›Š—ȱ ˜ȱ Š—ȱ ˜ĜŒŽȱ ‹ž’•’—ȇœȱ Ÿ’Š‹’•’¢ǯȱ •Ž›ȱ ˜ĜŒŽȱ ‹ž’•’—œȱ ‘Šȱ
ŒŠ——˜ȱ ‹Žȱ ›Ž›˜ęĴŽȱ ˜ȱ Œ˜—Ž–™˜›Š›¢ȱ œŠ—Š›œȱ ˜›ȱ  ’›’—ǰȱ
ȱ ŒŠ™ŠŒ’¢ǰȱ Š—ȱ
˜‘Ž›ȱŽœœŽ—’Š•ȱœ¢œŽ–œȱ ’••ȱœžěŽ›ȱ’—ȱŒ˜–™Ž’’˜—ȱ ’‘ȱ–˜›Žȱž—Œ’˜—Š•ȱ˜ĜŒŽȱœ™ŠŒŽǯ

6
For a discussion of the spatial analysis of a shopping centre, see M. Gordon Brown, "Design and Value: Spatial Form
and the Economic Failure of a Mall", Journal of Real Estate Research, vol. 17, no. 1/2 (1999): 189-225.

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 11.40 The Appraisal of Real Estate – Third Canadian Edition

ĜŒŽȱŽ—Š—œȱŠ›Žȱ–˜›Žȱ•’”Ž•¢ȱ˜ȱ™Š¢ȱ‘’‘Ž›ȱ›Ž—œȱ˜›ȱœ™ŠŒŽȱ’—ȱŠ—ȱŠĴ›ŠŒ’ŸŽ•¢ȱŽœ’—Žȱ
‹ž’•’—ȱ˜›ȱ˜›ȱŠȱ™›Žœ’’˜žœȱŠ›Žœœǰȱ‹žȱŽ—Š—œȱŠ›Žȱž—•’”Ž•¢ȱ˜ȱ›Ž—Ž ȱ‘Ž’›ȱ•ŽŠœŽœȱ’ȱ
‘Žȱ˜ĜŒŽȱœ™ŠŒŽȱ’œȱž—Š‹•Žȱ˜ȱŠŠ™ȱ˜ȱ‘Ž’›ȱŒ‘Š—’—ȱ—ŽŽœǯȱŸŽ—ȱ’ȱŠȱŽŸŽ•˜™Ž›ȱ™•Š—œȱ
˜ȱ ›Ž—ȱ ž••ȱ ̘˜›œȱ ˜ȱ Šȱ —Ž ȱ ˜ĜŒŽȱ ‹ž’•’—ǰȱ ‘Ž›Žȱ –Š¢ȱ Œ˜–Žȱ Šȱ ’–Žȱ  ‘Ž—ȱ ‘Žȱ ˜ —Ž›ȱ
–žœȱœž‹’Ÿ’Žȱ̘˜›œȱŠ—ȱ›Ž—ȱœ™ŠŒŽȱ˜ȱœ–Š••Ž›ȱŽ—Š—œǯ
ž—Œ’˜—Š•ȱŒ˜—œ’Ž›Š’˜—œȱ˜›ȱ˜ĜŒŽȱ‹ž’•’—œȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ ™™›˜™›’ŠŽȱŽ—œ’¢ȱǻ•˜ Ȭǰȱ–Ž’ž–Ȭǰȱ˜›ȱ‘’‘Ȭ›’œŽȱœ›žŒž›ŽǼȱ˜›ȱ–Š›”ŽȱŠ›ŽŠ
yȱ ž’•’—ȱœ‘Š™ŽȱŠ—ȱœ’£Ž
yȱ •Ž¡’‹•ŽȱŠ—ȱŽĜŒ’Ž—ȱžœŽȱ˜ȱœ™ŠŒŽȱǻ•Š›Ž›ȱ̘˜›™•ŠŽœȱŠ›ŽȱŽœ’›Š‹•ŽǼ
yȱ ¡™Š—œ’˜—ȱŒŠ™Š‹’•’’Žœǰȱ’—Œ•ž’—ȱ™˜Ž—’Š•ȱŸŽ›’ŒŠ•ȱŽ¡™Š—œ’˜—
yȱ
ǰȱ™•ž–‹’—ǰȱŽ•ŽŒ›’ŒŠ•ǰȱœŽŒž›’¢ǰȱŠ—ȱŒ˜––ž—’ŒŠ’˜—œȱœ¢œŽ–œ
yȱ •˜˜›Ȭ˜Ȭ̘˜›ȱ‘Ž’‘œ
yȱ ŠŒŠŽȱŠ—ȱ’—Ž›’˜›ȱŠ—ȱŽ¡Ž›’˜›ȱœ’—ŠŽ
yȱ ŒŒŽœœȱ˜ȱ•˜‹‹’ŽœȱŠ—ȱ™ž‹•’Œȱœ™ŠŒŽ
yȱ Ž›’ŒŠ•ȱ›Š—œ™˜›Š’˜—
yȱ –Ž—’’ŽœǰȱŽǯǯǰȱ›ŽŠ’•ȱŠ—ȱ›ŽœŠž›Š—œǰȱꝗŽœœȱŒŽ—›ŽœǰȱŠ¢ȱŒŠ›ŽȱŠŒ’•’’Žœ
ŒŒŽœœȱ˜ȱ›ŽŠ’•ȱŠ—ȱœž™™˜›ȱœŽ›Ÿ’ŒŽœȱ’œȱŠ—ȱ’–™˜›Š—ȱŠ–Ž—’¢ȱ’—ȱœž‹ž›‹Š—ȱ˜ĜŒŽȱ™Š›”œȱ
‹ŽŒŠžœŽȱ ‘ŽœŽȱ œŽ›Ÿ’ŒŽœȱ –Š¢ȱ —˜ȱ ‹Žȱ  ’‘’—ȱ ŽŠœ¢ȱ ›’Ÿ’—ȱ ’œŠ—ŒŽDzȱ ‘’œȱ ’œȱ ž—•’”Žȱ ž›‹Š—ȱ
˜ĜŒŽȱ’œ›’Œœȱ‘Šȱ‘ŠŸŽȱŠȱŒ˜—ŒŽ—›Š’˜—ȱ˜ȱ’ŸŽ›œŽȱžœŽœǯ

EMERGING TRENDS IN OFFICE BUILDING DESIGN

Office-hotel concept: As an alternative to negotiating 10- to 20-year office leases, some office
building owners are experimenting with providing short-term or temporary space and services as
needed by tenants.
Panel systems: Panel systems for separating workspaces are replacing traditional methods of
dividing space in offices for several reasons:
1. Cost – the cost of the technology needed for the average office worker is rising
2. Flexibility – more diverse work teams need adaptable meeting space
3. Private office spaces can be arranged with new panel systems
Data and power infrastructure: Raised floors and carpet tile allow greater access to data and
power cabling as well as denser bundling. (Carpet tile helps muffle the hollow sound of raised
floors.) Sufficient space for telecommunications closets is important for long-term flexibility.
Indoor air quality: The Environmental Protection Agency has ranked indoor air pollution among
the top five environmental risks to public health. Poor indoor air quality can be reduced using proper
ventilation and air exchange rates.

Functional Utility in Hotels

˜Ž•œȱ›Š—Žȱ›˜–ȱ’—¢ȱ’——œȱ ’‘ȱŽ Ž›ȱ‘Š—ȱŠȱ˜£Ž—ȱ›˜˜–œȱ˜ȱ‘žŽȱŒ˜—ŸŽ—’˜—ȱ‘˜Ž•œȱ
 ’‘ȱ–˜›Žȱ‘Š—ȱŠȱ‘˜žœŠ—ȱ›˜˜–œǯŝȱ••ȱ‘˜Ž•œȱŠ—ȱ–˜Ž•œȱ Ž›Žȱ˜—ŒŽȱ–ŽŠœž›ŽȱŠŠ’—œȱ
œŠ—Š›ǰȱŒž››Ž—ȱŽœ’—œǯȱ‘’œȱŽ—Ž—Œ¢ȱŒ˜—’—žŽœȱ˜›ȱ–Ž’ž–Ȭ™›’ŒŽȱ‘˜Ž•œȱŠ—ȱ‘Žȱ
ŸŠ›’˜žœȱ Ž¡Ž—ŽȬœŠ¢ȱ Š—ȱ •’–’ŽȬœŽ›Ÿ’ŒŽȱ ŒŠŽ˜›’Žœǰȱ ‹žȱ Š™™›Š’œŽ›œȱ –žœȱ Œ˜—œ’Ž›ȱ
7
For a thorough discussion of hotels, see Stephen Rushmore and Erich Baum, Hotels and Motels: Valuations and
Market Studies (Chicago: Appraisal Institute, 2001) and Stephen Rushmore, Dana Michael Ciraldo, and John Tarras,
Hotel Investments Handbook (Boston: Warren, Gorham & Lamont, 1997).

