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Lab 1 Week 1 Student Excel Worksheet - Ali

This document contains calculations for estimating the current market value of a property with a main structure, kitchen, terrace, and carport. It first calculates the land value and replacement cost of improvements. It then calculates depreciation of improvements based on the building age. This allows calculating the depreciated replacement cost and estimated current market value of the property. The document also includes calculations for reinstatement value, indemnity value, estimated demolition costs, and reinstatement and indemnity inflation.

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Mohammed Taufiq
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20 views

Lab 1 Week 1 Student Excel Worksheet - Ali

This document contains calculations for estimating the current market value of a property with a main structure, kitchen, terrace, and carport. It first calculates the land value and replacement cost of improvements. It then calculates depreciation of improvements based on the building age. This allows calculating the depreciated replacement cost and estimated current market value of the property. The document also includes calculations for reinstatement value, indemnity value, estimated demolition costs, and reinstatement and indemnity inflation.

Uploaded by

Mohammed Taufiq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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LM313 LAB 1 WEEK 1 SOLUTIONS 2023

Measurement Data
Structure length width Area (sqm)
Main structure 11.5 7.4 85.1
Kitchen 3.5 1.9 6.65
Terrace 5.9 1.9 11.21
Carport 5.4 4.4 23.76

Calculations:
1) Current Market Land Value
Area (sqm) = 1000 m2
Market rate (/sqm) = $ 250.00

2) Replacement cost of Improvement


I. Building
Main structure 85.1 sqm
Kitchen 6.65 sqm
91.75 sqm
(85.1 x 7) $ 229,375.00

Carport 23.76 sqm


(23.76 x $700) $ 16,632.00

Terrace 11.21 sqm


(11.21 x $650) $ 6,726.00

II. Other Improvements


Paths & Pavements,
Fencing & other site improvements $ 30,000.00

III. Proffessional fees $ 15,000.00

3) Depreciation Value of Improvements


I Building Age (Incurable physical Deterioration)
16/60 x 100 = %
$ 79,395.47

4) Depreciated Replacement Cost


Total improvement - Total depreciation
$ 218,337.53

5) Estimated Current market Value of the Property

Land Value $ 250,000.00


Dep.Replacement cost $ 218,337.53
$ 468,337.53

6) Reinstatement value of the improvement


Building value $ 252,733.00
other improvements $ 30,000.00
proffessuional fees $ 15,000.00
$ 297,733.00
7) Indemnity Value of the improvement

8) Estimated Demolition Costs


7% of Building value
7%
$20,841.31

9) Reinstatement inflation of Improvement


5% of reinstatement value of improvement
5%
$ 14,886.65

10) Indemnity Inflation of Improvement

I Depreciation Value next year $ 302,496.73


II Indemnity Value this year $ 218,337.53
$ 84,159.19

11) Insurance Value of the improvements use by the insurance broker


Insurance value is the same as Depreciated dreplacement cost
Data & Information
Land Data:
Land Size 1000 square meters
Market rate $ 250.00 per square meter
Building Data:
Main structure + kitchen $ 2,500.00 per square meter
Carport $ 700.00 per square meter
Terrace $ 600.00 per square meter
Other improvements $ 30,000.00
Proffessional fee 15000
Building Age 16 years
Est. building life 60 years
Inflation Rate 5%
Est. demolution cost 7%
Questons, calculate the following:-

(1000 x 250)

Land Value: $ 250,000.00

$ 229,375.00
$ 16,632.00

$ 6,726.00

Building Value $ 252,733.00

Other improvements $ 30,000.00

Proffessional fess $ 15,000.00


check solution model against

Total Value of Improvement $ 297,733.00

Building Age $ 79,395.47

Total Depreciation Value $ 79,395.47

Depre. Raplacement Cost $ 218,337.53

Est. current market value of Property $ 468,337.53


round off value $ 468,000.00
Reinstatement value $ 297,733.00

Indemnity Value $ 218,337.53

Demolition Cost $ 20,841.31

Reinstatement Inflation $ 15,928.72

Reinstatement inflation of Improvement $ 84,159.19

Insurance Value $ 218,337.53


eck solution model against yr answers
Formulas Used
1 Land Value = Land Size X Land rate (/sqm)

2 Replacement Cost
Caluculate the area of the buildng from the sketch & then
calculate the replacement cost which includes other improvements and proffessional fees

3 Depreciation = (Age of building / Est. life of building) x Replacement cost

4 Depreciated Replacement Cost = Replacement Cost value - Depreciation value

5 Estimated Market Value = Depreciated Replacement Costvalue + Land Value

6 Reinstatement Value = Replacement Value Cost

7 Indemnity Value = Depreciated Replacement Cost

8 Demolition Estimate = Demolition Estimate x Replacement Cost

9 Reinstatement Inflation = Reinstatement escalation (a) + rebuilding escalation (b)


(a) Reinstatement escalation = ReplacementValue x inflation x period adjustment
(b) Rebuilding escalation = demotion estimate x inflation x period adjustment

10 Indemnity Inflation = (Replacement Value + inflation) - depreciation next year - Indemnity value this year
y value this year

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