Abstract:
An embodiment of the invention relates to grading real property, and more particularly, relates to the method and information product of a real property grading system. In one form, the invention relates to the grading of real property on a local and global level. In another form, the present invention relates to the certification of a local grade and global grade to a property based upon an unbiased team physically surveying the property and inputting the survey results into the method and system of the present invention. The grading is presented in a universally recognized symbol and/or alphabetic letter format. The real property grade is presented in a two part sequence, one part being a local grade and the other part being a global grade.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims the benefit of the provisional application (USPTO Application No. 62/084,198; EFS-ID Number 20798471) dated Nov. 25, 2014. 
     
    
     FEDERALLY SPONSORED RESEARCH 
       [0002]    None 
       SEQUENCE LISTING 
       [0003]    None 
       FIELD OF INVENTION 
       [0004]    An embodiment of the invention relates to grading real property, and more particularly, relates to the method and information product of a real property grading system. 
       BACKGROUND PRIOR ART 
       [0005]    Real estate or real property are the fields of this invention. One form of the invention lies in the application of an universally recognized grade to real property. Another embodiment relates to having real property certified by an unbiased and independent third party for the benefit of all. 
         [0006]    Real property is typically considered one of the most valuable assets of any individual, entity, and/or government. To compare one real property with other similar real properties, a seller, buyer or tenant will need to review a great deal of information such as but not limited to price, quality, type, function, location, size and many other real property information. Several examples of this comparison process will now be presented for providing background information. The presented examples in no way limit the amount of potential real property comparisons. 
         [0007]    One example of the current real property comparison process can be found in the search for a new property by a potential buyer. A buyer is tasked with reviewing several properties with either an agent or on their own. Only for this example, the buyer&#39;s criteria can be limited to specific size, type, function, quality, location, and price. While visiting the properties, the buyer will note specific differences between all of the compared properties which may not have been evident when reviewing the property listing. The buyer property review process has built-in inefficiencies by not clearly identifying property differences, such as but not limited to property conditions, property history, flooding, crime, and many more differences which cause the buyer a great deal of lost time. By utilizing a real property grading system, the buyer could have saved a great deal of time and effort by knowing the specific difference between compared properties. 
         [0008]    Another example of the current real property comparison process can be found in a seller listing a real property. A seller is tasked with reviewing several similar real properties in order to set the potential selling price. Not knowing the specifics for similar properties, the seller may not be fully aware of specific price affecting details thereby causing the seller to inefficiently set the asking price. By utilizing a real property grading system, the seller would have been provided with a more accurate view on market conditions thereby allowing the seller to set a more market related selling price. 
         [0009]    From these two and many more examples, a transparency problem in the real estate market has become evident. 
         [0010]    The real estate industry has attempted to correct the transparency problem in the following ways: 
         [0011]    1. A commercial building classification system by the International Building Owners and Managers Association (BOMA). 
         [0012]    Commercial buildings are classified by BOMA in the following classifications (direct quote from http://www.boma.org/research/Pages/building-class-definitions.aspx): 
       Class A 
       [0013]    Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence. 
       Class B 
       [0014]    Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price. 
       Class C 
       [0015]    Buildings competing for tenants requiring functional space at rents below the average for the area. 
         [0016]    The BOMA classification system is limited because:
       a. The BOMA classes are determined by an association of building owners and managers. The classification is in most cases not independently verified by an unbiased reviewer. The BOMA classifications also do not incorporate the input of other real estate industry members.   b. One of the main class distinctions between each other is rent paid in a specific building versus the immediate area&#39;s average. Rent should not be the sole determining factor in determining a specific class.   c. A scientific methodology is not applied to all properties to determine the class, which allows for a significant interpretation.   d. A universally applied standard is not permitted as the BOMA standards are primarily limited to large metropolitan areas mostly in the United States of America.   e. The BOMA classification system is strictly limited to commercial properties.       
 
         [0022]    2. Property Rating and Ranking System and Method (US patent No. US 2007/0067180 A1 published Mar. 22, 2007) 
         [0023]    The property rating system under US patent No. US 2007/0067180 A1 published Mar. 22, 2007 is limited by:
       a. Using a numerical system. A numerical system of rating and ranking is not easily understood by all parties since the numerical values need to be cross referenced with control numbers in order to understand the underlying value.   b. Rating of leased and or rental space is not considered. Many transactions within the real estate industry occur via leasing or renting. Leasing should be part of any universal property ranking system.   c. Using “Your Needs” (Item 24 on FIG. 2 of US patent No. US 2007/0067180 A1 published Mar. 22, 2007). This ranking system provides more emphasis on the end user&#39;s needs. By placing additional weight on the end user, the ranking system can not be considered equal for all parties.   d. Using “Money value” (Item 43 on FIG. 4a of US patent No. US 2007/0067180 A1 published Mar. 22, 2007). This ranking system provides more emphasis on the property&#39;s money value. By placing additional weight on the property&#39;s money value, the ranking system is dependent on unstable market valuations.   e. No differentiation between local and global. This ranking system does not differentiate between local and global ratings. A single rating is generated under US patent No. US 2007/0067180 A1 published Mar. 22, 2007, which does not express any specificity towards local and global real estate markets.       
 
         [0029]    To correct the limitations of current classifications systems, an unbiased universally acknowledged real property grading system is needed. 
       Advantages 
       [0030]    The advantages of a universal real property grading system would address one or more aspects of the prior art. The following advantages of a universal real property grading system would address: 
         [0031]    1. Buyers being unable to determine specific differences between potential properties. Having a review by an unbiased third party would provide the buyer with a grade on each of the potential properties. The buyer can then limit his or her property choices to the properties which fall within the buyer&#39;s target grade. 
         [0032]    2. Sellers having a better understanding of their property in comparison to other properties. Receiving an unbiased third party review of similar properties would provide Sellers with comparison information about their own property. A more efficient real property market could occur due to a greater understanding of all properties. 
         [0033]    3. International Building Owners and Managers Association (BOMA) classification issues. Subjectivity and interpretive limitations found in BOMA classes would not be present in a universal real property grading system since the property review process will not be limited to building owners and building managers. 
         [0034]    4. Unclear understanding of the numerical values within the property rating and ranking system (under US patent No. US 2007/0067180 A1 published Mar. 22, 2007). By providing a simplified alphabetical grade for each real property the general public should quickly understand a real property&#39;s grade. 
         [0035]    5. Removing the end user&#39;s needs within the property rating and ranking system (under US patent No. US 2007/0067180 A1 published Mar. 22, 2007). By removing the end user&#39;s input into a real property&#39;s rating, the grading system becomes more open to public definition. 
         [0036]    6. Removing the money value within the property rating and ranking system (under US patent No. US 2007/0067180 A1 published Mar. 22, 2007). By removing the money value input into a real property&#39;s rating, the grading system becomes less dependent on unstable market valuations. 
         [0037]    7. Providing a local and global real property grade. Each surveyed property will receive two real property grades: one for a local scale comparison, and the other for a global real property comparison. 
         [0038]    Thus the above listed advantages and many more aspects of the universal real property grading system can be found in the system&#39;s simplistic and unbiased nature. These and other advantages of one or more aspects will become apparent from a consideration of the ensuing description and accompanying drawings. 
       SUMMARY 
       [0039]    In order to provide the real property market with a tool to qualify certain properties as being “better than” others of similar quality, type, function, size and or value, the inventor realized a tool is needed. A universal real property grading system would provide humanity with an unbiased grading system for all real property. By providing people with a real property grading tool, transparency will arise in the real property industry thereby creating an efficient real property field. 
         [0040]    The grading of real property is similar to the action of rating an issued corporate or government bond. Before purchasing a bond an investor can review the bond&#39;s grade (from an independent review), which provides the investor with an understanding of possible risks and value in comparison to other similar bonds. The universal real property grading system would act in a similar manner by applying two grades to a real property, one being a local real property grade and the other being a global real property grade. The local real property grade would compare the property to similar properties within a close proximity. The global real property grade would compare the property to similar properties on a worldwide basis. 
         [0041]    One adaptation of the invention is a system of calculating a universally recognized real property grade. The method of calculation is based on setting a standard range of values which any specific property can achieve. The highest and lowest real property standard will be consistent on a local and global basis. Real property specific inputs will be based upon an industry wide agreement on requirements. 
         [0042]    Another adaptation of the present invention is a method of applying real property grades to a multitude of properties based on an alphabetical or universal symbol system. 
         [0043]    In essence, the invention is a third party verified and unbiased grading system for real property on a global and local basis. 
     
    
     
       BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS 
         [0044]    Having thus described an embodiment of the invention in general terms, reference will now be made to the accompanying drawings, which are not necessarily drawn to scale, and where in: 
           [0045]      FIG. 1  is a schematic block diagram of a system according to an example embodiment of the invention; 
           [0046]      FIG. 2  is a schematic block diagram of a system according to an example embodiment of the invention; 
           [0047]      FIG. 3  is a schematic block diagram of a system according to an example embodiment of the invention; 
           [0048]      FIG. 4  illustrates, in more detail, an example embodiment of the invention; 
           [0049]      FIG. 4A  illustrates, in more detail, an example embodiment of the invention; 
           [0050]      FIG. 5  is a schematic block diagram of a local grade system according to an example embodiment of the invention; 
           [0051]      FIG. 6  is a schematic block diagram of a global grade system according to an example embodiment of the invention; 
           [0052]      FIG. 7  is a schematic network diagram of a system according to an example embodiment of the invention; 
           [0053]      FIG. 8  is an illustration of a view of virtual information provided by an augmented reality application (under US patent No. US 2012/0075341 A1 published Mar. 29, 2012) of a system according to an example embodiment of the invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0054]    Some embodiments of the present invention will now be described more fully hereinafter with reference to the accompanying drawings, in which some, but not all embodiments of the invention are shown. Indeed, various embodiments of the invention may be embodied in many different forms and should not be construed as limited to the embodiments set forth herein. Like reference numerals refer to like elements throughout. As used herein, the terms “property”, “real estate” and similar terms may be used interchangeably to refer to real property in accordance with embodiments of the invention. Additionally, as used herein, the terms “grade”, and similar terms may be used interchangeably to refer to a real property grade in accordance with embodiments of the invention. 
         [0055]      FIG. 1 . is a schematic system diagram of in which an identified real property  102  is surveyed by an assessment team  104  who surveys the real property  106  to similar properties on a local and global level. Once the survey is completed a local and global real property grade is applied  108  and inserted into a database for future reference  110 . Identification of real property  102  includes, but is not limited to characteristics, size, location, construction type, and usage type. Surveying a property with an assessment team  104  includes, but is not limited to real property owners  208 , real property tenants  210 , architects and engineers  212  and  310 , property managers  214 , home builders  208 , home inspectors  314 , real estate brokers and agents  216  and  312 , and the general public  218  and  316 . After surveying the property the assessment team defines  106  the identified property&#39;s  102  results to other similar properties on a local and global level. The assessment team applies a global and local grade  108  to the property and inputs the property grade to a database for reference on other properties  110 . 
         [0056]      FIG. 2  is a schematic system diagram, showing more detail than  FIG. 1  of an example embodiment of the invention.  FIG. 2  is a system which may but is not limited to “other than residential” real property. A real property is first identified  202  by including, but not limited to characteristics, size, location, construction type, and usage type. Once the property is identified  202 ; property survey components and parameters are defined  204  for the assessment team. Property survey components will include, but is not limited to evaluation parameters similar to the items in  FIG. 4 ; aesthetics  406 , amenities  410 , affordability  414 , location  418 , maintenance  422 , marketability  426 , service  430 , systems  434 , sustainability  438 , and transportation  442 . After defining property survey components, a property review team is formed  206  of various real property professionals who may include but is not limited to real property owners  208 , real property tenants  210 , architects and engineers  212 , property managers  214 , real estate brokers and or agents  216 , and members of the general public  218 . The property assessment team then proceeds to survey the property  220  using the property components and parameters  204 . Upon completion of the surveys, the property assessment team  206  then compiles the survey results to determine the survey averages among the assessment team members  222 . After compiling the real property survey results  222 , the property assessment team compares the property to other properties on a global scale  224  and on a local scale  226 . Once the property comparisons are completed ( 224  and  226 ), an alphabetic or universal symbol grade is applied to the surveyed property both on a global scale and local scale  228 . The property assessment team then issues a certification on the property defining its real property grade on a global scale  230  and on a local scale  232 . 
