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Short- and Long-lived items

Discussion in 'General Appraisal Discussion' started by cny real property, Jul 13, 2011.

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  1. cny real property

    cny real property New Member

    0
    Jan 12, 2011
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Dear appraisiers:

    Am appraising office property in urban setting, proposed hotel and mfg. plant; need support for determination of short- and long-lived building components segregated by individual type, economic life, etc. Can anyone suggest quick and reliable reference, well supported. Would you use Marshall for this?

    Thanks so much,
    cny real property
     
  2. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    135
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    No. They are attempting to segregate the components of the buildings to take a tax break for the shorter term items which they can depreciate on an accelerated basis. This is expert territory and typically done by engineers or architects working with valuation professionals....don't try this at home.
     
  3. cny real property

    cny real property New Member

    0
    Jan 12, 2011
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Thank you Terrel, nice of you to reply. The question does not relate to court nor for litigation. Just trying to find a reliable source from which to project economic life of such items. Thank you again.
     
  4. Restrain

    Restrain Elite Member

    7
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    M&S commercial book would have such items, but you would need to support your decision. Clearly, carpet would be a short-termed item, while the bone-structure would be a long-lived item.
     
  5. Elliott

    Elliott Elite Member

    15
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    I once sat down with some new builder cost breakdown and a 'build up' cost service and
    separated their costs into long and short lived items. They were close to 50% for each.
    As with all things associated with the CA, its a theory based on an assumption and it bears
    a limited relationship with the real market.
     
  6. farmguy

    farmguy Member

    0
    Jun 27, 2007
    Professional Status:
    Banking/Mortgage Industry
    State:
    Texas
    Where are you going to use it? Is the whole project proposed? In Cost Approach it won't matter whether you say the AC will last 13 years or 18 years. As proposed it is 100% good, from a physical long, short, or whatever.
     
  7. CANative

    CANative Elite Member

    62
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Proposed hotel and manufacturing plant? Doesn't this strike anyone as being somewhat incongruous uses?
     
  8. cny real property

    cny real property New Member

    0
    Jan 12, 2011
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Short- and long-lived building components - economic life estimation

    Thank you all for kindly responding. The three property types are different valuations, each contained within its respective cover. I am just doing a batch of reports for the same client, and this issue came up and needs to be addressed in all three assignment. Research of Marshall in conjunction with interviewing developers and/or owners of each type should be adequate based on the intended use but other ideas are greatly appreciated.

    Thank you to all.

    Sincerely,
    cny real property
     
  9. Pittsburgh Pete

    Pittsburgh Pete Elite Member

    25
    May 6, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Pennsylvania
    Marshall & Swift Cost Manual section 97--"Life Expectancy Guidelines."
     
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