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Effective Age

Discussion in 'General Appraisal Discussion' started by onoappraisal, Nov 7, 2009.

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  1. onoappraisal

    onoappraisal New Member

    0
    Nov 13, 2007
    Professional Status:
    Appraiser Trainee
    State:
    Maryland
    The Property Built 1947 In An Average Condition, How Did You Determined The Effective Age Of The Property?

    Ono
     
  2. Webbed Feet

    Webbed Feet Elite Member

    20
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    By using proper appraisal methodology.

    And this part of the forum is for the public to ask questions, not appraiser trainees to post their questions in.
     
  3. OminousRun

    OminousRun Member

    0
    Oct 6, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    First day on the job? Don't you have a supervisor?

    This is probably the first thing I talked to my trainees about when I took them on their first field inspections.
     
  4. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    241
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    A serious trainee should buy a very good text book and study it. THe Appraisal of Real Estate; Basic Real Estate, etc. You can find a good one on Amazon.com and buy used at a discount.

    There are examples there. Basically, you need to find similar comparables and use those techniques to estimate the effective age of the comparables, then apply that EA to the subject property.
    http://ideas.repec.org/a/jre/issued/v5n11990p41-52.html
     
  5. CANative

    CANative Elite Member

    122
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Ono... If you want to continue to appraise real estate you really must go to www.appraisalinstitute.org and order The Appraisal of Real Estate, 13th Edition. It's only about $60 and is by far the best investment you can make in furthering your new career. Do it now and pay a rush fee for shipping.

    Effective age is the age indicated by the condition and utility of a structure and is BASED ON AN APPRAISER'S JUDGMENT AND INTERPRETATION OF MARKET PERCEPTIONS. It's an opinion. It's the actual age less the age taken off by facelifting, structural reconstruction, removal of functional inadequacies, modernization of equipment, etc. It is an age which reflects a true remaining life for the property taking into account the typical life expectancy of buildings or equipment of its class and its usage.

    Determination of EA on older structures may best be calculated by establishing a remaining life which, subtracted from a typical life expectancy, will result in an appropriate effective age with which to work. Effective age can fluctuate year by year or remain somewhat stable in the absense of any major renewals or excessive deterioration.

    IMO, don't use EA as source for an adjustment in the condition line of the sales comparison.
     
  6. Happy Val

    Happy Val Sophomore Member

    0
    Oct 30, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Oregon
    Seriously guys, lets have a little bit of compassion for people who really do have an interest in getting better. I've been a reader of this forum for years, but you would not know if from my number of post. The first 2 answers of this simple post is exactly why. We've all been there at one point. I think Greg Boyd gave a good description... without the abuse.
     
  7. Mike Kennedy

    Mike Kennedy Elite Member

    59
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Val - Answer 1 was not abusive but instructive. OP had posted in "Ask an Appraiser" which is for NON-Appraisers. This thread was moved accordingly per Moderator procedures. Answer 2, while perhaps more direct than tactful, was not abusive and correctly steered the OP to his Supervisory Appraiser. :icon_idea:
     
  8. Happy Val

    Happy Val Sophomore Member

    0
    Oct 30, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Oregon
    Be that as it may, still not very helpful to the original question. There is nothing wrong with sharing the "wisdom". If a trainee is brave enough to ask a question on this forum, good for them. At least they are asking a knowlegable group (well most of the time).
     
  9. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    165
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan

    Val,

    I agree with you, sometimes it would be nice to have a more friendly forum. We were all there once.
     
  10. Happy Val

    Happy Val Sophomore Member

    0
    Oct 30, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Oregon
    Ono~

    It's kind of like humans. If you have an 80 year old guy that drinks, smokes, doesn't take care of himself and then another the same age who never drinks, smokes, and runs marathons, the effective age will greatly differ from each other. Houses can sit and never get new mechanics or cosmetics or they can be renovated and well maintained. It is an estimate, just like the value, but it is based on experience and your market. Experience will teach you, and a good mentor, on how to estimate the difference. This form is a good source. Plug in "effective age" in the search engine and read up on past threads. The book Greg Boyd posted is a great source too. Good luck.
     
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