Section 3: Development of Index Numbers
Index Number Development Charts
Age Index: | AGE INDEX: |
---|---|
10 – New dwelling | 5 ‑ 21 to 25 Year old dwelling |
9 ‑ 1 to 5 Year old dwelling | 4 ‑ 26 to 30 Year old dwelling |
8 ‑ 6 to 10 Year old dwelling | 3 ‑ 31 to 35 Year old dwelling |
7 – 11 to 15 Year old dwelling | 2 ‑ 36 to 40 Year old dwelling |
6 – 16 to 20 Year old dwelling | 1 ‑ Over 40 Year old dwelling |
Dwelling Size By Living
Square Feet | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Quality | 400 | 600 | 800 | 900 | 1000 | 1100 | 1200 | 1300 | 1400 | 1500 | 1600 | 1700 | |||||||||||
Excellent | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | |||||||||||
Very Good | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | |||||||||||
Good | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | |||||||||||
Fair | 2 | 3 | 4 | 4 | 5 | 5 | 6 | 6 | 7 | 7 | 8 | 8 | |||||||||||
Poor | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||||||
Quality | 1800 | 1900 | 2000 | 2200 | 2400 | 2600 | 2800 | 3000 | 3200 | 3400 | 3600&Above | ||||||||||||
Excellent | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | ||||||||||||
Very Good | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | ||||||||||||
Good | 19 | 20 | 21 | 22 | 22 | 23 | 23 | 24 | 25 | 25 | 26 | ||||||||||||
Fair | 8 | 9 | 9 | 9 | 10 | 10 | 10 | 11 | 11 | 11 | 12 | ||||||||||||
Poor | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
(For the above Quality Index, use the number most representative
of dwelling quality and size).
Condition Index: | Yard Improvements Index: |
---|---|
5 – Excellent | 5 – Excellent |
4 – Very Good | 4 ‑ Very Good |
3 – Good | 3 – Good |
2 – Fair | 2 – Fair |
1 – Poor | 1 – Poor |
- | 0 – None |
Sum the individual indexes obtained to determine the RCI as
shown in the following example of a single-family residence, 15
years old, containing 1,175 living square feet, with good quality,
condition and yard improvements:
Age | Quality | Condition | Yard Improvements | RCI equals |
---|---|---|---|---|
7 + | 13 + | 3 + | 3 + | 26 |
The following is a general description of the categories making
up the RCI.
- Age Index: This index represents the actual dwelling age, not the effective age.
- Quality Index: This index represents design and construction, covering the broadest range of features affecting dwelling value. Features included in this category are:
- structure and foundation;
- plumbing fixtures and pipe;
- electrical fixtures and wiring;
- heating, ventilation, and air conditioning;
- roofing;
- flooring;
- interior and exterior wall finishes;
- garages;
- porches;
- fireplaces;
- swimming pools;
- other quality features;
- floor plan (privacy arrangement, traffic circulation, room sizes, light and ventilation);
- number of closets; and
- exterior design.
Factors for Quality Index
Use the “excellent” classification for a luxurious dwelling
with multiple baths, central heating and air conditioning, fireplace,
playroom, multi-car garage, swimming pool, and premium roof materials,
hardware and plumbing. This dwelling should be a one-of-a-kind design.
Generally, there will be no other housing having an identical design
and features. It should be built from unique architectural plans
and written specifications, be constructed of above-average materials
and workmanship, and exceed building codes. It should contain large
rooms such as a formal living room, dining room, large foyer, den
or family room, and other special purpose rooms with a floor plan
that permits direct access to most areas of the house without crossing
through other rooms.
Use the “very good” classification to describe a custom-built
dwelling with fewer luxurious features than an “excellent” dwelling.
It should be an individual design, but not necessarily “one-of-a-kind.”
It may be built from modified or designer plans that were contracted
by a specific buyer. Its materials and workmanship, windows, doors,
cabinets and vanities should be standard or above standard. It should
meet or exceed building codes, have a formal living room, foyer,
den or family room, above-average size rooms, and some special purpose
features.
