U.S. patent application number 11/970501 was filed with the patent office on 2008-05-01 for methods and systems for estimating building reconstruction costs.
Invention is credited to George C. Moore, Todd Rissel.
Application Number | 20080103991 11/970501 |
Document ID | / |
Family ID | 21759914 |
Filed Date | 2008-05-01 |
United States Patent
Application |
20080103991 |
Kind Code |
A1 |
Moore; George C. ; et
al. |
May 1, 2008 |
Methods and Systems For Estimating Building Reconstruction
Costs
Abstract
Systems and methods are provided for estimating a reconstruction
cost for a building as well as for a designated area within a
building. Reconstruction pricing data based on builder-supplied
full reconstruction-cost data are stored in a database from which
the data is accessed by geographic location, building-category and
building-area type. The accessed data are used to produce the
reconstruction cost estimate.
Inventors: |
Moore; George C.; (Port
Chester, NY) ; Rissel; Todd; (New Canaan,
CT) |
Correspondence
Address: |
DAY PITNEY LLP
7 TIMES SQUARE
NEW YORK
NY
10036-7311
US
|
Family ID: |
21759914 |
Appl. No.: |
11/970501 |
Filed: |
January 7, 2008 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
10013428 |
Dec 10, 2001 |
|
|
|
11970501 |
Jan 7, 2008 |
|
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Current U.S.
Class: |
705/400 |
Current CPC
Class: |
G06Q 90/20 20130101;
G06Q 30/0283 20130101; G06Q 99/00 20130101; G06Q 30/06
20130101 |
Class at
Publication: |
705/400 |
International
Class: |
G06Q 50/00 20060101
G06Q050/00 |
Claims
1. A method for estimating a reconstruction cost for a designated
area within a building, comprising: providing access to a database
of reconstruction-pricing data comprising: (a) a plurality of
price-index data indexed by corresponding geographic location and
representing reconstruction-pricing data for a plurality of
different building types and a plurality of different building-area
types within a building, (b) comparative building-category data
representing relative pricing levels for reconstructing each of a
plurality of different building categories, and (c) comparative
building-area data representing relative pricing levels for
reconstructing each of the plurality of different building-area
types within a building; providing geographic-location data of a
predetermined building; providing building category-defining data
for the predetermined building; providing building area-type data
for at least one designated area within the building, the building
area-type data being selected from the plurality of different
building-area types within a building; obtaining relevant
price-index data from the database for the geographic location of
the predetermined building based on the geographic-location data;
obtaining relevant comparative building-category data from the
database for the predetermined building based on the building
category-defining data for the predetermined building; obtaining
relevant comparative building-area data from the database based on
the at least one building-area type data for the designated area;
and determining and providing to a user a partial or total
reconstruction-cost estimate based on a reconstruction-cost
estimate for the at least one designated area within the building
based on the relevant price-index data, the relevant comparative
building-category data and the relevant comparative building-area
data.
Description
FIELD OF THE INVENTION
[0001] The present invention concerns methods and systems for
estimating building reconstruction costs.
BACKGROUND OF THE INVENTION
[0002] Building owners often prefer to minimize their risks of loss
due to fire and other hazards by obtaining insurance to indemnify
them against the cost of reconstructing the insured property. From
the perspective of the insurer, the ability to accurately estimate
building reconstruction costs is essential for setting an
appropriate premium for such a policy.
[0003] Unfortunately, existing methods for estimating
reconstruction costs are complex and often inaccurate. The
traditional method for estimating reconstruction cost attempts to
calculate the total cost of labor and materials necessary to
reconstruct an existing property, and then adds an assumed
contractor profit margin. But to be accurate this method requires a
large amount of information and requires that a substantial number
of assumptions be made which are not likely to be especially
accurate, particularly as the prices for labor, materials and
contracting services vary with market conditions.
[0004] Attempts have been made to simplify the methodology for
estimating construction costs. U.S. Pat. No. 5,546,564 to Horie
proposes a construction cost estimating system in which a database
of completed construction projects is maintained with cost data for
each project and other data for sorting the projects for relevance
to a particular proposed new project. Essentially, Horie attempts
to select a subset of the most relevant projects (a "small mother
group") and then derive an overall cost per unit area of the new
project by weighting the costs per unit area of the projects in the
small mother group according to their presumed relevance.
[0005] This technique, however, is subject to substantial
inaccuracy due to the effects of its simplifying assumptions. For
example, it is not valid to assume that a single cost per unit area
may be estimated accurately for a given construction project, since
each project usually involves the construction of a number of
different types of structures and areas with widely different
per-unit-area costs of construction. Moreover, there are a great
many cost influences that will vary from project to project, thus
making it impractical to assess the relevance of any given project
to another.
[0006] The present invention successfully addresses the
shortcomings of existing methods and proposals to provide highly
accurate and reliable systems and methodologies for estimating the
reconstruction cost of an existing building.
SUMMARY OF THE INVENTION
[0007] As used herein the following terms shall have the meanings
indicated:
[0008] The term "building" shall mean either a single structure, a
number of connected structures or a number of related structures,
as the context may indicate, and includes both entire structures
and units (including but not limited to cooperative and condominium
units) within entire structures.
[0009] The term "data" as used herein means any indicia, signals,
marks, symbols, domains, symbol sets, representations and any other
physical form or forms representing information, whether permanent
or temporary, whether visible, audible, acoustic, electric,
magnetic, electromagnetic or otherwise manifested.
[0010] The terms "coupled", "coupled to" and "coupled with" as used
herein each means a relationship between or among two or more
devices, apparatus, files, programs, media, components, networks,
systems, subsystems and/or means, constituting any one or more of
(a) a connection whether direct or through one or more other
devices, apparatus, files, programs, media, components, networks,
systems, subsystems or means, (b) a communications relationship
whether direct or through one or more other devices, apparatus,
files, programs, media, components, networks, systems, subsystems,
or means, or (c) a functional relationship in which the operation
of any one or more thereof depends, in whole or in part, on the
operation of any one or more others thereof.
[0011] The terms "communicate" and "communication" as used herein
include both conveying data from a source to a destination, and
delivering data to a communications medium, system or link to be
conveyed to a destination.
[0012] The term "processor" as used herein means one or more
processing devices, apparatus, programs, circuits, systems and/or
subsystems, whether implemented in hardware, software or both.
[0013] The term "database" as used herein means a single database
or multiple databases as implemented.
[0014] The term "network" as used herein includes both networks and
inter-networks of all kinds, including the Internet, and is not
limited to any particular network or inter-network.
[0015] In accordance with an aspect of the present invention, a
method is provided for estimating a reconstruction cost for a
designated area within a building. The method comprises providing
access to a database of reconstruction-pricing data comprising (a)
a plurality of price-index data indexed by corresponding geographic
location and representing reconstruction-pricing data for a
plurality of different building types and a plurality of different
building-area types within a building, (b) comparative
building-category data representing relative pricing levels for
reconstructing each of a plurality of different building
categories, and (c) comparative building-area data representing
relative pricing levels for reconstructing each of the plurality of
different building-area types within a building; providing
geographic-location data of a predetermined building; providing
building category-defining data for the predetermined building;
providing building area-type data for a designated area within the
building, the building area-type data being selected from the
plurality of different building-area types within a building;
obtaining relevant price-index data from the database for the
geographic location of the predetermined building based on the
geographic-location data; obtaining relevant comparative
building-category data from the database for the predetermined
building based on the building category-defining data for the
predetermined building; obtaining relevant comparative
building-area data from the database based on the building-area
type data for the designated area; and producing a
reconstruction-cost estimate for the designated area within the
building based on the relevant price-index data, the relevant
comparative building-category data and the relevant comparative
building-area data.
[0016] In accordance with another aspect of the present invention,
a system is provided for estimating a reconstruction cost for a
designated area within a building. The system comprises means for
providing access to a database of reconstruction-pricing data
comprising (a) a plurality of price-index data indexed by
corresponding geographic location and representing
reconstruction-pricing data for a plurality of different building
types and a plurality of different building-area types within a
building, (b) comparative building-category data representing
relative pricing levels for reconstructing each of a plurality of
different building categories, and (c) comparative building-area
data representing relative pricing levels for reconstructing each
of the plurality of different building-area types within a
building; means for providing geographic-location data of a
predetermined building; means for providing building
category-defining data for the predetermined building; means for
providing building area-type data for a designated area within the
building, the building area-type data being selected from the
plurality of different building-area types within a building; means
for obtaining relevant price-index data from the database for the
geographic location of the predetermined building based on the
geographic-location data; means for obtaining relevant comparative
building-category data from the database for the predetermined
building based on the building category-defining data for the
predetermined building; means for obtaining relevant comparative
building-area data from the database based on the building-area
type data for the designated area; and means for producing a
reconstruction-cost estimate for the designated area within the
building based on the relevant price-index data, the relevant
comparative building-category data and the relevant comparative
building-area data.
[0017] In accordance with a further aspect of the present
invention, a method is provided for estimating a reconstruction
cost for a predetermined building. The method comprises providing
access to a database of reconstruction cost data accessible by
geographic location and/or type of area within a building;
providing geographic location data indicating a geographic location
of a predetermined building; providing first building area-type
data indicating a type of a first area within the building and
second building area-type data indicating a type of a second area
within the building, the first and second building area-type data
being selected from a plurality of different predetermined
building-area types; obtaining first reconstruction cost data for
the first area within the building from the database, the first
reconstruction cost data corresponding to the geographic-location
data and the first building area-type data; obtaining second
reconstruction-cost data for the second area within the building
from the database, the second reconstruction-cost data
corresponding to the geographic-location data and the second
building area-type data; and producing a reconstruction-cost
estimate for the building based on the first and second
reconstruction-cost data.
