Title:CORRECTION BY FENG SHUI
 

CORRECTION BY FENG SHUI

 

by

Roberto Piol Puppio

Civil Engineer

Certified Real State and Commercial Appraiser

 

 

 

1.0          Justification of this Communication

Market Value Definitively the Feng Shui is fashionable; every day sees in newspapers but courses, but specialist, but consulting. In Internet, if you ask for to the popular Motor search Altavista (www.altavista.com) information to Feng shui, the same one will indicate to him that it found 59.196 page-Webs on the matter. But, why millenarian Chinese art comes to do rage in the West 3000 years later; and what relation has with the real estate estimate.

 

Although it seems lie, the Feng Shui is of the factors that the value of the buildings for 3.000 years has been fixing to the east; and still it continues it doing.

 

It was after World War II, of the Korean War and the War of Vietnam, that the West (specifically the coast the west of the United States) began to listen on the Feng Shui; and what but it called the attention to him to the North Americans: Eastern, without no cause (well-known then) were arranged to pay a Premium by some properties, but that its Market Value?. This disturbed to the intermediaries, and when they analyzed the reason of this, they discovered that those buildings they had a good Feng Shui.


 

Expert people in valuation like Orell C. Anderson (Prince - Waterhouse Cooper), Sheida Hodge (General Electric), Randall Bell (Appraisal Institute), Carol Cannon (Chasse Manhattan), John Hartman (RE/MAX); they have studied in depth the subject and they concluded that an increase or diminution of the value of a building exists depending of which the same one has a good or bad Feng Shui.

 

 

2.0          What is the Feng Shui?

The words Feng Shui mean wind and water. It is a mystical practice that mixes the old wisdom with the Chinese cultural traditions are conforming a knowledge that determines guidance for different situations.

 

The Chi is the central concept on which the Feng Shui is based. The Chi can be translated like breath, or life-force. The Chi is ephemeral, cosmic, is energy, is spirit and is matter. The Chi flows by all sides like lines of energy.

 

If these lines of energy? They flow smoothly, neither very fast nor very slow, we will speak of Good Chi? (In Chinese: Sheng Chi). Nevertheless if the same lines of energy? They flow very abruptly very fast or, then we spoke of a Bad Chi? (In Chinese: Shar Chi).

 

As well as they Good Chi? It is related to the harmony, the health, the prosperity and the happiness; to the Bad Chi? It is related to him to the hostility, the disease, the adversity and unhappiness.

 

This way we can define to the Feng Shui like a series of rules and principles to regulate the flow of the Chi in a building, in order to obtain the suitable balance between the forces of the nature.

 

The Feng Shui, in China practices at least from the Tang Dynasty (618 to the 907 A.C.), considers its founder him to the teacher Yang Yun-Sang (888 A.C.).

 

All the Eastern people do not create in the Feng Shui and some could until feeling insulted to assume it.

 

In the West, every day but people it believes in the Feng Shui, some have assumed it like new style of decoration? And others, as something fashionable.

 

 

The objective of this study is simply to obtain   corrective to the value, which circumscribes a new tendency in the preference by certain buildings.

 

 

3,0 Theoretical bases of the Method of Correction by Feng Shui

This work is based on the studies of the following experts, who have analyzed deeply the correlation between the Feng Shui and the Value of the buildings in the United States:

 

 

3,1 Randall Bell, MBA (Appraisal Institute): The Feng Shui, is classified within Class II (Prime by Motivations non Related to the Market) of the Bell Chart (Bell Chart) for the Valuation of Buildings under Detrimental Conditions.

 

 

3,2 Orson C. Anderson, MBA (Prince Waterhouse Cooper): A buyer that specially is motivated by the Feng Shui, would be arranged to pay by a building, until a 5% over its Market Value.

 

 

3,3 Sheida Hodge, MBA (Professional Training Worldwide): In the south of the State of California, 70% of the buyers of Eastern descendants, consider to the Feng Shui for the purchase of a property.

