chap08.pdf - DISCLAIMER This publication is intended for EDUCATIONAL purposes only The information contained herein is subject to change with no notice

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Unformatted text preview: DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate and current information, UBC, their affiliates, authors, editors and staff (collectively, the "UBC Group") makes no claims, representations, or warranties as to accuracy, completeness, usefulness or adequacy of any of the information contained herein. Under no circumstances shall the UBC Group be liable for any losses or damages whatsoever, whether in contract, tort or otherwise, from the use of, or reliance on, the information contained herein. Further, the general principles and conclusions presented in this text are subject to local, provincial, and federal laws and regulations, court cases, and any revisions of the same. This publication is sold for educational purposes only and is not intended to provide, and does not constitute, legal, accounting, or other professional advice. Professional advice should be consulted regarding every specific circumstance before acting on the information presented in these materials. © Copyright: 2014 by the UBC Real Estate Division, Sauder School of Business, The University of British Columbia. Printed in Canada. ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced, transcribed, modified, distributed, republished, or used in any form or by any means – graphic, electronic, or mechanical, including photocopying, recording, taping, web distribution, or used in any information storage and retrieval system – without the prior written permission of the publisher. CHAPTER 8 DATA COLLECTION —ȱ›ŽŠ•ȱŽœŠŽȱŠ™™›Š’œŠ•ǰȱ‘ŽȱšžŠ•’¢ȱŠ—ȱšžŠ—’¢ȱ˜ȱ’—˜›–Š’˜—ȱŠŸŠ’•Š‹•Žȱ˜›ȱŠ—Š•¢œ’œȱ Š›Žȱ Šœȱ ’–™˜›Š—ȱ Šœȱ ‘Žȱ –Ž‘˜œȱ Š—ȱ ŽŒ‘—’šžŽœȱ žœŽȱ ˜ȱ ™›˜ŒŽœœȱ ‘Žȱ ŠŠȱ Š—ȱ Œ˜–™•ŽŽȱ‘ŽȱŠœœ’—–Ž—ǯȱ‘Ž›Ž˜›Žǰȱ‘ŽȱŠ‹’•’¢ȱ˜ȱ’œ’—ž’œ‘ȱ‹Ž ŽŽ—ȱ’쎛Ž—ȱ”’—œȱ ˜ȱŠŠǰȱ˜ȱ›ŽœŽŠ›Œ‘ȱ›Ž•’Š‹•ŽȱŠŠȱœ˜ž›ŒŽœǰȱŠ—ȱ˜ȱ–Š—ŠŽȱ’—˜›–Š’˜—ȱ’œȱŽœœŽ—’Š•ȱ˜ȱ Š™™›Š’œŠ•ȱ™›ŠŒ’ŒŽǯ ŽŠ•’—ȱ ’‘ȱ‘Žȱ›Žšž’œ’Žȱ–Š›”Žǰȱ™›˜™Ž›¢ǰȱŠ—ȱ›Š—œŠŒ’˜—ȱŠŠȱ’—ȱ‘ŽȱŸŠ•žŠ’˜—ȱ ™›˜ŒŽœœȱ’—Ÿ˜•ŸŽœȱ‘›ŽŽȱ›Ž•ŠŽȱ™›˜ŒŽœœŽœDZ yȱ ŠŠȱŒ˜••ŽŒ’˜— yȱ ŠŠȱ˜›Š—’£Š’˜— yȱ ŠŠȱŠ—Š•¢œ’œ ™™›Š’œŽ›œȱ —ŽŽȱ ™Š’Ž—ŒŽǰȱ “ž–Ž—ǰȱ Š—ȱ ›ŽœŽŠ›Œ‘ȱ œ”’••œȱ ˜ȱ ’›ŽŒȱ ‘Žȱ ™›Ž•’–’—Š›¢ȱ œŽ™œȱ˜ȱŠŠȱŒ˜••ŽŒ’˜—ȱŠ—ȱŠ—Š•¢œ’œȱŠ—ȱ˜ȱŠ‘Ž›ȱŠ—ȱ–Š—ŠŽȱ’—˜›–Š’˜—ȱŽĜŒ’Ž—•¢ǯ Ž—’¢’—ȱ Œ˜–™Š›Š‹•Žȱ ™›˜™Ž›’Žœȱ Š—ȱ Œ˜••ŽŒ’—ȱ ˜‘Ž›ȱ –Š›”Žȱ ŠŠȱ ˜›ȱ žœŽȱ ’—ȱ ‘Žȱ ŸŠ•žŠ’˜—ȱ ™›˜ŒŽœœȱ Šœȱ Data collection, organization, ˜—ŒŽȱ Šȱ ’–ŽȬŒ˜—œž–’—ȱ Š—ȱ Ž¡™Ž—œ’ŸŽȱ ™›˜ŒŽœœǯȱ ‘Žȱ and analysis are essential tasks ›˜ ‘ȱ ˜ȱ ŠŠȱ ŸŽ—˜›œȱ Š—ȱ ‘Žȱ ’—Œ›ŽŠœ’—ȱ ŠŒŒŽœœ’‹’•’¢ȱ in appraisal. ˜ȱ –Š›”Žȱ ŠŠȱ ‘›˜ž‘ȱ Ž•ŽŒ›˜—’Œȱ œ˜ž›ŒŽœȱ ‘ŠŸŽȱ œ‘’Žȱ ‘Žȱ ‘’œ˜›’ŒŠ•ȱ Ž–™‘Šœ’œȱ ˜ȱ Š™™›Š’œŠ•ȱ ™›ŠŒ’ŒŽȱ ›˜–ȱ ŠŠȱ Œ˜••ŽŒ’˜—ȱ˜ȱŠ—Š•¢œ’œǯȱ ˜ ŽŸŽ›ǰȱŒ˜••ŽŒ’—ȱŠŒŒž›ŠŽǰȱ›Ž•’Š‹•ŽȱŠŠȱ›Ž–Š’—œȱŠ—ȱŽœœŽ—’Š•ȱ Šœ”ȱ‹ŽŒŠžœŽȱ‘ŽȱŒ˜—Œ•žœ’˜—œȱ˜ȱŠ™™›Š’œŽ›œȇȱŠ—Š•¢œŽœȱŠ›Žȱ˜—•¢ȱŠœȱ˜˜ȱŠœȱ‘ŽȱŠŠȱ‘Šȱ œž™™˜›œȱ‘Ž–ǯ —Œ˜ŸŽ›’—ȱ Š••ȱ ‘Žȱ —ŽŒŽœœŠ›¢ȱ ŠŠȱ ›Ž–Š’—œȱ Šȱ Œ‘Š••Ž—Žȱ ˜›ȱ Š™™›Š’œŽ›œǰȱ ŽŸŽ—ȱ ’‘ȱ ŽŒ‘—˜•˜’ŒŠ•ȱ ’——˜ŸŠ’˜—œȱ ‘Šȱ ŠŒ’•’ŠŽȱ ‘Žȱ ™›˜ŒŽœœǯȱ ŠŠȱ Œ˜••ŽŒ’˜—ȱ ŒŠ—ȱ ‹Žȱ ‘Žȱ œŠ–Žȱ ˜›ȱ ŸŽ›¢ȱ ’쎛Ž—ȱ ›˜–ȱ ™›˜Ÿ’—ŒŽȱ ˜ȱ ™›˜Ÿ’—ŒŽǯȱ Š—¢ȱ ™›˜Ÿ’—ŒŽœȱ ‘ŠŸŽȱ ˜™Ž—ȱ ™›˜™Ž›¢ȱ ›ŽŒ˜›œȱ ŠŸŠ’•Š‹•Žȱ ˜ȱ Š™™›Š’œŽ›œǰȱ ‹žȱ œ˜–Žȱ Š›Žȱ —˜—Ȭ’œŒ•˜œž›Žȱ ™›˜Ÿ’—ŒŽœȱ ‘Ž›Žȱ œŠ•Žœȱ ŠŠȱ ŒŠ—ȱ ˜—•¢ȱ ‹Žȱ Œ˜••ŽŒŽȱ ›˜–ȱ ‘Žȱ ŠŒžŠ•ȱ ™Š›’Žœȱ ˜ȱ ‘Žȱ œŠ•Žǯȱ •œ˜ǰȱ ™›˜Žœœ’˜—Š•ȱ Š™™›Š’œŠ•ȱ œŠ—Š›œȱ Š—ȱ ˜ŸŽ›—–Ž—ȱ ™›˜›Š–œȱ ŒŠ—ȱ ›Žšž’›Žȱ ’쎛Ž—ȱ •ŽŸŽ•œȱ ˜ȱ ŠŠȱ Œ˜••ŽŒ’˜—ȱŠ—ȱ˜Œž–Ž—Š’˜—ǯȱ˜›ȱŽ¡Š–™•Žǰȱ‘ŽȱŠŠȱ›Žšž’›Žȱ˜ȱŒ˜–™•ŽŽȱŠȱȈŽœ”˜™Ȉȱ Š™™›Š’œŠ•ȱȮȱ ‘Ž›ŽȱŠ—ȱŠ™™›Š’œŽ›ȱ˜Žœȱ—˜ȱŸ’œ’ȱ‘Žȱœž‹“ŽŒȱ™›˜™Ž›¢ȱŠ—ȱŒ˜–™•ŽŽœȱ˜—•¢ȱ ™›Ž•’–’—Š›¢ȱŸŠ•žŠ’˜—ȱŠ—Š•¢œŽœȱȮȱ ˜ž•ȱ‹Žȱ’—ŠŽšžŠŽȱ˜›ȱŠȱŒ˜–™›Ž‘Ž—œ’ŸŽȱŠ™™›Š’œŠ•ȱ ©Copyright: 2014 by the UBC Real Estate Division R1ARE10.indb 1 10/4/2010 10:35:37 AM 8.2 The Appraisal of Real Estate – Third Canadian Edition ‘Šȱ–ŽŽœȱ‘Žȱ›Žšž’›Ž–Ž—œȱ˜ȱŠ—Š’Š—ȱ—’˜›–ȱŠ—Š›œȱ˜ȱ›˜Žœœ’˜—Š•ȱ›ŠŒ’ŒŽȱ ǻǼǯȱ —ȱ ˜›Ž›ȱ ˜›ȱ ‘Žȱ Š™™›Š’œŠ•ȱ ˜ȱ šžŠ•’¢ȱ Šœȱ Šȱ œŽ•ȬŒ˜—Š’—Žȱ Š™™›Š’œŠ•ȱ ž—Ž›ȱ ‘ŽœŽȱ ž’Ž•’—Žœǰȱ Š™™›Š’œŽ›œȱ –žœȱ ˜‹Š’—ȱ Š—ȱ ’—Œ•žŽȱ Š’’˜—Š•ȱ ’—˜›–Š’˜—ȱ ’—ȱ ‘Žȱ ŸŠ›’˜žœȱœŽŒ’˜—œȱ˜ȱ‘Žȱ›Ž™˜›ǯ Ž˜›Žȱ ‹Ž’——’—ȱ ‘Žȱ ™›˜ŒŽœœȱ ˜ȱ ŠŠȱ Œ˜••ŽŒ’˜—ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ ŽŽ›–’—Žœȱ ‘’Œ‘ȱ ¢™Žœȱ ˜ȱ ŠŠȱ Ȯȱ Ž—Ž›Š•ǰȱ œ™ŽŒ’ęŒǰȱ ˜›ȱ Œ˜–™Ž’’ŸŽȱ œž™™•¢ȱ Š—ȱ Ž–Š—ȱ ŠŠȱ Ȯȱ ’••ȱ ‹Žȱ žœŽž•ȱ ’—ȱ ‘Žȱ ’쎛Ž—ȱ ™˜›’˜—œȱ ˜ȱ ‘Žȱ ŸŠ•žŠ’˜—ȱ ™›˜ŒŽœœǯȱ ˜ ŽŸŽ›ǰȱ ‘Žȱ —Šž›Žȱ ˜ȱ ‘Žȱ ŠŠȱ Œ˜••ŽŒŽȱ ’œȱ ›ŽŠ•¢ȱ Ž™Ž—Ž—ȱ ˜—ȱ ‘Žȱ ™›˜™Ž›¢ȱ ¢™Žȱ ‹Ž’—ȱ Š™™›Š’œŽȱ Š—ȱ ‘Žȱ –Š›”Žȱ Œ˜—’’˜—œȱ ’‘’—ȱ ‘Žȱ –Š›”Žȱ Š›ŽŠȱ ’Ž—’ꮍȱ ‹¢ȱ ‘Žȱ Š™™›Š’œŽ›ǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ Œ˜––ž—’ŒŠŽœȱ‘Žȱ¢™Žȱ˜ȱŠŠȱŒ‘˜œŽ—ȱ˜›ȱŠ—Š•¢œ’œȱ˜ȱ‘ŽȱŒ•’Ž—ȱ’—ȱ‘ŽȱœŒ˜™Žȱ˜ȱ ˜›”ȱ œŽŒ’˜—ȱ ˜ȱ ‘Žȱ Š™™›Š’œŠ•ȱ ›Ž™˜›ǯȱ —ȱ –Š—¢ȱ ŒŠœŽœǰȱ Š—ȱ Š™™›Š’œŽ›ȱ Œ˜••ŽŒœȱ Ž—Ž›Š•ȱ ŠŠȱ ˜—ȱ ‘Žȱ Ž–˜›Š™‘’Œœȱ ˜ȱ ‘Žȱ –Š›”Žȱ Š›ŽŠȱ Š—ȱ Œ˜–™Ž’’ŸŽȱ œž™™•¢ȱ Š—ȱ Ž–Š—ȱ ŠŠȱ ˜—ȱ Œ˜–™Ž’’ŸŽȱ ™›˜™Ž›’Žœȱ ˜ȱ ™Ž›˜›–ȱ –Š›”Žȱ Š—Š•¢œ’œǯȱ ’’˜—Š•ȱ ŠŠȱ ’••ȱ ‹Žȱ —ŽŽŽȱ ˜›ȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žŽȱ Š—Š•¢œ’œǰȱ ‘’Œ‘ȱ ›Žšž’›Žœȱ œ™ŽŒ’ęŒȱ ŠŠȱ œžŒ‘ȱ Šœȱ ’—˜›–Š’˜—ȱ ˜—ȱ ‘Žȱ ™‘¢œ’ŒŠ•ȱ Œ‘Š›ŠŒŽ›’œ’Œœȱ ˜ȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ǰȱ £˜—’—ȱ ›Žœ›’Œ’˜—œǰȱ Š—ȱ ‘Žȱ ’—Œ˜–Žȱ Š—’Œ’™ŠŽȱ ›˜–ȱ Š•Ž›—Š’ŸŽȱ žœŽœǯȱ ‘Žȱ Š—Š•¢œ’œȱ ž—Ž›Š”Ž—ȱ ’—ȱ ‘Žȱ Š™™•’ŒŠȬ ’˜—ȱ ˜ȱ ‘Žȱ ‘›ŽŽȱ Š™™›˜ŠŒ‘Žœȱ ˜ȱ ŸŠ•žŽȱ Ž—Ž›Š••¢ȱ ›Žšž’›Žœȱ ‹˜‘ȱ œ™ŽŒ’ęŒȱ ŠŠȱ ˜—ȱ ‘Žȱ œž‹“ŽŒȱ™›˜™Ž›¢ǰȱœžŒ‘ȱŠœȱŒ˜œȱŠŠȱ˜›ȱ‘Žȱœž‹“ŽŒȱ™›˜™Ž›¢ȱ’–™›˜ŸŽ–Ž—œȱ’—ȱ‘ŽȱŒ˜œȱ Š™™›˜ŠŒ‘ǰȱŠ—ȱŒ˜–™Ž’’ŸŽȱœž™™•¢ȱŠ—ȱŽ–Š—ȱŠŠǰȱœžŒ‘ȱŠœȱ’—˜›–Š’˜—ȱ˜—ȱŒ˜–™ŠȬ ›Š‹•ŽȱœŠ•Žœȱ›Š—œŠŒ’˜—œȱ’—ȱ‘Žȱ’›ŽŒȱŒ˜–™Š›’œ˜—ȱŠ™™›˜ŠŒ‘ǯ —Ž›œŠ—’—ȱ ‘Žȱ Œ˜—Ž—ȱ Š—ȱ œ˜ž›ŒŽœȱ ˜ȱ Ž—Ž›Š•ȱ Š—ȱ œ™ŽŒ’ęŒȱ Š™™›Š’œŠ•ȱ ŠŠȱ ŠŒ’•’ŠŽœȱŠŠȱŠ—Š•¢œ’œȱ’—ȱŸŠ•žŠ’˜—ȱŠ—ȱŠ™™›Š’œŠ•ȱŒ˜—œž•’—ȱŠœœ’—–Ž—œǯȱ ˜ ŽŸŽ›ǰȱ ‹Ž˜›Žȱ Š—Š•¢£’—ȱ ‘Žȱ ŠŠȱ Š—ȱ Š™™›Š’œŽ›ȱ –žœȱ ˜›Š—’£Žȱ Š••ȱ ‘Žȱ œ™ŽŒ’ęŒȱ ŠŠȱ ŠŒŒž–žȬ •ŠŽȱ ’—ȱ ‘Žȱ ’—ŸŽœ’Š’˜—ǯȱ Š›”Žȱ ŠŠȱ ›’œǰȱ •’”Žȱ ‘Žȱ Œ˜œȱ œž›ŸŽ¢ȱ ˜›”œ‘ŽŽȱ žœŽȱ ’—ȱ ‘ŽȱŒ˜œȱŠ™™›˜ŠŒ‘ǰȱ‘ŽȱŠ“žœ–Ž—ȱ›’ȱžœŽȱ’—ȱ‘Žȱ’›ŽŒȱŒ˜–™Š›’œ˜—ȱŠ™™›˜ŠŒ‘ǰȱŠ—ȱ ‘Žȱ ›ŽŒ˜—œ›žŒŽȱ ˜™Ž›Š’—ȱ œŠŽ–Ž—ȱ žœŽȱ ’—ȱ ‘Žȱ ’—Œ˜–Žȱ Š™™›˜ŠŒ‘ǰȱ Š›Žȱ ŒŠ›Žž••¢ȱ ™›Ž™Š›Žȱœ™›ŽŠœ‘ŽŽœȱ‘Šȱ™›˜Ÿ’ŽȱŠȱŠ‹ž•Š›ȱ›Ž™›ŽœŽ—Š’˜—ȱ˜ȱ–Š›”ŽȱŠŠȱ˜›Š—’£Žȱ ’—˜ȱ žœŽž•ǰȱ –ŽŠœž›Š‹•Žȱ ŒŠŽ˜›’Žœǯȱ ȱ ‘Žȱ ’—˜›–Š’˜—ȱ ˜ȱ ‹Žȱ Š—Š•¢£Žȱ ’œȱ Œ˜–™•Ž¡ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ –Š¢ȱ —ŽŽȱ ˜ȱ Žœ’—ȱ œŽŸŽ›Š•ȱ ’쎛Ž—ȱ ¢™Žœȱ ˜ȱ –Š›”Žȱ ŠŠȱ ›’œȱ ˜ȱ ’œ˜•ŠŽȱ Š—ȱœž¢ȱœ™ŽŒ’ęŒȱŠŠǯ —ŒŽȱ‘ŽȱŠ™™›Š’œŽ›ȱŒ˜••ŽŒœȱŠ—ȱ˜›Š—’£Žœȱ‘ŽȱŠŠǰȱ’ȱŒŠ—ȱ‹ŽȱŠ—Š•¢£Žȱ˜ȱœ˜•ŸŽȱ‘Žȱ ™›˜‹•Ž–ȱ™˜œŽȱ‹¢ȱ‘ŽȱŠ™™›Š’œŠ•ȱŠœœ’—–Ž—ǯȱŠ›”ŽȱŠ—Š•¢œ’œȱŠ—ȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱ Š—Š•¢œ’œȱŠ›Žȱ‘Žȱ–˜œȱ˜‹Ÿ’˜žœȱ˜›–œȱ˜ȱŠŠȱŠ—Š•¢œ’œǰȱ‹žȱŽŠŒ‘ȱ˜ȱ‘Žȱ‘›ŽŽȱŠ™™›˜ŠŒ‘Žœȱ ˜ȱ ŸŠ•žŽȱ ’œȱ Š•œ˜ȱ Šȱ ˜›–ȱ ˜ȱ Š—Š•¢œ’œȱ ‘Šȱ ›Ž•’Žœȱ ˜—ȱ –Š›”Žȱ ŠŠȱ Š‘Ž›Žȱ ‘›˜ž‘ȱ Š—ȱ ’—Ž››Žȱ˜›ȱž—Š–Ž—Š•ȱ–Š›”ŽȱŠ—Š•¢œ’œȱŠœȱœž™™˜›ȱ˜›ȱ‘ŽȱŸŠ•žŽȱŒ˜—Œ•žœ’˜—œȱŽ›’ŸŽǯȱ ‘Žȱ ŸŠ•’’¢ȱ ˜ȱ ŽŠŒ‘ȱ Š™™›˜ŠŒ‘ȇœȱ Œ˜—Œ•žœ’˜—œȱ Š—ǰȱ ž•’–ŠŽ•¢ǰȱ ‘Žȱ ꗊ•ȱ ˜™’—’˜—ȱ ˜ȱ –Š›”ŽȱŸŠ•žŽȱŽ™Ž—ȱ•Š›Ž•¢ȱ˜—ȱ‘˜ ȱ Ž••ȱ–Š›”ŽȱŠŠȱŒŠ—ȱœž™™˜›ȱ‘˜œŽȱŒ˜—Œ•žœ’˜—œǯ —ȱ ‘Žȱ Š™™›Š’œŠ•ȱ ›Ž™˜›ǰȱ ‘Žȱ Š—Š•¢œ’œȱ –žœȱ Š—œ Ž›ȱ ‘Žȱ ›ŽŠŽ›ȇœȱ šžŽœ’˜—ǰȱ Ȉ‘¢ȱ ’œȱ ‘’œȱ’—˜›–Š’˜—ȱ›Ž•ŽŸŠ—ǵȈȱ‘ŽȱŠ—Š•¢œ’œȱœ‘˜ž•ȱ’Žȱ‘ŽȱŽŒ˜—˜–’ŒȱŠ—ȱꗊ—Œ’Š•ȱŠŠȱ˜ȱ ‘Žȱ›ŽŠ•ȱŽœŠŽȱ–Š›”Žȱ’—ȱŽ—Ž›Š•ȱŠ—ȱ˜ȱ‘Žȱ™Š›’Œž•Š›ȱ–Š›”Žȱ’—ȱ ‘’Œ‘ȱ‘Žȱ›ŽŠ•ȱŽœŠŽȱ ‹Ž’—ȱŠ™™›Š’œŽȱ’œȱ•˜ŒŠŽǯȱ˜›ȱŽ¡Š–™•Žǰȱ’ȱ‘ŽȱŠ™™›Š’œŽ›ȇœȱŽŒ˜—˜–’ŒȱŠŠȱœ‘˜ œȱ‘Šȱ ‘Žȱ›ŠŽȱ˜ȱŽ–™•˜¢–Ž—ȱ›˜ ‘ȱ’œȱŽŒ›ŽŠœ’—ǰȱ‘Ž—ȱ‘ŽȱŠ™™›Š’œŠ•ȱ›Ž™˜›ȱœ‘˜ž•ȱ’••žœȬ ›ŠŽȱ‘˜ ȱ‘’œȱ ’••ȱ’–™ŠŒȱ‘Žȱ–Š›”Žȱ’—ȱŽ—Ž›Š•ǰȱ‘Žȱ¢™Žȱ˜ȱ™›˜™Ž›¢ȱœ™ŽŒ’ęŒŠ••¢ǰȱŠ—ȱ ‘Žȱ™Š›’Œž•Š›ȱ™›˜™Ž›¢ȱ‹Ž’—ȱŠ™™›Š’œŽǯ ©Copyright: 2014 by the UBC Real Estate Division R1ARE10.indb 2 10/4/2010 10:35:37 AM Chapter 8 – Data Collection 8.3 TYPES OF DATA —ȱ–˜œȱŠ™™›Š’œŠ•ȱŠ—Š•¢œŽœǰȱŠ™™›Š’œŽ›œȱ ’••ȱ—ŽŽȱ˜ȱŠ‘Ž›ȱŠ—ȱŽ¡Š–’—Žȱ–˜›Žȱ‘Š—ȱ˜—Žȱ ¢™Žȱ˜ȱŠŠǰȱ’—Œ•ž’—DZȱ yȱ Ž—Ž›Š•ȱŠŠ yȱ ™ŽŒ’ęŒȱŠŠ yȱ ˜–™Ž’’ŸŽȱœž™™•¢ȱŠ—ȱŽ–Š—ȱŠŠ ™™›Š’œŽ›œȱ ˜‹Š’—ȱ ‘’œȱ ŠŠȱ ›˜–ȱ Ž’‘Ž›ȱ ™›’–Š›¢ȱ ˜›ȱ œŽŒ˜—Š›¢ȱ œ˜ž›ŒŽœǯȱ Ž—Ž›Š•ȱ ŠŠǰȱ ‘’Œ‘ȱ ˜Žœȱ —˜ȱ ›Ž•ŠŽȱ ’›ŽŒ•¢ȱ ˜ȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ǰȱ ’œȱ žœžŠ••¢ȱ ŠŒšž’›Žȱ ‘›˜ž‘ȱ œŽŒ˜—Š›¢ȱœ˜ž›ŒŽœȱœžŒ‘ȱŠœȱŠ’œ’ŒœȱŠ—ŠŠȱ™ž‹•’ŒŠ’˜—œǰȱ™›˜Ÿ’—Œ’Š•ȱŠ—ȱ•˜ŒŠ•ȱ˜ŸŽ›—Ȭ –Ž—ȱ ŠŽ—Œ’Žœǰȱ Š—ȱ ™›’ŸŠŽȱ Ž–˜›Š™‘’Œȱ ŠŠȱ œŽ›Ÿ’ŒŽœǯȱ —ȱ ˜‘Ž›ȱ ˜›œǰȱ œŽŒ˜—Š›¢ȱ ŠŠȱ’œȱ’—˜›–Š’˜—ȱ‘Šȱ‘Šœȱ—˜ȱ‹ŽŽ—ȱ™Ž›œ˜—Š••¢ȱŒ˜—ę›–Žȱ‹¢ȱ‘ŽȱŠ™™›Š’œŽ›ǯȱ™ŽŒ’ęŒȱ ŠŠȱŠ—ȱŒ˜–™Ž’’ŸŽȱœž™™•¢ȱŠ—ȱŽ–Š—ȱŠŠǰȱ ‘’Œ‘ȱŽŠ•ȱ ’‘ȱ‘Žȱœž‹“ŽŒȱ™›˜™Ž›¢ȱ Š—ȱŒ˜–™Š›Š‹•Žȱ™›˜™Ž›’Žœȱ’—ȱ‘Žȱœž‹“ŽŒȱ–Š›”ŽǰȱŠ›Žȱ–˜œȱ˜Ž—ȱ˜‹Š’—Žȱ‹¢ȱŠ™™›Š’œȬ Ž›œȱ‘Ž–œŽ•ŸŽœȱŠ—ȱ‘Ž›Ž˜›ŽȱšžŠ•’¢ȱŠœȱ™›’–Š›¢ȱŠŠǯ General Data —ȱ Š™™›Š’œŽ›ȱ ˜›”’—ȱ ’—ȱ Šȱ œ™ŽŒ’ęŒȱ –Š›”Žȱ ˜—ȱ Šȱ Š’•¢ȱ ‹Šœ’œȱ ’••ȱ ˜Ž—ȱ ‘ŠŸŽȱ Ž—Ž›Š•ȱ ŠŠȱ˜—ȱꕎǯȱ Ž—Ž›Š•ȱŠŠȱŒ˜—œ’œœȱ˜ȱ’—˜›–Š’˜—ȱŠ‹˜žȱ‘Žȱœ˜Œ’Š•ǰȱŽŒ˜—˜–’Œǰȱ˜ŸŽ›—Ȭ –Ž—Š•ǰȱŠ—ȱŽ—Ÿ’›˜—–Ž—Š•ȱ˜›ŒŽœȱ‘ŠȱŠěŽŒȱ™›˜™Ž›¢ȱŸŠ•žŽǯȱ‘’œȱ’—˜›–Š’˜—ȱ’œȱ™Š›ȱ ˜ȱ‘Žȱ‹ŠŒ”›˜ž—ȱ”—˜ •ŽŽȱ‘ŠȱŠ™™›Š’œŽ›œȱ‹›’—ȱ˜ȱ‘Ž’›ȱŠœœ’—–Ž—œǯȱ••ȱŽ—Ž›Š•ȱ ŠŠȱ’œȱž•’–ŠŽ•¢ȱž—Ž›œ˜˜ȱ’—ȱŽ›–œȱ˜ȱ‘˜ ȱ’ȱŠěŽŒœȱ‘ŽȱŽŒ˜—˜–’ŒȱŒ•’–ŠŽȱ’—ȱ ‘’Œ‘ȱ ›ŽŠ•ȱ™›˜™Ž›¢ȱ›Š—œŠŒ’˜—œȱ˜ŒŒž›ǯȱ Ž—Ž›Š•ȱŠŠȱ’œȱ –˜œȱ›ŽšžŽ—•¢ȱžœŽȱ’—ȱ‘ŽȱŠ—Š•¢œ’œȱ˜ȱŠȱ›Ž’˜—ȱ general data ˜›ȱŒ’¢ȱŠ—ȱ˜ȱŠȱ•ŽœœŽ›ȱŽ›ŽŽȱ’—ȱ‘ŽȱŠ—Š•¢œ’œȱ˜ȱŠȱ Items of information on value influences that œ–Š••Ž›ȱ–Š›”ŽȱŠ›ŽŠǯȱ —ȱŠ—Š•¢£’—ȱŽ—Ž›Š•ȱŠŠǰȱ derive from social, economic, governmental, Š™™›Š’œŽ›œȱ ˜‹œŽ›ŸŽȱ ‘Žȱ ˜™Ž›Š’˜—ȱ ˜ȱ Š™™›Š’œŠ•ȱ and environmental forces and originate outside the property being appraised. ™›’—Œ’™•Žœȱ ‹¢ȱ œž¢’—ȱ ‘Žȱ ’—Ž›ŠŒ’˜—ȱ ˜ȱ ‘Žȱ ˜ž›ȱ˜›ŒŽœȱ‘ŠȱŠěŽŒȱŠ—ȱŠ›ŽŠȇœȱ™›˜™Ž›¢ȱŸŠ•žŽœǯȱ specific data Details about the property being appraised, •‘˜ž‘ȱ ‘Žȱ ˜ž›ȱ ˜›ŒŽœȱ ™›˜Ÿ’Žȱ Œ˜—ŸŽ—’Ž—ȱ comparable sale and rental properties, and ŒŠŽ˜›’Žœȱ ˜›ȱ Ž¡Š–’—’—ȱ Ž—Ž›Š•ȱ ŠŠǰȱ ’ȱ ’œȱ ‘Žȱ relevant local market characteristics. ’—Ž›ŠŒ’˜—ȱ ˜ȱ ‘˜œŽȱ ˜›ŒŽœȱ ‘Šȱ Œ›ŽŠŽœȱ ›Ž—œȱ Š—ȱž•’–ŠŽ•¢ȱ’—ĚžŽ—ŒŽœȱ™›˜™Ž›¢ȱŸŠ•žŽǯ Economic Trends ™™›Š’œŽ›œȱ–žœȱ›ŽŒ˜—’£ŽȱŠ—ȱž—Ž›œŠ—ȱ‘ŽȱŽŒ˜—˜–’Œȱ›Ž—œȱ‘ŠȱŠěŽŒȱ‘ŽȱŸŠ•žŽȱ ˜ȱ›ŽŠ•ȱ™›˜™Ž›¢ǯȱ ȱ’œȱ—˜ȱŽ—˜ž‘ȱ˜ȱ”—˜ ȱ‘ŠȱŽŒ˜—˜–’ŒȱŒ‘Š—Žœȱ‘ŠŸŽȱ˜ŒŒž››ŽDzȱ‘Žȱ ™›˜‹Š‹•Žȱ’›ŽŒ’˜—ǰȱŽ¡Ž—ǰȱ’–™ŠŒǰȱŠ—ȱŒŠžœŽȱ˜ȱ‘ŽœŽȱŒ‘Š—Žœȱ–žœȱŠ•œ˜ȱ‹Žȱœž’Žȱ˜ȱ ’Ž—’¢ȱŠ—ȱ˜›ŽŒŠœȱ›Ž—œǯ ‘Žȱ™Š›’Œž•Š›ȱ›Ž—œȱŒ˜—œ’Ž›Žȱ‹¢ȱŠ—ȱŠ™™›Š’œŽ›ȱŸŠ›¢ȱ ’‘ȱ‘ŽȱŠ™™›Š’œŠ•ȱ™›˜‹•Ž–ȱ Š—ȱ‘Žȱ¢™Žȱ˜ȱ›ŽŠ•ȱŽœŠŽȱ‹Ž’—ȱŠ™™›Š’œŽǯȱ˜›ȱŽ¡Š–™•Žǰȱ˜ȱŽŸŽ•˜™ȱŠ—ȱ˜™’—’˜—ȱ˜ȱ‘Žȱ –Š›”ŽȱŸŠ•žŽȱ˜ȱŠȱœ‘˜™™’—ȱŒŽ—›Žȱ ’‘ȱ‘Žȱ’—Œ˜–ŽȱŠ™™›˜ŠŒ‘ȱ˜ȱŸŠ•žŽǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ ©Copyright: 2014 by the UBC Real Estate Division R1ARE10.indb 3 10/4/2010 10:35:37 AM 8.4 The Appraisal of Real Estate – Third Canadian Edition Table 8.1: Economic Trends and Useful Economic Indicators Trends Useful Economic Indicators International economic trends Changes in: • Balance of foreign trade • Rates of foreign exchange • Commodity price levels • Wage levels • Interest rates • Industrial production levels • Volume of retail sales National and regional economic trends Changes in: • Gross national product • Gross domestic product • National income • The balance of payments to other nations • Price level indexes • Interest rates • Aggregate employment and unemployment statistics • The number of housing starts and building permits issued • The dollar volume of construction • Other general data Note: A time series of economic indicators, which describes and measures changes or movements over a period of time, may reveal fluctuations in long-term trends and help put current statistics in perspective, i.e., help determine the current position of the economic cycle. Local economic trends Changes in: • Population • Net household formation • The diversity of the economic base of the community • The level and stability of employment • Wage rates • Household or family income Economic trends affecting rural land Changes in: • Size and complexity of business operations in farming, ranching, timberharvesting, rilling, or mining • Level of mechanization or labour-intensiveness • Degree of dependence on government subsidies or governmentleased lands • Prospective competition from imports ©Copyright: 2014 by the UBC Real Estate Division R1ARE10.indb 4 10/4/2010 10:35:37 AM Chapter 8 – Data Collection 8.5 –žœȱ˜›ŽŒŠœȱ‘Žȱ‹ŠœŽȱ›Ž—ȱŠ—ȱ˜ŸŽ›ŠŽȱ›Ž—ȱž—Ž›ȱŠȱ™Ž›ŒŽ—ŠŽȱ•ŽŠœŽǯŗȱ‘Žȱœ‘˜™™’—ȱ ŒŽ—›Žȇœȱ˜Š•ȱ™˜Ž—’Š•ȱ›˜œœȱ’—Œ˜–ŽȱŽ™Ž—œȱ˜—ȱ›Ž—œȱ’—ȱ‘Žȱ—ž–‹Ž›ȱ˜ȱ‘˜žœŽ‘˜•œȱ ’—ȱ ‘Žȱ ›ŠŽȱ Š›ŽŠǰȱ ‘Žȱ ’—Œ˜–Žȱ ˜ȱ ‘ŽœŽȱ ‘˜žœŽ‘˜•œǰȱ Š—ȱ ‘Ž’›ȱ ¢™’ŒŠ•ȱ Ž¡™Ž—’ž›Žœȱ ˜—ȱ ‘Žȱ˜˜œȱŠ—ȱœŽ›Ÿ’ŒŽœȱœž™™•’Žȱ‹¢ȱ‘ŽȱŒŽ—›ŽȇœȱŽ—Š—œǯȱ‘ŽȱŠŸŠ’•Š‹’•’¢ȱ˜ȱŠ•Ž›—Š’ŸŽȱ œ‘˜™™’—ȱŠŒ’•’’ŽœȱŠ•œ˜ȱ–žœȱ‹ŽȱŒ˜—œ’Ž›ŽǯȱŠ‹•ŽȱŞǯŗȱ•’œœȱžœŽž•ȱŽŒ˜—˜–’Œȱ’—’ŒŠ˜›œȱ Š™™›Š’œŽ›œȱ˜Ž—ȱ›ŠŒ”ȱ˜ȱŠ—Š•¢£Žȱ›Ž—œȱ’—ȱ‘Žȱ–Š›”Ž™•ŠŒŽǯ International Economic Trends —ȱ‘Žȱ•˜‹Š•ȱŽŒ˜—˜–¢ǰȱ‘ŽȱŽŒ˜—˜–’Œȱ Ž••Ȭ‹Ž’—ȱ˜ȱ˜—Žȱ—Š’˜—ȱ–Š¢ȱ’›ŽŒ•¢ȱŠ—ȱ’—’Ȭ ›ŽŒ•¢ȱŠěŽŒȱ˜‘Ž›ȱ—Š’˜—œǯȱ‘Ž›Žȱ’œȱ–žŒ‘ȱ˜›Ž’—ȱ’—ŸŽœ–Ž—ȱ’—ȱŠ—Š’Š—ȱ›ŽŠ•ȱŽœŠŽǰȱ ™Š›•¢ȱ‹ŽŒŠžœŽȱ‘ŽȱœŠ‹’•’¢ȱ˜ȱ‘ŽȱŠ—Š’Š—ȱ˜ŸŽ›—–Ž—ȱ’ŸŽœȱ˜›Ž’—ȱ’—ŸŽœ˜›œȱœ˜–Žȱ –ŽŠœž›Žȱ˜ȱ™›˜ŽŒ’˜—ǯȱœȱŠȱ›Žœž•ǰȱ™˜•’’ŒŠ•ȱ’—œŠ‹’•’¢ȱ’—ȱ˜‘Ž›ȱŒ˜ž—›’ŽœȱŒŠ—ȱ’—ĚžŽ—ŒŽȱ ‘ŽȱŽ–Š—ȱ˜›ǰȱŠ—ȱŸŠ•žŽȱ˜ǰȱ›ŽŠ•ȱŽœŠŽȱ’—ȱŠ—ŠŠǯ —Ž›—Š’˜—Š•ȱ ŽŒ˜—˜–’Œȱ ›Ž—œȱ ŒŠ—ȱ ‘ŠŸŽȱ œ’—’ęŒŠ—ȱ ŽěŽŒœȱ ˜—ȱ •˜ŒŠ•ȱ ŽŒ˜—˜–’Žœȱ Š—ȱ œ™ŽŒ’ęŒȱ ›ŽŠ•ȱ ŽœŠŽȱ –Š›”Žœǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ ‘Žȱ œŠžœȱ ˜ȱ ‘Žȱ œ’Š—ȱ ŽŒ˜—˜–¢ȱ ŒŠ—ȱ ŠěŽŒȱ ‘Žȱ •ŽŸŽ•ȱ ˜ȱ ’—Ž›—Š’˜—Š•ȱ ›ŠŽǰȱ ‘’Œ‘ȱ ’—ȱ ž›—ȱ ‘Šœȱ Šȱ –Š“˜›ȱ ’–™ŠŒȱ ˜—ȱ ‘Žȱ ŽŒ˜—˜–¢ȱ ˜ȱ ŠŒ’ęŒȱ ’–ȱ ™˜›ȱ Œ’’Žœȱ ǻŠ—ȱ ™Ž›‘Š™œȱ ‘Žȱ Ž–Š—ȱ ˜›ȱ Š›Ž‘˜žœŽȱ œ™ŠŒŽǼǯȱ —Œ›ŽŠœ’—•¢ǰȱ ›Ž—œȱ ’—ȱ ’—Ž›—Š’˜—Š•ȱ ꗊ—Œ’—ȱ ŒŠ—ȱ ’—ĚžŽ—ŒŽȱ •˜ŒŠ•ȱ ›ŽŠ•ȱ ŽœŠŽȱ –Š›”Žœȱ Šœȱ Ž••ǯȱ —ȱ ‘Žȱ ŗşŞŖœǰȱ žœ’—ȱ ꗊ—Œ’—ȱ ŽŒ‘—’šžŽœȱ ž—ŠŸŠ’•Š‹•Žȱ ˜ȱ–Ž›’ŒŠ—ȱ ’—ŸŽœ˜›œǰȱ Š™Š—ŽœŽȱ’—ŸŽœ˜›œȱŒ˜ž•ȱ™Š¢ȱ’—ĚŠŽȱ™›’ŒŽœȱ˜›ȱ™›Žœ’’˜žœȱ™›˜™Ž›’Žœȱ’—ȱ Š Š’’ȱŠ—ȱ Š•’˜›—’Šǰȱ’—Œ•ž’—ȱ–˜œȱ˜ȱ‘Žȱ•ž¡ž›¢ȱ‘˜Ž•ȱ›˜˜–œȱ’—ȱ Š Š’’ǯȱȱ‘Žȱ’–Žǰȱ›ŽŠ•ȱŽœŠŽȱ Š™™›Š’œŽ›œȱ ’—ȱ Š Š’’ȱ ‘Šȱ ˜ȱ ™›˜Ÿ’Žȱ  ˜ȱ ’쎛Ž—ȱ ŸŠ•žŽœȱ ›ŽĚŽŒ’—ȱ ‘Žȱ ’—ĚžŽ—ŒŽȱ ˜ȱ Š™Š—ŽœŽȱ ’—ŸŽœ–Ž—ȱ ™›ŠŒ’ŒŽœȱ ǻ˜Ž—ȱ ’‘˜žȱ ‘Žȱ ‹Ž—Žęȱ ˜ȱ Šȱ ™›˜ȱ ˜›–Šȱ œŠŽ–Ž—ǰȱ •ŽŠœŽȱŠ—Š•¢œ’œǰȱ˜›ȱ–Š›”Žȱœž¢ǼȱŠ—ȱ›Š’’˜—Š•ȱȱ•Ž—’—ȱ™›ŠŒ’ŒŽœǯȱ‘ŽȱŒ˜••Š™œŽȱ˜ȱ ‘Žȱ Š™Š—ŽœŽȱŽŒ˜—˜–¢ǰȱžŽȱ’—ȱ™Š›ȱ˜ȱ‹Šȱ•˜Š—œȱ–ŠŽȱ‹¢ȱ Š™Š—ŽœŽȱ‹Š—”œǰȱŽŸŽ—žŠ••¢ȱ ŒŠžœŽȱ ™›’ŒŽœȱ ’—ȱ ‘Žȱ Š Š’’Š—ȱ ›ŽŠ•ȱ ŽœŠŽȱ –Š›”Žȱ ˜ȱ ™•ž—Žǰȱ ’‘ȱ Š™Š—ŽœŽȱ ’—ŸŽœ˜›œȱ •˜œ’—ȱ‹’••’˜—œȱ˜ȱ˜••Š›œȱ˜—ȱ‘Ž’›ȱ’—ŸŽœ–Ž—œǯ National and Regional Economic Trends ‘Žȱ œŠŽȱ ˜ȱ ‘Žȱ —Š’˜—Š•ȱ ŽŒ˜—˜–¢ȱ ’œȱ ‹Šœ’Œȱ ˜ȱ Š—¢ȱ ›ŽŠ•ȱ ŽœŠŽȱ Š™™›Š’œ•ǯȱ ’—Š—Œ’Š•ȱ ’—œ’ž’˜—œȱ–žœȱŒ˜–™ŽŽȱ˜›ȱž—œȱ˜ȱ•Ž—ǰȱ—˜ȱ˜—•¢ȱ ’‘ȱ˜—ŽȱŠ—˜‘Ž›ǰȱ‹žȱŠ•œ˜ȱ ’‘ȱ –˜—Ž¢ȱ –Š›”Žȱ –žžŠ•ȱ ž—œǯȱ Ž—’—ȱ ›ŠŽœȱ ›ŽĚŽŒȱ ‘’œȱ ˜—˜’—ȱ Œ˜–™Ž’’˜—ǰȱ Š—ȱ Ž–Š—ȱ’—ȱ‘Žȱ–Š›”ŽȱŠ“žœœȱ’œŽ•ȱŠŒŒ˜›’—•¢ǯ ŽŽ›Š•ȱ ™›˜›Š–œȱ Š—ȱ Š¡ȱ ™˜•’Œ’Žœȱ ŒŠ—ȱ ŠěŽŒȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ ›ŽŠ•ȱ ŽœŠŽǯȱ Ž˜›–œȱ –ŠŽȱ’—ȱŗşŝŘȱ˜ȱ‘Žȱ —Œ˜–ŽȱŠ¡ȱŒȱ–ŠŽȱŠ’—œȱ’—ȱ‘ŽȱŸŠ•žŽȱ˜ȱ’—ŸŽœ–Ž—ȱ›ŽŠ•ȱŽœŠŽȱ ’—ȱŠ—ŠŠȱŠ¡Š‹•ŽDzȱ‹Ž˜›Žȱ‘ŠǰȱœžŒ‘ȱŒŠ™’Š•ȱŠ’—œȱ Ž›Žȱ›ŽŽȱ˜ȱŠ¡ǯȱž›‘Ž›ȱ›Ž˜›–œȱŠȱ ‘Žȱ œŠ–Žȱ ’–Žȱ ™›ŽŸŽ—Žȱ ›Ž—Š•ȱ ’—ŸŽœ˜›œȱ ›˜–ȱ Œ•Š’–’—ȱ Ž™›ŽŒ’Š’˜—ȱ Œ‘Š›Žœȱ ǻŒŠ••Žȱ ŒŠ™’Š•ȱ Œ˜œȱ Š••˜ Š—ŒŽœǰȱ ˜›ȱ Ǽȱ Šœȱ ŽžŒ’˜—œȱ ŠŠ’—œȱ ’—Œ˜–Žȱ ›˜–ȱ ˜‘Ž›ȱ œ˜ž›ŒŽœǯȱ ‘ŽœŽȱŒ‘Š—Žœȱ‘ŠȱŠȱŠ›Ȭ›ŽŠŒ‘’—ȱŽěŽŒȱ˜—ȱ‘ŽȱŸŠ•žŽȱ˜ȱ’—ŸŽœ–Ž—Ȭ›ŠŽȱ™›˜™Ž›’Žœǯȱ žŽȱ ’—ȱ ™Š›ȱ ˜ȱ ‘Žȱ Š¡ȱ ŠŸŠ—ŠŽœȱ ŠŸŠ’•Š‹•Žȱ ™›’˜›ȱ ˜ȱ ŗşŝŖǰȱ œ˜–Žȱ ›ŽŠ•ȱ ŽœŠŽȱ –Š›”Žœȱ ‘Šȱ ‹ŽŽ—ȱ ˜ŸŽ›‹ž’•ǯȱ Ž›ȱ ‘Žȱ Š¡ȱ •Š ȱ Šœȱ Œ‘Š—Žǰȱ ‘Žȱ ˜ŸŽ›œž™™•¢ȱ Šœȱ ›ŽŒ˜—’£Žȱ Š—ȱŸŠ•žŽœȱ’—ȱ‘ŽœŽȱ–Š›”ŽœȱŽŒ•’—Žȱœ’—’ęŒŠ—•¢ǯ ‘Žȱ —Š’˜—Š•ȱ ŽŒ˜—˜–¢ȱ Š•œ˜ȱ ›Ž•ŽŒœȱ ‘Žȱ ŽŒ˜—˜–’Œȱ Œ˜—’’˜—ȱ ˜ȱ ‘Žȱ ŸŠ›’˜žœȱ Ž˜›Š™‘’Œȱ ›Ž’˜—œȱ ˜ȱ Š—ŠŠǯȱ ‘Žȱ ŽŒ˜—˜–’Œȱ ‘ŽŠ•‘ȱ ˜ȱ Šȱ ›Ž’˜—ȱ Ž™Ž—œȱ ˜—ȱ ‘Žȱ 1 See Chapter 21 for the definitions of percentage lease, base rent, and overage rent. ©Copyright: 2014 by the UBC Real Estate Division R1ARE10.indb 5 10/4/2010 10:35:37 AM 8.6 The Appraisal of Real Estate – Third Canadian Edition œŠžœȱ˜ȱ’œȱŽŒ˜—˜–’ŒȱŠŒ’Ÿ’¢ǰȱ ‘’Œ‘ȱ’—ȱž›—ȱŽ—Œ˜–™ŠœœŽœȱ‘ŽȱŽŒ˜—˜–’ŒȱŠŒ’Ÿ’’Žœȱ’—ȱ ’—’Ÿ’žŠ•ȱŠ›ŽŠœȱŠ—ȱŒ˜––ž—’’Žœȱ ’‘’—ȱ‘Žȱ›Ž’˜—ȇœȱŽ˜›Š™‘’Œȱ‹˜ž—Š›’Žœǯȱ’—˜›ȱ ’œ›ž™’˜—œȱ’—ȱ‘ŽȱŽŒ˜—˜–’Œȱ›˜ ‘ȱ˜ȱ˜—ŽȱŒ˜––ž—’¢ȱ–Š¢ȱ—˜ȱŠ™™›ŽŒ’Š‹•¢ȱŠěŽŒȱ‘Žȱ Ž—’›Žȱ›Ž’˜—ȱ’ȱ‘Žȱ›Ž’˜—Š•ȱŠ—ȱ—Š’˜—Š•ȱŽŒ˜—˜–’ŽœȱŠ›Žȱœ›˜—ǯ ‘Žȱ Ž¡Ž—ȱ ˜ȱ ‘’Œ‘ȱ Š—ȱ Š™™›Š’œŽ›ȱ ’œȱ Œ˜—ŒŽ›—Žȱ ’‘ȱ ‘Žȱ —Š’˜—Š•ȱ ˜›ȱ ›Ž’˜—Š•ȱ ŽŒ˜—˜–¢ȱŠ—ȱ‘ŽȱŽŒ˜—˜–¢ȱ˜ȱ‘ŽȱŒ’¢ȱ˜›ȱ–Š›”ŽȱŠ›ŽŠȱŽ™Ž—œȱ˜—ȱ‘Žȱœ’£ŽȱŠ—ȱ¢™Žȱ˜ȱ ™›˜™Ž›¢ȱ ‹Ž’—ȱ Š™™›Š’œŽǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ Šȱ •Š›Žȱ ›Ž’˜—Š•ȱ œ‘˜™™’—ȱ ŒŽ—›Žȱ ‘Šȱ œŽ›ŸŽœȱ Šȱ›ŠŽȱŠ›ŽŠȱ˜ȱśŖŖǰŖŖŖȱ™Ž˜™•ŽȱŠ—ȱŠ—ȱŠž˜–˜‹’•ŽȱŠœœŽ–‹•¢ȱ™•Š—ȱ‘ŠȱŽ–™•˜¢œȱśǰŖŖŖȱ ˜›”Ž›œȱ Š›Žȱ –˜›Žȱ œŽ—œ’’ŸŽȱ ˜ȱ ‘Žȱ Ž—Ž›Š•ȱ œŠŽȱ ˜ȱ ‘Žȱ ŽŒ˜—˜–¢ȱ ‘Š—ȱ Š›Žȱ –Ž’ŒŠ•Ȭ Ž—Š•ȱ˜ĜŒŽȱ‹ž’•’—œȱ˜›ȱ›ŽŠ’•ȱœŽ›Ÿ’ŒŽȱ˜™Ž›Š’˜—ȱ’—ȱœž‹ž›‹Š—ȱ›Žœ’Ž—’Š•ȱŠ›ŽŠœǯ Local Market Considerations ˜ȱ ž—Ž›œŠ—ȱ ‘˜ ȱ —Š’˜—Š•ȱ Š—ȱ ŽŸŽ—ȱ ’—Ž›—Š’˜—Š•ȱ ŽŒ˜—˜–’Œȱ ›Ž—œȱ ’—ĚžŽ—ŒŽȱ ™›˜™Ž›¢ȱ ŸŠ•žŽǰȱ Š—ȱ Š™™›Š’œŽ›ȱ œž’Žœȱ ‘˜ ȱ ‘Žȱ ›Ž’˜—ȱ Š—ȱ Œ˜––ž—’¢ȱ ‘Ž›Žȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ȱ ’œȱ •˜ŒŠŽȱ –Š¢ȱ ›Žœ™˜—ȱ ˜ȱ ‘ŽœŽȱ ›Ž—œǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ Ž¡Š–’—Žȱ ‘Žȱ ŽŒ˜—˜–’Œȱ œ›žŒž›Žȱ ˜ȱ ‘Žȱ ›Ž’˜—ȱ Š—ȱ ‘Žȱ Œ˜––ž—’¢ǰȱ ‘Žȱ Œ˜–™Š›Š’ŸŽȱ ŠŸŠ—ŠŽœȱ ‘Šȱ ŽŠŒ‘ȱ ™˜œœŽœœŽœǰȱ Š—ȱ ‘Žȱ ŠĴ’žŽœȱ ˜ȱ •˜ŒŠ•ȱ ˜ŸŽ›—–Ž—ȱ Š—ȱ ›Žœ’Ž—œȱ ˜ Š›ȱ ›˜ ‘ȱ Š—ȱ Œ‘Š—Žǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ ‘Žȱ ’—Œ›ŽŠœ’—ȱ —ž–‹Ž›ȱ ˜ȱ Ž•Ž›•¢ȱ ‘˜žœŽȬ ‘˜•œȱ ’—ȱ ‘Žȱ —Š’˜—ȱ ’œȱ •Žœœȱ œ’—’ęŒŠ—ȱ ˜ȱ ™›˜™Ž›¢ȱ ŸŠ•žŽœȱ ’—ȱ ĴŠ Šȱ ‘Š—ȱ ˜ȱ ŸŠ•žŽœȱ ’—ȱ ’Œ˜›’Šȱ˜›ȱ Ž•˜ —Šǰȱǰȱ ‘’Œ‘ȱŠĴ›ŠŒȱ–˜›Žȱ›Ž’›ŽŽœǯȱȱŒ˜––ž—’¢ȱ ’‘ȱŠȱ—˜Ȭ›˜ ‘ȱ ™˜•’Œ¢ȱ –Š¢ȱ ‘ŠŸŽȱ œž‹œŠ—’Š••¢ȱ ’쎛Ž—ȱ •˜ŒŠ•ȱ Ž–˜›Š™‘’Œœȱ Š—ȱ ŽŒ˜—˜–’Œȱ ™˜Ž—’Š•ȱ ‘Š—ȱ˜—Žȱ‘Šȱ˜Žœȱ—˜ȱ’œŒ˜ž›ŠŽȱ›˜ ‘ǯ Ž’˜—Š•ȱ ŽŒ˜—˜–’Žœȱ ’—ĚžŽ—ŒŽȱ •˜ŒŠ•ȱ –Š›”Žȱ Œ˜—’’˜—œǰȱ ‹žȱ •˜ŒŠ•ȱ –Š›”Žœȱ ˜ȱ —˜ȱ —ŽŒŽœœŠ›’•¢ȱ ™Š›Š••Ž•ȱ ›Ž’˜—Š•ȱ –Š›”Žœǯȱ ŠŒ›˜ŽŒ˜—˜–’Œȱ œž’Žœǰȱ ‘’Œ‘ȱ Š›Žȱ Œ˜—ŒŽ›—Žȱ ’‘ȱ‹›˜ŠȱŠ›ŽŠœȱœžŒ‘ȱŠœȱŒ’’ŽœȱŠ—ȱ›Ž’˜—œǰȱŠ›Žȱ’–™˜›Š—ȱ˜ȱž—Ž›œŠ—’—ȱ›ŽŠ•ȱŽœŠŽȱ Š—ȱ ›ŽŠ•ȱ ŽœŠŽȱ ›Ž—œǯȱ ‘ŽœŽȱ œž’Žœȱ œ‘˜ž•ȱ —˜ȱ ‹Žȱ Œ˜—žœŽȱ ’‘ȱ –’Œ›˜ŽŒ˜—˜–’Œȱ œž’Žœǰȱ ‘’Œ‘ȱ Š™™›Š’œŽ›œȱ ™Ž›˜›–ȱ ˜ȱ ŽŸŠ•žŠŽȱ ‘Žȱ ŠŒ˜›œȱ ’—ĚžŽ—Œ’—ȱ ‘Žȱ –Š›”Žȱ ŸŠ•žŽȱ ˜ȱŠȱ ™Š›’Œž•Š›ȱ›ŽŠ•ȱŽœŠŽȱ ™Š›ŒŽ•ǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ›Ž’˜—Š•ȱ›Ž—œȱ –Š¢ȱ œžŽœȱŠ—ȱ Ž¡™ŽŒŽȱ ’—Œ›ŽŠœŽȱ ’—ȱ ™˜™ž•Š’˜—ǰȱ ‹žȱ ‘Žȱ •˜ŒŠ•ȱ ŠŠȱ ŠŸŠ’•Š‹•Žȱ ˜ȱ ‘Žȱ Š™™›Š’œŽ›ȱ –Š¢ȱ ’—’ŒŠŽȱ ‘Šȱ ‘Žȱ ™Š›’Œž•Š›ȱ Š›ŽŠȱ ’••ȱ —˜ȱ ‹Ž—Žęȱ ›˜–ȱ ‘’œȱ ›Ž—ǯȱ ‘’•Žȱ ‹˜‘ȱ œž’Žœȱ Š›Žȱ’–™˜›Š—ǰȱ•˜ŒŠ•ȱ›Ž—œȱŠ›Žȱ–˜›Žȱ•’”Ž•¢ȱ˜ȱ’—ĚžŽ—ŒŽȱ™›˜™Ž›¢ȱŸŠ•žŽœȱ’›ŽŒ•¢ǯ Trends Affecting Rural Land ™™›Š’œŽ›œȱ ˜ȱ ›ž›Š•ȱ •Š—ȱ œ‘˜ž•ȱ ž—Ž›œŠ—ȱ ‘Žȱ •’—”œȱ ‹Ž ŽŽ—ȱ ‘Žȱ •˜ŒŠ•ȱ ›ž›Š•ȱ ŽŒ˜—˜–¢ǰȱ ‘Žȱ ›Ž’˜—Š•ȱ ŽŒ˜—˜–’Œȱ ‹ŠœŽȱ ǻŠ›’Œž•ž›Š•ǰȱ Ž¡›ŠŒ’ŸŽǰȱ ˜›ȱ ›ŽŒ›ŽŠ’˜—Š•Ǽǰȱ Š—ȱ ‘Žȱ —Š’˜—Š•ȱ ŽŒ˜—˜–¢ȱ Šœȱ Ž••ȱ Šœȱ ‘Žȱ Ž—Œ›˜ŠŒ‘–Ž—ȱ ˜ȱ œž‹ž›‹Š—ȱ Š—ȱ ž›‹Š—ȱ •Š—ȱ žœŽœȱ ˜—ȱ ›ž›Š•ȱ •Š—ǯȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ȱ œ‘˜ž•ȱ ‹Žȱ Š—Š•¢£Žȱ ’—ȱ ›Ž•Š’˜—ȱ ˜ȱ Œ˜–™Š›Š‹•Žȱ ™›˜™Ž›’Žœȱ ’—ȱ ‘Žȱ ’––Ž’ŠŽȱ Š›’Œž•ž›Š•ǰȱ –’—’—Ȧ›’••’—ȦŽ¡›ŠŒ’˜—ǰȱ ˜›ȱ›ŽŒ›ŽŠ’˜—Š•ȱ’œ›’Œǯ •’–Š’Œȱ ŠŠȱ ŒŠ—ȱ ‹Žȱ ’–™˜›Š—ȱ ’—ȱ Š—Š•¢£’—ȱ –Š—¢ȱ ›ž›Š•ȱ •Š—ȱ žœŽœǯȱȱ ›˜ž‘ȱ ’—ȱ Šȱ ›Š’—Ȭ™›˜žŒ’—ȱ Š›ŽŠȱ ˜›ȱ ’Œ¢ȱ Œ˜—’’˜—œȱ ’—ȱ Šȱ ›ž’Ȭ›˜ ’—ȱ ›Ž’˜—ȱ ŒŠ—ȱ ‘ŠŸŽȱ ŽŒ˜—˜–’Œȱ›Ž™Ž›Œžœœ’˜—œȱ‹Ž¢˜—ȱ’œ›ž™’—ȱ•˜ŒŠ•ȱŠ›’Œž•ž›Š•ȱ™›˜žŒ’˜—ǯȱ˜ž›’œ–ȱ Š—ȱ ›ŽŒ›ŽŠ’˜—Š•ȱ žœŽœȱ ˜ȱ ›ž›Š•ȱ •Š—ȱ –Š¢ȱ ‹Žȱ ŠŽŒŽȱ ‹¢ȱ ‘Žȱ œŽŸŽ›Žȱ ŽŠ‘Ž›ǰȱ Š—ȱ ©Copyright: 2014 by the UBC Real Estate Division R1ARE10.indb 6 10/4/2010 10:35:37 AM Chapter 8 – Data Collection 8.7 ›ŽœŠž›Š—œȱ Š—ȱ ‘˜Ž•œȱ ’—ȱ ‘Žȱ ›Ž’˜—ȱ –Š¢ȱ ‹Žȱ ˜›ŒŽȱ ˜ȱ ›Š’œŽȱ ™›’ŒŽœȱ ˜ȱ ”ŽŽ™ȱ ž™ȱ ’‘ȱ ‘Žȱ›’œ’—ȱŒ˜œȱ˜ȱ˜˜ǯŘȱ Demographics ‘Žȱ ™˜™ž•Š’˜—ȱ ˜ȱ Šȱ –Š›”Žȱ Š—ȱ ’œȱ Ž˜›Š™‘’Œȱ ’œ›’‹ž’˜—ȱ Š›Žȱ ‹Šœ’Œȱ ŽŽ›–’—Š—œȱ ˜ȱ‘Žȱ—ŽŽȱ˜›ȱ›ŽŠ•ȱŽœŠŽǯȱŽŠ•ȱŽœŠŽȱ’–™›˜ŸŽ–Ž—œȱŠ›Žȱ™›˜Ÿ’Žȱ’—ȱ›Žœ™˜—œŽȱ˜ȱ‘Žȱ Ž–Š—ȱŽ—Ž›ŠŽȱ‹¢ȱŠȱ™˜™ž•Š’...
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