[0018] In accordance with still further aspect of the present
invention, a system is provided for estimating a reconstruction
cost for a predetermined building. The system comprises means for
providing access to a database of reconstruction-cost data
accessible by geographic location and/or type of area within a
building; means for providing geographic-location data indicating a
geographic location of a predetermined building; means for
providing first building area-type data indicating a type of a
first area within the building and second building area-type data
indicating a type of a second area within the building, the first
and second building area-type data being selected from a plurality
of different predetermined building-area types; means for obtaining
first reconstruction-cost data for the first area within the
building from the database, the first reconstruction-cost data
corresponding to the geographic-location data and the first
building area-type data; means for obtaining second
reconstruction-cost data for the second area within the building
from the database, the second reconstruction-cost data
corresponding to the geographic-location data and the second
building area-type data; and means for producing a
reconstruction-cost estimate for the building based on the first
and second reconstruction-cost data.
[0019] In accordance with yet another aspect of the present
invention, a method is provided for estimating a reconstruction
cost for a predetermined area within a building. The method
comprises providing access to a database of full
reconstruction-pricing data based on builder-supplied full
reconstruction-price data, the full reconstruction-pricing data
being expressed as a plurality of per unit area pricing data
accessible according to geographic reconstruction location and/or
type of building area selected from a predetermined plurality of
building-area types within a building; providing
geographic-location data indicating a geographic location of a
predetermined building; providing building area-type data for a
designated area within the building, the building area-type data
being selected from the predetermined plurality of building-area
types; obtaining corresponding per-unit-area pricing data for the
designated area from the database, the corresponding per-unit-area
pricing data corresponding to the geographic-location data and the
building area-type data, and producing a reconstruction-cost
estimate for the designated area based on the corresponding
per-unit-area pricing data and a size value for the designated
area.
[0020] In accordance with still another aspect of the present
invention, a system is provided for estimating a reconstruction
cost for a predetermined area within a building. The system
comprises means for providing access to a database of full
reconstruction-pricing data based on builder-supplied full
reconstruction-price data, the full reconstruction-pricing data
being expressed as a plurality of per-unit-area pricing data
accessible according to geographic reconstruction location and type
of building area selected from a predetermined plurality of
building-area types within a building; means for providing
geographic-location data indicating a geographic location of a
predetermined building; means for providing building area-type data
for a designated area within the building, the building area-type
data selected from the predetermined plurality of building area
types; means for obtaining corresponding per-unit-area pricing data
for the designated area from the database, the corresponding
per-unit-area pricing data corresponding to the geographic-location
data and the building area-type data; and means for producing a
reconstruction-cost estimate for the designated area based on the
corresponding per-unit-area pricing data and a size value for the
designated area.
BRIEF DESCRIPTION OF THE DRAWINGS
[0021] FIG. 1A is a block diagram of a stand-alone system in
accordance with certain embodiments of the present invention;
[0022] FIG. 1B is a plan view of a residential building for use in
explaining an operation of the system of FIG. 1A.
[0023] FIG. 2 is a block diagram of a networked system in
accordance with certain embodiments of the present invention;
[0024] FIGS. 3A and 3B together provide a flow diagram of a main
module of a building reconstruction cost appraisal method in
accordance with certain embodiments of the present invention;
[0025] FIG. 4 is a flow diagram of a type factor routine for a
whole structure appraisal within the method of FIGS. 3A and 3B;
[0026] FIG. 5 is a flow diagram of a type factor routine for an
additions and alterations appraisal within the method of FIGS. 3A
and 3B;
[0027] FIG. 6 is a flow diagram of a total living area routine for
a whole structure appraisal within the method of FIGS. 3A and
3B;
[0028] FIGS. 7A and 7B together provide a flow diagram of a special
features routine for a whole structure appraisal within the routine
of FIG. 6;
[0029] FIG. 8 is a flow diagram of an adjusted chimney value
routine for a whole structure appraisal within the routine of FIGS.
7A and 7B;
[0030] FIGS. 9A, 9B and 9C together provide a flow diagram of an
interior special features routine used in both a whole structure
appraisal within the routine of FIGS. 7A and 7B and in a full
additions and alterations appraisal within the routine of FIGS. 12A
and 12B described below;
[0031] FIG. 10 is a flow diagram of a wall coverings routine within
the routine of FIGS. 9A, 9B and 9C;
[0032] FIG. 11 is a flow diagram of an adjusted fireplace value
routine within the routine of FIGS. 9A, 9B and 9C;
[0033] FIG. 12 is a flow diagram of a total living area routine for
an additions and alterations appraisal within the method of FIGS.
3A and 3B; and
[0034] FIG. 13 is a flow diagram of an additional structures
reconstruction cost estimating process.
DETAILED DESCRIPTION OF CERTAIN ADVANTAGEOUS EMBODIMENTS
[0035] FIG. 1A illustrates certain embodiments of the invention
which are implemented in a stand-alone system 20 having a processor
22 programmed or arranged to produce reconstruction cost estimates
for existing buildings based on information input by a user using
an input device 26 coupled with the processor 22 and reconstruction
cost data obtained by the processor 22 from a database 30. The
processor 22 communicates the produced reconstruction cost estimate
to a presentation device 34 for presentation to a user.
[0036] The operation of the embodiments of FIG. 1A will now be
illustrated with reference to FIG. 1B which provides a diagram of a
residential building 38 having a living area 40, an attached garage
44 and enclosed porch 48, each being treated as a separate
building-area type for purposes of producing the reconstruction
cost estimate for the building 38 using the embodiment of FIG. 1A.
The database 30 stores reconstruction-cost data for residential
buildings which is accessible by geographic location and
building-area type. In other embodiments, the database 30 is
replaced by or supplemented with one or more databases including
reconstruction-cost data for office buildings, industrial buildings
and/or institutional buildings, to enable the production of
reconstruction-cost estimates for buildings of those types.
[0037] For estimating a replacement cost of residential building 38
of FIG. 1B, the user inputs geographic-location data for the
building 38, such as ZIP code, postal code, municipality, state,
county, province, region, prefecture or the like, to the processor
22 by means of the input device 26. The user also inputs
building-area type data for each of the building-area types within
building 38, namely, the living area 40, the attached garage 44,
the enclosed porch 48 and an unfinished basement (not shown for
purposes of simplicity and clarity).
[0038] The database 30 stores per-unit-area pricing data indexed by
geographic location and building-area type. In certain embodiments,
per-unit-area pricing data is stored as a single value for a given
geographic location and building-area type. The processor 22
accesses the relevant pricing data from the database 30 using the
geographic location data and the building-area type data input by
means of the device 26. In certain other embodiments, per-unit-area
pricing data is stored as a price-index value for the relevant
geographic location and an area factor for the relevant
building-area type. The price-index value and the area factor are
accessed by the processor 22 from the database 30 using the input
geographic-location data and the building-area type data. In such
other embodiments the processor 22 produces the per-unit-area
pricing data by multiplying the retrieved price-index value by the
relevant building area-type data.
[0039] The per-unit-area pricing data, or else the price-index
value and area factor, depending on the embodiment, are compiled by
surveying builders who work in the relevant geographic locations,
and to a limited extent in certain embodiments, by resort to
independent appraisal firms to identify unusual pricing pockets
within certain geographic locations. The data thus obtained
represents full per-unit-area pricing from the builder to the
building owner, and thus is not dependent on assumptions such as a
presumed builder profit margin that is likely to vary from location
to location.
[0040] In certain survey techniques used to compile
reconstruction-cost data, builders are asked to provide full
reconstruction-price data based on building location and building
type (categorized by architectural style, quality and type of
construction, and building size and shape), as well as by type of
area within a building to be reconstructed. The surveyed builders
are categorized according to the types of buildings they construct.
The data thus obtained are compiled by geographic location,
building type and type of area within a building. After
compilation, the data are averaged to provide the data to be stored
in database 30 for conducting reconstruction cost estimates. In
certain embodiments the resulting data are stored without further
adjustment for use in producing reconstruction cost estimates (also
referred to herein as "appraisals"). In other embodiments the data
are adjusted to back out certain special features which might or
might not be present in a given building to be appraised. In either
case, whether so adjusted or unadjusted, such data is referred to
herein as either "full reconstruction-pricing data", "full
reconstruction pricing-index data", "full price index", or "full
per-unit-area pricing data", as appropriate.
[0041] In certain ones of the foregoing embodiments, the processed
survey results are stored in the database as, (a) full
pricing-index data for each geographic location (broken down, for
example, by ZIP or postal code), (b) comparative building-category
data (to adjust selected pricing-index data according to the type
of building to be reconstructed) and (c) comparative building-area
data (to adjust the pricing index for the areas within the building
being reconstructed). Accordingly, in these embodiments a category
or type factor is assigned to a given building based on its
architectural style, its quality, its shape, its size, and its type
of construction. This factor is derived by the processor 22 based
on data input by means of the input device 26 and is applied by the
processor 22 along with the building's geographic location, to
retrieve a corresponding type factor from the database 30. The
retrieved type factor is then used to adjust the full per-unit-area
pricing data based on the overall characteristics of the building
within the relevant geographic location.