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 Chapter 11 – Improvement Analysis 11.41

ŸŠ›’Š’˜—ȱ ’—ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žœȱ Š—ȱ ’—Ž›’˜›ȱ ꗒœ‘ȱ ’—ȱ Š™™›Š’œ’—ȱ ˜•Ž›ȱ ŠŒ’•’’Žœȱ Š—ȱ
•ž¡ž›¢ȱ‘˜Ž•œǯ
‘Žȱ¢™Žȱ˜ȱ™Š›˜—œȱŠȱ‘˜Ž•ȱœŽ›Ÿ’ŒŽœȱŽŽ›–’—Žœȱ‘Žȱ™‘¢œ’ŒŠ•ȱŒ˜—ꐞ›Š’˜—ȱ˜ȱŠȱ‘˜Ž•ȱ
˜›ȱ –˜Ž•ǯȱ ȱ –˜Ž•ȱ –žœȱ ‹Žȱ ˜›’Ž—Žȱ ˜ȱ ‘Žȱ —ŽŽœȱ ˜ȱ ›’ŸŽ›œȱ  ‘˜ȱ  ’œ‘ȱ ˜ȱ œ™Ž—ȱ Šȱ
–’—’–ž–ȱ Š–˜ž—ȱ ˜ȱ ’–Žȱ ˜—ȱ ‘Žȱ ™›Ž–’œŽœǯȱ —ȱ ‘Žȱ ˜‘Ž›ȱ ‘Š—ǰȱ Šȱ ›Žœ˜›ȱ ‘˜Ž•ȱ –žœȱ
™›˜Ÿ’ŽȱŠȱŸŠ›’Ž¢ȱ˜ȱŽ—Ž›Š’—–Ž—ȱŠŒ’•’’Žœȱ˜›ȱ’œȱžŽœœǯ
‘ŽȱŠ–˜ž—ȱ˜ȱ‘˜Ž•ȱœ™ŠŒŽȱŽŸ˜Žȱ˜ȱžŽœȱ›˜˜–œȱŸŠ›’Žœǯȱȱ‘˜Ž•ȱ‘Šȱ’œȱŠȱ–Š“˜›ȱ
–ŽŽ’—ȱ Š—ȱ Ž—Ž›Š’—–Ž—ȱ ŒŽ—›Žȱ ‘Šœȱ Šȱ –žŒ‘ȱ •˜ Ž›ȱ ™›˜™˜›’˜—ȱ ˜ȱ žŽœȱ ›˜˜–œȱ ˜ȱ
™ž‹•’ŒȱŠ›ŽŠœȱ‘Š—ȱŠ—ȱŽ¡Ž—ŽȬœŠ¢ȱ‘˜Ž•ǯȱŠ—¢ȱŽ¡Ž—ŽȬœŠ¢ȱ‘˜Ž•œȱŒ˜—œ’œȱŽ—’›Ž•¢ȱ
˜ȱ œž’Žœȱ  ’‘ȱ œ–Š••ȱ Žšž’™™Žȱ ”’Œ‘Ž—œǰȱ •’Ÿ’—ȱ ›˜˜–œǰȱ Š—ȱ œŽ™Š›ŠŽȱ ‹Ž›˜˜–œǯȱ ‘ŽœŽȱ
‘˜Ž•œȱ žœžŠ••¢ȱ ‘ŠŸŽȱ œ–Š••ȱ •˜‹‹’Žœȱ Š—ȱ ›ŽœŠž›Š—œǯȱ ’—ŒŽȱ Ž ȱ ‘˜Ž•œȱ Œ˜—Š’—ȱ •˜’—ȱ
ŠŒ’•’’ŽœȱŠ•˜—ŽǰȱŠ™™›Š’œŽ›œȱ–žœȱ˜Ž—ȱŒ˜—œ’Ž›ȱ–ž•’™•Žǰȱ–’¡ŽȱžœŽœȱ ‘Ž—ȱŠ—Š•¢£’—ȱ
‘Žȱž—Œ’˜—Š•ȱž’•’¢ȱ˜ȱ‘Žȱ’–™›˜ŸŽ–Ž—œǯ

EMERGING TRENDS IN HOTEL DESIGN

Needs of the business traveler: Access to communications technology (wireless internet

connectivity and fax machines either in guest rooms or in a business centre) is increasingly important
to business travelers. At a minimum, hotels catering to business travelers should have a health club
in addition to a business centre.
Product types: All-suite, extended-stay, and hard budget hotels are the newest lodging concepts.
The hard budget category avoids "amenity creep", i.e., renovation that is beyond typical maintenance
and upkeep and that over time has turned limited-service hotels into mid-priced hotels.

Industrial
‘Žȱ–˜œȱ̎¡’‹•ŽȱŽœ’—ȱ˜›ȱ’—žœ›’Š•ȱ‹ž’•’—œǰȱŠ—ȱ‘Žȱ˜—Žȱ ’‘ȱ‘Žȱ›ŽŠŽœȱŠ™™ŽŠ•ȱ
˜—ȱ‘Žȱ˜™Ž—ȱ–Š›”Žǰȱ’œȱŠȱ˜—ŽȬœ˜›Ž¢ǰȱœšžŠ›Žǰȱ˜›ȱ—ŽŠ›•¢ȱœšžŠ›Žȱœ›žŒž›Žȱ‘ŠȱŒ˜–™•’Žœȱ
 ’‘ȱŠ••ȱ•˜ŒŠ•ȱ‹ž’•’—ȱŒ˜ŽœǯŞȱŸŽ—ȱ˜›ȱ‘Žȱœ’–™•Žœȱ’—žœ›’Š•ȱ‹ž’•’—œǰȱ‘˜ž‘ǰȱ‘Žȱ
ŠŒ˜›œȱ•’œŽȱ’—ȱŠ‹•ŽȱŗŗǯŚȱ–žœȱ‹ŽȱŒ˜—œ’Ž›Žǯ
‘Žȱ Œ˜–‹’—Š’˜—ȱ ˜ȱ ˜•ȱ Š—ȱ —Ž ȱ ’—žœ›’Š•ȱ œ™ŠŒŽȱ –Š¢ȱ Œ›ŽŠŽȱ œž‹œŠ—’Š•ȱ ž—ŒȬ
’˜—Š•ȱ˜‹œ˜•ŽœŒŽ—ŒŽȱ’ȱ‘Žȱ—Ž ȱŒ˜—œ›žŒ’˜—ȱŒ˜—›’‹žŽœȱ•Žœœȱ‘Š—ȱ’œȱŒ˜œȱ˜ȱ‘ŽȱŸŠ•žŽȱ
˜ȱ‘Žȱ ‘˜•Žǯȱ‘Žȱ•Š¢˜žȱ˜ȱ’—žœ›’Š•ȱœ™ŠŒŽȱœ‘˜ž•ȱŠ••˜ ȱ˜™Ž›Š’˜—œȱ˜ȱ‹ŽȱŒŠ››’Žȱ˜žȱ
 ’‘ȱ–Š¡’–ž–ȱŽĜŒ’Ž—Œ¢ǯȱ¢™’ŒŠ••¢ǰȱ›ŽŒŽ’Ÿ’—ȱž—Œ’˜—œȱŠ›Žȱ™Ž›˜›–Žȱ˜—ȱ˜—Žȱœ’Žȱ˜ȱ
‘Žȱ‹ž’•’—ǰȱœ‘’™™’—ȱž—Œ’˜—œȱ˜—ȱ‘Žȱ˜‘Ž›ǰȱŠ—ȱ™›˜ŒŽœœ’—ȱ˜›ȱœ˜›ŠŽȱž—Œ’˜—œȱ’—ȱ
‘Žȱ–’•Žǯ
˜–Žȱ ’—žœ›’Š•ȱ ‹ž’•’—œȱ ’—Œ•žŽȱ œ™ŽŒ’Š•ȱ ŽŠž›Žœȱ œžŒ‘ȱ Šœȱ œ™›’—”•Ž›ȱ œ¢œŽ–œǰȱ
œŒŠ•Žœǰȱ •˜Š’—ȱ ˜Œ”ȱ •ŽŸŽ••Ž›œǰȱ Œ›Š—Žœȱ Š—ȱ Œ›Š—Ž Š¢œǰȱ ›Ž›’Ž›Š’˜—ȱ Š›ŽŠœǰȱ Œ˜—ŸŽ¢˜›ȱ
œ¢œŽ–œǰȱ ™›˜ŒŽœœȱ ™’™’—ȱ ǻ˜›ȱ Œ˜–™›ŽœœŽȱ Š’›ǰȱ  ŠŽ›ǰȱ Š—ȱ ŠœǼǰȱ ™˜ Ž›ȱ  ’›’—ǰȱ Š—ȱ
Ž–™•˜¢ŽŽȱ •˜Œ”Ž›œȱ Š—ȱ •ž—Œ‘›˜˜–œǯȱ ‘ŽœŽȱ ŽŠž›Žœȱ –Š¢ȱ ‹Žȱ œŠ—Š›ȱ Žšž’™–Ž—ȱ ˜›ȱ
ŒŽ›Š’—ȱ’—žœ›’Š•ȱ˜™Ž›Š’˜—œȱ‹žȱ—˜ȱœŠ—Š›ȱ˜›ȱ‘Žȱ•˜ŒŠ•ȱ›ŽŠ•ȱŽœŠŽȱ–Š›”Žǯ

8
See also Douglas McKnight, "A Practical Guide to Evaluating the Functional Utility of Warehouses", The Appraisal
Journal (January 1999): 29-36 and Donald Sonneman, "Challenges in Appraising 'Simple' Warehouse Properties", The
Appraisal Journal (April 2001): 174-181.

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 11.42 The Appraisal of Real Estate – Third Canadian Edition

Table 11.4: Functional Utility of Industrial Improvements

Surplus land In new construction surplus land on the site is frequently allocated for
future expansion.

Clear span Anywhere from 21 to 35 feet. Many smaller warehouses can be

operated with a clear span of 15 to 20 feet, but higher ceilings might
be standard in the market.

Percentage of Varies widely depending on specific operation. If potential alternate

office space uses of an existing property do not require as much finished office
space, the excess may be an overimprovement.

Loading facilities Multiple load facilities can reduce delays in incoming deliveries and
outgoing orders. Overhead doors are less efficient loading facilities
than loading docks, dock-high floors, and truck wells.

Floor thickness and Typically, 5 to 8 inches of reinforced concrete. Live-load capacity –

loading capacity the ability to support moving or movable objects in the building at a
certain weight – is a minimum 125 pounds per square foot for light
warehouse space and manufacturing buildings and 250 pounds per
square foot for heavy warehouses.

Power service Manufacturing plants generally require more electrical service

than warehouses.

Land-to-building ratio or
floor space ratio (FSR)
Size relative to typical
building size
Typically, 1.8 to 3.5 land-to-building area (0.28 to 0.55 floor space
ratio). Many older facilities have less land and thus higher ratios.
The ratio must allow plenty of space for parking, truck maneuvering,
yard storage, and expansion. Floor area ratio (FSR) is also known as
building-to-land ratio.
Big-box warehouses can be significantly larger than competitive
buildings in the market. The cost of reconfiguring a large industrial
building for multi-tenant use is a measure of functional inutility.