 

 

 

4,0 The Correction by Feng Shui is Additional and Independent of the Market

 

4,1 The Model of Detrimental Conditions: Professor Randall Bell, in its Real book State Damages: An Analysis of Detrimental Conditions (Damages to Buildings: An Analysis of Detrimental Conditions); it exposes a Model of Detrimental Conditions, where the first step to consider is the Unimpaired Value, that is the value of the building as if the Detrimental Condition did not exist. This Unimpaired Value reflected like Point To in the Graph. Once it happens or the Detrimental Condition is discovered, the value of the building falls until Point B , the value during this period is considered as but under the property and it is reflected like significant a discount in the probable sale price of the good (as it is). Some detrimental conditions require of an evaluation (technical, environmental or economic) in order to determine if the same one is recoverable, in case the evaluation were favorable, the model would reflect an increase until Point C . Once begun the repair of the building, the model will register another increase until arriving at Point D . The Point and will reflect the Value of the building once considered the costs repair. Point F reflects Risk of the Market or stigma, and it is represented by multiple options: The Optimist, almost indicates the return to his Unimpaired Value and the Pessimist indicates a value below Point E.


Cuadro de texto: Valor
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


4,2 The Bell Chart : Depending on the type of Detrimental Condition, they are generated different graphs, depending on the relevance or impact of the damage, evaluation, costs of repair, etc. The Table Bell, organizes all the Detrimental Conditions? In Ten (10) categories standard:

 

 

 

I.D.

CLASS

CONDITION

I

Without Detrimental Condition

Any C.P. without impact in the market

II

Premium Without Motivation of Mercado

Buyers specially motivated. Feng Shui. Redevelopment Projects

III

Conditions of Mercado

Economic conditions. Monetary devaluation. Economic recession

IV

Temporary Conditions

Demands and embargoes. Accidents. Crimes. Judicial closings

V

Imposed Conditions

Damage of the neighboring. Modification of the rents. Physical depreciation. Historical site

VI

Conditions of Construction (Superstructure)

Defects of construction. Violation of the constructive norms. Functional depreciation

VII

Conditions of Construction (Soil or Geotechnical)

Type of ground. Filtrations. Tunnels. Foundations badly designed

VIII

Environmental Conditions

Contamination of grounds and waters. Radiation. Contamination by asbestos

IX

Natural Conditions

Natural disasters. Floods. Earthquakes. Hurricanes. Landslides

X

Incurables Conditions

Any severe C.P. that causes total loss of the building

 

 

4,3 Classification of the Feng Shui within the Bell Chart : The phenomenon of the Feng Shui, is classified in the Bell Chart like Class II: Premium Without Motivation of Market . Its graphical representation is the following one:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


As you can be observed in both graphs, a Premium over the Unimpaired Value exists, that is the value fixed by the market; nevertheless in the primary graph it is observed that the Premium happens itself single by once, and after passing a time interval the Value of the building returns to the Market Value; whereas in the secondary graph the condition that the premium generated maintains on the life of the good.

 

 

4,3 Conclusion: The correction by Feng Shui, is additional and independent to the appreciated elements or concepts to determine the Market Value of a building.

 

 

5,0 Buildings with good Feng Shui can reach a Premium of 5% on the Value of Mercado

 

5.1 Introduction of Orell C. Anderson: Feng Shui (Literally it means “Wind and Fire”), in an old system Chinese of notions on the conjugation between the physical life and the atmosphere of I work using the concept of harmony. These notions, they can impact the value of a land or construction, either residence or commercial, in places where the preference of the buyers is motivated by this belief.

 

Premiums on the value of the market is paid by properties that have a good Feng Shui; or seen in another way: Properties with a bad Feng Shui can suffer a long one time of sales, to receive offers for a smaller price that the market or not to be considered by the buyers.

 

 

5.2 Those Observations of Orell C. Anderson: Those observations previous of Mr. Anderson, it is based on a great number of cases of study. Next, to illustrative way, the following one will be developed case:

 

 

Lot of Industrial Land:

 

The property in study, he/she belongs together to a rectangular land, with an area of 122,425 sq - ft, with in front of 3 streets in a commercial / industrial zone. The land lot was bought in the autumn of 1995 by 10.68 US $/ sq - ft and a Good Feng Shui (Hills to the north, slight slope to the south that it finishes in a lake).

 

Analyzing this transaction, perished to be that said property was sold with a “premium”, to the one to compare it with other similar properties; therefore, the one was developed following method to determine the value of the “supposed premium” that enjoys the land for the fact of having a “good” Feng Shui.

