Narrative1 is formatted to work with the Marshall & Swift Cost Service. However, you do not need to rely on Marshall & Swift cost calculations and can adapt the tables below to suit your needs.
Cost and depreciation calculations are broken into the following sections:
- Cost Source
- Building and Site Improvements
- Soft Costs
- Total Costs
- Depreciation
- Land Value
There are three total Cost sections dedicated to cost calculations; all three sections are entirely identical, and the information below applies to each section.
Marshall and Swift - Cost Source
The initial section can be used to indicate if information from Marshall and Swift is being used in the appraisal. Enter 1 for each Multiplier if it is not being used.
If you do not wish to use Marshall and Swift cost calculations, you can click the Cost Source cell and select from a new drop-down entry. You can use the List function to change the existing options in the list; this action simply removes the Marshall & Swift title from the table row header.
Building and Site Improvements
In the first column, enter a Building Cost Component. Next select or manually enter the Unit Type for the cost component (Sq. Ft., Lump Sum, etc.) from the drop-down field. Finally, enter a Cost and Quantity for the item. Narrative1 will then calculate the component cost.
To add more Items, simply click the Toggle Display button located to the right of the table. ClickToggle Display again when you have finished adding items.
Site Improvement calculation follows the same procedure as Building Improvements.
Soft Costs
The initial Soft Cost categories (Engineering, Architectural, Permit & Legal, Leasing) are all modifiable; simply click into a cell and change the contents to match your needs.
The Percent Type cells adjacent from the first two Soft Costs are drop-downs, where you may choose between the pre-defined options, manually enter your own, or leverage the List Manager to change them outright.
Total Costs
This section combines the building and site costs with a line for Developer's Profit, which can be re-labeled as Entrepreneurial Profit, Builder's Profit, etc., via the drop-down menu or manual entry efforts.
Depreciation
Narrative1 will automatically allocate the building and site costs for physical depreciation. Narrative1 uses a basic physical age-life method to estimate physical depreciation; simply enter the Effective Age and Physical Life of the component. Functional and External Obsolescence must be manually entered and are calculated based on building improvement costs. This excludes site costs, but includes profit.
Additional Cost Sections
The totals for the 2nd and 3rd cost sections will be populated in the corresponding sections as you go ahead and fill out those sections.
Both the 2nd and 3rd sections will not automatically populate in your appraisal report once you merge. Use the Paste Text and Map Fields and Tables function to import those sections.
Land Value
This section is for the Land Value and associated land value items that may warrant inclusion. You can edit the Land Value and Other cells to help customize the table to suit your needs and edit the actual value amounts.
