Contributory value of screened patio.

[Zoe]

There are holes all through the depreciated cost method.

The biggest hole is I don't believe it cost $100K to replace. Put that in your pipe and smoke it. LOL

 

[Zoe]

OTOH, depreciated cost is recognized method in sales comparison approach to value.

I am the one putting my signature on line. I don't buy it costing 100K to replace.

That thang would have to be pretty awesome. Like people worth millions in Hollywood might do that.

 

[Zoe]

Probably be nothing for adjustment on Elonie or Tumpies place. LOL

 

[Tom D]

OTOH, depreciated cost is recognized method in sales comparison approach to value.
I am the one putting my signature on line. I don't buy it costing 100K to replace.

Just a thought, could you use the cost of a normal screened patio for the area, maybe a larger one. Then would depreciated cost work giving you the functional depreciation of being tooo big. The difference would be the over built aspect depreciation.

I know a lot of you people don't talk to anyone. But if this was a cash out refi i will be expecting some reaction to it. If the ltv was low i wouldn't worry about that adjustment. But, that's my business decision, as to avoiding a existential owner threat. And maybe nipping it in the bud, as they say.

 

[sputnam]

My first impression is owner is lying to you or they got ripped off BBBBAD.

Right... it's MARKET VALUE... it has nothing to do with what the property owner or the contractor who built has to say about cost. You have to get your cost data from the market.

Sometimes I'll see an appraisal report where the appraiser cites 'Appraiser Experience' as the source for the building cost data. It makes me grind my teeth.

 

[Tom D]

Sometimes I'll see an appraisal report where the appraiser cites 'Appraiser Experience' as the source for the building cost data. It makes me grind my teeth.

It also makes the state grind their teeth on you. In this post, the problem is unique and where do you find the data for your work file. Mostly what i read here, on this thread, is vagueness and generalities for answers to a very specific question. Market Value, ok. So what's needed in their work file, when there is no market data as stated.

 

[sputnam]

It also makes the state grind their teeth on you. In this post, the problem is unique and where do you find the data for your work file. Mostly what i read here, on this thread, is vagueness and generalities for answers to a very specific question. Market Value, ok. So what's needed in their work file, when there is no market data as stated.

In my experience.. there is always market data. The problem for most appraisers doing residential work is that the fee for the assignment and the time constraints imposed by the Client won't allow them to do the deep dive necessary to find it. That fact doesn't allow the appraiser to ignore the USPAP requirement to support.

 

[cdanj]

I am appraising a home in Ridgeland, MS that has a very large screened in patio area. The patio area is between the main home and the pool house, and the owner advises the cost of screening in this large area is aprox. $100,000. There are not many homes here that have this amenity, and I am wondering what some of you may allocate for this feature in areas where it is common. Is it a percentage of cost new?
Thanks for any help.
Cole Spencer

Dude!! It's called a Lanai.

102 Bridgewater Xing, Ridgeland, MS 39157 Has one. But looking at the pics it looks like a screened porch.​

Or look in other towns.... Or even call the Realtor and ask what they think it contributes to the value. Some of them know they're stuff.