This PR updates the valuation methodology for non-livable condominium units such as parking spaces, storage areas, and common areas.
Previously, the valuation methodology was:
Non-livable units were assigned a fixed value ($30K)
Livable units were assigned a predicted value from the model
All units (livable and non-livable) had their valued summed to get the building total value
Unit values were then apportioned back out by multiplying their percentage of ownership by the building total value
This method had two major downsides:
It relied on an arbitrary, fixed non-livable value that didn't vary by geography
The non-livable space values impacted the value of livable units by virtue of being included in the building total value
New Method
The new method replaces the old method. It has the following steps:
Livable units are assigned a predicted value from the model
Livable unit values are summed to get the livable unit total value
Non-livable units are assigned a value using their percent of ownership relative to the livable unit total value. The formula is bldg_total_livable_value * (pct_ownership / bldg_total_livable_pct_ownership)
This PR updates the valuation methodology for non-livable condominium units such as parking spaces, storage areas, and common areas.
Previously, the valuation methodology was:
This method had two major downsides:
New Method
The new method replaces the old method. It has the following steps:
bldg_total_livable_value * (pct_ownership / bldg_total_livable_pct_ownership)
Here is a worked example: condo demo 2.xlsx
The result is non-livable values that are proportionate to the value of the livable space and not dependent on an arbitrary fixed value.
Closes #25 and #8.