Use the “good” classification to describe an average dwelling
with fewer luxurious features than a “very good” dwelling. It will
be of standard design, built for speculation or for a contract buyer from
“stock” or builder’s plans, and have standard materials and workmanship
that meet or exceed building codes. It may have variances in its
shape or rooflines to distinguish it from neighboring houses built
from the same plans. An attached garage, carport, enclosed breezeway,
porch, or patio is common. It may have a separate dining area, a
den or family room, a foyer, and some ornamentation. Its windows,
doors, cabinets, and interior trim may show some selectivity.
Use the “fair” classification to describe an economy dwelling.
It is generally of a plain design, box-shaped, seldom L-shaped,
with a plain roof and minimal overhang. It is usually built for
speculation from stock plans using modular and pre-assembled units.
It has no special purpose rooms (e.g., recreation, den, and pantry),
little or no ornamentation, factory assembled windows and doors, materials
and workmanship just meeting building codes, and low cost as the
primary consideration in construction. The dining area is usually
combined with the living-kitchen area. Features such as added rooms,
porches, or awnings do not change this classification. Older homes
without special features, modern fixtures, or insulation, as well
as dwellings in declining neighborhoods or Non-residential urban
areas are typically in this category.
A “poor” quality dwelling may or may not be DSS, and its design
or physical location may be undesirable for normal residential purposes.
Use this classification to describe dwellings with fewer features
and qualities than characteristic of a “fair” dwelling.
Condition Index
This index represents the dwelling’s physical appearance.
It covers a feature’s ability to perform its function regardless
of quality. For example, plumbing fixtures in a new dwelling may
be considered in very good condition but of low quality due to inferior
materials. The amount of maintenance performed to keep the dwelling
presentable, and its equipment in good working order, influences
the condition index.
Consider the following factors in determining the condition
index:
- Use the “excellent” classification for new and exceptionally well-maintained dwellings. The structure should have an outstanding appearance with no defects.
- Use the “very good” classification to describe dwellings reflecting some use and depreciation but whose appearance and state of fitness are above average. Its built-in appliances, utility, cooling, heating, and other systems should be without defects.
- Use the “good” classification to describe a dwelling that is clean and well maintained. Its appearance will generally reflect normal use and depreciation, but not unusual abuse or deferred maintenance. Its built-in appliances, utility, cooling, heating, and other systems should be fully operational. Defects, if any, should be minor and easily correctable.
- Use the “fair” classification to describe a dwelling that reflects some structural defects, a run-down appearance, and deferred maintenance. Its cooling, heating, electrical, and plumbing systems are functional, but old and in need of maintenance or replacement. The general fitness of this dwelling is less desirable than described in preceding classifications and it marginally qualifies as a DSS dwelling.
- Use the “poor” classification to describe a defective, run-down dwelling not classified as DSS, as described in DSS Standards
Yard Improvements Index
This index represents the appearance, fitness, and features
of the landscape around a dwelling. It includes lawns, flower beds,
shrubbery, trees, walks, drives, fences, and patios. Determine indexing in
this category based on how the property compares to the real estate
market as a whole, not just to properties in the immediate neighborhood.
Consider the following factors in determining the yard improvements
index:
- Use the “excellent” classification for yard improvements representative of professional planning, landscaping, and maintenance. These yards should include features such as underground sprinkler systems, special gardens and lighting, gazebos, fish ponds, fountains, custom fencing, special planters.
- Use the “very good” classification to describe yard improvements reflecting above-average landscaping and maintenance. Yards in this category may have some of the features noted for the “excellent” classification.
- Use the “good” classification to describe a yard with typical features that reflect recurring maintenance.
- Use the “fair” classification to describe yards that display few improvements, little landscaping, and mediocre care.
- Use the “poor” classification to describe yards that have very little landscaping and show substantial neglect.
- Use the “none” classification to describe yards showing no sign of enhancement or care.
In developing an index number, there will be instances when
a dwelling will have improvements atypical of dwellings being studied.
In these cases the supplement preparer should use his/her judgment
to keep a reasonable relationship between the displacement and comparable
dwellings. The index system cannot solve all comparison problems
that may arise and is intended as a guide to be supplemented by
experience. Explain any interpolation of index numbers used to describe
a dwelling on form
for comparable dwellings
and on form
for the
displacement dwelling.