[0042] After the processor 22 has produced or obtained the full
per-unit-area pricing data corresponding to each of the building
areas within the building 38, that is, the living area 40, the
attached garage 44, the enclosed porch 48 and the unfinished
basement, based on the building's geographic location and the
respective building-area types, it proceeds to produce an estimated
reconstruction cost for the building. In certain embodiments it
calculates a reconstruction cost for each of the building areas by
multiplying the total area size (for example, in square feet) by
its respective per-unit-area pricing data with or without certain
adjustments, and then obtains an overall reconstruction cost for
the building by totaling the calculated reconstruction costs for
all of the building's areas.
[0043] in some embodiments, the full per-unit-area pricing data are
not adjusted, but simply multiplied by the area's size to derive a
reconstruction cost for that area within the building. But in other
embodiments, certain adjustments are made based on additional
available data. For certain ballpark or rough estimate calculations
for residential buildings, adjustments are made to the full
per-unit-area pricing data for living areas based on limited
additional data such as roof type and type of exterior wall
covering. In certain embodiments, living areas include bedrooms,
bathrooms, kitchens, dining rooms, living rooms, family rooms, and
the like. For estimates based on exterior appraisal data that
includes additional information such as foundation type, number of
chimneys, window styles, and so on, still further adjustments are
made. For estimates based on full appraisal data, both exterior and
interior, still further adjustments are made. Examples of the
various foregoing methods are provided herein below.
[0044] The invention, as noted above is not limited to residential
building reconstruction cost estimates, but is applicable to all
types of buildings and spaces within buildings. In certain further
embodiments, additions and alterations-type estimates (also known
as "A&A" estimates) for reconstruction of cooperative and
condominium apartment space and the like, are also provided within
the scope of the invention. Examples of such embodiments are
likewise provided herein below.
[0045] FIG. 2 illustrates an embodiment of a networked system 50 in
accordance with certain embodiments of the invention. The system 50
includes processor 22 and database 30. The processor 22
communicates with a user system 62 via a network 58 to which the
processor 22 is coupled by means of a communication device 66.
[0046] As in the embodiment of FIG. 1A, the processor 22 receives
the data necessary for carrying out a reconstruction cost appraisal
communicated from a user. In this embodiment however, the user
communicates the necessary data through user system 62 coupled in a
client/server relationship with system 50 via the network 58. After
receipt of the necessary data in processor 22, it accesses the
relevant pricing data from database 30 and produces the requested
reconstruction cost estimate in the same manner as explained above
in connection with FIG. 1A. The processor then communicates the
produced estimate to the user system 62 via the network 58 for
presentation to the user.
[0047] FIGS. 3A and 3B together are a flowchart for a main module
of a process for selectively producing reconstruction cost
estimates for either a whole residential building or for interior
space on an A&A basis, in accordance with certain embodiments
of the present invention. The process enables the production of
estimates on either a ballpark basis or a full appraisal basis for
either a whole structure or an interior space, as well as on an
exterior appraisal basis for a whole structure.
[0048] The process commences with the input by the user of the
parameters necessary for producing the estimate, as indicated at 70
in FIG. 3A. This is most easily, but not necessarily, accomplished
with the help of an interactive visual presentation to the user
with fields to insert the required data and prompts to alert the
user to the fields that must be populated. In the particular
embodiment of FIGS. 3A and 3B, the data required for each type of
appraisal includes the state and ZIP code of the building being
estimated and a list of the building-area types within the building
and their respective sizes and ages. For a whole structure
appraisal, in addition architectural style, quality of
construction, building shape and type of construction data are
supplied. However, for an A&A appraisal, in addition the number
of rooms of the unit being appraised, the number of floors or
levels therein, the number of such rooms having paneling or wall
coverings, the proportion of the unit that has been touched by an
interior decorator or designer and the proportion of the unit
having moldings or trim, are employed.
[0049] After the required data has been input, the system assigns a
type factor (TF) to the building based on such data. The type
factor, determined in step 74 of FIG. 3A, serves to adjust a full
price index (PI) for the building's geographical location, obtained
by the processor 22 from the database 30, according to type-factor
data obtained from the database 30 corresponding to certain overall
characteristics of the building being appraised. More specifically,
the processor 22 multiplies the price index (PI) by the assigned
type-factor data (TF) in step 78 in order to obtain an adjusted
price index (API). Examples of routines for producing the type
factor (TF) are provided herein below in connection with FIGS. 4
and 5 for a whole structure appraisal and for an A&A appraisal,
respectively.
[0050] Once the adjusted price index (API) for the building being
appraised has been determined in step 78, an adjusted area value of
each area i within the building (AAV.sub.i), except for a living
area i=L, is produced in step 82 of FIG. 3A. The adjusted area
value (AAV.sub.i) provides a separate per-unit-area reconstruction
cost for each area i within the building being appraised. The
adjusted area value (AAV.sub.i=L) for the living area is produced
in a subsequent step 86.
[0051] Each of the adjusted area values (AAV.sub.i) is based in
part on an area factor for the corresponding area i (AF.sub.i)
obtained from the database 30 and corresponding to the type of area
within the building within its geographic location. For each area i
within the building, with the exception of the living area i=L, the
corresponding adjusted area value (AAV.sub.i) is obtained by
multiplying its area factor (AF.sub.i) by the adjusted price index
(API) and by an adjusted age multiplier (AAM) that is based on the
age of the building. For residential buildings, in certain
embodiments the adjusted age multiplier (AAM) increases with the
age of the building. In addition, for residential buildings that
have been renovated, in certain embodiments the adjusted age
multiplier (AAM) is reduced by a predetermined value. The values
assigned to the adjusted age multiplier (AAM) are based on
information supplied by builders. More specifically, when surveyed
the builders are asked to provide their per-unit-area
reconstruction pricing as it varies with the age of the building
and depending on whether or not it has undergone recent renovation.
Then the aggregated and grouped data are examined for variations
with age, in order to determine those points on the building-age
scale at which significant pricing changes are apparent. These
points are used to mark the boundaries or break points for a
quantized pricing scale. That is, all buildings that fall between
the same two boundaries or break points are assigned the same
adjusted age multiplier (AAM) representing the relative cost of
reconstruction for buildings within such boundaries or break
points.
[0052] In certain embodiments of the invention, the adjusted area
value for the living area (AAV.sub.i=L) is produced in a manner
differing from the procedure described above in connection with
step 82. In such embodiments, the manner in which the adjusted area
value for the living area (AAV.sub.i=L) is produced depends on the
type of building being appraised (for example, whole structure or
A&A) and the extent of the appraisal (for example, a ballpark
appraisal, exterior appraisal or full appraisal). Certain
embodiments of various routines for producing the adjusted area
value for such a living area that are useful for conducting whole
structure and A&A-type appraisals, as well as for conducting
ballpark, exterior and full appraisals are described below in
connection with FIGS. 6 and 12.
[0053] With reference again to FIGS. 3A and 3B, once the various
adjusted area values for each of the areas i have been determined
in the foregoing steps, the total reconstruction cost estimate for
the building under consideration (RC.sub.T) is produced by the
processor 22 in step 92 of FIG. 3B. The total reconstruction cost
estimate (RC.sub.T) is determined as the sum of the values obtained
by multiplying each of the adjusted area values (AAM.sub.i) by the
size of the corresponding area i (Sz.sub.i) for all of the areas
within the building i=1 to n. In the simplest case, the building
includes only one area, and the total reconstruction cost is
obtained simply by multiplying its adjusted area value by the size
of such area.
[0054] The flowchart of FIG. 4 illustrates a type-factor routine
useful in the routine 74 of FIG. 3A for producing a type-factor
index (TF.sub.IN) for accessing a corresponding type factor (TF)
from the database 30 in certain embodiments of a whole structure
appraisal for a residential building, both for ballpark and
exterior appraisals, and full appraisals.
[0055] In step 100 of the FIG. 4 routine, a size value (SV) is
produced by the processor 22 as a function of the size of the
building's living area (Sz.sub.L). In general, the larger the
building's living area, the more a builder will charge to
reconstruct the building on a square foot basis. As an example, in
certain embodiments residential buildings having a total living
area under a predetermined size are assigned the lowest size value
(SV). Buildings having progressively larger total living areas are
assigned progressively higher size values (SV), each representing a
progressively greater reconstruction cost on a per-unit-area basis.
Once again, appropriate size values (SV) are produced by surveying
builders to learn how much they would charge to reconstruct a
living area according to its size. The data thus obtained are
aggregated and grouped according to living area size. The
aggregated and grouped data are examined for variations in pricing,
in order to determine those points on the living area-size scale at
which significant pricing changes are apparent. These points are
used to mark the boundaries or break points for a quantized living
area size-value scale. That is, all buildings that fall between the
same two boundaries or break points are assigned the same living
area-size value in order to distinguish such buildings from those
falling between different boundaries or break points.
[0056] In step 104, a construction quality (CQ) is produced based
on the building's size value (SV) as well as numerical values
assigned to qualitative building characteristics input by the user,
namely, a designation of the building's architectural style, its
overall quality and its general shape. The assigned architectural
style value (AS.sub.T) assigns a weight to the building depending
on whether its architectural style is (a) A-Frame, (b) Adobe, (c)
American 4-Square, (d) Architecturally Unique, (e) Basic, (f)
Bi-level or (g) Brownstone. Both builders and architects are
surveyed to obtain reconstruction prices based on varying building
structure complexities and construction practices.
[0057] The aggregated reconstruction price data are examined on
scales of structural complexity and construction practices, to
detect where on the scales significant pricing changes are
apparent. These pricing change points are used to group various
architectural styles according to relative pricing and assign
weights to each group reflecting their relative cost
differences.