         [0057]      FIG. 3  is another schematic system diagram, showing more detail than  FIG. 1  of an example embodiment of the invention.  FIG. 3  is a system which may but is not limited to “residential or other smaller” real property. A property is first identified  302  by including, but not limited to characteristics, size, location, construction type, and usage type. Once the property is identified  302 ; property survey components and parameters are defined  304  for the assessment team. Property survey components will include, but is not limited to evaluation parameters similar to the items in  FIG. 4 ; aesthetics  406 , amenities  410 , affordability  414 , location  418 , maintenance  422 , marketability  426 , service  430 , systems  434 , sustainability  438 , and transportation  442 . After defining property survey components, a property review team is formed  306  of various real property professionals who may include but is not limited to home builders  308 , architects and engineers  310 , real estate brokers and or agents  312 , home inspectors  314 , and members of the general public  316 . The property assessment team then proceeds to survey the property  318  using the property components and parameters  304 . Upon completion of the surveys, the property assessment team  306  then compiles the survey results to determine the survey averages among the assessment team members  320 . After compiling the property survey results  320 , the property assessment team compares the property to other properties on a global scale  322  and on a local scale  324 . Once the property comparisons are completed ( 322  and  324 ), an alphabetic or universal symbol grade is applied to the surveyed property both on a global scale and local scale  326 . The property assessment team then issues a certification on the property defining its real property grade on a global scale  328  and on a local scale  330 . 
         [0058]    Referring to  FIG. 4  which illustrates, in more detail, an example embodiment of the invention;  FIG. 4  is one of many possible evaluation parameters and or components of a real property assessment team survey. In order to compare real property a set of similar parameters and or survey components should be used from the real property field. The listed parameters and or components ( 406 ,  410 ,  414 ,  418 ,  422 ,  426 ,  430 ,  434 ,  438 ,  442 ) breaks down the survey into one of many possible comparison items. Aesthetics  406  relates to the real property&#39;s aesthetic value in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the aesthetic score and or grade  408  for the real property. Amenities  410  relates to the real property&#39;s amount of amenities in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the amenities score and or grade  412  for the real property. Affordability  414  relates to the real property&#39;s affordability in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the affordability score and or grade  416  for the real property. Location  418  relates to the real property&#39;s location in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the location score and or grade  420  for the real property. Maintenance  422  relates to the real property&#39;s maintenance in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the maintenance score and or grade  424  for the real property. Marketability  426  relates to the real property&#39;s marketability in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the marketability score and or grade  428  for the real property. Service  430  relates to the real property&#39;s serviceability in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the serviceability score and or grade  432  for the real property. Systems  434  relates to the real property&#39;s systems in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the systems score and or grade  436  for the real property. Sustainability  438  relates to the real property&#39;s sustainability in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the sustainability score and or grade  440  for the real property if used. Transportation  442  relates to the real property&#39;s transportation availability in relation to other similar real properties. During the real property survey ( 220  and  318 ), the real property assessment team member ( 206  and  306 ) determines the transportation score and or grade  444  for the real property if used. Once all survey parameters and or components are determined by the real property assessment team member ( 206  and  306 ) a total property score  446  is established by each survey member demonstrating one of many possible formulas  448 . The real property assessment team member&#39;s total property score  446  will become a part ( 506 ,  508 ,  510 ,  512 ,  514  and  606 ,  608 ,  610 ,  612 ,  614 ) of the total property survey score ( 516 ,  518 ,  616 ,  618 ) which assist in generating the local real property grade ( 520 ) and global real property grade ( 620 ). 
