Cost figures for a Morton Building/residene

Discussion in 'Urgent - Help Needed' started by Tombone, Apr 9, 2010.

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  1. Tombone

    Tombone New Member

    0
    Aug 6, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Missouri
    What cost figures would one use for a "Morton Building" being used as a residence? This is becoming more popular. People are building say 60' X 100' metal buildings and using half as home ( very nice inside) and the other half as garage, shop etc. Would one use mfg cost figures from Marshall & Swift or normal stick built? Any ideas?-THanks
     
  2. Ted Martin

    Ted Martin Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Kansas
    Detailed method, use the segregated costs from the M&S. Quick and dirty method, use the MFG costs.
     
  3. CANative

    CANative Elite Member

    25
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
  4. Tombone

    Tombone New Member

    0
    Aug 6, 2004
    Professional Status:
    Licensed Appraiser
    State:
    Missouri
    Thanks-I am actually looking at a review and the appraiser used this cost approach for value. His FMV is about $12,000 greater than the top sale. I understamd using the cost approach for new construction but not for a Morton building in the country on acreage. All of his sales are Morton buildings also on similar acreage.---
     
  5. Mike Kennedy

    Mike Kennedy Elite Member

    19
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    :leeann:purchase Appraisal with a contract supplied to the Appraiser?:unsure:
     
  6. Webbed Feet

    Webbed Feet Elite Member

    2
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    When is FMV used?

    His what? So the intended use involved the IRS huh?
     
  7. Ted Martin

    Ted Martin Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Kansas
    Sounds like you have identified the functional depreciation amount for this type of property which should have been deducted from the cost approach. I really hate these types of homes. They are always a pain and the owner/builder always think they are pure gold. If they were so great then you would see subdivisions of them. They meet the needs a a particular sub group of homeowners and are discounted by the rest.
     
  8. Terrel L. Shields

    Terrel L. Shields Elite Member

    43
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    It would not be unusual for the market value to be higher than the comps even if all Morton Buildings - amazing accomplishment to find multiple Morton buildings or Butler buildings, whatever. It would depend upon how 'fancy' they are. I know one that cost $250,000 - about 40' x 80'. Certainly it would be higher than a similar sized one that had less amenities, or smaller living area inside the shop...or the shop is uninsulated.
    So are you comparing oranges with oranges? or oranges with pears? Also age differences....and most importantly, if rural acreages, the underlying land value.

    If the land value is near or exceeds the value of the buildings, a cost approach might be the most applicable method of valuing such a building, using land comps plus estimating the building contribution.

    Likewise such structures normally do exhibit limited market appeal and thus an economic (external) obsolescence might be considered; or, if you prefer to consider the design a "flaw" then you can treat it as Functional obsolescence - an inadequate house or a superadequate barn...whatever.
     
  9. Restrain

    Restrain Elite Member

    0
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Morton buildings generally cost far more than the typical metalframe that are used for such combinations. They're usually heavy wood frame, more expensive to construct. Doesn't mean the ROI is more.

    Be sure you have the details on eve height, finish, etc. It can vary significantly.
     
  10. Terrel L. Shields

    Terrel L. Shields Elite Member

    43
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Here they cost about the same as light red iron. I see no special advantage over other construction types, and so you may have some instant obsolescence for having a little cupola on top of the barn...or someone that wants the "Morton" name..who knows
     
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