[0058] The value assigned to the building's overall quality, the
quality of premises (QP) value, is selected from a range of
integers selected according to the number of quality grades
provided in the system. For example, a value of 1 may be assigned
to a lowest quality level and a value n>1 assigned to the
highest quality level. Essentially, the quality assigned to a given
building depends on the craftsmanship and cost of the individual
items within the building that have a material impact on price.
Such items can include, for example, types of roof coverings,
flooring and wall coverings, quality of trim and moldings, types of
fixtures, and whatever else builders regard as materially affecting
the price of reconstruction. The separation of buildings into the
various quality levels are based on survey data obtained from
builders reflecting their views on quality as well as the relative
cost to purchase the different types of building materials and
fixtures incorporated in such items.
[0059] Lastly, a value PhSp is assigned to a physical shape of the
building, ranging from a lowest value assigned to structures having
a simple shape, such as a square-shaped building, through
progressively higher values assigned to more complex shapes, with a
uniquely-shaped building being assigned a highest value. Similarly
to the quality of premises value, the value PhSp is selected from a
range of integers selected according to the number of different
gradations to be assigned to this value according to building
shapes. The values to be assigned to each shape are based on the
results of builder surveys in which they are asked to provide
reconstruction prices for buildings having various shapes ranging
from the very simple to the complex and uniquely-shaped buildings.
Then the construction quality (CQ) is obtained as the sum of the
values SV, AS.sub.T, QP and PhSp, as indicated in step 104 of FIG.
4.
[0060] In a further step 108 the construction quality (CQ) is
scaled to a predefined range of values for assigning progressively
larger type factor indices (TF.sub.IN) to progressively larger
construction quality values (CQ). The scaling function again is
based on reconstruction pricing data from builders and architects.
Building types and their aggregated reconstruction costs (obtained
from the surveys), categorized by size, architectural style,
overall quality, general shape and construction practice (that is,
wood frame, metal frame, steel frame, framing used to support
veneer), are examined based on these categories or scales for
pricing change or break points. The pricing break points provide
the boundaries for separating the building types according to type
factor index (TF.sub.IN). However, the primary categorization is
formulated according to construction practices, with the remaining
categories serving to provide subsidiary grades within the primary
categorization. The scaled quality factor is designated a
construction model (CM). The building is also classified according
to its type of construction, with each type assigned to a
respective class in each of which fall construction types that are
comparably expensive to build on a per-unit-area basis. Again, such
classifications are based on the results of surveys in which
builders are asked how much they charge to reconstruct buildings
according to their type of construction. In certain embodiments
stick, log and A-frame construction types are grouped into a common
class, while brick and stone masonry construction types are grouped
into a different common class. Each class is assigned a unique
construction type value (CT.sub.p).
[0061] The type factor index (TP.sub.IN) is set equal to the sum of
the values CM and CT.sub.p for the building under consideration, as
indicated in step 112 of FIG. 4. The ranges of possible values for
CM and CT.sub.p are selected so that each combination of any given
value of CM and any given value of CT.sub.p will produce a unique
type-factor index (TF.sub.IN). In this manner, the database 30 can
separately store any desired value for each type factor (TF) in
each geographic location, and the desired value for each type
factor (TF) corresponding to the type-factor index (TF.sub.IN) can
accurately reflect the cost of construction for buildings of that
type within the corresponding geographic location.
[0062] The flowchart of FIG. 5 illustrates the routine 74 of FIG.
3A arranged to produce a type-factor index (TF.sub.IN) in certain
embodiments of an A&A appraisal for a residential building,
both for ballpark and full appraisals.
[0063] In a step 116 in FIG. 5, the user inputs data required for
the type-factor index (TF.sub.IN) determination and the processor
22 scales the input data for the purpose of carrying out subsequent
calculations. Such data includes the number of rooms in the unit,
which is scaled so that units having fewer than 3 rooms receive a
minimal room number value (NR), those having either 3 or 4 rooms
receive a larger room number value (NR) and those having 5 or more
rooms receive a highest room number value (NR). The input data also
includes the number of floors or levels in the unit, which is
scaled so that a unit having only 1 floor or level receives a
minimal value for the number of floors or levels (NF/L), while a
unit having 2 levels receives a higher value NF/L and a unit having
3 or more floors or levels receives a highest value NF/L.
[0064] The user also inputs the number of rooms in the unit having
paneling or fabric wall coverings, which is scaled to produce a
value NRP/F, so that units having only 1 such room receive a
minimal value for NRP/F, while those having 2 such rooms receive a
higher value for NRP/F and those having more than 2 such rooms
receive a highest value of NRP/F. In addition, the user inputs a
percentage of the unit touched by an interior decorator or
designer, which is scaled so that if less than the first percentage
is touched, a value % ID receives a minimal value, but if less than
a second higher percentage (but more than the first percentage) is
touched the value % ID receives a larger value and if a still
greater percentage is touched, the value % ID is highest. Lastly,
the user inputs a percentage of the unit having moldings and trim,
which is scaled to a value % M/T so that a minimal value is
assigned thereto for a unit having moldings and trim in less than a
first percentage of its areas, a larger value is assigned thereto
if the unit has moldings and trim in an amount higher than the
first percentage, but less than a second higher percentage of its
areas and a highest value is assigned thereto if the unit has
moldings and trim in more than the second, higher percentage of its
areas.
[0065] In a step 120, a size value for the A&A appraisal
(SV.sub.A&A) is produced by the processor 22 based on the total
size of the living area of the unit. The value SV.sub.A&A is
produced by scaling the total living area size in square feet, so
that a minimal value is assigned to a minimal size, and
progressively larger values are assigned to units having a larger
total living area to a maximum value SV.sub.A&A for units
having a size greater than a maximum threshold.
[0066] The manner and the ranges in which the building units are
categorized and assigned values according to number of rooms, total
living area size, number of floors or levels, and the number of
rooms having paneling or fabric wall coverings, as well as the
first and second percentages used to categorize the extent of the
unit touched by an interior decorator or designer and the extent of
the unit having moldings and trim, are determined by examining how
the aggregated reconstruction cost data supplied by the builders in
response to the surveys, vary according to such number of rooms,
number of floors or levels, and so on. Where the aggregated data
reveals points on the number of rooms scale, the number of floors
or levels scale, and so on, where significant changes in pricing
are apparent, these points are used to mark the boundaries or
thresholds for quantizing and categorizing a given unit according
to where it falls on each scale. For example, units that fall
within the same two percentage thresholds in terms of the
percentage of such units having moldings and trim, are assigned the
same value % M/T.
[0067] Thereafter, the processor 22 in step 124 produces a
construction quality value CQ by adding the values NR, NF/L, NRP/F,
% ID, % MT and SV.sub.A&A. In a step 128, the value CQ is
scaled to a construction model value CM ranging from a minimal
value of 1 corresponding to increasing values of CQ up to a maximum
value of 5 in integer steps. The scaling function is based on
reconstruction pricing data from builders and architects. Unit
types and their aggregated reconstruction costs (obtained from the
surveys), categorized by number of rooms, number of floors or
levels, number of rooms with paneling or fabric wall coverings,
extent of the unit touched by an interior decorator or designer and
extent of the unit having moldings or trim, are examined based on
these categories or scales for pricing change or break points. The
pricing break points provide the boundaries for separating the
building types according to construction model CM. In certain
embodiments, the value of CO is used directly along with the
geographic location data to access the type factor TF from the
database 30. In certain other embodiments, a construction factor CF
corresponding to the construction factor CT.sub.p of FIG. 4 for the
simplest construction types for whole structures is added to the
value CQ to produce TF.sub.IN. Then TF.sub.IN is used to access a
corresponding type factor from the whole structures database. In
this latter procedure, the value of API in step 78 of FIG. 3A is
multiplied by a factor less than 1.0 in order to adjust it for use
in an A&A appraisal. The adjustment factor is determined by
subtracting from the whole structure pricing those aspects which
are not included in an A&A appraisal, such as the foundation,
roof, and exterior features.
[0068] As noted above, in certain embodiments the procedure for
determining the adjusted area value for the living area, both for a
whole structure appraisal and an A&A appraisal varies depending
on whether the appraisal is a ballpark, exterior or full appraisal
of a whole structure or else a ballpark or full A&A appraisal.
These various procedures are now described separately.
[0069] With reference to FIG. 6, a main procedure for determining
the adjusted area value for the living area AAV.sub.i=L in a whole
structure appraisal is illustrated. While the main procedure of
FIG. 6 is applicable for ballpark, exterior and full appraisals of
whole structures, these are now separately described.
[0070] Where the user has selected a ballpark appraisal for a whole
structure of a building, the procedure of FIG. 6 branches in a step
136 to a step 140 in which a living area base value (LAB) is
produced by the processor 22 based on the user's inputs and data
from the database 30. For this purpose the processor 22 accesses
the area factor (AF.sub.i=L) for the living area in that geographic
location from the database 30, as well as the values of the
adjusted price index (API) and the adjusted age multiplier (AAM),
previously determined in the procedure described above in
connection with FIG. 3A, and the architectural style factor
(AS.sub.T) previously determined in the routine described in
connection with FIG. 4. The living area base value is then obtained
by multiplying the values AF.sub.i=L, API, AAM and AS.sub.T.
[0071] In the ballpark appraisal, certain limited special features
of the building are also used in determining the appraised
reconstruction cost in certain embodiments, the area factors
(AF.sub.i=L) are selected to exclude pricing for special features,
in anticipation that these will be later accounted for in the
appraisal procedure. A special features routine for a whole
structure appraisal is carried out as indicated in step 144 of FIG.
6, and illustrated in greater detail in FIGS. 7A and 7B.
[0072] In the routine of FIG. 7A, where the user has selected a
ballpark appraisal the procedure branches at a step 148 to a
further step 152 where certain special feature values are
determined and totaled to produce a special features total value
(SUM SpF). To obtain a special features value for a primary
exterior type input by the user, the processor 22 accesses a value
therefor (PriEx) from the database 30 corresponding to the selected
primary exterior type, geographic region (for example, northeast
United States, mid-Atlantic US, southeast US, mid-west US,
southwest US and northwest US) and the quality of premises value
(QP) previously determined in the procedure of FIG. 4. The
processor 22 also obtains a value PriRfC from the database 30 based
on a user input of data indicating a type of primary roof covering
of the building and geographic region as well as the quality of
premises value (QP). The processor 22 then adds the values PriEx
and PriRfC to obtain the value SUM SpF.
[0073] The values to be assigned to PriEx and PriRfC according to
the quality of premises value (QP) and the type of exterior or roof
covering, are determined through a methodology that is used
throughout in the embodiments discussed in connection with FIGS. 7A
and 7B to 12A and 12B in determining the various special features
values discussed herein below.
[0074] Builders are surveyed to learn what they would charge to
fully reconstruct buildings having characteristics, including
special features, which typify average buildings within each of the
quality classes designated by the various quality of premises
values (QP). Also, the builders are surveyed to determine what they
would charge for labor and materials to replace the typical
exterior wall covering and typical roof covering (as well as
typical special features of all other types described herein below)
in a typical building within an average one of the quality classes.
The various answers are aggregated according to quality
classification and geographic region to obtain an average overall
reconstruction cost for a typical building within each
classification and region. In addition, the replacement costs of
each of the various special features for the typical building
within the average quality class are aggregated to obtain a base
replacement cost for each of the special features in an average
quality building in each region.
[0075] Since the cost to replace the typical special feature in the
average quality building is included in the cost of reconstructing
such a building, it is assigned a special features value of
zero.
[0076] The cost to replace each special feature also depends on the
type of material used, if it differs from the material typically
used in constructing such special feature within the average
quality classification. Also, the use of materials different from
those typically used to construct a given special feature often
entails a differing level of craftsmanship to install it, and
possibly variations in related aspects of the building. For
example, if a building has a slate roof covering, it is likely that
a higher cost of materials will be incurred than for a standard
asphalt composition roof covering and the level of craftsmanship
required to reconstruct such slate roof covering would be
relatively higher. Also, the greater size and/or number of the
beams supporting the roof having the slate roof covering than those
required to support an asphalt composition roof covering, would
result in a higher reconstruction cost for this related aspect of
the building.
[0077] Accordingly, the special features are also assigned
replacement cost values based on the kinds of materials used. In
order to derive such special features values for special features
constructed of materials which are not typical within the average
building classification, the base special features value for each
such special feature is extrapolated based on relative costs of
materials, labor and/or ancillary building features. For example,
if the base special features value on a per-square-foot cost basis
to replace a standard asphalt composition roof covering within the
average classification is $5, and a cost to replace a
standard-grade slate roof covering within such average
classification (based on materials, labor and ancillary special
features costs) is $7 per square foot, a special features value of
$2 per square foot can be assigned to such a standard-grade state
roof covering for a building within the average classification
(since the standard roof covering is assigned a zero special
features value).
[0078] The costs of such materials, labor and related building
materials are obtained from various sources. Information concerning
the types of materials used in a building of a given quality to
construct special features, as well as the level of craftsmanship
and associated labor rates are obtained from builder surveys, as
are data on the impact of using differing material qualities and
characteristics on the cost to replace ancillary building features.
Material cost data are obtained from suppliers. The reconstruction
costs thus produced are also adjusted from time to time based on
appropriate government economic data.
[0079] In addition, in order to extrapolate the cost to replace
each special feature for a building within a quality classification
differing from the average classification, a quality classification
factor is derived for each differing classification in each
geographic region equal to the ratio of (a) the overall
reconstruction cost of a typical building within such differing
classification, to (b) the overall reconstruction cost of a typical
building within the average quality classification. The replacement
costs for each special feature for each of the various materials
used is multiplied by each quality classification factor to obtain
replacement costs for all special features embodying each of the
various available materials in each of the building quality
classifications and region. Lastly, the base replacement cost is
subtracted from each of the various replacement costs for each
corresponding special feature, to obtain each special features
value to be stored in an appropriate table for the corresponding
special feature in the database 30.
[0080] With reference again to FIG. 6, in a step 156 the processor
22 produces the value AAV.sub.i=L as the total of the living area
base (LAB), the sum of special features (SUM SpF) and a report
adjustment value (RA) which serves to account for those special
features not included in the ballpark appraisal. The value RA in
certain embodiments is a fixed value for buildings of all quality
of premises values (QP). In other embodiments, the value RA varies
with the value QP.
[0081] The RA value or values for a ballpark appraisal are produced
based on the estimated total cost to reconstruct a typical building
of average quality having the least expensive special features
commonly found in such a building, less the cost to replace the
roof covering and exterior features as described above. (The
various special features that are taken into consideration in the
various types of appraisals are identified herein below in
connection with an explanation of a whole structure full
appraisal.) The estimated cost to reconstruct such a building is
obtained as discussed herein above in connection with the
methodology for obtaining special features values.
[0082] The average replacement costs for all such special features
found in such a typical building are summed, less the replacement
costs for the primary exterior and primary roof covering special
features that are separately accounted for in the ballpark
appraisal. The ratio of the sum of the replacement costs of such
special features to the estimated total cost to reconstruct such
typical building, is multiplied by the per-unit-area cost to
reconstruct such typical building in order to obtain a basic report
adjustment value (RA) for such typical building within the average
quality classification.
[0083] In a whole structure ballpark appraisal, the types, grades
and characteristics of the special features included in the
building being appraised (except for the primary roof covering and
the primary exterior) are presumed based on the average types,
grades and characteristics of special features included in
buildings having the same quality of premises value (QP) as the
building being appraised, determined in accordance with builder
surveys. The sum of the average replacement costs for the special
features presumed to be present in the building being appraised in
its respective quality classification as indicated by its value QP
(except for primary roof coverings and primary exterior) is
inserted as the numerator of an adjustment ratio whose denominator
is the sum of the average replacement costs for the special
features found in a typical building in the average quality
classification (excluding primary exterior and roof covering
values), as described herein above. The basic report adjustment
value (RA) is multiplied by the adjustment ratio to produce the
report adjustment value (RA) for the ballpark whole structure
appraisal of such building in its respective quality
classification.
[0084] In certain embodiments the report adjustment values (RA) for
ballpark whole structure appraisals are determined before the
system is put to use in making appraisals and stored in database 30
indexed by quality of premises value (QP).
[0085] Once the value AAV.sub.i=L has been determined in the
routine of FIG. 6, processing returns to step 92 of FIG. 3B for
producing the whole structure ballpark appraisal estimate RC.sub.T
for the building under consideration. As described above, the value
RC.sub.T is produced by multiplying each adjusted area value
AAV.sub.i by the size of its corresponding area within the building
Sz.sub.i, and then adding the products of all such
multiplications.
[0086] A procedure for producing an exterior appraisal for a whole
structure building is now described with reference to FIGS. 3A, 3B,
4, 6, 7A, 7B and 8. Turning first to FIG. 3A, the user inputs
required parameters for the exterior appraisal in step 70. In
addition to the data required for the ballpark appraisal described
above, the exterior appraisal requires further data as described
below.
[0087] The type factor routine in step 74 of FIG. 3A and FIG. 4 is
carried out in the same fashion as in the ballpark appraisal, as
are steps 78 and 82 of FIG. 3A. However, as will be appreciated
from FIG. 6, the procedure for determining AAV.sub.i=L for the
exterior whole structure appraisal differs from that of the
ballpark whole structure appraisal. As shown in FIG. 6, if an
exterior whole structure appraisal is being carried out, the
procedure branches from step 136 to a step 160 in which a value
LAB1 is produced in the same manner and using the same data as used
in step 140 described above.
[0088] In a step 162, the processor 22 produces a living area base
(LAB) for the exterior whole structure appraisal by multiplying the
value LAB1 by two further values SlopeM and DescLoc. The value
SlopeM is derived from a user input characterizing the slope of the
building site from among a range of characterizations from "flat"
through "very steep". A minimal value for SlopeM is assigned by the
processor 22 to a building site deemed "flat" by the user, and
progressively larger values are assigned to characterizations of
progressively steeper sites up to a maximum value assigned to a
site deemed "very steep". The value DescLoc is derived from a user
input characterizing the type of locale in which the building is
situated, for example, "beachfront", "coastal", "large city",
"medium-sized city" and "small city".
[0089] The values for Slope M and DescLoc are determined from the
aggregate results of builder surveys. That is, to determine the
values to be assigned to SlopeM, builders are asked to provide
costs of full replacement for comparable buildings situated on (a)
a flat lot, (b) a slightly sloped lot, (c) a moderately steeply
sloped lot, (d) one that is steep, and (e) one that is very steep.
To determine the values to be assigned to DescLoc, builders are
asked to provide costs of full replacement for comparable buildings
located (a) on beachfront property, (b) in a coastal area, (c) in a
large city, (d) in a medium-sized city, and (e) in a small
city.