         [0059]    Referring to  FIG. 4A  which illustrates, in more detail, an example embodiment of the invention;  FIG. 4A  is one of many possible grading options of a real property assessment team survey. The listed grades ( 406 A,  412 A,  418 A,  424 A,  430 A,  436 A) breaks down the total property survey scores  518  and  618  into an upper limit  402 A and a lower limit  404 A. The total property survey scores  518  and  618  from the assessment team surveys are defined within the upper limit  402 A and the lower limit  404 A which relate to the real property grades ( 406 A,  412 A,  418 A,  424 A,  430 A,  436 A). To provide one of many possible grading examples we will demonstrate how the listed samples ( 406 A,  412 A,  418 A,  424 A,  430 A,  436 A) relate to each other. Grade “A”  406 A would be the top grade, when the total property survey score  518  and  618  equals to or falls within the upper and lower limits ( 408 A and  410 A). Grade “B”  412 A would be one grade lower than the top grade  406 A, when the total property survey score  518  and  618  equals to or falls within the upper and lower limits ( 414 A and  416 A). Grade “C”  418 A would be two grades lower than the top grade  406 A, when the total property survey score  518  and  618  equals to or falls within the upper and lower limits ( 420 A and  422 A). Grade “D”  424 A would be three grades lower than the top grade  406 A, when the total property survey score  518  and  618  equals to or falls within the upper and lower limits ( 426 A and  428 A). Grade “E”  430 A would be four grades lower than the top grade  406 A, when the total property survey score  518  and  618  equals to or falls within the upper and lower limits ( 432 A and  434 A). Grade “F”  436 A would be the lowest grade, when the total property survey score  518  and  618  equals to or falls within the upper and lower limits ( 438 A and  440 A). This example is one of many possible options for generating a real property grade  520  and  620  for both local real property grades  522  and global real property grades  622 . 
         [0060]      FIG. 5  is schematic block diagram of a local grade system according to an example embodiment of the invention. After completing the real property survey ( 220  and  318 ) the real property assessment team ( 206 ,  306 ,  502 , or  504 ) compiles the collected total property scores ( 502  and  504 ) of all team members. In an example of  FIG. 2 , one embodiment of the invention, would use a minimum of five team members ( 506 ,  508 ,  510 ,  512 , and  514 ). In an example of  FIG. 3 , one embodiment of the invention, would use a minimum of three team members ( 506 ,  508 , and  510 ). Upon compiling the real property assessment team survey results, the sum of all total property scores  448  is divided by the amount of team members  516  in order to determine the total real property survey score  518 . Once the total real property survey score is defined  518  a local real property grade  520  is generated when compared to the total property survey score upper limit  402 A and the lower limit  404 A, which is a portion of the total real property grade  522 . 
         [0061]      FIG. 6  is schematic block diagram of a global grade system according to an example embodiment of the invention. After completing the real property survey ( 220  and  318 ) the real property assessment team ( 206 ,  306 ,  602 , or  604 ) compiles the collected total property scores ( 602  and  604 ) of all team members. In an example of  FIG. 2 , one embodiment of the invention, would use a minimum of five team members ( 606 ,  608 ,  610 ,  612 , and  614 ). In an example of  FIG. 3 , one embodiment of the invention, would use a minimum of three team members ( 606 ,  608 , and  610 ). Upon compiling the real property assessment team survey results, the sum of all total property scores  448  is divided by the amount of team members  616  in order to determine the total real property survey score  618 . Once the total real property survey score is defined  618  a global real property grade  620  is generated when compared to the total property survey score upper limit  402 A and the lower limit  404 A, which is a portion of the total real property grade  622 . 
         [0062]    Referring to  FIG. 7  which is a schematic network diagram of a system according to an example embodiment of the invention.  FIG. 7  is one of many network options in implementing a globally accessed real property grading system. A globally recognized real property system  702  would consist of applying a real property grade  706  to all real property. Once real property grades ( 522  and  622 ) are generated by the real property assessment team ( 206  and  306 ) the information would be input into real property information network  716 . The real property information would be communicated via a network  716  to a multitude of inputs and outputs via network connectivity  704 . One of many examples of the real property grading system&#39;s inputs and outputs may include but is not limited to databases  708 , wearable technology  710 , laptop computers  712 , desktop computers  714 , tablets  716 , and smart phones  720 . The network  716  information will allow individuals to access the real property grading system via any computing device. 
         [0063]    One of many sample embodiments of the invention is presented in  FIG. 8  which builds upon the notion of augmented reality (under US patent No. US 2012/0075341 A1 published Mar. 29, 2012). In  FIG. 8 , a potential consumer of the real property grading system  806  could use their smartphone  804  or any other mobile computing device in order to access the real property grade  802  for any specific real property. One example of the invention could occur in a large metropolitan area where the consumer could see the real property grades for a multitude of real property types including but not limited to: agricultural  806 , commercial  808 , residential  810 , educational  812 , government  814 , industrial  816 , military  818 , parking and storage  820 , transport  824 , infrastructure  824 , religious  826 , vacant land  828 , and every other type of real property.