Slope of access Steep inclines can reduce loading efficiency.

to the site

Functional Utility in Manufacturing Plants

Š—žŠŒž›’—ȱ ™•Š—œȱ Š—ȱ ˜‘Ž›ȱ ‹ž’•’—œȱ žœŽȱ ˜›ȱ ’—žœ›’Žœȱ ‘Šȱ ’—Ÿ˜•ŸŽȱ ‹ž•”¢ȱ ˜›ȱ
Ÿ˜•Š’•Žȱ –ŠŽ›’Š•œȱ Š—ȱ ™›˜žŒœȱ ‘ŠŸŽȱ œ™ŽŒ’Š•’£Žȱ Žšž’™–Ž—ȱ Š—ȱ ‹ž’•’—ȱ Žœ’—œǰȱ
œ˜ȱ ‘Ž¢ȱ ‘ŠŸŽȱ Ž ȱ ™˜Ž—’Š•ȱ žœŽ›œǯȱ ŠŒ’•’’Žœȱ ˜›ȱ ’—žœ›’Žœȱ œžŒ‘ȱ Šœȱ ˜˜ȱ ™›˜ŒŽœœ’—ȱ ˜›ȱ
–Š—žŠŒž›’—ȱ Œ˜–™žŽ›ȱ Œ‘’™œȱ –žœȱ –Š’—Š’—ȱ ™›ŽœŒ›’‹Žȱ •ŽŸŽ•œȱ ˜ȱ Œ•ŽŠ—•’—Žœœǯȱ ˜›ȱ
Ž¡Š–™•Žǰȱ‘ŽȱȈŒ•ŽŠ—ȱ›˜˜–œȈȱ—ŽŽŽȱ˜›ȱœ’•’Œ˜—ȱ ŠŽ›ȱ™›˜žŒ’˜—ȱ–Š¢ȱ—˜ȱŒ˜—›’‹žŽȱŠœȱ
–žŒ‘ȱŸŠ•žŽȱŠœȱ‘Ž¢ȱŒ˜œȱ˜ȱŒ˜—œ›žŒȱ’ȱžœŽȱ˜›ȱŠ•Ž›—Š’ŸŽȱ’—žœ›’Š•ȱžœŽœǯȱž’•’—œȱ
žœŽȱ ˜›ȱ •’‘ȱ –Š—žŠŒž›’—ȱ Š—ȱ ™›˜ŒŽœœ’—ȱ ‘ŠŸŽȱ Ž Ž›ȱ •’–’Š’˜—œȱ Š—ȱ ›ŽŠŽ›ȱ
Š™™ŽŠ•ȱ’—ȱ‘Žȱ–Š›”Žǯ

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 Chapter 11 – Improvement Analysis 11.43

Functional Utility in Warehouse and Distribution Facilities

˜›ŠŽȱ Š—ȱ ’œ›’‹ž’˜—ȱ ŠŒ’•’’Žœȱ ›Š—Žȱ ›˜–ȱ œ’–™•Žȱ Œž‹’Œ•Žœǰȱ ”—˜ —ȱ Šœȱ –’—’Ȭ
 Š›Ž‘˜žœŽœǰȱ ˜ȱ ‘žŽȱ ›Ž’˜—Š•ȱ  Š›Ž‘˜žœŽœȱ  ’‘ȱ –˜›Žȱ ‘Š—ȱ Šȱ –’••’˜—ȱ œšžŠ›Žȱ ŽŽǯȱ ˜›ȱ
˜™’–Š•ȱ ž—Œ’˜—Š•ȱ ž’•’¢ǰȱ  Š›Ž‘˜žœŽœȱ œ‘˜ž•ȱ ‘ŠŸŽȱ ŠŽšžŠŽȱ ŠŒŒŽœœǰȱ ˜™Ž—ȱ Š›ŽŠœǰȱ
ŒŽ’•’—ȱ ‘Ž’‘ǰȱ ̘˜›ȱ •˜Šȱ ŒŠ™ŠŒ’¢ǰȱ ‘ž–’’¢ȱ Š—ȱ Ž–™Ž›Šž›Žȱ Œ˜—›˜•œǰȱ œ‘’™™’—ȱ Š—ȱ
›ŽŒŽ’Ÿ’—ȱŠŒ’•’’Žœǰȱꛎȱ™›˜ŽŒ’˜—ǰȱŠ—ȱ™›˜ŽŒ’˜—ȱ›˜–ȱ‘ŽȱŽ•Ž–Ž—œǯ
‘Žȱ ™›’–Š›¢ȱ Œ˜—œ’Ž›Š’˜—ȱ ’—ȱ  Š›Ž‘˜žœŽȱ •˜ŒŠ’˜—ȱ ’œȱ ˜˜ȱ ŠŒŒŽœœǯȱ žœȬ’—Ȭ’–Žȱ
’—ŸŽ—˜›¢ȱ™›ŠŒ’ŒŽœȱ›Žšž’›ŽȱŠȱ’œ›’‹ž’˜—ȱŠŒ’•’¢ȱ˜ȱ‹ŽȱŠŒŒŽœœ’‹•Žȱ˜ȱŠȱ›ŽŠŽ›ȱŸŠ›’Ž¢ȱ
˜ȱ ŸŽ‘’Œ•Žœȱ Š—ȱ ŒŠ›˜ȱ Œ˜—Š’—Ž›œǰȱ –Š”’—ȱ –˜›Žȱ ›ŽšžŽ—ȱ Š—ȱ ˜Ž—ȱ œ–Š••Ž›ȱ ™’Œ”Ȭž™œȱ
Š—ȱ Ž•’ŸŽ›’Žœǯȱ œȱ Šȱ ›Žœž•ǰȱ ˜Œ”œȱ Š—ȱ ˜Œ”ȱ Š›ŽŠœȱ –žœȱ ‹Žȱ Žœ’—Žȱ  ’‘ȱ ›ŽŠŽ›ȱ
̎¡’‹’•’¢ǯȱ ›žŒ”’—ȱ ’œȱ ‘Žȱ –˜œȱ Œ˜––˜—ȱ –ŽŠ—œȱ ˜ȱ ›Š—œ™˜›’—ȱ ˜˜œǰȱ ‹žȱ ŒŽ›Š’—ȱ
 Š›Ž‘˜žœŽȱ˜™Ž›Š’˜—œȱŠ•œ˜ȱ—ŽŽȱŠŒŒŽœœȱ˜ȱ›Š’•ǰȱ ŠŽ›ǰȱŠ—ȱŠ’›ȱ›Š—œ™˜›Š’˜—ǯȱȱŽ•ŽŒ›’Œȱ
›žŒ”œȱŠ›ŽȱžœŽǰȱŠȱ‹ŠĴŽ›¢ȬŒ‘Š›’—ȱŠ›ŽŠȱœ‘˜ž•ȱ‹Žȱ’—Œ•žŽǯ
˜›”•’œǰȱŒ˜—ŸŽ¢˜›ȱ‹Ž•œǰȱŠ—ȱŠž˜–Š’ŒŠ••¢ȱž’ŽȱŸŽ‘’Œ•ŽȱŒ˜—ŸŽ¢˜›ȱœ¢œŽ–œȱŠ›Žȱ
žœŽȱ ˜ȱ –˜ŸŽȱ –ŠŽ›’Š•œȱ ’—œ’Žȱ  Š›Ž‘˜žœŽœǯȱ Š••Žœǰȱ ˜›ȱ ™˜›Š‹•Žȱ ™•Š˜›–œǰȱ Š›Žȱ žœŽȱ
˜›ȱ –˜Ÿ’—ȱ Š—ȱ œ˜›’—ȱ –ŠŽ›’Š•œȱ ’—ȱ –˜œȱ ’œ›’‹ž’˜—ȱ ˜™Ž›Š’˜—œǯȱ ‘Ž›Ž˜›Žǰȱ ŒŽ’•’—ȱ
‘Ž’‘œȱ ’—ȱ  Š›Ž‘˜žœŽœȱ œ‘˜ž•ȱ ŠŒŒ˜––˜ŠŽȱ ‘Žȱ œŠŒ”’—ȱ ˜ȱ Š—ȱ ’ŽŠ•ȱ —ž–‹Ž›ȱ ˜ȱ
™Š••Žœǯȱ Ž •¢ȱ Œ˜—œ›žŒŽȱ ‘’‘ȬŒž‹Žȱ  Š›Ž‘˜žœŽœȱ –Š¢ȱ ‹Žȱ –˜›Žȱ ŽĜŒ’Ž—ȱ ‘Š—ȱ ˜•Ž›ȱ
‹ž’•’—œȱ ’‘ȱ•Š›Ž›ȱ˜˜™›’—œȱŠ—ȱŽ Ž›ȱŠž˜–ŠŽȱœ¢œŽ–œȱ˜›ȱ–˜Ÿ’—ȱ–ŠŽ›’Š•œǯȱ
’—ŒŽȱ  ’Žȱ œ™Š—œȱ ™›˜Ÿ’Žȱ –Š¡’–ž–ȱ ̎¡’‹’•’¢ǰȱ Šȱ œšžŠ›Žȱ œ›žŒž›Žȱ Ž—Ž›Š••¢ȱ ’œȱ ‘Žȱ
–˜œȱŒ˜œȬŽěŽŒ’ŸŽǯ
™›’—”•Ž›ȱœ¢œŽ–œȱŠ›Žȱ—ŽŽŽȱ’—ȱ Š›Ž‘˜žœŽœȱ ‘Ž›Žȱ̊––Š‹•Žȱ˜˜œȱŠ›Žȱœ˜›Žǯȱ
‘Žȱ —Šž›Žȱ ˜ȱ ‘Žȱ œ˜›Žȱ –ŠŽ›’Š•ȱ ŽŽ›–’—Žœȱ  ‘Ž‘Ž›ȱ ‘Žȱ œ¢œŽ–ȱ œ‘˜ž•ȱ ‹Žȱ  Žȱ ˜›ȱ
›¢ǰȱžœ’—ȱ ŠŽ›ȱ˜›ȱŒ‘Ž–’ŒŠ•œǯ

EMERGING TRENDS IN INDUSTRIAL BUILDING DESIGN

Automation: Industrial operations are less labour-intensive and more equipment-intensive than they
once were, and the buildings that house those operations can devote more space to machinery and
systems than to break rooms, locker rooms, etc. For example, telecom hotels, internet switching centres,
and data centres often consist of bare storage space for computer equipment and are rarely visited by
the people who own the equipment. Also, automated inventory operations increase efficiency, particularly
when dealing with small electronic components or other products that are difficult to distinguish by the
naked eye.
Just-in-time manufacturing and inventory practices: Manufacturers do not want to be burdened with
the cost of storing large quantities of the products they produce, so their suppliers and the warehouse
operators who serve them focus less on the long-term storage of inventory and more on the movement
of inventory.

Buildings on Agricultural Properties

œȱ‘Žȱœ–Š••ǰȱŠ–’•¢ȱŠ›–ȱ‘Šœȱ’ŸŽ—ȱ Š¢ȱ˜ȱŽ Ž›ǰȱ•Š›Ž›ȱŠ›–œǰȱ‘ŽȱŒ˜—›’‹ž’˜—ȱ˜ȱŠ›–ȱ
‹ž’•’—œȱ˜ȱ‘Žȱ˜Š•ȱŸŠ•žŽȱ˜ȱŠ›–ȱ›ŽŠ•ȱŽœŠŽȱ‘Šœȱ‹ŽŽ—ȱœŽŠ’•¢ȱŽŒ›ŽŠœ’—ǯȱ‘Žȱ—ž–‹Ž›ȱ
˜ȱ Š›–ȱ ‹ž’•’—œȱ ™Ž›ȱ ŠŒ›Žȱ ˜ȱ Š›–•Š—ȱ ‘Šœȱ Š•œ˜ȱ ŽŒ›ŽŠœŽǯȱ Š›–œȱ Š›Žȱ ’—Œ›ŽŠœ’—•¢ȱ

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 11.44 The Appraisal of Real Estate – Third Canadian Edition

˜™Ž›ŠŽȱ‹¢ȱ•Š›Žǰȱœ™ŽŒ’Š•’£Žȱ‹žœ’—ŽœœȱŒ˜—ŒŽ›—œǰȱŠ—ȱ‘ŽȱŽšž’™–Ž—ȱŠ—ȱ–Š—ŠŽ–Ž—ȱ
—ŽŽŽȱ˜ȱ›ž—ȱŠ›’Œž•ž›Š•ȱ˜™Ž›Š’˜—œȱ‘ŠŸŽȱ‹ŽŒ˜–Žȱ’—Œ›ŽŠœ’—•¢ȱœ™ŽŒ’Š•’£Žǯş
Š›–ȱ ‹ž’•’—œȱ –žœȱ ŠŒŒ˜––˜ŠŽȱ ‘Žȱ ¢™Žȱ ˜ȱ –ŠŒ‘’—Ž›¢ȱ Š—ȱ Žšž’™–Ž—ȱ
Œž››Ž—•¢ȱ žœŽȱ ’—ȱ Š›–’—ȱ ǻœŽŽȱ Š‹•Žȱ ŗŗǯśǼǯȱ ˜ȱ ‹Žȱ žœŽž•ǰȱ ŽŠŒ‘ȱ Š›–ȱ ‹ž’•’—ȱ –žœȱ
Œ˜—›’‹žŽȱ ˜ȱ ‘Žȱ ˜™Ž›Š’—ȱ ŽĜŒ’Ž—Œ¢ȱ ˜ȱ ‘Žȱ Ž—’›Žȱ Š›–ǯȱ ŠŒ‘ȱ ‹ž’•’—ȇœȱ žœŽž•—Žœœȱ
›Ž•ŠŽœȱ˜ȱ‘Žȱ¢™ŽȱŠ—ȱœ’£Žȱ˜ȱ‘ŽȱŠ›–ǯȱž—Œ’˜—Š•ȱ’—ž’•’¢ȱŒŠ—ȱ›Žœž•ȱ›˜–ȱ‘ŠŸ’—ȱ˜˜ȱ
–Š—¢ȱŠ›–ȱ‹ž’•’—œȱ ‘Ž—ȱŽ Ž›ȱ ˜ž•ȱ‹Žȱ–˜›ŽȱŽĜŒ’Ž—ǯ

Table 11.5: Characteristics of Improvements on Agricultural Land

Type of Building Characteristics
Barns • Some barns have traditionally been multi-functional, providing animal shelter,
grain storage, and a threshing floor. Other structures, such as tobacco barns
and modern farm buildings, serve a single, specialized purpose.
• The traditional North American barn is 60 feet long and 30 feet wide,
with two gable ends, a loft, and double doors.
• Most barns are built of wood, but some are made of stone, logs, or brick.
• Old barns are suitable for modern, general-purpose farming if they are
sufficiently adaptable. Virtually all newer barns have pre-engineered
pole construction, which is less expensive and can accommodate more
farming activities than older, multi-storey barns can.
Silos • Silos have become more prevalent and larger. The use of baled, rather
than loose, hay and the increased use of ensilage have lessened the
need for barn storage.

Animal shelters • Animal shelters should be dry and clean, provide protection from the
wind and sun, and be adaptable to equipment storage.
Machine sheds • Sheds are needed to house tractors, combines, discs, plows, harrows,
cultivators, pickers, trucks, and other equipment.
Shop • Most farms have an area for maintenance of mechanical equipment.
Often the shop is a pole barn with concrete floors that has been modified.
In winter, this may be the most important building on the property.
• Usually heated, cooled, and insulated.

Dairy production • Pipeline milking machines and overhead feed bins dictate the require-
facilities ments for milking parlors and loafing sheds where livestock are sheltered.

Special-Purpose Buildings
•‘˜ž‘ȱ –˜œȱ ‹ž’•’—œȱ ŒŠ—ȱ ‹Žȱ Œ˜—ŸŽ›Žȱ ˜ȱ ˜‘Ž›ȱ žœŽœǰȱ ‘Žȱ Œ˜—ŸŽ›œ’˜—ȱ ˜ȱ œ™ŽŒ’Š•Ȭ
™ž›™˜œŽȱ ‹ž’•’—œȱ Ž—Ž›Š••¢ȱ ’—Ÿ˜•ŸŽœȱ Ž¡›Šȱ Ž¡™Ž—œŽȱ Š—ȱ Žœ’—ȱ Ž¡™Ž›’œŽǯȱ ™ŽŒ’Š•Ȭ
™ž›™˜œŽȱœ›žŒž›Žœȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ
˜žœŽœȱ˜ȱ ˜›œ‘’™
yȱ ‘ŽŠ›Žœ
yȱ ™˜›œȱŠ›Ž—Šœ
9
For additional information on improvements to rural land, see American Society of Farm Managers and Rural
Appraisers and Appraisal Institute, The Appraisal of Rural Property, 2nd ed. (Denver and Chicago, 2000).

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 Chapter 11 – Improvement Analysis 11.45

‘Žȱž—Œ’˜—Š•ȱž’•’¢ȱ˜ȱŠȱœ™ŽŒ’Š•Ȭ™ž›™˜œŽȱ‹ž’•’—ȱŽ™Ž—œȱ˜—ȱ ‘Ž‘Ž›ȱ˜›ȱ—˜ȱ‘Ž›Žȱ
’œȱ Œ˜—’—žŽȱ Ž–Š—ȱ ˜›ȱ ‘Žȱ žœŽȱ ˜›ȱ  ‘’Œ‘ȱ ‘Žȱ ‹ž’•’—ȱ  Šœȱ Žœ’—Žǯȱ ‘Ž—ȱ ‘Ž›Žȱ
’œȱ Ž–Š—ǰȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ Ž™Ž—œȱ ˜—ȱ  ‘Ž‘Ž›ȱ ˜›ȱ —˜ȱ ‘Žȱ ‹ž’•’—ȱ Œ˜—˜›–œȱ ˜ȱ
Œ˜–™Ž’’ŸŽȱœŠ—Š›œǯȱ˜›ȱŽ¡Š–™•Žǰȱ‘Ž›Žȱ’œȱŠȱŒ˜—’—žŽȱŽ–Š—ȱ˜›ȱ–˜Ÿ’Žȱ‘ŽŠ›Žœǰȱ
‹žȱ‘Ž’›ȱŽœ’—ȱ‘ŠœȱŒ‘Š—ŽȱžŽȱ˜ȱ‘’‘ȱ–Š’—Ž—Š—ŒŽȱŠ—ȱž’•’¢ȱŒ˜œœǯȱ›—ŠŽȱ–˜Ÿ’Žȱ
‘ŽŠ›ŽœȱŠ›Žȱœ’••ȱžœŽǰȱ‹žȱ—Ž •¢ȱŒ˜—œ›žŒŽȱ‘ŽŠ›ŽœȱŠ›ŽȱŽ—Ž›Š••¢ȱœ’–™•Žǰȱž—Ž–‹Ž•Ȭ
•’œ‘Žȱœ›žŒž›ŽœȱŒ˜—Š’—’—ȱŠȱ•Š›Ž›ȱ—ž–‹Ž›ȱ˜ȱœ–Š••Ž›ȱœŒ›ŽŽ—œǯŗŖ
‘Žȱ Žœ’—ȱ Š—ȱ –ŠŽ›’Š•œȱ žœŽȱ ’—ȱ ‘˜žœŽœȱ ˜ȱ  ˜›œ‘’™ȱ Š›Žȱ œ’–™•Ž›ȱ ˜Š¢ȱ ˜ȱ ”ŽŽ™ȱ
–Š’—Ž—Š—ŒŽȱ Š—ȱ ž’•’¢ȱ Œ˜œœȱ ˜ —ǯȱ ‘Žȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ˜ȱ ‘ŽœŽȱ œ›žŒž›Žœǰȱ •’”Žȱ
œ™˜›œȱ Š—ȱ Œ˜—ŒŽ›ȱ Š›Ž—Šœǰȱ ’œȱ ™›’–Š›’•¢ȱ ›Ž•ŠŽȱ ˜ȱ œŽŠ’—ȱ ŒŠ™ŠŒ’¢ǯȱ ‘Žȱ œ›žŒž›Žȇœȱ
œž™™˜›ȱŠŒ’•’’ŽœǰȱŽ—Ž›Š•ȱŠĴ›ŠŒ’ŸŽ—ŽœœǰȱŠ—ȱŠ™™ŽŠ•ȱ–žœȱŠ•œ˜ȱ‹ŽȱŒ˜—œ’Ž›Žǯŗŗ
‘Žȱ ŠŠ™’ŸŽȬžœŽȱ –˜ŸŽ–Ž—ȱ ‘Šœȱ Ž—Ž›ŠŽȱ ™ž‹•’Œȱ ’—Ž›Žœȱ ’—ȱ ‘Žȱ Œ˜—ŸŽ›œ’˜—ȱ ˜ȱ
œ™ŽŒ’Š•Ȭ™ž›™˜œŽȱ ‹ž’•’—œȱ ˜ȱ ™›ŽœŽ›ŸŽȱ Š›Œ‘’ŽŒž›Š••¢ȱ œ’—’ęŒŠ—ȱ œ›žŒž›Žœȱ ‘Šȱ ‘ŠŸŽȱ
˜ž•’ŸŽȱ ‘Ž’›ȱ ž—Œ’˜—ǯȱ Š’•›˜Šȱ œŠ’˜—œǰȱ œŒ‘˜˜•œǰȱ ꛎ‘˜žœŽœǰȱ Š—ȱ ›’œȱ –’••œȱ Š›Žȱ
™˜™ž•Š›ȱ œ›žŒž›Žœȱ ˜›ȱ Œ˜—ŸŽ›œ’˜—ǯȱ ‘Žȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ ˜ȱ ‘ŽœŽȱ ‹ž’•’—œȱ ›Ž•ŠŽœȱ
˜ȱ ‘˜ ȱ –žŒ‘ȱ ‘Ž¢ȱ ŽŸ’ŠŽȱ ›˜–ȱ ‹ž’•’—ȱ Œ˜Žœȱ Š—ȱ ‘˜ ȱ ‘Žȱ Œ˜œȱ ˜ȱ ›Ž‘Š‹’•’Š’˜—ȱ
Œ˜–™Š›Žœȱ ’‘ȱ‘Žȱ™˜Ž—’Š•ȱŽŒ˜—˜–’Œȱ›Žž›—ǯȱȱ¢™’ŒŠ•ȱ’Ž–ȱ˜ȱž—Œ’˜—Š•ȱ’—ž’•’¢ȱ’—ȱ
ŠŠ™’ŸŽȬžœŽȱ ™›˜“ŽŒœȱ ’œȱ Š—ȱ ’—œžĜŒ’Ž—ȱ —ž–‹Ž›ȱ ˜ȱ œŠ’›ŒŠœŽœȱ ˜ȱ –ŽŽȱ ‹ž’•’—ȱ Œ˜Žœǯȱ
¢ȱŒ˜—›ŠœǰȱŠȱ‘’‘ȱŒŽ’•’—ȱ’—ȱŠȱœ™ŽŒ’Š•¢ȱ™›˜™Ž›¢ȱ˜Žœȱ—˜ȱ’—’ŒŠŽȱž—Œ’˜—Š•ȱ’—ž’•’¢ȱ
’ȱ ’ȱ ’œȱ Œ˜—œ’Ž›Žȱ Šȱ Žœ’›Š‹•Žȱ Š›Œ‘’ŽŒž›Š•ȱ ŽŠž›Žǯȱ ˜–™•’Š—ŒŽȱ  ’‘ȱ Œ˜—Ž–™˜›Š›¢ȱ
ŠŒŒŽœœ’‹’•’¢ȱ Š—ȱ ꛎȱ Œ˜Žœȱ ’œȱ Š—ȱ Š’’˜—Š•ȱ Œ˜—œ’Ž›Š’˜—ȱ ’—ȱ ŽŸŠ•žŠ’—ȱ ‘Žȱ ŠŠ™’ŸŽȱ
žœŽȱ˜ȱ˜•Ž›ȱ‹ž’•’—œǯ

EVALUATING FUNCTIONAL UTILITY IN SPECIAL-PURPOSE BUILDINGS

To investigate the functional utility and value of building components designed specifically to serve the
use of a special-purpose property, the appraiser can employ several strategies:
Ȋ Review appraisal literature pertaining to properties in a similar product category
Ȋ Search for market data on similar – i.e., not directly comparable – or related facilities
Ȋ Interview the current or recent occupant and other operators in that particular field
Ȋ Interview brokers or other appraisers specializing in that product or with experience in that seg-
ment of the market
Ȋ Interview the project architects and engineers
Ȋ Review building plans with a cost estimator or with architects or engineers experienced in that
product type
Ȋ Review taxation case studies for pertinent precedents
The appraiser should also consider the Competency Rule of Canadian Uniform Standards of Professional
Appraisal Practice in assignments relating to special-purpose property.
Source: David Paul Rothermich, "Special-Design Properties: Identifying the 'Market' in Market Value", The Appraisal Journal
(October 1998): 410-415.

10
See also Arthur E. Gimmy and Mary G. Gates, The Business of Show Business: The Valuation of Movie Theaters
(Chicago: Appraisal Institute, 2000).
11
For more information on houses of worship, see Martin H. Aaron and John H. Wright, Jr., The Appraisal of Religious
Facilities (Chicago: Appraisal Institute, 1997).

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 11.46 The Appraisal of Real Estate – Third Canadian Edition

Mixed-Use Buildings
Š—¢ȱ‹ž’•’—œȱœžŒŒŽœœž••¢ȱŒ˜–‹’—Žȱ ˜ȱ˜›ȱ–˜›Žȱ›ŽŸŽ—žŽȬ™›˜žŒ’—ȱžœŽœDZ
yȱ ŽœŽŠ›Œ‘ȱ Š—ȱ ŽŸŽ•˜™–Ž—ȱ ŠŒ’•’’Žœȱ ˜Ž—ȱ Œ˜–‹’—Žȱ ˜ĜŒŽǰȱ •Š‹˜›Š˜›¢ǰȱ Š—ȱ
’—žœ›’Š•ȱœ™ŠŒŽȱ ’‘’—ȱŠȱœ’—•Žȱœ›žŒž›Žǯ
yȱ ĜŒŽȱ‹ž’•’—œȱ˜Ž—ȱŒ˜—Š’—ȱ›˜ž—Ȭ•ŽŸŽ•ȱ›ŽŠ’•ȱœ™ŠŒŽȱŠ—ȱ›ŽœŠž›Š—œǯ
yȱ
˜Ž•œȱŒŠ—ȱ‹ŽȱŒ˜–‹’—Žȱ ’‘ȱ›ŽŠ’•ǰȱ˜ĜŒŽǰȱ˜›ȱ›Žœ’Ž—’Š•ȱžœŽœǯ
—ȱ –’¡ŽȬžœŽȱ ‹ž’•’—œǰȱ ŽŠŒ‘ȱ ¢™Žȱ ˜ȱ žœŽȱ ›ŽĚŽŒœȱ Šȱ —ž–‹Ž›ȱ ˜ȱ Žœ’—ȱ Œ›’Ž›’Šǰȱ  ‘’Œ‘ȱ
–žœȱ ‹Žȱ Š—Š•¢£Žȱ œŽ™Š›ŠŽ•¢ǯȱ ‘Žȱ œ›žŒž›Žȱ –žœȱ Š•œ˜ȱ ‹Žȱ Œ˜—œ’Ž›Žȱ Šœȱ Šȱ  ‘˜•Žȱ ˜ȱ
ŽŽ›–’—Žȱ‘˜ ȱœžŒŒŽœœž••¢ȱ’ȱŒ˜–‹’—ŽœȱžœŽœǯȱ‘ŽȱžœŽœȱŒ˜–‹’—Žȱœ‘˜ž•ȱ‹ŽȱŒ˜–™ŠȬ
’‹•Žǰȱ‹žȱ–’—˜›ȱ’—Œ˜–™Š’‹’•’’ŽœȱŒŠ—ȱ‹ŽȱŠ••ŽŸ’ŠŽȱ ’‘ȱœŽ™Š›ŠŽȱŽ—›Š—ŒŽœǰȱŽ•ŽŸŠ˜›œǰȱ
Š—ȱŽšž’™–Ž—ǯȱ—ȱŠȱ–’¡ŽȬžœŽȱ‹ž’•’—ȱ ’‘˜žȱœŽ™Š›ŠŽȱŽ—›Š—ŒŽœȱŠ—ȱŽ•ŽŸŠ˜›œǰȱ‘Žȱ
›Žœ’Ž—’Š•ȱž—’œȱ˜—ȱž™™Ž›ȱ̘˜›œȱŠ—ȱ‘Žȱ˜ĜŒŽȱž—’œȱ‹Ž•˜ ȱ ˜ž•ȱ‹˜‘ȱœžěŽ›ǯȱ—•¢ȱ’—ȱ
Šȱ›Š‘Ž›ȱ•Š›Žȱ‹ž’•’—ȱŒŠ—ȱ‘ŽȱŽ¡›ŠȱŽ¡™Ž—œŽȱ˜ȱœŽ™Š›ŠŽȱŽŠž›Žœȱ‹Žȱ“žœ’ꮍǯȱȱ‘˜Ž•ȱ
•˜ŒŠŽȱ’—ȱŠ—ȱ˜ĜŒŽȱ‹ž’•’—ȱœ‘˜ž•ȱ‘ŠŸŽȱ’œȱ˜ —ȱŽ—›Š—ŒŽȱŠ—ȱŽ•ŽŸŠ˜›œǯȱŽŒž›’¢ȱŠ—ȱ
™›’ŸŠŒ¢ȱœ‘˜ž•ȱŒ‘Š›ŠŒŽ›’£ŽȱŠȱ‹ž’•’—ȇœȱ›Žœ’Ž—’Š•ȱŠ›ŽŠǰȱ ‘’•ŽȱŠȱ™›˜Žœœ’˜—Š•ǰȱ™›Žœ’Ȭ
’˜žœȱ’–ŠŽȱ’œȱŽœ’›Š‹•Žȱ˜›ȱ‘Žȱ˜ĜŒŽȱ™˜›’˜—ȱ˜ȱ‘Žȱœ›žŒž›Žǯ
’¡ŽȬžœŽȱ ŽŸŽ•˜™–Ž—œȱ ǻœǼȱ Š›Žȱ Œ‘Š›ŠŒŽ›’£Žȱ ‹¢ȱ ‘Žȱ ™‘¢œ’ŒŠ•ȱ Š—ȱ ž—ŒȬ
’˜—Š•ȱ ’—Ž›Š’˜—ȱ ˜ȱ ‘Ž’›ȱ Œ˜–™˜—Ž—œǯȱ ‘Ž¢ȱ Š›Žȱ ˜Ž—ȱ œ™›Š •’—ȱ œ›žŒž›Žœȱ ‹ž’•ȱ
Š›˜ž—ȱ ŒŽ—›Š••¢ȱ •˜ŒŠŽȱ œ‘˜™™’—ȱ Š••Ž›’Žœȱ ˜›ȱ ‘˜Ž•ȱ Œ˜ž›¢Š›œǯȱ Š•” Š¢œǰȱ ™•Š£Šœǰȱ
ŽœŒŠ•Š˜›œǰȱ Š—ȱ Ž•ŽŸŠ˜›œȱ ™›˜Ÿ’Žȱ Š—ȱ ’—Ž›Œ˜——ŽŒ’—ȱ ™ŽŽœ›’Š—ȱ ‘˜›˜ž‘Š›Žȱ  ’‘ȱ
ŽŠœ¢ȱŠŒŒŽœœȱ˜ȱ™Š›”’—ȱŠŒ’•’’Žœȱ•˜ŒŠŽȱž—Ž››˜ž—ǰȱŠȱœ›ŽŽȱ•ŽŸŽ•ǰȱ˜›ȱŠ‹˜ŸŽȬ›˜ž—ǯȱ
’—ŒŽȱ –’¡ŽȬžœŽȱ ŽŸŽ•˜™–Ž—œȱ ‹›’—ȱ ˜Ž‘Ž›ȱ ’ŸŽ›œŽȱ ™Š›’Œ’™Š—œǰȱ ‘Ž¢ȱ ›Žšž’›Žȱ
Ž¡Ž—œ’ŸŽǰȱŽ¡›Š˜›’—Š›’•¢ȱŒ˜‘Ž›Ž—ȱ™•Š——’—ǯŗŘ