[0090] At this point the value SUM SpF is produced for the exterior
whole structure appraisal in the branch from step 148 of FIG. 7A
through steps 166, 170, 174, 178, 180 and 182 thereof and step 186
of FIG. 7B. In step 166 an external wall covering value (EWC) is
produced based on user inputs for both the primary exterior wall
covering and a secondary exterior wall covering. Based on these
inputs, the geographic region and the quality of premises value
(QP) determined in the procedure of FIG. 4, the processor 22
accesses respective values therefor, PriEx and SecEx, from the
database 30. The value SecEx is obtained from the same data from
which PriEx is obtained, based on the type of secondary exterior
wall covering, the geographic region and the value QP for the
building being appraised. As indicated in step 166, the processor
22 produces the value EWC by adding the value PriEx multiplied by a
percentage (x) to the value SecEx multiplied by (100%-x). The value
of x is determined as an average percentage extent of a building's
exterior wall covered by a primary exterior material and, thus,
ranges from more than 50% up to 100%. Such average percentage
extent is determined based on builder surveys, direct observation
of typical buildings and Internet research.
[0091] In step 170 a roof covering value (RfCovV) is produced based
on user inputs for both the primary roof covering and a secondary
roof covering. Based on these inputs, the geographic region and the
quality of premises value (QP) determined in the procedure of FIG.
4, the processor 22 accesses respective values therefor, PriRfC and
SecRfC, from the database 30. The value SecRfC is obtained from the
same data from which PriRfC is obtained, based on the type of
secondary roof covering, the geographic region and the value QP for
the building being appraised. As indicated in step 170, the
processor 22 produces the value RfCovV by adding the value PriRfC
multiplied by a percentage (y) to the value SecRfc multiplied by a
percentage (100%-y). The value of y is determined as an average
percentage extent of a building's roof covered by a primary roof
covering and, thus, ranges from more than 50% up to 100%. Such
average percentage extent is determined based on builder surveys,
direct observation of typical buildings and Internet research.
[0092] In step 174 the roof covering value (RfCovV) is adjusted by
a factor (RfPch) assigned to the pitch of the building's roof, to
produce an adjusted roof covering value (ARfCovV). Based on the
user's characterization of the roofs pitch, the factor (RfPch) is
selected from a table of values ranging from a discounted value for
a flat roof through intermediate values assigned to progressively
steeper roofs to a maximum value for a roof indicated as "steep" by
the user. The value RfPch is determined beforehand and stored in
database 30, and is produced based on how the surface area to be
covered varies with the pitch of the roof as it varies from an
average roof pitch value. The average roof pitch value is
determined from builder surveys, direct observation of typical
buildings and Internet research.
[0093] In an exterior whole structure appraisal according to
certain embodiments of the invention, the procedure of FIGS. 7A and
7B branches from the step 174 via steps 178, 180 and 182 to a final
step 186 in which SUM SpF is produced. As indicated in step 186 SUM
SpF is produced as the sum of the values EWC and ARfCovV, along
with further values assigned to a foundation type of the building
(FTp), a window style value for the building (WinStyle) and an
adjusted chimney value (AChiVal) assigned to the building. Since
the exterior appraisal does not take interior features into
account, a value provided for the sum of interior special features
in a full appraisal (IntFea) is set to zero in step 180 when an
exterior appraisal is carried out.
[0094] AChiVal is determined by means of an AChiVal routine of step
182, which is illustrated in detail in FIG. 8. The AChiVal routine
provides an adjustment to the adjusted area value for the living
area (AAV.sub.i=L) based on data input by the user indicating the
number of chimneys in the building (#Chi), the geographic region as
well as the quality of premises value (QP) determined as described
above in connection with FIG. 4. In a step 190 it is determined
whether the building has at least 2 chimneys. If not, AChiVal is
assigned a value of zero in step 194 and the AChiVal routine is
completed.
[0095] If however, the building has 2 or more chimneys the routine
continues in a step 198 to determine a quality factor
(QualF.sub.Chi) for the building's chimneys based on the QP value.
In certain embodiments, for residential buildings QualF.sub.Chi
varies from a minimum value for a QP value of 1 up to a maximum
value for a QP value of 6. The value QualF.sub.Chi is determined by
aggregating the results of surveys in which builders are asked to
provide full replacement costs for a chimney for buildings falling
within each of the six classes indicated by the QP value. The
values of QualF.sub.Chi are stored in a lookup table in database 30
indexed by the geographic region and the QP value. In a step 202
the processor 22 accesses the appropriate value QualF.sub.Chi based
on the building's QP value and region from the table in database
30, and produces a chimney value (ChiVal) by multiplying the
quality factor (QualF.sub.Chi) by the number of chimneys (#Chi)
less 1. In a step 206, the processor 22 produces the value AChiVal
by dividing the chimney value (ChiVal) by the size of the living
area (Sz.sub.i=L).
[0096] With reference again to step 186 of FIG. 7B the value for
the foundation type (FTp) is obtained based on the quality of
premises value (QP) and the geographic region by reference to a
look-up table of the database 30. The foundation type values (FTp)
are produced for storage in the lookup table based on the results
of builder surveys. That is, builders are surveyed to obtain full
reconstruction pricing estimates by geographic region for the
foundation of a typical building having an average QP value and a
foundation type typical of such buildings. They are also surveyed
to determine the foundation types typical of buildings falling into
the other QP categories and labor costs involved in constructing
such foundation types. Costs of materials for each of the
foundation types are obtained from suppliers. Based on the relative
costs of materials and labor, relative pricing values are obtained
for each quality of construction value and used to adjust the full
foundation reconstruction cost for the foundation of a building of
average construction quality to obtain FTp for each value QP.
[0097] Likewise, the value for window style (WinStyle) is obtained
based on QP by reference to a further look-up table of the database
30. The window style values (WinStyle) are obtained based on
builder surveys and the costs of the types of windows installed.
That is, builders are surveyed to obtain information identifying
the window styles usually included in buildings typical of each
quality classification and region, and costs of installing each
different style. The costs of the windows themselves are obtained
from suppliers.
[0098] The sum of special features value (SUM SpF) is then obtained
in step 186, as indicated above by summing the values for external
wall coverings (EWC), adjusted roof covering value (ARfCovV),
foundation type (FTp), window style (WinStyle) and adjusted chimney
value (AChiVal), bearing in mind that the value of SUM IntFea is
set to zero in an exterior appraisal.
[0099] Returning to FIG. 6, the adjusted area value for the living
area (AAV.sub.i=L) is next obtained by summing the living area base
(LAB), the sum of the special features (SUM SpF) and an report
adjustment value (RA). The report adjustment value (RA) is selected
to account for the limited number of special features included in
the exterior appraisal in the manner discussed herein above in
connection with the description of the whole structure ballpark
appraisal. However, the sum of the special features explicitly
included in the exterior appraisal are excluded in obtaining the
basic RA value, the comparison value and the sum of the special
features for the quality classification of the building being
appraised.
[0100] Lastly, as in the ballpark whole structure appraisal, the
exterior whole structure appraisal is completed in step 92 of FIG.
3B in which the total reconstruction cost estimate (RC.sub.T)
obtained as the sum of the products resulting from the
multiplication of each adjusted area value for each building area i
(AAV.sub.i) by its respective size (Sz.sub.i).
[0101] A procedure for producing a full appraisal for a whole
structure building is now described, again with reference to FIGS.
3A, 3B, 7A, 7B and 8, as well as 9A, 9B, 9C, 10 and 11. Referring
first to FIG. 3A, the user inputs required parameters for the full
appraisal in step 70. In addition to the data required for the
exterior whole structure appraisal described above, the full whole
structure appraisal requires further data as described below.
[0102] The type-factor routine for the full whole structure
appraisal is illustrated in step 74 of FIG. 3A and in detail in
FIG. 4, and is carried out in the same fashion as in the exterior
appraisal, as are steps 78 and 82 of FIG. 3A. In addition, the
overall procedure for determining AAV.sub.i=L for the full whole
structure appraisal as illustrated in FIG. 6 is the same as that
for the exterior whole structure appraisal.
[0103] However, the sum of special features procedure (SUM SpF) of
step 144 of FIG. 6, as illustrated in detail in FIGS. 7A and 7B,
also includes interior special features, as explained below. That
is, the routine of FIGS. 7A and 7B carries out steps 148, 166, 170,
174, 182 and 186 in the same fashion for the full appraisal as for
the exterior appraisal, but also carries out a routine for
obtaining a sum of interior special features (SUM IntFea) indicated
at 210 of FIG. 7A.
[0104] The sum of interior special features routine (SUM IntFea) is
illustrated in detail in FIGS. 9A, 9B and 9C. For a full whole
structure appraisal, in a step 214 the SUM IntFea routine obtains a
value for floor coverings (FlCov) based on per-unit-area values of
primary and secondary floor coverings (PriFlCov and SecFlCov). The
values PriFlCov and SecFlCov are retrieved from a table of values
in database 30 indexed according to type of floor covering,
geographic region and quality of premises value (QP). The table is
created in accordance with the special features methodology
discussed above in connection with the exterior wall covering and
roof covering special features. The values PriFlCov and SecFlCov
are weighted by a factor "a" representing the proportion of the
building having the primary floor covering. The value of "a" is
determined as an average percentage extent of a building's floor
covered by a primary floor covering and, thus, ranges from more
than 50% up to 100%. Such average percentage extent is determined
based on builder surveys, direct observation of typical buildings
and Internet research. The weighted values PriFlCov and SecFlCov
are then added to produce the floor covering value (FlCov).
