Value For Generators Wired Into The House

Discussion in 'General Appraisal Discussion' started by MARY JORDAN, Sep 13, 2004.

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  1. MARY JORDAN

    MARY JORDAN New Member

    0
    Mar 13, 2003
    Has anyone given a value to a home w/ a generator wired to the house or connected to the natural gas line? Ran across one that has large generator that runs the entire house that is hooked into the natural gas line and if that is damaged for some reason you can connect a propane tank to it.

    Anyone seen one and how much value if any do you put on it?
     
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    I'm moving this to the General Forum as answers might be available from other states.
     
  3. Randy Beigh

    Randy Beigh Senior Member

    0
    Jan 16, 2002
    Mary

    In 1999, our newspaper ran a story with a picture of a guy that was installing a $50,000 generator. The picture showed a crane lowering this thing down to its site. The owner was doing this because of Y2K. Guessing, he probably feels like an idiot. :lol:

    Unless your market could be shown to justify this or that anyone would pay for it, I would disclose its existence, but give them no addtional value.

    I am assuming the subject is also on the power grid. If not, there could be some financing issues.
     
  4. Farm Gal

    Farm Gal Elite Member

    0
    Jan 14, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Nebraska
    Fisrt off: Do they pay for the gas? Didja ask? :blink:

    SERIOUSLY. :angry: don't be laughing!

    Some properties with mineral rights have 'free gas'... with the result that they can meet ALL their power needs... from the 'free' gas.

    It has some definitive value in THAT case, tho proving it is a headache...

    Other wise any perceived value has more to do with the relative cost of the one type of energy over the other ... what does it cost them versus the average for the same house using 'traditional' energy?

    My Mother in Law used to run a gas AC unit... it was chepaer for many years. So did most of the major businesses in this area. We have it mothballed... in case one of two things occur:

    1. They strike gas on our land (possible - a company pays each year for the right to search and develop if found)
    2. Nat Gas once again becomes the less expensive choice for cooling.

    Otherwise that AC unit would have gone to the dump. But an AC unit is virtually 'unbreakable'... and gas generators come real close.

    Ice seldom disrupts useability of gas
     
  5. Travis McGee

    Travis McGee Senior Member

    0
    Sep 18, 2004
    I live in florida where it could be extremely valuable- but I guess the question is how much value in case of power outages? It is kind of an "oddball" improvment like a storage site or double size garage etc etc- useful indeed in emergencies but how much extra would someone pay? Maybe 1/3 the cost to install?
     
  6. Mountain Man

    Mountain Man Elite Member

    5
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    They are common in my area, but have never given them much value. An LP unit can be had for aroun $1,800-$3,000, depending on the size. I have a small back up generator on my house, and it only cost me $500 to get the panel box, and all wired in by a pro. Unless you had a situation like Lee Ann noted, with free natural gas and all the power you wanted, I'd wouldn't give it much value.
     
  7. Nancy Wyatt

    Nancy Wyatt Senior Member

    0
    Nov 21, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    My parents have one in the garage that can be used for the entire home. She does not even know when the power goes down till someone calls her. I think it was around 20K.

    I think they're cool. I would pay extra for a nice one. How much? Depends.
     
  8. Bobby Bucks

    Bobby Bucks Elite Member

    6
    Jan 27, 2002
    Professional Status:
    Real Estate Agent or Broker
    State:
    North Dakota
    I treat them like I would an elevator......... normally with a contributory value.......in some neighborhoods they’re not entirely uncommon and I can find sales with them although for the cost, they’re only 2-3 times what a fireplace typically is......... powered by natural gas, diesel or propane. I would make sure it’s not one that can be loaded into a truck in 5 minutes. I’ll bet there are more than a few in Hollywood....I have a relative in Dania and he has one.............Randy.......$50,000??????????? Was the guy’s last name Gates? :lol:
     
  9. Larry Lyke

    Larry Lyke Senior Member

    0
    Feb 2, 2002
    Mary --

    Those kind of things need to meet a market test of desirability. Some people with money just clutter their homes up with excess hoping that others will find it attractive. They don't always spend wisely. Nor do they necessarily consider it as part of their "investment."

    I did a $1,425,000 property last year that had a new $65,000 generator and a 400-foot heated paver driveway!! There's only about 3 others in the whole metro of a population of 4,000,000.

    I gave a little for the generator and nothing for the driveway. I explained the latter might sway the difference in a buyer's decision to choose this house. But that would be it. The neighborhood topped out at about $1,500,000.

    Never heard a peep from the LO or anybody.

    L- in MN
     
  10. Kate

    Kate Senior Member

    0
    Aug 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New Hampshire
    Funny you should ask about that.

    I just asked the same thing to my mentor.

    Just did a "compound"

    Huge generator like you explained. 10 foot wood fence surrounding the 1 acres lot.

    12 foot chain fence surrounding the wood fence with electrical fence attached.

    Dug out bunker under the basement with cots, canned goods, water, and GUNS. YAaaaa Hoooo. :cool:

    Iron bars on the windows (this is NOT the ghetto very nice neighborhood)

    Five camera surveillance system. With a monitor in ever room.

    The the most interesting.....an 8+ stall building filled with Mobil homes ( for survivors)

    The entire time I viewed this "compound" I was lectured on WW III. Guns every where. Basement filled with enough computers to run the FBI.

    This guy wants value for his "improvements" :rainfro: :rainfro:
     
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