QUALITY AND CONDITION SURVEY

‘Žȱ ‹ž’•’—ȱ ŽœŒ›’™’˜—ȱ Š—ȱ Š—Š•¢œ’œȱ ˜ȱ Š›Œ‘’ŽŒž›Š•ȱ œ¢•Žȱ Š—ȱ ž—Œ’˜—Š•ȱ ž’•’¢ȱ
Œž•–’—ŠŽȱ ’—ȱ ‘Žȱ šžŠ•’¢ȱ Š—ȱ Œ˜—’’˜—ȱ œž›ŸŽ¢ǯȱ ȱ œ›žŒž›Žȱ ŒŠ—ȱ ‘ŠŸŽȱ Šȱ ž—Œ’˜—Š•ȱ
•Š¢˜žȱ Š—ȱ Š—ȱ ŠĴ›ŠŒ’ŸŽȱ Žœ’—ȱ ‹žȱ ‹Žȱ ‹ž’•ȱ  ’‘ȱ ’—Ž›’˜›ȱ –ŠŽ›’Š•œȱ Š—ȱ ™˜˜›ȱ  ˜›”Ȭ
–Š—œ‘’™ǯȱ ‘ŽœŽȱ ŽęŒ’Ž—Œ’Žœȱ ’—Œ›ŽŠœŽȱ –Š’—Ž—Š—ŒŽȱ Š—ȱ ž’•’¢ȱ Œ˜œœȱ Š—ȱ ŠŸŽ›œŽ•¢ȱ
ŠěŽŒȱ‘Žȱ™›˜™Ž›¢ȇœȱ–Š›”ŽŠ‹’•’¢ǯȱ˜—ŸŽ›œŽ•¢ǰȱŠȱ‹ž’•’—ȱŒŠ—ȱ‹Žȱ‹ž’•ȱ˜˜ȱ Ž••ȱ˜›ȱŠȱ
Šȱ Œ˜œȱ ‘Šȱ ŒŠ——˜ȱ ‹Žȱ “žœ’ꮍȱ ‹¢ȱ ’œȱ ž’•’¢ǯȱ ˜œȱ ™ž›Œ‘ŠœŽ›œȱ  ’••ȱ —˜ȱ ™Š¢ȱ ˜›ȱ ‘ŽœŽȱ
Ž¡ŒŽœœȱŒ˜œœȱŠ—ȱ˜—•¢ȱ™Š›ȱ˜ȱ‘Žȱ˜›’’—Š•ȱ’—ŸŽœ–Ž—ȱŒŠ—ȱ‹Žȱ›ŽŒŠ™ž›Žȱ‹¢ȱ‘Žȱ˜›’’—Š•ȱ
˜ —Ž›ȱ‘›˜ž‘ȱ›ŽžŒŽȱ–Š’—Ž—Š—ŒŽȱŽ¡™Ž—œŽœǯ
›ŠŒ’ŒŠ•ȱ ˜›ȱ ›ŽŠœ˜—Š‹•Žȱ ŽŒ˜—˜–¢ȱ ˜ȱ Œ˜—œ›žŒ’˜—ȱ ›Žœž•œȱ ’—ȱ Š—ȱ ’–™›˜ŸŽ–Ž—ȱ ‘Šȱ
 ’••ȱ ™›˜žŒŽȱ ›Ž—Š•ȱ ’—Œ˜–Žȱ ˜›ȱ ŸŠ•žŽȱ Œ˜––Ž—œž›ŠŽȱ  ’‘ȱ ’œȱ Œ˜œǯȱ Š’—Ž—Š—ŒŽȱ Š—ȱ
˜™Ž›Š’—ȱ Ž¡™Ž—œŽœȱ ˜›ȱ Š—ȱ ŽŒ˜—˜–’ŒŠ••¢ȱ Œ˜—œ›žŒŽȱ ‹ž’•’—ȱ –Š¢ȱ ‹Žȱ œ•’‘•¢ȱ ‘’‘Ž›ȱ
‘Š—ȱ–’—’–ž–ȱŽ¡™Ž—œŽœǰȱ‹žȱ’ȱ’œȱžœžŠ••¢ȱ‹ŽĴŽ›ȱ˜ȱ™Š¢ȱ‘˜œŽȱŽ¡™Ž—œŽœȱ‘Š—ȱ˜ȱ’—ŸŽœȱ
’—ȱ Šȱ ‹ž’•’—ȱ ˜ȱ œž™Ž›’˜›ȱ Œ˜—œ›žŒ’˜—ȱ ‘Šȱ  ’••ȱ ‘ŠŸŽȱ ‘’‘Ž›ȱ Š¡Žœǯȱ ˜ȱ ŠŒ‘’ŽŸŽȱ ‘Žȱ
Žœ’›Žȱ •ŽŸŽ•ȱ ˜ȱ Œ˜—œ›žŒ’˜—ȱ šžŠ•’¢ȱ Š—ȱ Œ˜œǰȱ ‹ž’•’—ȱ –ŠŽ›’Š•œȱ Š—ȱ Œ˜—œ›žŒ’˜—ȱ

12
For a comprehensive analysis of mixed-use developments, see Dean Schwanke, Mixed-Use Development Handbook
(Washington, D.C.: Urban Land Institute, 1987).

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 Chapter 11 – Improvement Analysis 11.47