[0105] In a step 218, a value for interior wall construction
(IntWConst) is obtained based on construction types, such as double
sheetrock, masonry and plaster and lath. Based on the value QP, the
geographic region and the construction type, a value is obtained
from a look-up table stored in the database 30 for the primary
interior wall construction type (PriIWConst) and for the secondary
interior wall construction type (SecIWConst). The table is created
in accordance with the special features methodology described
herein above. The value IntWConst is then obtained by adding the
values PriIWConst and SecIWConst after they have been weighted by a
value "b" representing the proportion of the interior walls having
the primary interior wall construction type. The value of "b" is
determined as an average percentage extent of a building's interior
walls having a primary interior wall construction type and, thus,
ranges from more than 50% up to 100%. Such average percentage
extent is determined based on builder surveys, direct observations
of typical buildings and Internet research.
[0106] In a step 222, a value (WlCov) is produced for the types of
wall coverings present in the building pursuant to a WlCov routine
illustrated in detail in FIG. 10. In a step 226 of FIG. 10, an
intermediate value for the primary and secondary wall coverings is
obtained, based on a value for a primary wall covering (PriWVlCov)
and a value for a secondary wall covering (SecWlCov). The values
PriWlCov and SecWlCov are obtained from a table of values in
database 30 indexed by type of wall covering, geographic region and
quality of premises (QP). The table of values is created in
accordance with the special features methodology described herein
above. Once these values have been obtained, the value WlCov1 is
produced by adding the values PriWlCov and SecWlCov after they have
been weighted by a value "c" representing the proportion of the
interior walls having the primary wall covering type. The value of
"c" is determined as an average percentage extent of a building's
interior walls having a primary wall covering and, thus, ranges
from more than 50% up to 100%. Such average percentage extent is
determined based on builder surveys, direct observations of typical
buildings and Internet research.
[0107] In a step 230 an adjusted wall height value (AdjWlHt) is
obtained by subtracting 8 feet from the average wall height of the
interior walls (AvgWlHt), which is a value input by the user. In a
step 234 the processor 22 produces a wall height adjustment value
(WlHtAdj) by accessing a value corresponding to the quality of
premises value (QP) from a table stored in the database 30. Once
again, the table is created in accordance with the special features
methodology described herein above. Then the processor 22 produces
a wall height factor (WlHtFac) in a step 238 which is used to
adjust the intermediate wall covering value (WlCov1) based on the
average height of the interior walls over 8 feet. The wall height
factor (WlHtFac) is produced by the processor 22 by dividing the
adjusted wall height (AdjWlHt) by the wall height adjustment value
(WlHtAdj), and then adding this ratio to 1, as indicated in step
238. Lastly, the wall covering value (WlCov) is produced in a step
240 by multiplying the intermediate wall covering value (WlCov1) by
the wall height factor (WlHtFac).
[0108] Returning to FIG. 9A, in a step 244 the processor 22
accesses user inputs for the following interior feature types and
values: window styles, kitchen cabinetry, kitchen countertops,
kitchen backsplashes, number of full bathrooms, number of half
bathrooms, bathroom floor type, bathroom countertops, bathroom
vanities, bathroom plumbing fixtures, bathroom tubs and showers,
wall trim, door types, door hardware, number of rooms with
cabinetry, lighting and fireplace mantels. For each of these
feature types and values, the processor 22 accesses a value from a
corresponding table in the database 30 based on the quality of
premises value (QP) and the geographic region. These tables are
created in accordance with the special features methodology
described herein above. These values are then totaled to produce a
value AdIntVal.
[0109] It is noted here that the procedure of FIGS. 9A, 9B and 9C
is employed both in a full whole structure appraisal and in a full
A&A appraisal, described herein below. In performing a full
whole structure appraisal, the processor 22 branches from step 244
to a step 248 as indicated at 252 in FIG. 9B, to carry out a whole
structure adjusted fireplace value (AFireVal) routine. The whole
structure AFireVal routine is illustrated in FIG. 11.
[0110] In step 256 of FIG. 11, the total number of chimneys in the
building (#Chi) is subtracted from the total number of fireplaces
therein (#Fire), and the result is examined to determine if it is
less than 1. Since in a whole structure appraisal the cost of one
fireplace is included in the already-determined value for each
chimney as obtained in the routine of FIG. 8 described above, it is
necessary to take this into account in the whole structure AFireVal
routine. Accordingly, if (#Fire-#Chi) is less than 1, the value
AFireVal is assigned a value of zero in a step 262.
[0111] It, however, the building includes more fireplaces than
chimneys (for example, multiple fireplaces sharing a chimney), then
the procedure continues in a step 266 to determine a quality factor
for fireplaces QualF.sub.Fire obtained by the processor 22 from a
respective look-up table in database 30 indexed to the construction
quality value (CQ) and geographic region. This table is created in
accordance with the special features methodology described herein
above. Then a fireplace value FireVal is produced by multiplying
the value (#Fire-#Chi) by QualF.sub.Fire in a step 270. Lastly, the
processor 22 produces the value AFireVal in a step 274 by dividing
the value FireVal by the size of the living area Sz.sub.i=L in
order to derive a per-unit-area value for the building's
fireplaces.
[0112] Referring again to FIG. 9B, in a step 278 an HVACVal routine
is carried out in those cases where the user has indicated that the
building is provided with a central air conditioning system. In
this routine an HVAC value is obtained by the processor 22 from a
look-up table in database 30 indexed according to the QP value and
geographic region. The processor 22 also takes a user input for the
number of zones (#Zones) and obtains a corresponding value (#ZVal)
from a further look-up table in database 30. These tables are
created in accordance with the special features methodology
described herein above. Lastly, the processor 22 obtains a
per-unit-area adjusted HVAC value (AHVACVal) by dividing the sum of
the HVAC value and #Zval by the size of the living area
Sz.sub.i=L.
[0113] In a step 282 of FIG. 9C the processor 22 takes a user input
for miscellaneous items, which may include items such as bidets,
ceiling fans, chandeliers, and so on. Values for such items are
obtained from a look-up table in database 30 accessed therefrom by
processor 22 based on the type of item, the geographic region and
the quality of premises value (QP). The look-up table is created in
accordance with the special features methodology described herein
above. These values are totaled to produce a total of miscellaneous
values (MiscVal).
[0114] Unique items present in the building are accounted for in
steps 286 and 290. Such items could include, for example, a
hand-painted mural valued at $25,000 and mosaic tiles in the
building's foyer valued at $15,000. The values of all such unique
items, each represented as Uniltm.sub.i are summed to produce a
value TotUniltm in step 286. Then the value TotUniltm is divided by
the size of the living area Sz.sub.i=L in step 290 to produce an
adjusted total value for unique items ATotUniltm.
[0115] At a last step 296 in the SUM IntFea routine, the value SUM
IntFea is obtained by totaling the values FlCov (obtained in step
214), IntWConst (step 218), WlCov (step 222), AdIntVal (step 244),
AFireVal (step 248), HVACVal (step 278), MiscVal (step 282) and
ATotUniltm (step 290).
[0116] Upon completion of the SUM IntFea routine of FIGS. 9A, 9B
and 9C, processing returns to the SUM SpF routine of FIGS. 7A and
7B at a step 300. Since a full appraisal is being conducted, there
is no need to add a report adjustment value (RA) to account for
omitted items. Accordingly, in step 300, the value RA is assigned a
value of zero.
[0117] As noted above, the steps 182 and 186 of the SUM SpF routine
are carried out in the same fashion for a full whole structure
appraisal as for an exterior whole structure appraisal, except that
the value SUM IntFea is likely to be non-zero in the full
appraisal. Once SUM SpF has been determined in step 186 of FIG. 7B,
processing returns to step 156 of FIG. 6 to obtain the value
AAV.sub.i=L as the total of LAB, SUM SpF and RA (wherein RA=0).
Thereupon, the process of determining the total reconstruction cost
estimate for the building is completed in step 92 of FIG. 3B in the
same manner as described above for the ballpark and exterior whole
building appraisals.
[0118] As explained above, A&A reconstruction cost appraisals
in accordance with the present invention are intended to appraise
the reconstruction cost of buildings such as cooperative units and
condominium properties, and thus an "exterior" appraisal is not
conducted for such buildings. Set forth below are descriptions of
certain embodiments of the present invention for appraising A&A
reconstruction costs on a "ballpark" basis which does not take
special features into account, as well as on a "full" basis which
do take such special features into account.
[0119] In a ballpark A&A appraisal in accordance with certain
embodiments of the present invention, which may be implemented in
the system of FIG. 1A, the system of FIG. 1B or in another kind of
system arrangement, the procedure is conducted in the same general
manner as illustrated in FIGS. 3A and 3B. In addition a type factor
routine useful in such embodiments has been described above in
connection with FIG. 5.
[0120] Further differences between the whole structure appraisals
described above and the ballpark and full A&A appraisals will
now be described in connection with a version of the Produce
AAV.sub.i=L routine for an A&A appraisal illustrated in FIGS.
12A and 12B. In a step 304 of FIG. 12A, an intermediate living area
base value (LAB.sub.INT) is produced based on the user's inputs and
data from the database 30. For this purpose the processor 22
accesses the area factor (AF.sub.i=L) for the living area in that
geographic location from the database 30, as well as the values of
the adjusted price index (API) and the adjusted age multiplier
(AAM), previously determined in the procedure described above in
connection with FIG. 3A. In certain embodiments, the value API is
estimated simply as one-half of the API for a corresponding whole
structure appraisal. In certain other embodiments, API values both
for whole structure appraisals and A&A appraisals are stored
separately in database 30.
