Having trouble extracting depreciation in your market?

Having trouble extracting depreciation in your market?

In this example, the subject property is an older home in a suburban market. Assistance is needed extracting annual depreciation for use in the cost approach. Use of a GPT model in this case can provide a base case an appraiser can build upon, double-checking her spreadsheet model with the output of the GPT responses. The following information is in an Excel file:

ChatGPT Prompt:

In the attached file you will find a table with several sales in it. I need to extract the annual depreciation percentage for each sale. You can follow these steps:

To calculate the annual depreciation, we'll need to follow these steps:

  1. Calculate the total Improvement Value for each sale which is the Total Sales Price minus Site Value
  2. Calculate the total depreciation by taking the Reproduction Cost new and subtracting the total Improvement Value.
  3. Divide the total depreciation value by the total reproduction new to arrive at the total depreciation percentage.
  4. Take the total depreciation percentage and divide it by the effective age at time of sale to arrive at the annual depreciation percentage per year.

Provide the results in a table with the first column being the Sale Number and the second column being the Annual Depreciation Percentage. Make sure you show the Annual Depreciation Percentage as a percentage to two decimal points.

Model Output:

I have calculated the annual depreciation percentage for each sale. Here are the results for the first five sales:

These percentages are formatted to two decimal points as requested. If you need the results for all the sales, I can provide that as well.

https://chat.openai.com/share/f726da33-6c24-4be1-8bd7-13446859ab4f

#valuation #appraisal #appraisers #TheGenerativeShift #ChatGPT #workingsmarternotharder

Absolutely! ChatGPT and similar tools are game-changers when it comes to simplifying the extraction of depreciation from the market. As a tech startup for patent lawyers, we're always on the lookout for innovative solutions to streamline valuation processes. Excited to see how AI continues to transform the appraisal landscape!

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