–Ž‘˜œȱ–žœȱ‹ŽȱŒ‘˜œŽ—ȱŠ—ȱžœŽȱ™›˜™Ž›•¢ǯȱ—ȱŠ™™›˜™›’ŠŽȱŒ˜–‹’—Š’˜—ȱ˜ȱŽ•Ž–Ž—œȱ
›Žœž•œȱ’—ȱŠȱ‹ž’•’—ȱ‘Šȱ’œȱŠŽšžŠŽȱ˜›ȱ’œȱ’—Ž—Žȱ™ž›™˜œŽǯ
‘Žȱ Œ‘Š›ŠŒŽ›ǰȱ šžŠ•’¢ǰȱ Š—ȱ Š™™ŽŠ›Š—ŒŽȱ ˜ȱ ‹ž’•’—ȱ Œ˜—œ›žŒ’˜—ȱ Š›Žȱ ›ŽĚŽŒŽȱ ’—ȱ
ŽŠŒ‘ȱ˜ȱ‘Žȱ‘›ŽŽȱŠ™™›˜ŠŒ‘Žœȱ˜ȱŸŠ•žŽǯȱ‘ŽȱšžŠ•’¢ȱŠ—ȱŒ˜—’’˜—ȱ˜ȱ‹ž’•’—ȱŒ˜–™˜Ȭ
—Ž—œȱ›ŽŠ•¢ȱ’—ĚžŽ—ŒŽȱ‘ŽȱŒ˜œȱŽœ’–ŠŽǰȱ‘ŽȱŽ™›ŽŒ’Š’˜—ȱŽœ’–ŠŽǰȱ‘ŽȱŠ‹’•’¢ȱ˜ȱ‘Žȱ
™›˜™Ž›¢ȱ ˜ȱ ™›˜žŒŽȱ ›Ž—Š•ȱ ’—Œ˜–Žǰȱ Š—ȱ ‘Žȱ ™›˜™Ž›¢ȇœȱ
Œ˜–™Š›Š‹’•’¢ȱ  ’‘ȱ ˜‘Ž›ȱ ™›˜™Ž›’Žœǯȱ —Š•¢œ’œȱ ˜ȱ ‘Žȱ In the condition component of a
šžŠ•’¢ȱ˜ȱŒ˜—œ›žŒ’˜—ȱŠ—ȱ‘Žȱ–Ž‘˜œȱŠ—ȱ–ŠŽ›’Š•œȱ quality and condition survey, the
žœŽȱŒ˜–™•Ž–Ž—œȱ‘ŽȱŠ™™›Š’œŽ›ȇœȱŠ—Š•¢œ’œȱ˜ȱ‘Žȱ‹ž’•Ȭ appraiser distinguishes among
’—ȇœȱœ›žŒž›Š•ȱŽœ’—ȱŠ—ȱŠ›Œ‘’ŽŒž›Žǯ items in need of immediate repair
‘Ž—ȱ Šȱ Œ˜—›ŠŒ˜›ȱ Š”Žœȱ œ‘˜›Œžœȱ Š—ȱ Š’•œȱ ˜ȱ (deferred maintenance items),
–ŽŽȱ ‘Žȱ ŠŸŽ›’œŽȱ ˜›ȱ Œ˜—›ŠŒŽȱ šžŠ•’¢ȱ •ŽŸŽ•ȱ ˜ȱ —Ž ȱ short-lived items that can be
Œ˜—œ›žŒ’˜—ǰȱ ™›˜™Ž›¢ȱ ˜ —Ž›œȱ Š—ȱ •Ž—Ž›œȱ ŒŠ—ȱ ꗍȱ replaced at a later date, and long-
‘Ž–œŽ•ŸŽœȱŽ–‹›˜’•Žȱ’—ȱ•’’Š’˜—ȱ ’‘ȱŠ›’ŽŸŽȱ˜ŒŒžȬ lived items expected to last for
™Š—œǯȱ ŽŒŠžœŽȱ ˜ȱ ‘Žȱ ›˜ ’—ȱ Œ˜–™•Ž¡’¢ȱ ˜ȱ ‹ž’•’—ȱ the remaining economic life of
the building.
Žœ’—ȱ Š—ȱ Œ˜—œ›žŒ’˜—ǰȱ ‘Žȱ šžŠ•’¢ȱ ˜ȱ ‹ž’•’—ȱ
Œ˜–™˜—Ž—œȱŠ—ȱŒ˜—œ›žŒ’˜—ȱ’œȱ˜Ž—ȱ‹Žœȱ“žŽȱ‹¢ȱ
ŠȱŒ˜—œž•’—ȱŽ—’—ŽŽ›ǯȱ‘ŽȱŽ—’—ŽŽ›ȱŒŠ—ȱ–˜—’˜›ȱ‘ŽȱŒ˜—œ›žŒ’˜—ȱ™›˜ŒŽœœȱ˜ȱŽ—œž›Žȱ
‘Šȱ ‘Žȱ  ˜›”ȱ Œ˜—˜›–œȱ ˜ȱ Š™™›˜ŸŽȱ ›Š ’—œȱ Š—ȱ ‘Šȱ ‘Žȱ  ˜›”–Š—œ‘’™ȱ ’œȱ œŠ’œŠŒȬ
˜›¢ǯȱ—ȱŽ¡™Ž›’Ž—ŒŽȱŠ™™›Š’œŽ›ȱ–Š¢ȱ‹ŽȱŠ‹•Žȱ˜ȱ›Ž•ŠŽȱŽŸ’Ž—ŒŽȱ˜ȱŒ˜—œ›žŒ’˜—ȱ™›˜‹•Ž–œȱ
ȮȱœŠ’—ȱ̘˜›œǰȱ•ŽŠ”œǰȱ›ŠœǰȱŽŒǯȱȮȱŠ‘Ž›Žȱ’—ȱ‘Žȱ™›˜™Ž›¢ȱ’—œ™ŽŒ’˜—ȱ˜ȱ–ŠŽ›’Š•œȱ˜ȱ
™˜˜›ȱšžŠ•’¢ȱ˜›ȱœ‘˜¢ȱ ˜›”–Š—œ‘’™ǯ
—ȱ ‘Žȱ Œ˜—’’˜—ȱ Œ˜–™˜—Ž—ȱ ˜ȱ Šȱ šžŠ•’¢ȱ Š—ȱ Œ˜—’’˜—ȱ œž›ŸŽ¢ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ
Ž—Ž›Š••¢ȱ’œ’—ž’œ‘ŽœȱŠ–˜—ȱ‘›ŽŽȱ¢™Žœȱ˜ȱ‹ž’•’—ȱŒ˜–™˜—Ž—œDZ
ŗǯȱ Ž–œȱ’—ȱ—ŽŽȱ˜ȱ’––Ž’ŠŽȱ›Ž™Š’›ȱ˜—ȱ‘ŽȱŠŽȱ˜ȱ‘ŽȱŠ™™›Š’œŠ•ǰȱ’ǯŽǯǰȱŽŽ››Žȱ
–Š’—Ž—Š—ŒŽȱ’Ž–œ
Řǯȱ Ž–œȱ‘Šȱ–Š¢ȱ‹Žȱ›Ž™Š’›Žȱ˜›ȱ›Ž™•ŠŒŽȱŠȱŠȱ•ŠŽ›ȱ’–Žǰȱ’ǯŽǯǰȱœ‘˜›Ȭ•’ŸŽȱ’Ž–œ
řǯȱ Ž–œȱ‘ŠȱŠ›ŽȱŽ¡™ŽŒŽȱ˜ȱ•Šœȱ‘Žȱž••ȱŽŒ˜—˜–’Œȱ•’Žȱ˜ȱ‘Žȱ‹ž’•’—ǰȱ’ǯŽǯǰȱ•˜—Ȭ
•’ŸŽȱ’Ž–œ
¡Š–™•Žœȱ˜ȱŽŠŒ‘ȱ¢™Žȱ˜ȱ‹ž’•’—ȱŒ˜–™˜—Ž—ȱŠ›Žȱœ‘˜ —ȱ’—ȱŠ‹•ŽȱŗŗǯŜǯ

Items in Need of Immediate Repair

•‘˜ž‘ȱ Šȱ ‹ž’•’—ȱ –Š¢ȱ ‹Žȱ ’—ȱ Ž¡ŒŽ••Ž—ȱ Œ˜—’’˜—ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ žœžŠ••¢ȱ ’—œȱ
œ˜–Žȱ’Ž–œȱ’—ȱ—ŽŽȱ˜ȱ›Ž™Š’›ȱ˜—ȱ‘ŽȱŠŽȱ˜ȱ‘ŽȱŠ™™›Š’œŠ•ǯȱŽ™Š’›’—ȱ‘ŽœŽȱ’Ž–œȱ ’••ȱ
—˜›–Š••¢ȱ Šȱ Šœȱ –žŒ‘ȱ ˜›ȱ –˜›Žȱ ŸŠ•žŽȱ ˜ȱ ‘Žȱ ™›˜™Ž›¢ȱ ‘Š—ȱ ‘Žȱ Œ˜œȱ ˜ȱ ‘Ž’›ȱ ›Ž™Š’›ǯȱ
‘Ž—ȱ ‘Žȱ Œ˜œȱ Š™™›˜ŠŒ‘ȱ ˜ȱ ŸŠ•žŽȱ ’œȱ Š™™•’Žǰȱ ‘ŽœŽȱ Š›Žȱ Œ˜—œ’Ž›Žȱ ’Ž–œȱ ˜ȱ Œž›Š‹•Žȱ
™‘¢œ’ŒŠ•ȱŽŽ›’˜›Š’˜—ǯ
‘Žȱ Š™™›Š’œŽ›ȇœȱ ›Ž™Š’›ȱ •’œȱ œ‘˜ž•ȱ ’—Œ•žŽȱ ’Ž–œȱ ‘Šȱ Œ˜—œ’žŽȱ Šȱ ꛎȱ ˜›ȱ œŠŽ¢ȱ
‘Š£Š›ǯȱ Š—¢ȱ Œ•’Ž—œȱ ›ŽšžŽœȱ ‘Šȱ ‘ŽœŽȱ ’Ž–œȱ ‹Žȱ •’œŽȱ œŽ™Š›ŠŽ•¢ȱ ’—ȱ ‘Žȱ ›Ž™˜›ǯȱ
˜–Ž’–Žœȱ ‘Žȱ Š™™›Š’œŽ›ȱ ’œȱ Šœ”Žȱ ˜ȱ Žœ’–ŠŽȱ ‘Žȱ Œ˜œȱ ˜ȱ ŽŠŒ‘ȱ ›Ž™Š’›ǰȱ  ‘’Œ‘ȱ ’œȱ ŒŠ••Žȱ
‘ŽȱŒ˜œȱ˜ȱŒž›Žǯȱ‘Š™Ž›ȱŗşȱ’œŒžœœŽœȱŽŒ‘—’šžŽœȱ˜›ȱŽœ’–Š’—ȱ‘ŽȱŒ˜œȱ˜ȱŒž›Žǯ

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 11.48 The Appraisal of Real Estate – Third Canadian Edition

Table 11.6: Sample Items Considered in the Quality and Condition Survey

Poor floor plans are easily recognized by those who make up the market for houses, but standards often
vary with current trends in a region and neighborhood. The location of various rooms in relation to the site
can increase or diminish a dwelling's privacy and comfort.

Deferred Maintenance Items

• Touch-up exterior paint on buildings and the removal of graffiti
• Minor carpentry repairs on stairs, molding, trim, floors, and porches
• Redecorating interior rooms
• Fixing leaky or noisy plumbing
• Loosening stuck doors and windows
• Repairing torn screens and broken windows
• Rehanging loose or damaged gutters and leaders
• Replacing missing shingles, tiles, and slates and repairing leaky roofs
• Fixing cracked sidewalks, driveways, and parking areas
• Doing minor electrical repairs
• Replacing rotten floor boards
• Exterminating vermin
• Fixing cracked or loose tiles in bathrooms and kitchens
• Repairing septic systems
• Eliminating safety hazards such as windows that have been nailed shut
• Eliminating fire hazards such as paint-soaked rags in a storage area

Short-Lived Items
• Interior paint and wallpaper
• Exterior paint
• Floor finishes
• Shades, screens, and blinds (often considered personal property)
• Waterproofing and weatherstripping
• Gutters and leaders
• Roof covering and flashing
• Water heater
• Furnace
• Air-conditioning equipment
• Carpeting
• Kitchen appliances (considered short-lived items only if built-in)
• Sump pump
• Water softener system (often rented, not owned)
• Washers and dryers (often considered personal property)
• Ventilating fans

Long-Lived Items
• Hot and cold water pipes
• Plumbing fixtures (may also be considered functional components)
• Electric service connection (may also be considered functional components)
• Electric wiring
• Electric fixtures
• Ducts and radiators

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 Chapter 11 – Improvement Analysis 11.49