[0121] Also in step 304, a further value is obtained for the type
of building unit (UniTp), based on a user input characterizing the
building type and obtained from a table of type values stored in
database 30. In certain embodiments of a residential appraisal
method, such types include cooperative and condominium apartments,
end unit, interior and stand-alone townhouses and brownstones. In
addition, a location multiplier value (LocM) is produced to take
account of reconstruction cost variations from one type of location
to another. In certain embodiments of a residential appraisal
method, these include a location in a condominium or townhouse
community, a small city location, a medium-sized city location, a
large city location and a resort location. The tables used for
producing the type of building unit value and the location
multiplier value, are created based on reconstruction cost data
obtained from builder surveys and from independent appraisal firms.
The aggregated reconstruction cost data are examined on scales of
unit types and types of locations, to detect where on these scales
significant pricing changes are apparent. These pricing change
points are used to formulate various unit type and type of location
categories and to assign appropriate values to each group
reflecting their relative reconstruction cost differences for the
tables of values UniTp and LocM. The intermediate living area base
value (LAB.sub.INT) is then obtained by multiplying the values
AF.sub.i=L, API, AAM, UniTp and LocM.
[0122] In a step 308, the ability to produce a coverage extent
factor (CovExt) is afforded to assist in producing a reconstruction
cost estimate for a reconstruction cost insurance policy with
certain exceptions. For this purpose, the user is presented with a
display of items for which coverage typically is optional and is
prompted to select whether each item is covered by the policy
(input "Yes") or is not covered (input "No"). A display of the type
employed in certain embodiments of a residential reconstruction
cost appraisal method is illustrated in Table 1 below. As will be
seen with reference to Table 1, for each excluded item a
predetermined reduction amount is subtracted from 1.00 in order to
obtain the CovExt factor. TABLE-US-00001 TABLE 1 Reduction Y/N
Coverage Extent 0 Yes appliances -d 0 Yes bathrooms -e 0 Yes
lighting -f 0 Yes exterior doors -g 0 Yes exterior windows -h -j No
fireplace mantels -j 0 Yes floor coverings -k 0 Yes heating and
cooling -l 0 Yes interior partitions -m -n No kitchen cabs and
counters -n 0 Yes wall coverings -o l - j - n CovExt
[0123] The values "d" to "h" and "j" to "o" are positive values
between zero and 1.000 and are set equal to an average estimated
proportion of the total reconstruction cost required to replace
each respective item. These values are obtained by aggregating
reconstruction cost data obtained by surveying builders, along with
costs of materials and equipment obtained from suppliers.
[0124] Once the CovExt factor has been determined in step 308, it
is applied to adjust the intermediate living area base
(LAB.sub.INT) to account for the coverage exclusions. That is, in a
step 312, the value LAB.sub.INT is multiplied by the factor CovExt
to obtain a living area base value LAB.
[0125] Where an A&A ballpark appraisal is carried out, the
procedure branches from the step 312 at step 316 to a step 320 in
FIG. 12B. In the ballpark A&A appraisal a report adjustment
value (RA) is added to the living area base value (LAB) to account
for special features that are not separately considered. In certain
embodiments, the report adjustment value (RA) is obtained in a step
320 by multiplying a fixed report adjustment value (RA.sub.BASE) by
an A&A quality of construction value (QC). RA.sub.BASE is
produced based on the estimated total cost to reconstruct a typical
building (as an interior unit) of average quality having the least
expensive special features commonly found in such a building. The
estimated cost to reconstruct such a building is obtained as
discussed herein above in connection with the methodology for
obtaining special features values. The average replacement costs
for all such least expensive special features commonly found in
such a typical building are summed. The ratio of the sum of such
average replacement costs to the estimated total cost to
reconstruct such typical buildings, is multiplied by the
per-unit-area cost to reconstruct such typical building in order to
obtain RA.sub.BASE.
[0126] The processor 22 selects the value QC from a corresponding
table maintained in database 30. In the A&A ballpark appraisal,
the types, grades and characteristics of the special features
included in the building being appraised are presumed based on the
typical types, grades and characteristics of special features
included in buildings having the same construction quality value
(CQ) and in the same geographic region (CQ is determined according
to the procedure of FIG. 5.). These typical special features for
each quality classification indicated by the value CQ, are
determined based on builder surveys. An adjustment ratio (QC) for
each region and quality classification indicated by the value CQ,
is produced by dividing (a) the sum of the average costs to replace
the special features found in a typical building within such
quality classification and region, to (b) the sum of the average
costs to replace the special features found in a typical building
within the average quality classification in such region. These QC
values are stored in database 30 indexed by the region and
construction quality value (CQ) for each respective quality
classification. The processor 22 obtains the appropriate value for
each appraisal based on the region and the value CQ determined in
the procedure of FIG. 5.
[0127] Correspondingly, in the ballpark A&A appraisal of such
embodiments, a sum of special features value (SUM SpF.sub.A&A)
is assigned a value of zero in a step 324. Then the adjusted living
area value (AAV.sub.i=L) is produced in a step 328 as the total of
the values LAB, SUM SpF.sub.A&A (equal to zero in the ballpark
appraisal) and RA.
[0128] Once the Produce AAV.sub.i=L routine has been completed, the
appraisal procedure is completed in step 92 of FIG. 3B to produce
the ballpark A&A total reconstruction cost appraisal value
RC.sub.T by totaling the products of each adjusted area value
(AAV.sub.i) multiplied by the size of its respective area
Sz.sub.i.
[0129] In a full A&A appraisal in accordance with certain
embodiments, the procedure corresponds to that for a ballpark
A&A appraisal, except that in step 316 of FIG. 12B, it branches
to a step 336 which assigns a value of zero to RA, since special
features are individually included in the full appraisal. In a step
336, the sum of interior special features routine of FIGS. 9A, 9B
and 9C is carried out. However, in place of the whole structure
AFireVal routine 248, the procedure for a full A&A appraisal
carries out a different A&A AFireVal routine in a step 340. In
step 340, a fireplace value is obtained by the processor 22 from a
table in the database 30 according to the construction quality for
the building (CQ) and the geographic region. This fireplace value
is then multiplied by the number of fireplaces present in the
building and divided by the size of the living area, to obtain the
value AFireVal. In all other respects the routine of FIGS. 9A, 9B
and 9C is the same for a full A&A appraisal as for a full whole
structure appraisal.
[0130] The present invention is readily adapted to conducting
reconstruction cost appraisals for various additional types of
structures, such as barns, boathouses, cabanas, caretaker's houses,
club houses, docks, gazebos, grain silos, greenhouses, guard
houses, children's playhouses, pool houses, equipment, tractor and
general purpose sheds, spring houses, and storage houses. Such
appraisals usually lend themselves to a simplified appraisal
procedure. Such a procedure is illustrated in FIG. 13.
[0131] In the procedure of FIG. 13, in a step 340 the user inputs
the parameters required for carrying out the appraisal. In certain
embodiments, the required data includes the geographic location of
the building, the type of structure involved (for example, gazebo,
equipment shed, etc.), the size of the building in area units, its
age, its quality, its type of construction, its primary exterior
type and primary roof covering.
[0132] In a step 344, a type factor is produced for the structure
based on its quality, type of construction and geographic location.
A construction-type factor is assigned based on classifications of
similarly expensive construction types, determined based on builder
surveys. For example, A-frame) log, modular wood frame and stick
construction types are assigned to one classification, while brick
veneer, steel framing and stone veneer types are assigned to a
second and brick masonry and stone masonry types are assigned to a
third. For each classification, the buildings are sub-classified
according to quality, ranging from basic/economic to opulent/museum
quality. Based on its classification and sub classification, the
building being appraised is assigned a type factor obtained from
the database 30 representing the ratio of the total replacement
cost for such a building to that of a building falling within an
average classification and sub-classification. The total
replacement cost values are based on the aggregated results of
total replacement cost estimates obtained from builder surveys,
examined for break points when graded according to construction
type and quality.
[0133] In a step 348, an adjusted price index is obtained for the
building by multiplying price-index data obtained from the database
30 based on the building's geographic location with the assigned
type factor. In a step 352, a primary exterior value (PriExt) and a
primary roof covering value (PriRfCov) are obtained from the
database 30 based on the quality of the building and its geographic
location, from the same table as used in a whole structures
appraisal as described herein above. Then the values PriExt and
PriRfCov are added to the product of the adjusted price index and a
structure factor obtained from the database 30 based on the type of
the structure (for example, gazebo, greenhouse, spring house, etc.)
in order to produce an adjusted area value. The structure factor is
based on the average total replacement costs for each type of
structure, obtained once again from builder surveys.
[0134] In a step 356, the adjusted area value is multiplied by an
adjusted age multiplier obtained in the same manner as the adjusted
age multiplier described in connection with FIG. 3A above, to
produce a price per unit area (PRI.sub.PUA). Lastly, in a step 360,
the value PRI.sub.PUA is multiplied by the size of the building in
area units (Sz) to produce an estimated total reconstruction cost
for the building.
[0135] In certain embodiments of each of the whole structure,
A&A and additional structure types appraisals, overall
reconstruction cost data, as well as labor and materials cost
values are adjusted from time to time based on price index data
from governmental sources, such as the United States Departments of
Labor and Commerce, Bureau of Labor and Statistics and Bureau of
Economic Analysis.
[0136] Although the invention has been described with reference to
certain advantageous embodiments, arrangements of elements or
steps, features and the like, these are not intended to exhaust or
exclude all or any possible embodiments, arrangements or features,
and indeed other modifications and variations will be ascertainable
to those of skill in the art.
* * * * *