 

 


 

The series of index them without correcting he/she goes from 9.92 to 12.96 US $/ sq - ft. Those index them 1 and 4 they are considered superiors that the property object, in terms of their location and size. The referential 3 is considered but similar and the index them 2 and 5 they are considered lightly inferior.

 

The Market Value, once corrected is of 10.20 US $/ sq - ft (Market Value). When comparing this value with the price of sale of the land (10.68 US $/ sq - ft), it is deduced that the buyers paid 5.01% over the Market Value.

 

 

5.3 Conclusions of Orell C. Anderson: 1) a buyer would be willing to pay for a property with good Feng Shui, until a quantity of approximately Five percent (5%) about their Market Value. 2) a proprietor of property with bad Feng Shui, will have difficulty of selling it inside some years.

 

 


6.0 Implementation of the Methodology of Correction

 

6.1 Theoretical Basis: This methodology is based on those the aforementioned experts' observations and the same one is based in Three (3) basic foundations: a) The correction factor is additional and independent to the market value; b) The maximum correction for Feng Shui will be the Five percent (5%) of the market value, commonly calculated by the methods accepted in the appraisal engineering and c) Only they will be part of this correction, the uncorrectable elements that affect to the property.

 

 

6.2 Remedies of the Feng Shui: Procedures exist to alleviate or to hide the defects of Feng Shui, balancing the ying and yang] of a property, harmonizing the Five (5) elements, attracting the “Good Chi” or to be protected of the influence of the “Bad Chi.”

 

These remedies are those that commonly use the specialists in Feng Shui or geomantic to adapt the decoration of a property or set in function of their defects.

 

However, for this work some defects will be studied “uncorrectable” or situations that for their topographical, local or constructive characteristics they don't admit modifications (or remedies) and their presence or not, they are enough for that a property is classified as of a good or bad Feng Shui and it should be corrected by this concept.

 

 

6.3 Corrections for Feng Shui: For the field of the Rating Real state, in order to maintain the objectivity of the method and according to all the carried out investigations, the elements will be classified that generate a good or bad Feng Shui, and that therefore they require correction, of the following one it forms:

 

 


a)     Corrections to consider at Houses:

 

a-1)  Correction for Topography and Geographical Orientation

 

        a-1-1)       Topography

a-1-2)       Geographical orientation of the hose main entrance

                a-1-3)       Slope of the access road to the house

 

                a-2)  Correction for Shape and Location

 

                a-2-1)       it forms of the parcel or of the property

                a-2-2)       Location of the property inside the lot

 

                a-3)  Correction for bodies of water and streets

 

                a-3-1)       Water flows

                a-3-2)       Level of water bodies

                a-3-3)       Streets, roads, highways and freeways

 

 

b)     Corrections to consider at Buildings:

 

b-1)  Correction for Neighborhood and Height of the Buildings

 

        b-1-1)       The Homogeneity of the buildings height

                b-1-2)       Location of the buildings but high

b-1-3)       The Height (floor number) of the apartment or office

                               (Consideration special: Local in Lobby)

 


        b-2)  Correction for Shape and Location

 

                b-2-1)       Land shape or property shape

                b-2-2)       Location of the property inside the lot

 

        b-3)  Correction for bodies of water and streets

 

                b-3-1)       Current of Waters

                b-3-2)       Levels of water bodies

 

 

c)                Special cases: Absolute Defects :

 

c-1)  Garbage or sanitary filler View

c-2)  Cemetery View

c-3)  Died person in the property

 

 

7.0 Inspections Forms

 

In order to preserve the objectivity of the method, subsequently those are presented Inspections Forms for Correction for Feng Shui. Two are presented (2) Games of different Forms, one adapted for houses, the other one adapted for Buildings of apartments or offices, with a special condition for the Commercial Store in the building lobby.

 

 

7.1 General characteristics: It is very difficult to reduce to figures a “millennial art”, where they combine religious elements, physical observations, statistic, superstitions and many types of subjectivities and adaptations in the time and in the space.

 

In these Inspections Forms, of easy understanding, punctuation will be generated from 0 to 3 for each correction element to analyze.

 

 

7.2 sources: Each element to consider has a “Weigh” inside their correction. This “Relative Weigh”, was dear based on the importance that authors, press articles and Places consulted Web grant to the same one.

