Agenda - 09-02-2008 - 4e - Laserfiche WebLink

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4 . Total base price and adjustments, multiply by quality factor, and add design factor to achieve replacement cost. 5 . Repeat steps one through four for all exterior features and additions. 6. Total all replacement costs and factor by physical designs and then economic factors (economic factors can be plus or minus adjustments) to obtain current market value. The Residential and Farm Pricing Schedule is included in Appendix "A" of this manual and incorporated herein by reference. CONSTRUCTION QUALITY/MARKET FACTORS AND DESIGN FACTORS (This information should be considered as a guide with appraisal judgement being the final determining factors) USE OF QUALITY/MARKET FACTORS Judging quality would be a relatively simple process if all houses were built to conform to the base specifications outlined in this manual and with a hypothetical cost spread of 30% between classes. Since this ideal condition does not exist and it is not unusual for conventional houses to be built incorporating construction qualities that fall between these established classes, it is necessary to further refine the system. If the house that is being appraised does not fall exactly on a basic quality class but should be classified as slightly better or slightly poorer than the specific class, the use of the quality factor of 5% to 15% will accomplish this adjustment as to the base replacement cost of the house. As mentioned heretofore, these classes were computed with a 30% spread in replacement cost between classes. Consequently a plus 15% quality factor will give the same replacement cost as will a minus 15% quality factor of the adjacent higher class. As an illustration, the base price for a factor of 100+15% or "115" will be the same as for a factor of 130-15% or "115".