Short-Lived Items
ž›’—ȱ ‘Žȱ ‹ž’•’—ȱ ’—œ™ŽŒ’˜—ǰȱ Š—ȱ Š™™›Š’œŽ›ȱ žœžŠ••¢ȱ Ž—Œ˜ž—Ž›œȱ ˜‘Ž›ȱ ’Ž–œȱ ‘Šȱ
œ‘˜ ȱœ’—œȱ˜ȱ ŽŠ›ȱŠ—ȱŽŠ›ȱ‹žȱ ˜ž•ȱ—˜ȱ‹ŽȱŽŒ˜—˜–’ŒŠ•ȱ˜ȱ›Ž™Š’›ȱ˜›ȱ›Ž™•ŠŒŽȱ˜—ȱ‘Žȱ
ŠŽȱ ˜ȱ ‘Žȱ Š™™›Š’œŠ•ǯȱ ‘Žȱ ŽŒ˜—˜–’Œȱ •’Žȱ ˜ȱ Šȱ ‹ž’•’—ȱ ’œȱ ‘Žȱ ™Ž›’˜ȱ ˜ŸŽ›ȱ  ‘’Œ‘ȱ ‘Žȱ
’–™›˜ŸŽ–Ž—œȱ Œ˜—›’‹žŽȱ ˜ȱ ™›˜™Ž›¢ȱ ŸŠ•žŽǯȱ Š—¢ȱ ‹ž’•’—ȱ Œ˜–™˜—Ž—œȱ ‘ŠŸŽȱ ˜ȱ ‹Žȱ
›Ž™Š’›Žȱ Šȱ œ˜–Žȱ ’–Žȱ ž›’—ȱ ‘Žȱ ŽŒ˜—˜–’Œȱ •’Žȱ ˜ȱ ‘Žȱ ‹ž’•’—ǯȱ ȱ ‘Žȱ ›Ž–Š’—’—ȱ •’Žȱ
˜ȱ ‘Žȱ Œ˜–™˜—Ž—ȱ ’œȱ œ‘˜›Ž›ȱ ‘Š—ȱ ‘Žȱ ›Ž–Š’—’—ȱ ŽŒ˜—˜–’Œȱ •’Žȱ ˜ȱ ‘Žȱ œ›žŒž›Žȱ Šœȱ Šȱ
 ‘˜•Žǰȱ‘ŽȱŒ˜–™˜—Ž—ȱ’œȱ’Ž—’ꮍȱŠœȱŠȱœ‘˜›Ȭ•’ŸŽȱ’Ž–ǯȱ‘Š™Ž›ȱŗşȱ’œŒžœœŽœȱŠŽȬ•’Žȱ
Œ˜—ŒŽ™œȱœžŒ‘ȱŠœȱŽŒ˜—˜–’Œȱ•’ŽȱŠ—ȱ›Ž–Š’—’—ȱŽŒ˜—˜–’Œȱ•’Žȱ’—ȱ–˜›ŽȱŽŠ’•ǯ
‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ ŽŒ’Žȱ ’ȱ Š—ȱ ’Ž–ȱ —ŽŽœȱ ’––Ž’ŠŽȱ ›Ž™Š’›ȱ ˜›ȱ ›Ž™•ŠŒŽ–Ž—ȱ ˜›ȱ
 ‘Ž‘Ž›ȱ‘’œȱ ˜›”ȱŒŠ—ȱ‹Žȱ˜—Žȱ•ŠŽ›ǯȱȱ‘Žȱ›Ž™Š’›ȱ˜›ȱ›Ž™•ŠŒŽ–Ž—ȱ ’••ȱŠȱ•Žœœȱ˜ȱ‘Žȱ
ŸŠ•žŽȱ ˜ȱ ‘Žȱ ™›˜™Ž›¢ȱ ‘Š—ȱ ’ȱ  ’••ȱ Œ˜œǰȱ ‘Žȱ –Š’—Ž—Š—ŒŽȱ œ‘˜ž•ȱ žœžŠ••¢ȱ ‹Žȱ Ž•Š¢Žǯȱ
˜›ȱŽ¡Š–™•ŽǰȱŠȱ‹ž’•’—ȱ ’‘ȱŠȱœ˜ž—ǰȱŗŖȬ¢ŽŠ›ȱ˜•ȱ›˜˜ȱ–Š¢ȱ‘˜•ȱž™ȱ Ž••ȱ˜›ȱŠȱ•ŽŠœȱ
Š—˜‘Ž›ȱ ꟎ȱ ¢ŽŠ›œǯȱ •‘˜ž‘ȱ ‘Žȱ ›˜˜ȱ ‘Šœȱ œžěŽ›Žȱ œ˜–Žȱ ŽŽ›’˜›Š’˜—ǰȱ ›Ž™•ŠŒ’—ȱ ’ȱ
™›˜‹Š‹•¢ȱ ˜ž•ȱ—˜ȱŠȱ–˜›ŽȱŸŠ•žŽȱ˜ȱ‘Žȱ™›˜™Ž›¢ȱ‘Š—ȱ‘ŽȱŒ˜œȱ˜ȱŠȱ—Ž ȱ›˜˜ǯ
‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱŒ˜—œ’Ž›ȱ ‘Ž‘Ž›ȱ›Ž™Š’›’—ȱŠ—ȱ’Ž–ȱ’œȱ—ŽŒŽœœŠ›¢ȱ˜ȱ™›ŽœŽ›ŸŽȱ
˜‘Ž›ȱŒ˜–™˜—Ž—œǯȱ˜›ȱŽ¡Š–™•Žǰȱœ˜–Ž’–Žœȱ‘Žȱ›˜˜ȱŒ˜ŸŽ›ȱ
–žœȱ‹Žȱ›Ž™•ŠŒŽȱ˜›ȱ‘ŽȱŽŒ˜—˜–’Œȱ•’Žȱ˜ȱ‘Žȱ˜‘Ž›ȱŒ˜–™˜Ȭ
—Ž—œȱ ’••ȱ‹Žȱ›ŽžŒŽǯȱ‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱ—˜Žȱ ‘Ž‘Ž›ȱ short-lived items
A building component with an
‘Žȱ Œ˜—’’˜—ȱ ˜ȱ ‘Žȱ œ‘˜›Ȭ•’ŸŽȱ ’Ž–ȱ ’œȱ ‹ŽĴŽ›ȱ ˜›ȱ  ˜›œŽȱ
expected remaining economic
‘Š—ȱ‘Žȱ˜ŸŽ›Š••ȱŒ˜—’’˜—ȱ˜ȱ‘Žȱ‹ž’•’—ǯ
life that is shorter than the
remaining economic life of the
Long-Lived Items entire structure.
‘Žȱ ’—Š•ȱ œŽ™ȱ ’—ȱ Šȱ šžŠ•’¢ȱ Š—ȱ Œ˜—’’˜—ȱ œž›ŸŽ¢ȱ ’œȱ ˜ȱ long-lived items
ŽœŒ›’‹Žȱ‘ŽȱŒ˜—’’˜—ȱ˜ȱ‘˜œŽȱ’Ž–œȱ‘ŠȱŠ›Žȱ—˜ȱŽ¡™ŽŒŽȱ Building components with an
˜ȱ ›Žšž’›Žȱ ›Ž™Š’›ȱ ˜›ȱ ›Ž™•ŠŒŽ–Ž—ȱ ž›’—ȱ ‘Žȱ ŽŒ˜—˜–’Œȱ •’Žȱ expected remaining economic
life that is the same as the
˜ȱ‘Žȱ‹ž’•’—ǰȱŠœœž–’—ȱ‘Ž¢ȱŠ›Žȱ—˜ȱœž‹“ŽŒȱ˜ȱŠ‹—˜›–Š•ȱ
remaining economic life of the
 ŽŠ›ȱŠ—ȱŽŠ›ȱ˜›ȱŠŒŒ’Ž—Š•ȱŠ–ŠŽǯȱȱ‹ž’•’—ȱŒ˜–™˜—Ž—ȱ
entire structure.
 ’‘ȱ Š—ȱ Ž¡™ŽŒŽȱ ŽŒ˜—˜–’Œȱ •’Žȱ ‘Šȱ ’œȱ ‘Žȱ œŠ–Žȱ Šœȱ ‘Žȱ
›Ž–Š’—’—ȱ ŽŒ˜—˜–’Œȱ •’Žȱ ˜ȱ ‘Žȱ œ›žŒž›Žȱ ’œȱ ŒŠ••Žȱ Šȱ •˜—Ȭ
•’ŸŽȱ ’Ž–ǯȱ Ž™Š’›ȱ –Š¢ȱ —˜ȱ ‹Žȱ ›Žšž’›Žȱ ‹ŽŒŠžœŽȱ ‘Žȱ Œ˜–™˜—Ž—ȱ ‘Šœȱ ‹ŽŽ—ȱ ‹ž’•ȱ ˜ȱ •Šœȱ
Š—ȱ ‘Šœȱ ‹ŽŽ—ȱ  Ž••ȱ –Š’—Š’—Žǯȱ••ȱ ‘Žȱ •˜—Ȭ•’ŸŽȱ Œ˜–™˜—Ž—œȱ ˜ȱ Šȱ ‹ž’•’—ȱ Š›Žȱ ›Š›Ž•¢ȱ
’—ȱ ‘Žȱ œŠ–Žȱ Œ˜—’’˜—ǯȱ ‘Žȱ ’Ž–œȱ ‘Šȱ Š›Žȱ —˜ȱ ’—ȱ ‘Žȱ œŠ–Žȱ Œ˜—’’˜—ȱ Šœȱ ‘Žȱ ›Žœȱ ˜ȱ ‘Žȱ
‹ž’•’—ȱŠ›Žȱ‘Žȱ’–™˜›Š—ȱ˜—Žœȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ȱŠ—Š•¢œ’œǯ
˜–ŽȱŽŽŒ’ŸŽȱ•˜—Ȭ•’ŸŽȱ’Ž–œȱŠ›Žȱ—˜ȱŒ˜—œ’Ž›Žȱ’—ȱ—ŽŽȱ˜ȱ›Ž™Š’›ȱ‹ŽŒŠžœŽȱ‘Žȱ
Œ˜œȱ˜ȱ‘Ž’›ȱ›Ž™•ŠŒŽ–Ž—ȱ˜›ȱ›Ž™Š’›ȱ’œȱ›ŽŠŽ›ȱ‘Š—ȱ‘ŽȱŠ–˜ž—ȱ‘ŽœŽȱ’Ž–œȱŒ˜—›’‹žŽȱ
˜ȱ‘ŽȱŸŠ•žŽȱ˜ȱ‘Žȱ™›˜™Ž›¢ǯȱȱœŽ›’˜žœȱŒ›ŠŒ”ȱ’—ȱŠȱ˜ž—Š’˜—ȱ Š••ǰȱ˜›ȱŽ¡Š–™•Žǰȱ ˜ž•ȱ
™›˜‹Š‹•¢ȱ ‹Žȱ Œ˜—œ’Ž›Žȱ ’—Œž›Š‹•Žȱ ™‘¢œ’ŒŠ•ȱ ŽŽ›’˜›Š’˜—ǯȱ —Œž›Š‹•Žȱ Ž™›ŽŒ’Š’˜—ȱ ‘Šȱ
›Žœž•œȱ ›˜–ȱ ™›˜‹•Ž–œȱ ’—ȱ ‘Žȱ ˜›’’—Š•ȱ Žœ’—ȱ ˜ȱ Šȱ œ›žŒž›Žȱ ’œȱ Œ˜—œ’Ž›Žȱ ’—Œž›Š‹•Žȱ
ž—Œ’˜—Š•ȱ˜‹œ˜•ŽœŒŽ—ŒŽǯ

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