 

The main characteristic of the elements here selected to calculate the Correction for Feng Shui, consists in that almost coincide all the in them writers and analyzed specialists.

 

In the texts studied and Internet is approached varied topics, but mainly those related to the decoration and disposition of the furniture in a house or office; leaving almost completely disregarded to the correlation that exists between the Value of a Property and their Feng Shui.

 

 

7.3 obtaining of the Result: The Sum of the different punctuations times their corresponding Specific Weighs, will be defined as “SUM.”

 

The Market Value of the property, properly commonly calculated by the Appraisal methodology accepted and calculated in an independent way: Will be defined as Vm.

 

PFS is defined to the “Premium for Feng Shui”, and it will be calculated according to the following relationship:

 


 

 

And it represents the “premium” that believes a property that Good Feng Shui.

 

Therefore the Value of the Property (Vi), will come defined for:

 


 

 

8.0 Instructions and Comments to the Inspections Forms

They are been able to subdivide the Inspections Forms in Four Groups:

 

 

 

1º) Defects of Wrong Premonition (Bad Omen): It corresponds to the identified Inspection Form as: “CORRECTION FOR ABSOLUTE DEFECTS”; if it is presented in the property some of the cases that there you they reflect (Garbage or sanitary fill view. Cemetery view or some Person deceased inside the property) correction doesn't exist for Feng Shui and will not exist the Premium about the Value of the Market of the property.

 

 

2º) Correction for Feng Shui to Houses: They have grouped for the calculation of the PFS for houses, as well as other types of isolated properties or contained, preferably in suburban areas, or low density residential developments where there aren't accumulate buildings, the following Inspection Forms:

 

2-A) CORRECTION FOR TOPOGRAPHY AND GEOGRAPHICAL ORIENTATION: Here it is to determine if the geographical factors as they are the topography, orientation and slope they alter the flow of the Chi in the property. It has been to reduce to the minimum those observations for this concept in order to minimize the subjectivity to the moment of the inspection.

 

 


2-B) CORRECTION FOR SHAPE OF THE PROPERTY AND LOCATION IN THE LOT: On the form and location of the property, a considerable quantity of bibliography exists, here it was of defining two important concepts: The properties with regular and symmetrical shape, they have better Chi that the irregular ones; and the position of the property on the lot it optimizes the flow of the Chi when the house is centered (in theory the back yard should be lightly bigger to the front yard); and it minimizes when the displaced house being (embedded to some boundary). In virtue of the quantity of locations and possible shapes, it registers blank spaces so that the appraiser can consider these intermediate cases.

 

 

2-C) CORRECTION FOR WATER BODIES AND STREETS, ROADS, AVENUES OR HIGHWAYS: The good one or bad Chi is believed according to the flow of the same one through a property. The rivers, streams, lakes, sea; generates “matter flows” that will affect the Chi. in the same way the automobiles and people also generate a flow when moving for streets, roads, highways, avenues, etc.

 

In this Inspection Forms, is reflected the quality the water (clean or unsanitary water); the level of the water bodies with regard to the property; and especially the address of the flow of vehicles in the intersections.

 

 

3º Correction for Feng Shui of Apartments, and Offices Buildings: For the calculation of the PFS of a building (and for extension to those apartments or offices), they are used the same ones basically Inspection Forms, however the Form “CORRECTION FOR TOPOGRAPHY AND GEOGRAPHICAL ORIENTATION” it will be substituted by the Inspection Forms “CORRECTION BY VECIDARIO (I)” and “CORRECTION FOR NEIGHBORHOOD (II)”. Likewise, the Inspection Form “CORRECTION FOR WATER BODIES AND STREETS, ROADS, AVENUES OR HIGHWAYS” will be modifying.

 

3-A) CORRECTION FOR NEIGHBORHOOD (I): In this Inspection Form, it will be considered the homogeneity of the Height of the Building Object of the Rating with regard to the neighbors, of way that a homogeneous neighborhood facilitates the flow of the Chi and therefore very low or very high buildings with regard to the surrounding ones will bring a bad Feng Shui to the property.

 

A similar reasoning to the one described in the Inspection Form “CORRECTION BY TOPOGRAPHY” for houses, it resides in the fact that neighboring properties exist but high or but first floor that the building in study to the front or in their later part (to the main entrance), being an indicative one a wrong or good Feng Shui.

 

 

3-B) CORRECTION FOR NEIGHBORHOOD (II): This Inspection Form is separated from the previous one, because it brings a new concept with regard to the Commercial Store. In first place is studied the current of the flow of the Chi in a building, being this bigger while but high is the apartment or office. However this it is not applicable to the Commercial Store in the building lobby.

 

In theory for the case of the Commercial Store, it is looked for that the same ones you find inside intersections that guarantee flows of Chi from varied points to that It converge in the store. But it should also be avoided that the entrance of the commercial establishment it is on-line straight line with a street or sidewalk. For these cases the best Feng Shui will correspond to a local in corner with entrance in angle that is not aligned with any street or sidewalk.

 

 


4º) Forms of Calculation: Once made the inspection, certain the Value of the Market and to have stuffed each Inspection Form carefully according to the property type, you will proceed to calculate the Premium for Feng Shui (PFS) and the Corrected Value of the Property (Vi), by means of one of Two (2) Inspection Forms (one corresponding to Houses and the other one corresponding to Buildings).

 

 

9.0 Conclusions and Suggestions

 In this work, it has been wanted to show that the Value of a Property not alone it depends on their physical characteristics, location and other variables appraisable or observably; but rather that Value will also depend on others imponderable facts that oscillate from the own personal pleasure until the traditions cultural of a population.

 

The case of Feng Shui is very special, first for its millennial tradition and later because It’s in fashion in occident and every day there is but and but followers for this art.

 

In fact, it is very little Feng Shui that has been in this work but as impartial as possible, in order to guarantee the objectivity in the application of the method.

 

A lot of people it looks for in the Feng Shui something that doesn't mention you in this work: to Achieve a set pleasant. But in my approach, the value of a property dedicated to that a human being passes most of the day (it is house or business), it should be directly proportional to the “comfort” that can offer; and that is also it leaves of the oriental philosophy.

 

They are had only studied the cases that are not lent to doubts or confusions or subjectivities to the moment of the inspection. But this alone it is a part tiny of the techniques of Feng Shui.

 

 

Caracas, July 25th, 2000.

 

 

Roberto Piol Puppio

Civil Engineer

Real State and Commercial Certified Appraiser

e-mail: rpiol@yahoo.com

Phone. (58) (212) 541.34.21 / (58) (0416) 625.94.31

Address: Sociedad to Traposos Pasaje Zingg Ofc. 245. Caracas.

 


 

 

 

 

 

Bibliography:

 

 

 

ALEXANDER, Christopher: The structure of the environment. 1980. Tusquet.

 

BELL, Randall: Real State Damages. 1999. Appraisal Institute.

 

EITEL, ERNEST J.: FENG SHUI: The Science of Sacred Landscape in Old China. 1984. Synergic Press.

 

GROVES, DEERHAM: FENG SHUI and Western Buildings. 1991. Tynron Press.

 

HODGE, SHEIDA: FENG SHUI TO Guide for Real Increased State Comes out to they Seized. 1988. Professional Trade World Wide.

 

LIP, EVELYN: FENG SHUI: TO LAYMAN´S Guide to Chinese Geomancy. 1987. Heian International.

 

SPEAR, WILLIAM: FENG SHUI. 1996. Edicione Robinbook.

 

TOO, Lillian: The minuscule book of the one Feng Shui. 1998. Konemann Editors.

 

WALTERS, DERECK: FENG SHUI: The Chinese Art of Designing to Harmonious Environment. 1988. Simon & Schuster.

 

 

 

Internet:

 

 

www.fengshui-association.org : Association of Feng Shui of the Canada

 

www.gecities.com/fengshui_xilu : Association of Feng Shui of Holland

 

www.amfengshui.com : Association of Feng Shui of the United States

 

www.fengshuisociety.org.uk : Association of Feng Shui of the United Kingdom

 

www.fengshui88.nz : Association of Feng Shui of New Zealand

 

www.queen-fengshui.com : 3P Feng Shui Studio (expert Geomantic of Hong Kong)

 

www.realfengshui.com : Real State Feng Shui (Real state North American)

 

www.fengshui.com.au : Spread specialized in Feng Shui (Austria)

 

www.fegshuisolutions.net : Geomente

 

www.wofs.com : Spread specialized in Feng Shui

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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